<PAGE> 1
[PHOTO]
OPPENHEIMER BOND FUND FOR GROWTH
Annual Report December 31, 1996
"We want our
money to work
hard and
grow, but we
also need
some protection
against risk."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT THE GROWTH POTENTIAL ASSOCIATED WITH STOCKS,
PLUS THE INCOME AND DOWNSIDE PROTECTION OFFERED BY BONDS.
NEWS
STANDARDIZED YIELDS
For the 30 Days Ended 12/31/96:(3)
Class A
4.63%
Class B
4.12%
Class C
4.14%
Class M
4.25%
THE FUND'S CLASS M SHARES WERE RANKED **** AMONG 1,826 (3-YEAR), 1,058 (5-YEAR)
AND 598 (10-YEAR) DOMESTIC EQUITY FUNDS FOR THE COMBINED 3-, 5- AND 10-YEAR
PERIODS ENDED 12/31/96 BY MORNINGSTAR MUTUAL FUNDS.(4)
HOW YOUR FUND IS MANAGED
Oppenheimer Bond Fund for Growth seeks a high level of total return from a
portfolio comprised mostly of convertible fixed income securities. By focusing
on convertible securities, which share some of the advantages of both bonds and
stocks, the Fund pursues total return, coupled with a reduced level of
volatility.
PERFORMANCE
Total returns for the 12 months ended 12/31/96 for Class A, B and M shares were
10.13%, 9.28%, and 9.58%, respectively, without deducting sales charges.
Cumulative total return for Class C shares since inception on 3/11/96 was
7.74%, without deducting sales charges. (1)
For Class A shares, average annual total returns for the 1-year period
ended 12/31/96 and since inception on 5/1/95 were 3.79% and 11.52%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 5/1/95 were 4.28% and 12.55%,
respectively. For Class C shares, cumulative total return since inception on
3/11/96 was 6.74%. For Class M shares, average annual total returns for the 1-,
5- and 10- year periods ended 12/31/96 were 6.02%, 16.01% and 10.58%,
respectively.(2)
OUTLOOK
"We are confident about the outlook for the Fund. Because Oppenheimer Bond Fund
for Growth may benefit from both the stock and bond markets, the Fund has the
potential to perform well over many different market cycles."
Mike Rosen, Portfolio Manager
December 31, 1996
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 THE 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. For more
complete information, please review the prospectus carefully before you invest.
Until 1/4/96, the Fund had a different investment adviser. However, the prior
portfolio manager is now employed by the current adviser, OppenheimerFunds,
Inc.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance 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 4% (since inception). Class C returns include the 1% contingent
deferred sales charge. Class M returns include the current maximum initial
sales charge of 3.25%. An explanation of the different performance calculations
is in the Fund's prospectus. Class B and C shares are subject to an annual
0.75% asset-based sales charge and Class M shares are subject to an annual
0.50% asset-based sales charge.
3. Standardized yield is based on net investment income calculated for the
30-day period ended 12/31/96. Falling net asset values will tend to
artificially raise yields.
4. Source: Morningstar Mutual Funds, 12/31/96. Morningstar rankings are based
on risk-adjusted investment return, after considering sales charges and
expenses. Investment return measures a fund's (or class's) 3-, 5- and 10-year
(depending on the inception of the class or fund) average annual total returns
in excess of 90-day U.S. Treasury bill returns. Risk measures a fund's (or
class's) performance below 90-day U.S. Treasury bill returns. Risk and returns
are combined to produce star rankings, reflecting performance relative to the
average fund in a fund's category. The top 10% of funds in each investment
class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the
next 22.5%, 2 stars, and the bottom 10%, 1 star. The 4-star current ranking is
a weighted average of the 3-, 5- and 10-year rankings for the Fund's Class M
shares, which were 3, 5 and 3 stars, weighted 20%/30%/50%, respectively. The
1-year star ranking is 2 stars, but is not included in Morningstar's overall
ranking calculations. There were 2,959 funds ranked in the 1-year period.
Rankings are subject to change monthly. The Fund's Class A, B, C and M shares
have the same investment portfolio but different expenses.
2 Oppenheimer Bond Fund for Growth
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Bond Fund for Growth
DEAR SHAREHOLDER,
With nearly continuous uncertainty surrounding the growth of the economy, 1996
was a year marked by great activity in the stock market and volatility in the
bond market. For investors seeking a comfortable middle ground--total return
with lower volatility--convertible securities stood out as an attractive
investment option.
Convertibles combine the favorable characteristics of both equity and
fixed income securities, allowing investors an opportunity to participate in
the appreciation of stocks, along with the regular income of bonds and similar
investments. At the same time, convertibles are more conservative than stocks,
offering less downside risk. And, because they can be converted into stocks,
convertibles tend to suffer less than other fixed income securities in a poor
bond market.
So, what events last year caused investors to seek refuge in
convertible bonds? Over the year, the stock market moved higher and higher,
reporting tremendous growth. But the cost of this growth was increased
volatility, which peaked with a significant, but short-term, decline during the
summer. What followed was a rebound and a subsequent spiral upward, propelled
largely by investors' eager anticipation of a continued healthy economy. Though
many investors cheered as the market rose, others were wary of the new,
seemingly "inflated" valuations.
The bond market also was volatile. Investors' fears of rising interest
rates during the first nine months of the year fueled a decline in bond prices
and forced yields to rise. Bonds, in fact, did not begin to regain their appeal
until the fourth quarter. At that point, reports indicated that long-term
interest rates were down to their lowest level since April, and leading
indicators showed that, although still sound, the economy had slowed and
inflation remained low. However, most of 1996 was a difficult environment for
fixed income securities.
Through all the market's ups and downs this past year, the outlook for
convertible securities remains very favorable. Oppenheimer Bond Fund for
Growth is designed to take advantage of opportunities in many different
economic environments, including lower interest rates or stock market advances,
and even stock market declines. Therefore, as an investor in the Fund, you can
share in the potential growth of a bull market, while seeking income and
stability from securities that are less sensitive to interest rate
fluctuations. And you can also benefit from the expertise of professional
managers who are continually evaluating strategies for capturing the best
results of both stocks and bonds.
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. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
January 22, 1997
3 Oppenheimer Bond Fund for Growth
<PAGE> 4
Q + A
Q WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
[PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
In the midst of last year's record-setting stock market and somewhat difficult
bond market, Oppenheimer Bond Fund for Growth performed well. The Fund took a
solid position in the middle of both extremes. Our performance was right in
line with expectation, even capturing a portion of the rapid growth of the
stock market.
[PHOTO]
WHAT INVESTMENTS MADE A POSITIVE CONTRIBUTION TO PERFORMANCE?
One of the best-performing sectors for the Fund this year was financial
services. Banking, in particular, stood apart from the crowd as a very
competitive, profitable industry. Many banks began using applied technologies
to increase efficiency, enabling them to offer better services at lower costs.
We also saw an explosion in the number of investment products banks began
offering. Clearly, the best performers reduced their costs while increasing
productivity.(1)
[PHOTO]
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS WELL AS EXPECTED?
Our holdings in the retail sector did not meet our expectations. As good
economic news about low unemployment, robust corporate earnings and stable
interest rates spread, retail growth boomed. But, the swell in "superstores"
actually increased competition more than anticipated. And expansion in this
industry has grown much faster than the consumer's ability to spend. For these
reasons, we reduced our exposure in retail to the lowest level in many years.
Another area that under-performed due to too much competition was the
telecommunications industry, including cable. Last year's deregulation
1. The Fund's portfolio is subject to change. The Fund is a non-diversified
investment company.
4 Oppenheimer Bond Fund for Growth
<PAGE> 5
FACING PAGE
Top left: Mike Rosen, Portfolio Manager
Top right: Ted Everett, Member
of Equity Investments Team
THIS PAGE
Top:Robert Doll, Executive VP,
Director of Equity Investments,
and Richard Rubinstein, Member
of Equity Investments Team
Bottom: Mike Rosen
A ONE OF THE BEST-PERFORMING SECTORS WAS FINANCIAL SERVICES.
of the sector opened the floodgates for new businesses. But, until the chaos
settles, the industry will be characterized by considerable uncertainty and
many heated races for market share. However, we believe that when the strongest
companies emerge, this industry will offer numerous attractive investment
opportunities.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We've kept our investment strategy consistent over the last decade. For the
past ten years, we've used an opportunistic approach--capitalizing on
situations where reward outweighs risk. And during the past year, in
particular, the Fund's portfolio closely compared to the range of secu-rities
available in the convertible market.
[PHOTO]
Basically, our fund is for people who want to achieve their objective
of growth, but who don't have the tolerance for high risk. So, we will continue
to place a strong emphasis on reducing volatility. Therefore, the Fund will
remain broadly diversified across the spectrum of convertible securities. And,
regardless of whether we expect a particular security to act more like a stock
or a bond, we'll continue to carefully evaluate each security for its total
return potential.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We are confident about the outlook for the Fund. Because Oppenheimer Bond Fund
for Growth may benefit from both the stock and bond markets, the Fund has the
potential to perform well over many different market cycles. And, since we do
not believe anyone can fully predict the market's future, we consider staying
toward the middle with an attractive risk-adjusted return to be a worthwhile
endeavor.
[PHOTO]
5 Oppenheimer Bond Fund for Growth
<PAGE> 6
STATEMENT OF INVESTMENTS December 31, 1996
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
================================================================================================================================
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS AND NOTES--65.8%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--0.1%
- --------------------------------------------------------------------------------------------------------------------------------
METALS--0.1%
GE Capital Corp., 2.5% Base Metals Cv. Nts., 2/14/97(1) $ 500,000 $ 535,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--14.6%
- --------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--3.2%
Bluegreen Corp., 8.25% Cv. Sub. Debs., 5/15/12 3,635,000 3,107,925
-------------------------------------------------------------------------------------------------------------------------
Continental Homes Holding Corp., 6.875% Cv. Sub. Nts., 11/1/02 2,000,000 2,187,500
-------------------------------------------------------------------------------------------------------------------------
Engle Homes, Inc., 7% Cv. Sub. Nts., 3/1/03 2,750,000 2,385,625
-------------------------------------------------------------------------------------------------------------------------
MascoTech, Inc., 4.5% Cv. Sub. Debs., 12/15/03 7,630,000 6,332,900
-------------------------------------------------------------------------------------------------------------------------
Rouse Co., 5.75% Cv. Sub. Debs., 7/23/02 1,200,000 1,294,500
-------------------------------------------------------------------------------------------------------------------------
U.S. Home Corp., 4.875% Cv. Sub. Debs., 11/1/05 5,000,000 4,600,000
-----------
19,908,450
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--5.5%
Boston Chicken, Inc.:
4.5% Cv. Sub. Debs., 2/1/04(2) 3,000,000 3,791,250
Zero Coupon Sub. LYONs, 6.38%, 6/1/15(3) 6,000,000 1,908,240
-------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp., New York Branch,
3% Disney-Linked Certificate of Deposit, 10/3/01(1) 5,000,000 5,275,000
-------------------------------------------------------------------------------------------------------------------------
Hilton Hotels Corp., 10% Cv. Debs, 12/15/06 5,454,000 5,535,810
-------------------------------------------------------------------------------------------------------------------------
Hudson Hotels Corp., 7.5% Cv. Sub. Debs., 7/1/01(1)(4) 7,500,000 7,200,000
-------------------------------------------------------------------------------------------------------------------------
Marriott International, Inc., Zero Coupon Sub. LYONs, 4.25%, 3/25/11(3)(5) 7,000,000 3,934,840
-------------------------------------------------------------------------------------------------------------------------
Speedway Motorsports, Inc., 5.75% Cv. Sub. Debs., 9/30/03 2,400,000 2,294,088
-------------------------------------------------------------------------------------------------------------------------
WMS Industries, Inc., 5.75% Cv. Sub. Debs., 11/30/02 4,000,000 3,852,000
-----------
33,791,228
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.1%
Graphic Industries, Inc., 7% Cv. Sub. Debs., 5/15/06 750,000 685,312
-------------------------------------------------------------------------------------------------------------------------
Hollinger, Inc., Zero Coupon Cv. Sub. LYONs, 6.48%, 10/5/13(3) 3,000,000 1,057,500
-------------------------------------------------------------------------------------------------------------------------
Rogers Communications, Inc.:
2% Cv. Sr. Debs., 11/26/05 3,800,000 2,109,000
Zero Coupon Cv. Sr. LYONs, 6.11%, 5/20/13(3) 1,855,000 725,769
-------------------------------------------------------------------------------------------------------------------------
Scandinavian Broadcasting System SA, 7.25% Cv. Sub. Debs., 8/1/05 3,000,000 2,820,000
-------------------------------------------------------------------------------------------------------------------------
Scantron Corp., 6.75% Cv. Sub. Debs.,
6/1/11 (Cv. into Common Stock of John H. Harland Co.)(2) 1,205,000 1,567,886
-------------------------------------------------------------------------------------------------------------------------
Thomas Nelson, Inc., 5.75% Cv. Sub. Nts., 11/30/99 4,000,000 4,000,000
-----------
12,965,467
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.5%
Travel Ports of America, Inc.:
8.5% Cv. Sr. Sub. Debs., 1/15/05(1)(4) 1,750,000 1,778,787
8.5% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S)(1)(4) 950,000 965,628
-----------
2,744,415
</TABLE>
6 Oppenheimer Bond Fund for Growth
<PAGE> 7
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: SPECIALTY--3.3%
Baby Superstore, Inc., 4.875% Cv. Sub. Nts., 10/1/00 $2,250,000 $ 2,238,750
-------------------------------------------------------------------------------------------------------------------------
Ben Franklin Retail Stores, Inc., 7.5% Cv. Sub. Nts., 6/1/03(1)(6) 2,800,000 182,000
-------------------------------------------------------------------------------------------------------------------------
Comtrad Holdings, Inc., 5% Cv. Nts., 7/8/99
(Cv. into Common Stock of CHS Electronics, Inc.)(1)(4) 4,000,000 4,466,000
-------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc., 3.25% Cv. Sub. Nts., 10/1/01 7,000,000 6,837,600
-------------------------------------------------------------------------------------------------------------------------
Lechters, Inc., 5% Cv. Sub. Debs., 9/27/01 2,000,000 1,290,000
-------------------------------------------------------------------------------------------------------------------------
Michaels Stores, Inc., 6.75% Cv. Sub. Nts., 1/15/03 2,000,000 1,587,920
-------------------------------------------------------------------------------------------------------------------------
U.S. Office Products Co., 5.5% Cv. Sub. Nts., 5/15/03(5) 4,000,000 3,779,000
-----------
20,381,270
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--12.3%
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.4%
Chock Full O'Nuts Corp., 8% Cv. Sub. Debs., 9/15/06 2,580,000 2,438,100
- --------------------------------------------------------------------------------------------------------------------------------
EDUCATION--1.1%
National Education Corp., 6.5% Cv. Sub. Debs., 5/15/11 7,497,000 6,924,154
- --------------------------------------------------------------------------------------------------------------------------------
FOOD--1.4%
Grand Metropolitan PLC, 6.5% Cv. Nts., 1/31/00(5) 7,500,000 8,899,425
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.7%
ALZA Corp., 5% Cv. Sub. Debs., 5/1/06 7,000,000 6,803,860
-------------------------------------------------------------------------------------------------------------------------
Chiron Corp., 1.9% Cv. Sub. Nts., 11/17/00(5) 2,750,000 2,427,975
-------------------------------------------------------------------------------------------------------------------------
NABI, Inc., 6.5% Cv. Sub. Nts., 2/1/03(5) 5,000,000 4,609,650
-------------------------------------------------------------------------------------------------------------------------
Novartis AG, 2% Cv. Gtd. Bonds, 10/6/02(5) 4,000,000 4,300,000
-------------------------------------------------------------------------------------------------------------------------
Sepracor, Inc., 7% Cv. Sub. Debs., 12/1/02(5) 4,500,000 4,702,500
-----------
22,843,985
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--5.0%
American Medical Response, Inc., 5.25% Cv. Sub. Nts., 2/1/01(5) 3,000,000 3,243,750
-------------------------------------------------------------------------------------------------------------------------
Beverly Enterprises, Inc., 5.5% Cv. Sub. Debs., 8/1/18 6,165,000 6,511,781
-------------------------------------------------------------------------------------------------------------------------
GranCare, Inc., 6.5% Cv. Sub. Debs., 1/15/03 4,586,000 4,723,580
-------------------------------------------------------------------------------------------------------------------------
Healthsource, Inc., 5% Cv. Sub. Nts., 3/1/03(5) 6,500,000 5,188,690
-------------------------------------------------------------------------------------------------------------------------
Huntingdon International Holdings PLC, 7.5% Cv. Debs., 9/25/06(1) 1,710,000 1,376,550
-------------------------------------------------------------------------------------------------------------------------
Pharmaceutical Marketing Services, Inc.:
6.25% Cv. Sub. Debs., 2/1/03 2,375,000 1,911,875
6.25% Cv. Sub. Debs., 2/1/03(5) 450,000 362,250
-------------------------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.5% Cv. Sub. Debs., 8/15/00(1)(4)(6) 500,000 50,000
-------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 6% Exchangeable Sub. Nts., 12/1/05
(Exchangeable into Common Stock of Vencor, Inc.) 4,000,000 4,202,520
-------------------------------------------------------------------------------------------------------------------------
TheraTx, Inc., 8% Cv. Sub. Nts., 2/1/02 1,300,000 1,196,000
-------------------------------------------------------------------------------------------------------------------------
UroMed Corp., 6% Cv. Sub. Nts., 10/15/03(5) 2,250,000 2,116,958
-----------
30,883,954
- --------------------------------------------------------------------------------------------------------------------------------
TOBACCO--0.7%
Standard Commercial Corp., 7.25% Cv. Sub. Debs., 3/31/07 4,984,000 4,535,440
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.1%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--2.4%
Cross Timbers Oil Co., 5.25% Cv. Sub. Nts., 11/1/03 2,004,000 2,197,346
-------------------------------------------------------------------------------------------------------------------------
Key Energy Group, Inc., 7.5% Cv. Sub. Debs., 7/1/03(1) 2,500,000 3,162,500
-------------------------------------------------------------------------------------------------------------------------
SEACOR Holdings, Inc., 5.375% Cv. Sub. Nts., 11/15/06(5) 3,500,000 4,079,005
-------------------------------------------------------------------------------------------------------------------------
SFP Pipeline Holdings, Inc., 11.16% Variable Rate Exchangeable Debs., 8/15/10 4,100,000 5,145,500
-----------
14,584,351
</TABLE>
7 Oppenheimer Bond Fund for Growth
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OIL-INTEGRATED--1.7%
Pennzoil Co., 4.75% Exchangeable Sr. Debs., 10/1/03
(Exchangeable into Common Stock of Chevron Corp.)(2) $5,000,000 $ 5,780,050
-------------------------------------------------------------------------------------------------------------------------
USX Corp., 7% Cv. Sub. Debs., 6/15/17 5,000,000 4,987,500
-----------
10,767,550
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--6.7%
- --------------------------------------------------------------------------------------------------------------------------------
BANKS--1.3%
Bank of East Asia, Ltd., 2% Cv. Bonds, 7/19/03(5) 1,500,000 1,740,000
-------------------------------------------------------------------------------------------------------------------------
First Republic Bancorp, Inc., 7.25% Cv. Sub. Debs., 12/1/02 4,992,000 6,157,183
-----------
7,897,183
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.1%
Berkshire Hathaway, Inc., 1% Sr. Exchangeable Nts., 12/3/01
(Exchangeable into Common Stock of Salomon, Inc.) 5,000,000 4,657,850
-------------------------------------------------------------------------------------------------------------------------
Leasing Solutions, Inc., 6.875% Cv. Sub. Nts., 10/1/03 2,000,000 1,985,000
-------------------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Debs., 10/31/03(1)(6) 1,850,000 379,250
-----------
7,022,100
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE--4.3%
Chubb Corp., 6% Cv. Exchangeable Sub. Gtd. Nts., 5/15/98 6,000,000 7,414,560
-------------------------------------------------------------------------------------------------------------------------
Penn Treaty America Corp., 6.25% Cv. Sub. Nts., 12/1/03(5) 500,000 539,220
-------------------------------------------------------------------------------------------------------------------------
Pioneer Financial Services, Inc., 6.5% Cv. Sub. Nts., 4/1/03 2,500,000 3,400,000
-------------------------------------------------------------------------------------------------------------------------
Republic of Italy, 5% PENs, 6/28/01
(Exchangeable into ADSs of Istituto Nazionale delle Assicurazioni SpA) 7,000,000 7,008,750
-------------------------------------------------------------------------------------------------------------------------
Trenwick Group, Inc., 6% Cv. Debs., 12/15/99 8,000,000 8,440,000
-----------
26,802,530
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--9.5%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.0%
MagneTek, Inc., 8% Cv. Sub. Nts., 9/15/01 2,500,000 2,568,750
-------------------------------------------------------------------------------------------------------------------------
Recognition International, Inc., 7.25% Cv. Sub. Debs., 4/15/11 3,000,000 2,835,000
-------------------------------------------------------------------------------------------------------------------------
Richardson Electronics Ltd., 7.25% Cv. Sub. Debs., 12/15/06 895,000 779,169
-----------
6,182,919
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.7%
CEMEX, SA de CV, 4.25% Cv. Sub. Nts., 11/1/97 7,000,000 6,772,500
-------------------------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora, SA de CV, 5% Cv. Sub. Debs., 3/15/04 3,000,000 2,130,000
-------------------------------------------------------------------------------------------------------------------------
Polymax International Ltd., 2% Sec. Exchangeable Bonds, 2/27/06(5) 1,500,000 1,395,000
-----------
10,297,500
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.0%
OHM Corp., 8% Cv. Sub. Debs., 10/1/06 1,975,000 1,817,000
-------------------------------------------------------------------------------------------------------------------------
Roy F. Weston, Inc., 7% Cv. Sub. Debs., 4/15/02 1,228,000 1,111,340
-------------------------------------------------------------------------------------------------------------------------
Thermo TerraTech, Inc.:
4.625% Cv. Sub. Debs., 5/1/03(5) 1,500,000 1,376,715
4.625% Cv. Sub. Debs., 5/1/03 1,798,000 1,645,727
-------------------------------------------------------------------------------------------------------------------------
United States Filter Corp., 4.5% Cv. Sub. Nts., 12/15/01 2,000,000 2,036,080
-------------------------------------------------------------------------------------------------------------------------
United Waste Systems, Inc., 4.5% Cv. Sub. Nts., 6/1/01(2)(5) 5,000,000 5,956,500
-------------------------------------------------------------------------------------------------------------------------
WMX Technologies, Inc., 2% Cv. Sub. Nts., 1/24/05(2) 4,466,000 4,180,489
-----------
18,123,851
</TABLE>
8 Oppenheimer Bond Fund for Growth
<PAGE> 9
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING--3.3%
Alfa, SA de CV, 8% Cv. Sub. Nts., 9/15/00(5) $ 2,500,000 $ 2,756,250
------------------------------------------------------------------------------------------------------------------------
Cooper Industries, Inc., 7.05% Cv. Sub. Debs., 1/1/15 3,500,000 3,742,130
------------------------------------------------------------------------------------------------------------------------
Hexcel Corp., 7% Cv. Sub. Debs., 8/1/11 4,000,000 3,770,000
------------------------------------------------------------------------------------------------------------------------
Raymond Corp., 6.5% Cv. Sub. Debs., 12/15/03 8,340,000 9,027,466
------------------------------------------------------------------------------------------------------------------------
Robbins & Meyers, Inc., 6.5% Cv. Sub. Nts., 9/1/03 1,000,000 1,153,750
------------
20,449,596
- -------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.5%
CareLine, Inc., 8% Cv. Sr. Sub. Nts., 5/1/01
(Cv. into Common Stock of Laidlaw, Inc., Class B) 3,000,000 3,346,890
- -------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--17.1%
- -------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--2.2%
SubMicron Systems Corp., 9% Cv. Sub. Nts., 12/15/97(1)(4) 450,000 199,053
------------------------------------------------------------------------------------------------------------------------
Telxon Corp.:
5.75% Cv. Sub. Nts., 1/1/03 2,500,000 2,053,900
5.75% Cv. Sub. Nts., 1/1/03(5) 2,250,000 1,848,510
------------------------------------------------------------------------------------------------------------------------
UNISYS Corp., 8.25% Cv. Sub. Nts., 8/1/00 10,000,000 9,700,000
------------
13,801,463
- -------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--2.1%
Baan Co., NV, 4.5% Cv. Sub. Nts., 12/23/01(5) 2,000,000 2,008,920
------------------------------------------------------------------------------------------------------------------------
Learning Co., Inc., 5.5% Cv. Sr. Nts., 11/1/00 4,000,000 3,301,680
------------------------------------------------------------------------------------------------------------------------
MacNeal-Schwendler Corp., 7.875% Cv. Sub. Debs., 8/18/04 5,267,000 4,819,305
------------------------------------------------------------------------------------------------------------------------
National Data Corp., 5% Cv. Sub. Nts., 11/1/03 1,500,000 1,560,000
------------------------------------------------------------------------------------------------------------------------
Spectrum Holobyte, Inc., 6.5% Cv. Sub. Nts., 9/15/02(5) 2,000,000 1,324,020
------------
13,013,925
- -------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--10.2%
ADT Operations, Inc., Zero Coupon Sub. Exchangeable LYONs, 6.49%, 7/6/10(3) 13,500,000 8,808,750
------------------------------------------------------------------------------------------------------------------------
California Microwave, Inc., 5.25% Cv. Sub. Nts., 12/15/03 2,000,000 1,635,000
------------------------------------------------------------------------------------------------------------------------
Integrated Device Technology, Inc., 5.5% Cv. Sub. Nts., 6/1/02 2,000,000 1,764,060
------------------------------------------------------------------------------------------------------------------------
Laidlaw, Inc., 6% ADT-Linked Cv. Debs., 1/15/99(5) 7,250,000 9,678,750
------------------------------------------------------------------------------------------------------------------------
Park Electrochemical Corp., 5.5% Cv. Sub. Nts., 3/1/06 7,500,000 6,506,250
------------------------------------------------------------------------------------------------------------------------
S3, Inc., 5.75% Cv. Sub. Nts., 10/1/03(5) 4,000,000 4,426,200
------------------------------------------------------------------------------------------------------------------------
Thermo Electron Corp., 4.25% Cv. Sub. Debs., 1/1/03(5) 7,000,000 8,349,460
------------------------------------------------------------------------------------------------------------------------
Thermo Optek Corp., 5% Cv. Sub. Debs., 10/15/00(5) 8,535,000 8,748,375
------------------------------------------------------------------------------------------------------------------------
ThermoQuest Corp., 5% Cv. Sub. Debs., 8/15/00(5) 8,000,000 8,200,000
------------------------------------------------------------------------------------------------------------------------
XILINX, Inc., 5.25% Cv. Sub. Nts., 11/1/02 4,500,000 4,551,075
------------
62,667,920
- -------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--2.6%
BroadBand Technologies, Inc.:
5% Cv. Sub. Nts., 5/15/01(5) 1,250,000 947,263
5% Cv. Sub. Nts., 5/15/01 2,000,000 1,525,620
------------------------------------------------------------------------------------------------------------------------
General Instrument Corp., 5% Cv. Jr. Sub. Nts., 6/15/00 9,000,000 9,631,980
------------------------------------------------------------------------------------------------------------------------
Porta Systems Corp., Zero Coupon Cv. Sr. Sub. Nts., 11.6%, 1/2/98(1)(3) 1,380,996 586,923
------------------------------------------------------------------------------------------------------------------------
United States Cellular Corp., Zero Coupon Cv. Sub. LYONs, 5.96%, 6/15/15(3) 9,700,000 3,298,000
------------
15,989,786
- -------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.4%
- -------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.9%
Consolidated Natural Gas Co., 7.25% Cv. Sub. Debs., 12/15/15 5,000,000 5,282,750
- -------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.5%
Compania de Telefonos de Chile SA, 4.5% Cv. Sub. Debs., 1/15/03 2,500,000 3,141,575
------------
Total Convertible Corporate Bonds and Notes (Cost $396,304,600) 406,222,777
</TABLE>
9 Oppenheimer Bond Fund for Growth
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
================================================================================================================================
<S> <C> <C>
COMMON STOCKS--4.1%
-------------------------------------------------------------------------------------------------------------------------
American Home Products Corp.(2) 20,040 $ 1,174,845
-------------------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp.(2) 13,650 556,238
-------------------------------------------------------------------------------------------------------------------------
Fleet Financial Group, Inc.(2) 13,910 693,761
-------------------------------------------------------------------------------------------------------------------------
Ford Motor Co.(2) 6,530 208,960
-------------------------------------------------------------------------------------------------------------------------
General Signal Corp. 128,018 5,472,766
-------------------------------------------------------------------------------------------------------------------------
International Paper Co. 9,392 380,376
-------------------------------------------------------------------------------------------------------------------------
Orion Capital Corp. 30,001 1,833,811
-------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc.(2) 22,000 2,486,000
-------------------------------------------------------------------------------------------------------------------------
Progressive Bank, Inc. 26,382 600,190
-------------------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(2)(7) 290,312 11,467,324
-----------
Total Common Stocks (Cost $17,975,593) 24,874,271
================================================================================================================================
PREFERRED STOCKS--11.0%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--0.6%
- --------------------------------------------------------------------------------------------------------------------------------
PAPER--0.6%
James River Corp. of Virginia:
Depositary Shares each representing 1/4 of a Share of $14.00 Cum. Cv.
Exchangeable Preferred Stock, Series N(1) 50,000 2,523,400
Depositary Shares each representing 1/4 of a Share of $14.00 Cum. Cv.
Exchangeable Preferred Stock, Series L 18,600 962,550
$3.375 Cum. Cv. Exchangeable, Series K 5,000 256,875
-----------
3,742,825
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--2.4%
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.7%
Tyco Toys, Inc., $0.4125 Depositary Shares each representing 1/25 of a
Share of Mandatorily Cv. Redeemable Preferred Stock, Series C, 7/1/00 465,000 4,708,125
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA--0.9%
SFX Broadcasting, Inc., $3.25 Cum. Cv. Exchangeable, Series D(5) 30,000 1,314,360
-------------------------------------------------------------------------------------------------------------------------
TCI Pacific Communications, Inc., 5% Cum. Sr. Exchangeable, Class A 47,000 4,294,625
-----------
5,608,985
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.8%
Danskin, Inc., Depositary Shares each representing 1/100 of a
Share of 10% Cum. Cv. Exchangeable Preferred Stock(1)(4) 1,000 4,909,091
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--0.8%
- --------------------------------------------------------------------------------------------------------------------------------
TOBACCO--0.8%
RJR Nabisco Holdings Corp., $0.60125 Depositary Shares
each representing 1/10 of a Share of Series C PERCS, 5/15/97 783,900 5,291,325
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY--0.4%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--0.4%
ICO, Inc., Depositary Shares each representing 1/4 of a
Share of $6.75 Cv. Exchangeable Preferred Stock 95,000 2,161,250
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--3.9%
- --------------------------------------------------------------------------------------------------------------------------------
BANKS--1.0%
Mid Am, Inc., $1.8125 Cum. Cv., Series A 7,500 309,375
-------------------------------------------------------------------------------------------------------------------------
ONBANCorp, Inc., $1.6875 Cum. Cv., Series B 136,300 3,799,363
-------------------------------------------------------------------------------------------------------------------------
Sovereign Bancorp, Inc., $3.125 Cum. Cv., Series B(2) 27,500 1,907,812
-----------
6,016,550
</TABLE>
10 Oppenheimer Bond Fund for Growth
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL--1.8%
Capstead Mortgage Corp., $1.26 Cum. Cv., Series B 120,000 $ 2,070,000
-------------------------------------------------------------------------------------------------------------------------
Phoenix Duff & Phelps Corp., $1.50 Cv., Series A 150,000 3,750,000
-------------------------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 8.5% PERCS Units, 10/31/99 125,000 5,281,250
-----------
11,101,250
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.1%
Alexander & Alexander Services, Inc., $3.625 Cv.(1) 60,000 3,131,220
-------------------------------------------------------------------------------------------------------------------------
PennCorp Financial Group, Inc., $3.50 Cv., Series II(5) 60,000 3,517,500
-----------
6,648,720
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--0.4%
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.2%
International Technology Corp., Depositary Shares each representing
1/100 of a Share of 7% Cum. Cv. Exchangeable Preferred Stock 65,000 1,096,875
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.2%
Alco Standard Corp., $5.04 Depositary Shares each representing
1/100 of a Share of Series BB ACES, 10/1/98 15,000 1,432,500
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--2.5%
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.4%
Kaman Corp., $3.25 Depositary Shares each representing
1/4 of a Share of Cv. Preferred Stock, Series 2 60,000 3,270,000
-------------------------------------------------------------------------------------------------------------------------
Loral Space & Communications, Ltd., 6% Cv.
Preferred Equivalent Obligations, 11/1/06(5) 100,000 5,681,200
-----------
8,951,200
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--1.1%
Mobile Telecommunication Technologies Corp.:
7.5% Cum. Cv., Series C(1)(7)(8) 5,000 4,212,500
$2.25 Cum. Cv. Exchangeable(5) 121,100 2,194,938
-----------
6,407,438
-----------
Total Preferred Stocks (Cost $64,940,495) 68,076,134
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
FACE AMOUNT
================================================================================================================================
<S> <C> <C>
OTHER CONVERTIBLE SECURITIES--14.5%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.1%
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.0%
Merrill Lynch & Co., Inc., 6.25% STRYPES (IMC Global, Inc.), 7/1/01(9) 150,000 6,018,750
- --------------------------------------------------------------------------------------------------------------------------------
PAPER--1.1%
International Paper Capital Trust, 5.25% Cv. Preferred Securities,
7/20/25 (Cv. into Common Stock of International Paper Co.) 145,000 6,670,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--1.1%
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.6%
Wendy's Financing I, $2.50 TECONS, Series A, 9/15/26
(Cv. into Common Stock of Wendy's International, Inc.) 75,000 3,900,000
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA--0.5%
News Corp. Ltd., 5% Exchangeable TOPrS, 11/12/16
(Exchangeable for Ordinary Shares of British Sky Broadcasting Group PLC)(5) 30,000 2,833,110
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--0.4%
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--0.4%
Bear Stearns Cos. Inc., 5.5% CHIPS (Merck & Co., Inc.), 2/11/97(9) 10,000 476,250
-------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6.5% YEELDS (Amgen Corp.), 1/15/97(9) 15,000 950,625
-------------------------------------------------------------------------------------------------------------------------
Salomon, Inc., 6.5% ELKS (Amgen Corp.), 2/1/97(9) 14,000 959,000
------------
2,385,875
</TABLE>
11 Oppenheimer Bond Fund for Growth
<PAGE> 12
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
FACE AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY--0.3%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--0.3%
Tosco Financing Trust, 5.75% Cv. Preferred Securities, 12/15/16 35,000 $ 1,811,250
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--4.4%
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.7%
Credit Suisse First Boston Corp., 6% Equity-Linked Sr. Medium-Term Nts.
(Charles Schwab Corp.), 4/29/98(1)(9) $5,000,000 5,881,250
-------------------------------------------------------------------------------------------------------------------------
FINOVA Finance Trust, 5.5% Cv. TOPrS, 12/31/16
(Cv. into Common Stock of FINOVA Group, Inc.) 25,000 1,312,500
-------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 7.25% STRYPES (SunAmerica, Inc.), 6/15/99(9) 145,000 9,642,500
-----------
16,836,250
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.7%
Allstate Corp., 6.76% Exchangeable Nts., 4/15/98
(Subject to Exchange into Common Stock of The PMI Group, Inc.) 100,000 4,725,000
-------------------------------------------------------------------------------------------------------------------------
Frontier Financing Trust, 6.25% Cv. TOPrS, 12/31/16
(Cv. into Common Stock of Frontier Insurance Group, Inc.)(5) 65,000 3,355,625
-------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.5% STRYPES (MGIC Investment Corp.), 8/15/98(9) 17,000 1,143,250
-------------------------------------------------------------------------------------------------------------------------
St. Paul Capital LLC, $3.00 Cv. MIPS 25,000 1,384,375
-----------
10,608,250
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--3.1%
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.4%
Owens Corning Capital LLC, 6.5% Cv. MIPS(5) 155,000 8,854,375
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.2%
Browning-Ferris Industries, Inc., 7.25% ACES, 6/30/98 35,000 997,500
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--1.5%
Elsag Bailey Financing Trust, 5.5% Cv. TOPrS, 12/31/35
(Cv. into Common Stock of Elsag Bailey Process Automation NV) 50,000 1,943,750
-------------------------------------------------------------------------------------------------------------------------
Greenfield Capital Trust, $3.00 Cv. TIDES(5) 70,000 3,373,090
-------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6% YEELDS
(Black & Decker Corp.), 8/31/98(1)(9) 126,646 4,274,303
-----------
9,591,143
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--2.2%
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.1%
Credit Suisse First Boston Corp., 6% Equity-Linked Sr. Medium-Term Nts.
(Intel Corp.), 2/17/98(1)(9) $5,000,000 6,531,250
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--0.3%
Vanstar Corp., 6.75% Trust Cv. Preferred Securities,
12/31/49 (Cv. into Common Stock of Vanstar Corp.)(5) 35,000 1,850,625
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--0.8%
Bear Stearns Cos., 6% ELPS (ACC Corp.), 11/25/98(1)(9) $5,000,004 4,644,004
- --------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.9%
- --------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.3%
MCN Corp., 8.75% PRIDES, 4/30/99 75,500 2,085,687
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.6%
Sprint Corp., 8.25% DECS (Cv. into Shares of
Common Stock of SNET Corp.), 3/31/00 100,000 3,587,500
-----------
Total Other Convertible Securities (Cost $84,226,789) 89,205,569
</TABLE>
12 Oppenheimer Bond Fund for Growth
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
UNITS SEE NOTE 1
===============================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- -------------------------------------------------------------------------------------------------------------------------------
SubMicron Systems Corp. Wts., Exp. 12/00(1)(4) 27,000 $ 7,047
------------------------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc. Wts., Exp. 1/05(1)(4) 5,000 4,235
------------
Total Rights, Warrants and Certificates (Cost $0) 11,282
<CAPTION>
DATE STRIKE CONTRACTS
===============================================================================================================================
<S> <C> <C> <C> <C>
PUT OPTIONS PURCHASED--0.0%
- -------------------------------------------------------------------------------------------------------------------------------
Mobile Telecommunication Technologies Corp.
Put Opt. (Cost $806) Mar. 97 $10 25 5,780
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
===============================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--4.2%
- -------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.52%, dated
12/31/96, to be repurchased at $26,209,490 on 1/2/97, collateralized
BY U.S. TREASURY NTS., 5.5%--7.5%, 7/15/99--8/15/05, with a value of
$26,800,713 (Cost $26,200,000) $26,200,000 26,200,000
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $589,648,283) 99.6% 614,595,813
- -------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.4 2,513,357
-------- ------------
NET ASSETS 100.0% $617,109,170
======== ============
</TABLE>
1. Identifies issues considered to be illiquid--See Note 7 of Notes to
Financial Statements.
2. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
FACE/SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
American Home Products Corp. 20,000 1/97 $ 65.00 $ 49,398 $ 2,500
----------------------------------------------------------------------------------------------------------
Boston Chicken, Inc. 10,000 1/97 35.00 22,199 13,750
Boston Chicken, Inc. 10,000 1/97 40.00 6,150 620
Boston Chicken, Inc. 30,000 4/97 40.00 44,710 39,360
Boston Chicken, Inc. 30,000 4/97 35.00 104,097 105,000
----------------------------------------------------------------------------------------------------------
Chevron Corp. 40,000 3/97 70.00 78,997 25,000
Chevron Corp. 40,000 1/97 70.00 56,698 5,000
----------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 13,600 2/97 40.00 18,427 32,300
----------------------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 13,900 1/97 50.00 44,757 24,325
----------------------------------------------------------------------------------------------------------
Ford Motor Co. 6,500 3/97 32.50 7,588 7,313
----------------------------------------------------------------------------------------------------------
John H. Harland Co. 20,000 3/97 30.00 34,599 67,500
----------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 22,000 3/97 105.00 103,837 283,250
----------------------------------------------------------------------------------------------------------
Seagate Technology, Inc. 79,200 1/97 35.00 354,012 376,200
Seagate Technology, Inc. 200,000 1/97 37.50 607,980 625,000
----------------------------------------------------------------------------------------------------------
Sovereign Bancorp, Inc. 20,000 1/97 12.50 9,800 15,000
----------------------------------------------------------------------------------------------------------
United Waste Systems, Inc. 50,000 3/97 40.00 49,498 18,750
----------------------------------------------------------------------------------------------------------
WMX Technologies, Inc. 50,000 2/97 35.00 58,373 31,250
---------- ----------
$1,651,120 $1,672,118
========== ==========
</TABLE>
3. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
4. The security is being valued under procedures established by the
Board of Trustees to determine fair value in good faith.
5. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended.
This security has been determined to be liquid under guidelines
established by the Board of Trustees. These securities amount to
$139,914,049 or 22.67% of the Fund's net assets at December 31, 1996.
6. Non-income producing security--issuer is in default.
7. Non-income producing security.
8. Dividend is paid in kind.
9. Redeemable in cash at the lesser of a multiple of the issue price or
an amount based on the price of the stated company's common stock at
maturity.
13 Oppenheimer Bond Fund for Growth
<PAGE> 14
STATEMENT OF INVESTMENTS (Continued)
- -------------------------------------------------------------------------------
All investments of foreign issuers are denominated in U.S. dollars.
Distribution of investments by country of issue, as a percentage of
total investments at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
United States $550,495,824 89.6%
------------------------------------------------------------------------------------------------------------
Canada 16,917,909 2.8
------------------------------------------------------------------------------------------------------------
United Kingdom 13,109,085 2.1
------------------------------------------------------------------------------------------------------------
Mexico 11,658,750 1.9
------------------------------------------------------------------------------------------------------------
Italy 7,008,750 1.1
------------------------------------------------------------------------------------------------------------
Switzerland 4,300,000 0.7
------------------------------------------------------------------------------------------------------------
Chile 3,141,575 0.5
------------------------------------------------------------------------------------------------------------
Luxembourg 2,820,000 0.5
------------------------------------------------------------------------------------------------------------
Netherlands 2,008,920 0.3
------------------------------------------------------------------------------------------------------------
Hong Kong 1,740,000 0.3
------------------------------------------------------------------------------------------------------------
Indonesia 1,395,000 0.2
------------ -----
Total $614,595,813 100.0%
============ =====
</TABLE>
PORTFOLIO ACRONYMS:
<TABLE>
<S> <C>
ACES --Automatic Common Exchange Securities or Automatically Convertible Equity Securities
ADS --American Depository Shares
CHIPS --Common-Linked Higher Income Participation Securities
DECS --Debt Exchangeable for Common Stock
ELKS --Equity-Linked Securities
ELPS --Equity-Linked Participation Securities
LYONs --Liquid Yield Option Notes
MIPS --Monthly Income Preferred Securities
PENs --Privatization Exchangeable Notes
PERCS --Preferred Equity Redemption Cumulative Stock or Premium Equity Redemption Cumulative Security
PRIDES --Preferred Redeemable Increased Dividend Equity Securities
STRYPES --Structured Yield Product Exchangeable for Stock
TECONS --Term Convertible Securities
TIDES --Term Income Deferrable Equity Securities
TOPrS --Trust Originated Preferred Securities
YEELDS --Yield Enhanced Equity Linked Debt Securities
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Bond Fund for Growth
<PAGE> 15
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996
<TABLE>
=========================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $589,648,283)--see accompanying statement $614,595,813
------------
Cash 407,119
------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 3,038,483
Interest and dividends 5,738,471
------------------------------------------------------------------------------------------------------------------
Other 18,679
------------
Total assets 623,798,565
=========================================================================================================================
LIABILITIES
Options written, at value (premiums received $1,651,120)--
see accompanying statement--Note 6 1,672,118
------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Dividends 3,696,882
Accrued taxes--Note 1 815,241
Shares of beneficial interest redeemed 409,410
Trustees' fees 9,000
Other 86,744
------------------------------------------------------------------------------------------------------------------
Total liabilities 6,689,395
=========================================================================================================================
NET ASSETS $617,109,170
============
=========================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $592,940,290
------------------------------------------------------------------------------------------------------------------
Excess of distributions over net investment income (4,113)
------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and options (753,539)
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and options 24,926,532
------------
Net assets $617,109,170
============
=========================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $93,577,774 and 6,557,191 shares of beneficial interest outstanding) $14.27
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $15.14
------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $211,176,011 and 14,775,642 shares of beneficial interest outstanding) $14.29
------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $38,312,120 and 2,685,484 shares of beneficial interest outstanding) $14.27
------------------------------------------------------------------------------------------------------------------
Class M Shares:
Net asset value and redemption price per share (based on net assets
of $274,043,265 and 19,204,115 shares of beneficial interest outstanding) $14.27
Maximum offering price per share (net asset value plus sales charge
of 3.25% of offering price) $14.75
See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer Bond Fund for Growth
<PAGE> 16
STATEMENT OF OPERATIONS For the Year Ended December 31, 1996
<TABLE>
<S> <C>
=========================================================================================================================
INVESTMENT INCOME
Interest $23,555,538
------------------------------------------------------------------------------------------------------------------
Dividends 3,116,725
-----------
Total income 26,672,263
=========================================================================================================================
EXPENSES
Distribution and service plan fees--Note 4:
Class A 95,189
Class B 1,121,523
Class C 147,851
Class M 1,958,186
------------------------------------------------------------------------------------------------------------------
Management fees--Note 4 2,148,214
------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 47,679
Class B 128,905
Class C 13,923
Class M 293,581
------------------------------------------------------------------------------------------------------------------
Shareholder reports 199,998
------------------------------------------------------------------------------------------------------------------
Registration and filing fees 185,496
------------------------------------------------------------------------------------------------------------------
Accounting service fees--Note 4 133,487
------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 72,248
------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 45,249
------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 39,104
------------------------------------------------------------------------------------------------------------------
Other 115,012
------------------------------------------------------------------------------------------------------------------
Interest 95,316
-----------
Total expenses 6,840,961
Less expenses paid indirectly--Note 1 (9,757)
-----------
Total net expenses 6,831,204
=========================================================================================================================
NET INVESTMENT INCOME 19,841,059
=========================================================================================================================
REALIZED AND
UNREALIZED GAIN
Net realized gain on:
Investments (including premiums on options exercised) 13,540,883
Closing and expiration of options written 465,614
-----------
Net realized gain 14,006,497
------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 7,782,802
Options 82,788
-----------
Net change 7,865,590
-----------
Net realized and unrealized gain 21,872,087
=========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $41,713,146
===========
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Bond Fund for Growth
<PAGE> 17
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1996 1995
====================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 19,841,059 $ 9,855,256
-------------------------------------------------------------------------------------------------------------
Net realized gain 14,006,497 9,472,765
-------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 7,865,590 21,458,658
------------- ------------
Net increase in net assets resulting from operations 41,713,146 40,786,679
====================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (2,123,534) (92,063)
Class B (4,911,332) (728,015)
Class C (648,607) --
Class M (12,157,589) (11,839,019)
-------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (2,201,758) (80,834)
Class B (4,975,362) (1,126,719)
Class C (903,669) --
Class M (6,479,192) (8,052,576)
====================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 90,847,491 2,448,545
Class B 175,385,489 34,750,230
Class C 38,234,063 --
Class M 29,022,434 93,550,329
====================================================================================================================
NET ASSETS
Total increase 340,801,580 149,616,557
-------------------------------------------------------------------------------------------------------------
Beginning of period 276,307,590 126,691,033
------------ ------------
End of period (including excess of distributions over
net investment income of $4,113 and $40,930, respectively) $617,109,170 $276,307,590
============ ============
See accompanying Notes to Financial Statements.
</TABLE>
17 Oppenheimer Bond Fund for Growth
<PAGE> 18
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
---------------------------
YEAR ENDED DECEMBER 31,
1996 1995(3)
=====================================================================================
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $13.96 $13.11
------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .73 .54
Net realized and unrealized gain (loss) .65 1.48
------ ------
Total income (loss) from investment operations 1.38 2.02
------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.72) (.68)
Distributions from net realized gain (.35) (.49)
------ ------
Total dividends and distributions to shareholders (1.07) (1.17)
------------------------------------------------------------------------------
Net asset value, end of period $14.27 $13.96
======= ======
==============================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 10.13% 15.42%
==============================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $93,578 $2,502
------------------------------------------------------------------------------
Average net assets (in thousands) $41,617 $1,799
------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.11% 5.63%(5)
Expenses(6) 0.98% 1.05%(5)
Expenses (excluding interest)(6)(7) 0.97% 1.01%(5)
------------------------------------------------------------------------------
Portfolio turnover rate(8) 52.67% 57.51%
</TABLE>
1. Net of fees and expenses waived or reimbursed by Fielding Management
Company, Inc. (the former manager) which amounted to $.01 per share.
Without reimbursement, the ratios would have been 6.50%, 2.06% and
2.04%, respectively.
2. For the period from March 11, 1996 (inception of offering) to
December 31, 1996.
3. For the period from May 1, 1995 (inception of offering) to
December 31, 1995.
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
investment 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.
5. Annualized.
18 Oppenheimer Bond Fund for Growth
<PAGE> 19
<TABLE>
<CAPTION>
CLASS B CLASS C CLASS M
- -------------------------- ----------- --------------------------------------------------
YEAR
ENDED
YEAR ENDED DECEMBER 31, DEC. 31, YEAR ENDED DECEMBER 31,
1996 1995(3) 1996(2) 1996 1995 1994 1993 1992(1)
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$13.98 $13.11 $14.03 $13.96 $12.20 $13.16 $11.43 $9.37
- ---------------------------------------------------------------------------------------------------------
.62 .45 .50 .65 .70 .68 .59 .69
.65 1.51 .59 .66 2.42 (.81) 1.79 2.15
------ ------ ------ -------- -------- ------ ------ -------
1.27 1.96 1.09 1.31 3.12 (.13) 2.38 2.84
- ---------------------------------------------------------------------------------------------------------
(.61) (.60) (.50) (.65) (.87) (.69) (.65) (.78)
(.35) (.49) (.35) (.35) (.49) (.14) -- --
------ ------ ------ -------- -------- ----- ---- ------
(.96) (1.09) (.85) (1.00) (1.36) (.83) (.65) (.78)
- ---------------------------------------------------------------------------------------------------------
$14.29 $13.98 $14.27 $14.27 $13.96 $12.20 $13.16 $11.43
====== ====== ====== ======== ======== ======= ====== ======
=========================================================================================================
9.28% 15.09% 7.74% 9.58% 26.00% (1.12)% 21.23% 31.19%
=========================================================================================================
$211,176 $34,465 $38,312 $274,043 $239,341 $126,691 $69,375 $10,241
- ---------------------------------------------------------------------------------------------------------
$113,784 $15,184 $18,550 $264,936 $181,719 $106,829 $36,923 $ 7,369
- ---------------------------------------------------------------------------------------------------------
4.31% 4.82%(5) 4.32%(5) 4.59% 5.12% 5.24% 4.70% 6.62%
1.75% 1.69%(5) 1.68%(5) 1.58% 1.58% 1.66% 1.78% 1.93%
1.73% 1.64%(5) 1.67%(5) 1.55% 1.56% 1.65% 1.75% 1.91%
- ---------------------------------------------------------------------------------------------------------
52.67% 57.51% 52.67% 52.67% 57.51% 52.82% 88.66% 80.09%
</TABLE>
6. Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
7. During the periods shown above, the Fund's interest expense was substantially
offset by the incremental interest income generated on bonds purchased with
borrowed funds.
8. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases
and sales of investment securities (excluding short-term securities) for the
period ended December 31, 1996 were $501,201,833 and $222,718,231, respectively.
Per share information has been determined based on average shares outstanding
for the period.
See accompanying Notes to Financial Statements.
19 Oppenheimer Bond Fund for Growth
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
==============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Bond Fund for Growth (the Fund), formerly named The Bond
Fund For Growth, a portfolio of the Bond Fund Series, a
non-diversified, open-end management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek a high level of total return on its
assets through a combination of current income and capital
appreciation.
On January 4, 1996, Fielding Management
Company, Inc. (FMC), the Fund's investment adviser, Rochester Fund
Distributors, Inc. (RFD), the Fund's principal underwriter, and
Rochester Fund Services, Inc. (RFS), the Fund's shareholder servicing,
accounting and pricing agent, consummated a transaction with
OppenheimerFunds, Inc. (the Manager), which resulted in the sale to the
Manager of certain assets of FMC, RFD and RFS, including the transfer
of the investment advisory agreement and other contracts with the Fund
and the use of the name "The Rochester Funds."
On March 11, 1996, the Fund redesignated the Class
A shares as Class M shares, redesignated the Class Y shares as Class A
shares and introduced a new class of shares, designated as Class C.
The Fund offers Class A, Class B, Class C and
Class M shares. Class A and Class M 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 four classes of shares have identical rights
to earnings, assets and voting privileges, except that each class has
its own distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights with
respect to matters affecting a single class. 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
equity 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 debt securities are valued at the mean between
the bid and asked price 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. 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. Options are valued
based upon the last sale price on the principal exchange on which the
option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if
it is within the spread between the closing bid and asked prices.
If the last sale price is outside the spread, the closing bid is used.
Securities for which market quotations are not readily available are
valued at fair value under consistently applied procedures established
by the Board of Trustees to determine fair value in good faith.
-----------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high yield securities, which
may be subject to a greater degree of credit risk, greater market
fluctuations and risk of loss of income and principal, and may be more
sensitive to economic conditions than lower yielding, higher rated
fixed income securities. The Fund may not invest in securities with
bond ratings of less than C at the time of purchase nor may it invest
in securities in default at the time of purchase. At December 31, 1996,
securities with an aggregate market value of $611,250, representing
0.10% of the Fund's net assets, were in default.
-----------------------------------------------------------------------
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.
20 Oppenheimer Bond Fund for Growth
<PAGE> 21
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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. As of
December 31, 1996, the Fund had an accrued tax liability of $815,241 for
net unrealized gains at the time of the 1995 acquisition of Rochester Tax
Managed Fund, Inc. (see Note 8).
------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends
separately for Class A, Class B, Class C and Class M shares from net
investment income each day the New York Stock Exchange is open for
business and pay such dividends quarterly. Distributions from net
realized gains on investments, if any, will be declared at least once
each year.
------------------------------------------------------------------------
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 (loss) was recorded by the Fund.
During the year ended December 31, 1996, the Fund
adjusted the classification of net investment income and net realized
gain (loss) to reflect the differences between financial statement
amounts and distributions determined in accordance with income tax
regulations. During the year ended December 31, 1996, amounts have been
reclassified to reflect an increase in paid-in capital of $36,684,
a decrease in an accumulated net realized gain of $73,504 and an
increase in undistributed net investment income of $36,820.
------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date) and dividend income is
recorded on the ex-dividend date. Cost is determined and realized gains
and losses are based upon the specific identification method for both
financial statement and federal income tax purposes. Interest income is
recorded on the accrual basis. In computing net investment income, the
Fund accretes original issue discount. Market discount is accreted at
the time of sale (to the extent of the lesser of the accrued market
discount or the disposition gain) and is treated as income, rather than
capital gain.
Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
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.
21 Oppenheimer Bond Fund for Growth
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Agreement and Declaration of Trust permits the Fund to issue an
unlimited number of shares of beneficial interest of each class, par
value $.01 per share. Transactions in shares of beneficial interest were
as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996(1) YEAR ENDED DECEMBER 31, 1995(2)
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 6,494,619 $ 92,520,655 167,169 $ 2,280,841
Dividends and distributions reinvested 249,431 3,554,945 12,344 172,794
Redeemed (366,014) (5,228,109) (358) (5,090)
---------- ------------ ---------- ------------
Net increase 6,378,036 $ 90,847,491 179,155 $ 2,448,545
========== ============ ========== ============
---------------------------------------------------------------------------------- ---------------------------------
Class B:
Sold 12,294,846 $175,175,363 2,362,379 $ 33,327,370
Dividends and distributions reinvested 577,315 8,234,848 114,523 1,597,930
Redeemed (561,285) (8,024,722) (12,136) (175,070)
---------- ------------ ---------- ------------
Net increase 12,310,876 $175,385,489 2,464,766 $ 34,750,230
========== ============ ========== ============
----------------------------------------------------------------------------------- ---------------------------------
Class C:
Sold 2,679,311 $ 38,154,738 -- $ --
Dividends and distributions reinvested 91,900 1,310,288 -- --
Redeemed (85,727) (1,230,963) -- --
---------- ------------- ----------- ------------
Net increase 2,685,484 $ 38,234,063 -- $ --
========== ============ ========== ============
---------------------------------------------------------------------------------- ---------------------------------
Class M:
Sold 5,031,985 $ 71,344,923 7,217,942 $ 99,835,909
Dividends and distributions reinvested 1,047,016 14,881,567 1,158,342 16,067,613
Issued in connection with the acquisition of
Rochester Tax Managed Fund, Inc.--Note 8 -- -- 660,637 9,039,351
Redeemed (4,018,081) (57,204,056) (2,278,192) (31,392,544)
---------- ------------ ---------- ------------
Net increase 2,060,920 $ 29,022,434 6,758,729 $ 93,550,329
========== ============ =========== ============
</TABLE>
1. For the year ended December 31, 1996 for Class A, Class B and Class M
shares and for the period from March 11, 1996 (inception of offering) to
December 31, 1996 for Class C shares.
2. For the year ended December 31, 1995 for Class M shares and for the
period from May 1, 1995 (inception of offering) to December 31, 1995 for
Class A and Class B shares.
===============================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At December 31, 1996, net unrealized appreciation on investments and
options written of $24,926,532 was composed of gross appreciation of
$43,048,856, and gross depreciation of $18,122,324.
Unrealized appreciation (depreciation) at December
31, 1996 based on cost of investments for federal income tax purposes of
$589,657,433 was:
<TABLE>
<CAPTION>
AMOUNT
-------------------------------------------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $42,774,865
-------------------------------------------------------------------------------------------------------
Gross unrealized depreciation (17,836,486)
----------
Net unrealized appreciation $24,938,379
===========
</TABLE>
22 Oppenheimer Bond Fund for Growth
<PAGE> 23
===============================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee
based on an annual rate of 0.625% of average daily net assets up to $50
million, 0.50% of average daily net assets on the next $250 million, and
0.4375% of average daily net assets in excess of $300 million. During
1996, the Fund paid $16,104 to FMC (the former manager) and $2,132,110
to the Manager for management and investment advisory services.
Accounting fees paid to the Manager were in
accordance with the accounting services agreement with the Fund which
provides for an annual fee of $12,000 for the first $30 million of net
assets and $9,000 for each additional $30 million of net assets. During
1996, the Fund paid $960 to RFS (the former accounting and pricing agent)
and $132,527 to the Manager for accounting and pricing services.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund.
The transfer and shareholder servicing agent fee paid by the Fund is
based on an annual maintenance fee of $24.12 for each Class A and Class M
shareholder account and $26.02 for each Class B and Class C shareholder
account. During 1996, the Fund paid a total of $3,246 to RFS (the former
shareholder servicing agent), with the remainder being paid to OFS.
For the year ended December 31, 1996, commissions
(sales charges paid by investors) on sales of Class A and Class M shares
totaled $1,744,103 and $1,939,722, of which $571,488 and $125,679,
respectively, was retained by OppenheimerFunds Distributor, Inc. (OFDI),
a subsidiary of the Manager, as general distributor, and by affiliated
broker/dealers. Sales charges advanced to broker/dealers by OFDI on sales
of the Fund's Class B and Class C shares totaled $6,595,119 and $372,493,
of which $74,499 and $5,323, respectively, were paid to an affiliated
broker/dealer. During the year ended December 31, 1996, OFDI received
contingent deferred sales charges of $142,078 and $10,119, respectively,
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.
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 monthly 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 year ended December 31, 1996, OFDI paid $7,115 to an
affiliated broker/dealer as reimbursement for Class A personal service
and maintenance expenses.
The Fund has adopted compensation type Distribution
and Service Plans for Class B and Class C shares to compensate OFDI for
its services and costs in distributing Class B and Class C shares and
servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B and Class C shares,
as compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a service
fee of 0.25% per year as compensation for costs incurred in connection
with the personal service and maintenance of accounts that hold shares of
the Fund, including amounts paid to brokers, dealers, banks and other
financial institutions. Both fees are computed on the average annual net
assets of Class B and Class C shares, determined as of the close of each
regular business day. During the year ended December 31, 1996, OFDI
retained $920,281 and $113,638, respectively, as compensation for Class B
and Class C sales commissions and service fee advances, as well as
financing costs. If the Plans are 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 Plans were
terminated. At December 31, 1996, OFDI had incurred unreimbursed expenses
of $6,713,841 for Class B and $494,297 for Class C.
The Fund has adopted a reimbursement type
Distribution and Service Plan for Class M shares to reimburse OFDI for
its services and costs in distributing Class M shares and servicing
accounts. Under the Plan, the Fund pays OFDI an annual asset-based sales
charge of 0.50% per year on Class M shares. OFDI also receives a service
fee of 0.25% per year to reimburse dealers for providing personal
services for accounts that hold Class M shares. OFDI may pay a portion of
the asset-based sales charge which it receives from the Fund to provide
additional compensation to broker/dealers who sell Class M shares. Both
fees are computed on the average annual net assets of Class M shares,
determined as of the close of each regular business day. During the year
ended December 31, 1996, OFDI paid $4,590 to an affiliated broker/dealer
as reimbursement for Class M personal service and maintenance expenses.
23 Oppenheimer Bond Fund for Growth
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
5. BANK BORROWINGS
The Fund may borrow up to 5% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The Fund
has entered into an agreement which enables it to participate with two
other Rochester Division funds managed by the Manager in an unsecured
line of credit with a bank, which permits borrowings up to $70 million,
collectively. Interest is charged to each fund, based on its
borrowings, at a rate equal to the New York Interbank Offer Rate (NIBOR)
plus 0.75%. Borrowings are payable on demand.
The Fund had no borrowings outstanding at December
31, 1996. For the year ended December 31, 1996, the average monthly loan
balance was $1,489,069 at an average interest rate of 6.233%. The maximum
amount of borrowings outstanding at any month-end was $5,720,000.
===============================================================================
6. OPTION ACTIVITY
The Fund may buy put options or write covered call options on portfolio
securities in order to produce incremental earnings or protect against
changes in the value of portfolio securities.
The Fund generally purchases put options or writes
covered call options to hedge against adverse movements in the value of
portfolio holdings. When an option is written, the Fund receives a
premium and becomes obligated to sell or purchase the underlying security
at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale
price on the principal exchange on which the option is traded and
unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss upon the expiration or closing of the option
transaction. When an option is exercised, the proceeds on sales for a
written call option or the cost of the security for a purchased put
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call
options are noted in the Statement of Investments where applicable.
Shares subject to call, expiration date, exercise price, premium received
and market value are detailed in a footnote to the Statement of
Investments. Options written are reported as a liability in the Statement
of Assets and Liabilities. Gains and losses are reported in the Statement
of Operations.
The risk in writing a call option is that the Fund
gives up the opportunity for profit if the market price of the security
increases and the option is exercised. The risk in buying an option is
that the Fund pays a premium whether or not the option is exercised. The
Fund also has the additional risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist.
Written option activity for the year ended December 31, 1996 was as
follows:
<TABLE>
<CAPTION>
CALL OPTIONS
--------------------------
NUMBER OF AMOUNT
OPTIONS OF PREMIUMS
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at December 31, 1995 2,365 $ 580,692
-------------------------------------------------------------------------------------------------------------------------
Options written 14,358 3,936,012
-------------------------------------------------------------------------------------------------------------------------
Options cancelled in closing purchase transactions (5,319) (1,831,782)
-------------------------------------------------------------------------------------------------------------------------
Options expired prior to exercise (3,024) (607,309)
-------------------------------------------------------------------------------------------------------------------------
Options exercised (1,828) (426,493)
------ -----------
Options outstanding at December 31, 1996 6,552 $ 1,651,120
====== ===========
</TABLE>
24 Oppenheimer Bond Fund for Growth
<PAGE> 25
===============================================================================
7. ILLIQUID AND
RESTRICTED SECURITIES
At December 31, 1996, investments in 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 intends to invest no more than 15% 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 December 31, 1996 was
$62,274,991, which represents 10.09% of the Fund's net assets.
Information concerning these securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT DEC. 31, 1996
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alexander & Alexander Services, Inc., $3.625 Cv. Preferred Stock 12/13/96 $ 51.56 $ 52.19
---------------------------------------------------------------------------------------------------------------------------
Bear Stearns Cos., 6% ELPS (ACC Corp.), 11/25/98 11/15/96 100.00% 92.88%
---------------------------------------------------------------------------------------------------------------------------
Ben Franklin Retail Stores, Inc., 7.5% Cv. Sub. Nts., 6/1/03 6/10/93--9/28/95 86.84% 6.50%
---------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp., New York Branch,
3% Disney Linked Certificate of Deposit, 10/3/01 9/19/96 100.00% 105.50%
---------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp., Equity-Linked Sr. Medium-Term Nts.:
6% (Intel Corp.), 2/17/98 2/9/96 100.00% 130.63%
6% (Charles Schwab Corp.), 4/29/98 4/24/96 100.00% 117.63%
---------------------------------------------------------------------------------------------------------------------------
Comtrad Holdings, Inc., 5% Cv. Nts., 7/8/99 (Cv. into
Common Stock of CHS Electronics, Inc.) 7/8/96 100.00% 111.65%
---------------------------------------------------------------------------------------------------------------------------
Danskin, Inc., Depositary Shares each representing 1/100 of a
Share of 10% Cum. Cv. Exchangeable Preferred Stock 8/14/95 $5,000.00 $ 4,909.09
---------------------------------------------------------------------------------------------------------------------------
GE Capital Corp., 2.5% Base Metals Cv. Nts., 2/14/97 1/31/94 100.00% 107.00%
---------------------------------------------------------------------------------------------------------------------------
Hudson Hotels Corp., 7.5% Cv. Sub. Debs., 7/1/01 7/8/96 100.00% 96.00%
---------------------------------------------------------------------------------------------------------------------------
Huntingdon International Holdings PLC, 7.5% Cv. Debs., 9/25/06 8/8/96, 12/18/96 77.25% 80.50%
---------------------------------------------------------------------------------------------------------------------------
James River Corp. of Virginia, Depositary Shares each
representing 1/4 of a Share of $14.00 Cum. Cv. Exchangeable
Preferred Stock, Series N 8/20/96 $ 45.50 $ 50.47
---------------------------------------------------------------------------------------------------------------------------
Key Energy Group, Inc., 7.5% Cv. Sub. Debs., 7/1/03 6/28/96 100.00% 126.50%
---------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6% YEELDS
(Black & Decker Corp.), 8/31/98 9/5/96 $ 39.48 $ 33.75
---------------------------------------------------------------------------------------------------------------------------
Lomas Financial Corp., 9% Cv. Sr. Debs., 10/31/03 8/29/94, 6/13/95 26.82% 20.50%
---------------------------------------------------------------------------------------------------------------------------
Mobile Telecommunication Technologies Corp., 7.5% Cum. Cv.
Series C Preferred Stock 5/31/96 $ 992.50 $ 842.50
---------------------------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.5% Cv. Sub. Debs., 8/15/00 2/16/94 103.00% 10.00%
---------------------------------------------------------------------------------------------------------------------------
Porta Systems Corp., Zero Coupon Cv. Sr. Sub. Nts.,
11.6%, 1/2/98 4/1/93--5/26/94 78.24% 42.50%
---------------------------------------------------------------------------------------------------------------------------
SubMicron Systems Corp.:
9% Cv. Sub. Nts., 12/15/97 12/11/95 100.00% 44.23%
Warrants, Exp. 12/00 12/11/95 $ 0.00 $ .26
---------------------------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc.:
8.5% Cv. Sr. Sub. Debs., 1/15/05 2/13/95, 8/9/95 100.04% 101.65%
8.5% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S) 6/14/95--8/13/96 111.44% 101.65%
Warrants, Exp. 1/05 2/13/95 $ 0.00 $ .85
</TABLE>
25 Oppenheimer Bond Fund for Growth
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
8. ACQUISITION
On June 28, 1995, the Fund acquired all of the assets and liabilities of
Rochester Tax Managed Fund, Inc. (RTMF). The acquisition was
accomplished by a tax-free exchange of 660,637 Class M shares of the
Fund (valued at $9,039,351) for 760,094 shares of RTMF. The net assets
of RTMF were valued at $9,039,351 and included unrealized appreciation
of $4,275,694. Prior to the acquisition, RTMF did not distribute its net
investment income or realized gains and was taxed as a C corporation.
Accordingly, an accrued tax liability was assumed by the Fund on the
date of the acquisition (see Note 1). During the second half of 1995,
approximately $2,788,000 of accumulated earnings and profits resulting
from the June 28, 1995 acquisition of RTMF was distributed to
shareholders of the Fund. The aggregate net assets of the Fund after
the acquisition were $189,184,982.
26 Oppenheimer Bond Fund for Growth
<PAGE> 27
REPORT OF INDEPENDENT ACCOUNTANTS
===============================================================================
To the Shareholders and Trustees of Oppenheimer Bond Fund for Growth
In our opinion, the accompanying statement of assets and liabilities,
including the statement of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Oppenheimer Bond Fund for Growth (the Fund) at December 31, 1996, the
results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended and the
financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred
to as financial statements) are the responsibility of the Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1996 by correspondence with
the custodian, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP
Rochester, New York
January 24, 1997
27 Oppenheimer Bond Fund for Growth
<PAGE> 28
FEDERAL INCOME TAX INFORMATION (Unaudited)
- --------------------------------------------------------------------------------
In early 1997 shareholders received information regarding all dividends
and distributions paid to them by the Fund during calendar year 1996.
Regulations of the U.S. Treasury Department require the Fund to report
this information to the Internal Revenue Service.
During 1996, distributions of $1.0719, $0.9624,
$0.8511 and $1.0000 per share were paid to Class A, Class B, Class C and
Class M shareholders, respectively, of which, for each class of shares,
$0.1381 was paid to shareholders of record on December 30, 1996, and
designated as a "capital gain distribution" for federal income tax
purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year
ended December 31, 1996 which are not designated as capital gain
distributions should be multiplied by 10.72% to arrive at the net amount
eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist
shareholders in reporting distributions received from the Fund to the
Internal Revenue Service. Because of the complexity of the federal
regulations which may affect your individual tax return and the many
variations in state and local tax regulations, we recommend that you
consult your tax adviser for specific guidance.
28 Oppenheimer Bond Fund for Growth
<PAGE> 29
OPPENHEIMER BOND FUND FOR GROWTH
- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES
Bridget A. Macaskill, Chairman of the Board of Trustees and President
John Cannon, Trustee
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Michael S. Rosen, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Adele A. Campbell, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
OppenheimerFunds, Inc.
- ------------------------------------------------------------------------------
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
- ------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
- ------------------------------------------------------------------------------
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
- ------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
- ------------------------------------------------------------------------------
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
This is a copy of a report to shareholders of Oppenheimer Bond Fund for
Growth. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Bond Fund for Growth. 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, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of
the principal amount invested.
29 Oppenheimer Bond Fund for Growth
<PAGE> 30
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>
STOCK FUNDS
Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Capital Appreciation Fund(3)
==============================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
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(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
==============================================================================================
MONEY MARKET FUNDS(5)
Money Market Fund Cash Reserves
==============================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
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. Available only to investors in certain states.
5. 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.
30 Oppenheimer Bond Fund for Growth
<PAGE> 31
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
RA0345.001.1296 February 28, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"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.
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.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 130
Torrington, CT
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