Annual Report December 31, 1997
Oppenheimer
Bond Fund
for Growth
[Graphic Omitted]
[Logo]
OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 Fund Performance
6 An Interview with the Fund's Managers
9 Statement of Investments
20 Statement of Assets & Liabilities
22 Statement of Operations
23 Statements of Changes in Net Assets
24 Financial Highlights
27 Notes to Financial Statements
35 Report of Independent Accountants
36 Federal Income Tax Information
37 Officers & Trustees
40 Information & Services
Report highlights
- --------------------------------------------------------------------------------
o Strength in the equity market over the course of the year contributed to
positive performance. That's because the value of a convertible security tends
to follow the price of the issuer's underlying common stock.
o We seek total return, coupled with a reduced level of volatility, through
investments in convertible securities. Because of their hybrid nature,
convertible securities combine many of the advantages of both stocks and bonds.
- --------------------------------------------------------------
Avg Annual Total Returns
- --------------------------------------------------------------
For the 1-year period ended 12/31/97 (without sales charges)1
Class A
- -------
18.77%
- -------
Class B
- -------
17.93%
- -------
Class C
- -------
17.88%
- -------
Class M
- -------
18.19%
- -------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
1. Includes changes 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 Oppenheimer Bond Fund for Growth
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Bond Fund for Growth
Dear shareholder,
- --------------------------------------------------------------------------------
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since
the government began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch further and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see a period of deflation
in the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
January 23, 1998
3 Oppenheimer Bond Fund for Growth
<PAGE>
Performance update
- ------------------------------
- ------------------------------
Avg Annual Total Returns
- ------------------------------
For the Period Ended 12/31/97(1)
Class A
Since
1 year 5 year Inception
- ------------------------------
11.94% N/A 14.18%
- ------------------------------
Class B
Since
1 year 5 year Inception
- ------------------------------
12.93% N/A 15.05%
- ------------------------------
Class C
Since
1 year 5 year Inception
- ------------------------------
16.88% N/A 14.16%
- ------------------------------
Class M
Since
1 year 5 year Inception
- ------------------------------
14.35% 13.61% 10.62%
- ------------------------------
- ------------------------------
Cumulative Total Return
For the Period Ended 12/31/97(1)
Class M
(formerly Class A)
5 year
- ------------------------------
89.27% $18,927(3)
- ------------------------------
Oppenheimer Bond Fund for Growth performed very well in the year's volatile
stock market. The Fund's Class A shares provided an average annual total return,
without sales charges, of 18.77% for the one-year period ended December 31,
1997.(2) The positive returns can be attributed to the Fund's heavy weighting in
convertible securities. Convertible securities, which combine the features of
both stocks and bonds, have benefited from the strength of the equity markets.
At the same time, the Fund's holdings of quality, fixed-income securities helped
to limit downside risk.
Growth of $10,000
Over five years
(without sales charges)2
[The following table was represented as a mountain graph in the printed
material.]
Goldman Sachs Conv100 $T
Unit Value Base: Q4 92 = $10,000.00
Q1 Q2 Q3 Q4
92 -- -- -- $10,000.00
93 $10,894.28 $11,107.13 $11,401.03 $11,712.57
94 $11,589.49 $11,303.16 $11,689.24 $11,143.99
95 $12,087.17 $13,160.31 $13,894.57 $14,211.71
96 $15,071.85 $15,377.48 $15,839.68 $16,159.67
97 $16,377.77 $17,901.48 $19,767.48 $19,312.44
Oppenheimer Bd for GrM
Unit Value Base: Q4 92 = $10,000.00
Q1 Q2 Q3 Q4
92 -- -- -- $10,000.00
93 $10,682.39 $10,835.30 $11,787.30 $12,124.45
94 $12,305.21 $12,007.02 $12,593.37 $11,988.12
95 $12,804.45 $13,828.55 $14,946.67 $15,108.27
96 $15,389.89 $15,688.50 $16,000.55 $16,555.43
97 $16,856.02 $18,172.42 $19,568.55 $19,566.93
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 5/1/95. The Fund's maximum
sales charge for Class A shares was lower prior to 3/11/96, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception on
5/1/95). Class C returns for the one-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 3/11/96. Class M
returns include the current maximum initial sales charge of 3.25%. Class M
shares have an inception date of 6/3/86. Prior to March 11, 1996, Class M shares
were designated as Class A shares. 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.
4 Oppenheimer Bond Fund for Growth
<PAGE>
Portfolio review
- --------------------------------------------------------------------------------
Portfolio Allocation(4)
[The following information was represented as a pie chart in the printed
material]
o Convertible Bonds
& Notes 69.9%
o Other Securities 18.8
o Preferred Stocks 5.3
o Cash Equivalents 4.5
o Common Stock 1.5
Oppenheimer Bond Fund for Growth is for investors looking for total return from
income, plus built-in growth potential.
What We Look For
o Convertible securities with both good upside potential and reduced downside
risk.
o Companies with strong balance sheets, anticipated strong cash flow, and
interest or dividend coverage at good values.
o Smaller companies that often provide better values.
o Securities that can provide equity-like returns, without excessive volatility.
Sector Breakdown(5)
- -------------------------------------------------------------
Technology 26.1%
- -------------------------------------------------------------
Consumer Cyclicals 19.6
- -------------------------------------------------------------
Industrial 14.0
- -------------------------------------------------------------
Consumer Non-Cyclicals 13.8
- -------------------------------------------------------------
Financial 9.9
- -------------------------------------------------------------
Utilities 7.1
- -------------------------------------------------------------
Energy 3.0
- -------------------------------------------------------------
Basic Materials 2.9
- -------------------------------------------------------------
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
3. Results of a hypothetical $10,000 investment in Class M shares on
December 31, 1992. The GS (Goldman Sachs) 100 Convertible Index is a broad-based
unmanaged convertible index, and cannot be purchased directly by investors.
Convertible securities are subject to credit risks described in the prospectus,
and may not perform as well as stocks in rising markets. Past performance does
not guarantee future results.
4. Portfolio is subject to change. Percentages are
as of December 31, 1997, and are based on total market value of investments.
5. Portfolio is subject to change. Percentages are as of December 31, 1997, and
are based on total net assets.
5 Oppenheimer Bond Fund for Growth
<PAGE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How did the Fund perform in 1997?
The Fund performed right up to our expectations, accomplishing its goal of
providing solid risk-adjusted performance. This Fund invests primarily in
convertible securities, which are fixed-income securities that are convertible
into the issuer's common stock. By doing so, the Fund attempts to participate in
the performance potential of the underlying equities with less volatility. As a
result, the Fund's Class A shares delivered an average annual total return,
without sales charges, of 18.77% for the one-year period ended December 31,
1997.(1)
Why is the concept of risk-adjusted performance important?
The Fund is managed to limit risk as well as to seek return. Its goal is to
produce equity-like returns over a market cycle, with limited volatility. As
such, the Fund appeals to investors who have previously had limited exposure to
equities and wish to take a risk-controlled position in stocks. It also attracts
seasoned equity investors who, after a period of strong stock market advances,
wish to retain some exposure while attempting to control downside risk. This
Fund can help risk-conscious investors stay invested, especially during periods
of market volatility. The October market shock, while small in scale compared to
what has been seen in previous years, reminded investors why they own this Fund:
They care about risk as well as reward.
- --------------------------------------------------------------------------------
"The October market shock reminded investors why they own this Fund: They care
about risk as well as reward."
1. lncludes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
6 Oppenheimer Bond Fund for Growth
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Ted Everett
Mike Rosen
(Fund Managers)
What factors and investments have made a positive contribution to Fund
performance?
Broad diversification and the benefits convertible investing brings
to downside protection created a solid base upon which we could participate in
the equity market's strong performance. For example, TCI Pacific Communications
is the nation's largest cable operator. For largely competitive reasons, cable
operators had fallen out of favor with the investment community. We took an
opposite view, believing that the industry, and in particular this company's
stock, was undervalued. When we established our TCI convertible position, the
issue was paying a 5.5% yield, which was comfortably covered by cash flow. We
felt we were paid handsomely while waiting for market sentiment to turn, and
when the market recognized value, we realized a solid gain.
Another positive holding for the Fund was a dominant company in the home
improvement sector. This holding has shown consistent growth in revenue and
earnings. We bought a five-year convertible issue just over a year ago. We took
the position fully realizing that growth could stumble and the underlying stock
price could fall. But we felt adequately compensated because we could earn a
3.25% coupon on the convertible bond. Fortunately, the company's fundamentals
are still strong and the Fund has shared in much of the gain in stock price.
7 Oppenheimer Bond Fund for Growth
<PAGE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
These examples illustrate our core approach to establish positions that we
believe will participate in most equity gains, but only suffer some of the
declines. We're trying to be on the same road as the equity market, but at the
same time trying to avoid most of the bumps and potholes.
Did anything over the past year hold the Fund back?
Early in the year we took the view that companies in industries such as the
airlines, energy and oil services were already fully valued. Because of that
view we had limited exposure to these market sectors, which turned out to be
strong performers. At the broader level, our less than full participation in the
equity market during a period of continued strong advance held the Fund back.
The Fund's limited exposure to movement in the equity market is, of course,
created by design. Shareholders who purchase this Fund are seeking an investment
with a risk-controlled management style.
What is your outlook for the Fund in 1998?
Of course, no one can predict the future, but we believe there is a strong
possibility that convertible securities may outperform both stocks and bonds for
the first time in years. That's because we expect a moderation of equity returns
and also expect total return on bonds to remain near their coupon rate. In such
an environment, even a slight appreciation in a convertible's underlying equity
could generate enough return to offset any interest rate disadvantage. And in
any environment, convertible securities provide many of the features of both
stocks and bonds, helping risk-conscious investors participate in potential
equity market gains, with reduced volatility.
- --------------------------------------------------------------------------------
"We're hopefully on the same road as the equity market, but trying to avoid most
of the bumps or potholes."
- --------------------------------------------------------------------------------
8 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
<S> <C> <C>
==============================================================================================
Convertible Corporate Bonds and Notes--70.5%
- ----------------------------------------------------------------------------------------------
Basic Materials--1.0%
- ----------------------------------------------------------------------------------------------
Metals--1.0%
Homestake Mining Co., 5.50% Cv. Sub. Nts., 6/23/00(1) $ 6,000,000 $ 5,580,000
- ----------------------------------------------------------------------------------------------
Inco Ltd., 7.75% Cv. Debs., 3/15/16 3,814,000 3,742,487
---------
9,322,487
- ----------------------------------------------------------------------------------------------
Consumer Cyclicals--15.0%
- ----------------------------------------------------------------------------------------------
Autos & Housing--2.9%
Bluegreen Corp., 8.25% Cv. Sub. Debs., 5/15/12 3,635,000 3,357,831
- ----------------------------------------------------------------------------------------------
Engle Homes, Inc., 7% Cv. Sub. Nts., 3/1/03 1,850,000 2,442,000
- ----------------------------------------------------------------------------------------------
Magna International, Inc., 5% Cv. Sub. Debs., 10/15/02 7,000,000 8,531,250
- ----------------------------------------------------------------------------------------------
MascoTech, Inc., 4.50% Cv. Sub. Debs., 12/15/03 10,000,000 8,750,000
- ----------------------------------------------------------------------------------------------
Rouse Co., 5.75% Cv. Sub. Nts., 7/23/02 4,450,000 5,123,062
-----------
28,204,143
- ----------------------------------------------------------------------------------------------
Leisure & Entertainment--4.6%
Credit Suisse First Boston Corp., New York Branch, 3% Disney-
Linked Certificate of Deposit, 10/3/01(2) 10,000,000 12,950,000
- ----------------------------------------------------------------------------------------------
Family Golf Centers, Inc., 5.75% Cv. Sub. Nts., 10/15/04(1) 3,000,000 3,183,750
- ----------------------------------------------------------------------------------------------
Hudson Hotels Corp., 7.50% Cv. Sub. Debs., 7/1/01(2) 7,500,000 7,140,000
- ----------------------------------------------------------------------------------------------
Marriott International, Inc., Zero Coupon Sub. Liquid Yield Option
Nts.:
4.262%, 3/25/11(1)(3) 7,000,000 4,558,750
3.935%, 3/25/11(3) 3,000,000 1,953,750
- ----------------------------------------------------------------------------------------------
Speedway Motorsports, Inc., 5.75% Cv. Sub. Debs., 9/30/03 4,000,000 4,090,000
- ----------------------------------------------------------------------------------------------
Time Warner, Inc., Zero Coupon Cv. Sr. Sub. Liquid Yield Option
Nts., 4.769%, 6/22/13(3) 20,000,000 10,125,000
-----------
44,001,250
- ----------------------------------------------------------------------------------------------
Media--2.5%
Hollinger, Inc., Zero Coupon Cv. Sub. Liquid Yield Option Nts.,
6.331%, 10/5/13(3) 10,000,000 3,850,000
- ----------------------------------------------------------------------------------------------
Interpublic Group Cos., 1.80% Cv. Sub. Debs., 9/16/04(1) 4,000,000 3,295,000
- ----------------------------------------------------------------------------------------------
Omnicom Group, Inc.:
2.25% Cv. Sub. Debs., 1/6/13(1)(4) 1,500,000 1,571,250
4.25% Cv. Sub. Debs., 1/3/07(1) 2,000,000 2,740,000
4.25% Cv. Sub. Debs., 1/3/07 2,000,000 2,740,000
- ----------------------------------------------------------------------------------------------
Rogers Communications, Inc.:
2% Cv. Sr. Debs., 11/26/05 3,800,000 2,275,250
Zero Coupon Cv. Sr. Liquid Yield Option Nts., 5.883%, 5/20/13(3) 6,855,000 2,904,806
- ----------------------------------------------------------------------------------------------
Scantron Corp., 6.75% Cv. Sub. Debs., 6/1/11 (Cv. into Common Stock
of John H. Harland Co.) 1,381,000 1,386,179
- ----------------------------------------------------------------------------------------------
Thomas Nelson, Inc., 5.75% Cv. Nts., 11/30/99(1) 4,000,000 3,850,000
-----------
24,612,485
</TABLE>
9 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Retail:General--0.4%
Travel Ports of America, Inc.:
8.50% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S)(2) $ 950,000 $ 1,221,918
8.50%Cv. Sr. Sub. Debs., 1/15/05(2) 1,750,000 2,250,902
-----------
3,472,820
- ----------------------------------------------------------------------------------------------
Retail:Specialty--4.6%
Cendant Corp., 3% Cv. Sub. Nts., 2/15/02(1) 8,000,000 10,030,000
- ----------------------------------------------------------------------------------------------
Corporate Express, Inc., 4.50% Cv. Sub. Nts., 7/1/00 12,150,000 10,798,312
- ----------------------------------------------------------------------------------------------
Costco Cos., Inc., Zero Coupon Cv. Sub. Nts., 3.50%, 8/19/17(1)(3) 8,000,000 4,770,000
- ----------------------------------------------------------------------------------------------
Home Depot, Inc., 3.25% Cv. Sub. Nts., 10/1/01(5) 7,000,000 9,406,250
- ----------------------------------------------------------------------------------------------
Nine West Group, Inc., 5.50% Cv. Sub. Nts., 7/15/03(1) 4,250,000 3,442,500
- ----------------------------------------------------------------------------------------------
U.S. Office Products Co.:
5.50% Cv. Sub. Nts., 5/15/03(1) 4,000,000 3,615,000
5.50% Cv. Sub. Nts., 5/15/03 2,000,000 1,807,500
-----------
43,869,562
- ----------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--12.6%
- ----------------------------------------------------------------------------------------------
Beverages--0.3%
Chock Full O'Nuts Corp., 8% Cv. Sub. Debs., 9/15/06 2,539,000 2,656,429
- ----------------------------------------------------------------------------------------------
Food--1.4%
Food Lion, Inc., 5% Cv. Sub. Debs., 6/1/03(1) 12,000,000 13,350,000
- ----------------------------------------------------------------------------------------------
Healthcare/Drugs--5.6%
ALZA Corp., 5% Cv. Sub. Debs., 5/1/06 7,000,000 7,411,250
- ----------------------------------------------------------------------------------------------
Athena Neurosciences, Inc., 4.75% Cv. Nts., 11/15/04(1) 5,000,000 5,006,250
- ----------------------------------------------------------------------------------------------
Chiron Corp., 1.90% Cv. Sub. Nts., 11/17/00(1) 7,750,000 6,926,562
- ----------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc., 3.50% Cv. Sub. Nts., 7/15/02 8,250,000 9,085,312
- ----------------------------------------------------------------------------------------------
Fuisz Technologies Ltd., 7% Cv. Sub. Debs., 10/15/04(1) 4,000,000 3,580,000
- ----------------------------------------------------------------------------------------------
NeXstar Pharmaceuticals, Inc., 6.25% Cv. Sub. Debs., 8/1/04(1) 3,000,000 2,812,500
- ----------------------------------------------------------------------------------------------
Roche Holdings, Inc.:
Zero Coupon Cv. Liquid Yield Option Nts., 5.494%, 4/20/10(1)(3) 12,000,000 6,660,000
Zero Coupon Exchangeable Liquid Yield Option
Nts., 6.375%, 5/6/12(1)(3) 15,000,000 6,956,250
- ----------------------------------------------------------------------------------------------
Swiss Bank Corp., Jersey Branch, 2.50% Exchangeable
Nts., 7/7/02 (Exchangeable into the Cash Value of
Shares of Novartis AG)(2) 5,000,000 5,106,250
-----------
53,544,374
- ----------------------------------------------------------------------------------------------
Healthcare/Supplies &Services--4.8%
CareMatrix Corp., 6.25% Cv. Sub. Nts., 8/15/04(1) 2,500,000 2,800,000
- ----------------------------------------------------------------------------------------------
Concentra Managed Care, 6% Cv. Sub. Nts., 12/15/01(1) 3,000,000 4,196,250
- ----------------------------------------------------------------------------------------------
Omnicare, Inc., 5% Cv. Sub. Debs., 12/1/07(1) 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------
PhyCor, Inc., 4.50% Cv. Sub. Debs., 2/15/03 8,500,000 8,245,000
</TABLE>
10 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Healthcare/Supplies & Services (continued)
Quintiles Transnational Corp.:
4.25% Cv. Sub. Nts., 5/31/00(1) $ 4,000,000 $ 4,535,000
4.25% Cv. Sub. Nts., 5/31/00 1,450,000 1,643,937
- ----------------------------------------------------------------------------------------------
Sunrise Assisted Living, Inc., 5.50% Cv. Nts., 6/15/02(1) 4,000,000 5,260,000
- ----------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 6% Exchangeable Sub. Nts., 12/1/05
(Exchangeable into Common Stock of Vencor, Inc.) 7,000,000 6,623,750
- ----------------------------------------------------------------------------------------------
ThermoTrex Corp., 3.25% Cv. Gtd. Bonds, 11/1/07 4,000,000 3,875,000
- ----------------------------------------------------------------------------------------------
Veterinary Centers of America, Inc.:
5.25% Cv. Sub. Debs., 5/1/06 1,750,000 1,297,188
5.25% Cv. Sub. Debs., 5/1/06 430,000 318,738
------------
45,794,863
- ----------------------------------------------------------------------------------------------
Tobacco--0.5%
Standard Commercial Corp., 7.25% Cv. Sub. Debs., 3/31/07 4,984,000 4,498,060
- ----------------------------------------------------------------------------------------------
Energy--3.0%
- ----------------------------------------------------------------------------------------------
Energy Services &Producers--0.6%
SEACOR SMIT, Inc.:
5.375% Cv. Sub. Nts., 11/15/06(1) 2,500,000 2,925,000
5.375% Cv. Sub. Nts., 11/15/06 1,500,000 1,755,000
- ----------------------------------------------------------------------------------------------
SFP Pipeline Holdings, Inc., 11.16% Exchangeable Debs., 8/15/10(6) 1,000,000 1,695,000
-----------
6,375,000
- ----------------------------------------------------------------------------------------------
Oil-Integrated--2.4%
Aker RGI ASA, 5.25% Cv. Bonds, 7/23/02 2,750,000 3,031,875
- ----------------------------------------------------------------------------------------------
Loews Corp., 3.125% Cv. Sub. Nts., 9/15/07 (Exchangeable
into Common Stock of Diamond Offshore Drilling, Inc.) 9,000,000 8,955,000
- ----------------------------------------------------------------------------------------------
Pennzoil Co., 4.75% Exchangeable Sr. Debs., 10/1/03
(Exchangeable into Common Stock of Chevron Corp.)(5) 8,000,000 10,740,000
------------
22,726,875
- ----------------------------------------------------------------------------------------------
Financial--3.0%
- ----------------------------------------------------------------------------------------------
Diversified Financial--0.8%
Berkshire Hathaway, Inc., 1% Sr. Exchangeable Nts., 12/2/01
(Exchangeable into Common Stock of Travelers Group, Inc.) 5,000,000 8,056,250
- ----------------------------------------------------------------------------------------------
Insurance--2.2%
Conseco, Inc., 6.25% Cv. Sub. Debs., 5/1/03 (Cv. into Cash at
100.066% of Face) 2,000,000 2,094,430
- ----------------------------------------------------------------------------------------------
Penn Treaty American Corp., 6.25% Cv. Sub. Nts., 12/1/03(1) 3,250,000 4,233,125
- ----------------------------------------------------------------------------------------------
Republic of Italy, 5% Privatization Exchangeable Nts., 6/28/01
(Exchangeable into ADSs of Istituto Nazionale del Assicurazioni SpA) 12,000,000 14,760,000
- ----------------------------------------------------------------------------------------------
Westbridge Capital Corp., 7.50% Cv. Sub. Nts., 5/1/04(7) 2,500,000 443,750
---------
21,531,305
</TABLE>
11 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Industrial--10.4%
- ----------------------------------------------------------------------------------------------
Industrial Materials--0.6%
Empresas ICA Sociedad Controladora, SA de CV, 5%
Cv. Sub. Debs., 3/15/04 $ 7,000,000 $ 5,503,750
- ----------------------------------------------------------------------------------------------
Industrial Services--6.7%
Danka Business Systems plc, 6.75% Cv. Sub. Nts., 4/1/02 8,000,000 7,190,000
- ----------------------------------------------------------------------------------------------
Kent Electronics Corp., 4.50% Cv. Sub. Nts., 9/1/04 4,000,000 3,270,000
- ----------------------------------------------------------------------------------------------
Lam Research Corp., 5% Cv. Sub. Nts., 9/1/02 5,000,000 4,200,000
- ----------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., 8.25% Cv. Sub. Nts., 8/15/01 5,430,000 5,742,225
- ----------------------------------------------------------------------------------------------
Thermo Ecotek Corp.:
4.875% Cv. Sub. Debs., 4/15/04(1) 5,000,000 5,806,250
Non-Interest Bearing Cv. Sub. Debs., 3/15/01 500,000 640,000
- ----------------------------------------------------------------------------------------------
Thermo Fibertek, Inc., 4.50% Cv. Sub. Debs., 7/15/04(1) 5,000,000 5,356,250
- ----------------------------------------------------------------------------------------------
Thermo TerraTech, Inc.:
4.625% Cv. Sub. Nts., 5/1/03 1,798,000 1,609,210
4.625% Cv. Sub. Debs., 5/1/03(1) 1,500,000 1,342,500
- ----------------------------------------------------------------------------------------------
United States Filter Corp., 4.50% Cv. Sub. Nts., 12/15/01 6,500,000 6,678,750
- ----------------------------------------------------------------------------------------------
USA Waste Services, Inc., 4% Cv. Sub. Debs., 2/1/02 12,887,000 14,111,265
- ----------------------------------------------------------------------------------------------
WMX Technologies, Inc., 2% Cv. Sub. Nts., 1/24/05 10,000,000 8,550,000
-----------
64,496,450
- ----------------------------------------------------------------------------------------------
Manufacturing--3.1%
Hexcel Corp., 7% Cv. Sub. Debs., 8/1/11 4,000,000 4,140,000
- ----------------------------------------------------------------------------------------------
Mark IV Industries, Inc., 4.75% Cv. Sub. Nts., 11/1/04(1) 17,000,000 15,958,750
- ----------------------------------------------------------------------------------------------
Solectron Corp., 6% Cv. Sub. Nts., 3/1/06(1)(5) 4,000,000 5,525,000
- ----------------------------------------------------------------------------------------------
Synetic, Inc., 5% Cv. Sub. Debs., 2/15/07 5,000,000 4,281,250
-----------
29,905,000
- ----------------------------------------------------------------------------------------------
Technology--21.9%
- ----------------------------------------------------------------------------------------------
Aerospace/Defense--0.6%
Orbital Sciences Corp., 5% Cv. Sub. Nts., 10/1/02(1) 4,500,000 5,664,375
- ----------------------------------------------------------------------------------------------
Computer Hardware--3.4%
Adaptec, Inc., 4.75% Cv. Sub. Nts., 2/1/04 6,000,000 6,180,000
- ----------------------------------------------------------------------------------------------
Applied Magnetics Corp., 7% Cv. Sub. Debs., 3/15/06(1) 7,000,000 5,678,750
- ----------------------------------------------------------------------------------------------
EMC Corp., 3.25% Cv. Sub. Nts., 3/15/02(1)(5) 3,000,000 4,076,250
- ----------------------------------------------------------------------------------------------
Level One Communications, Inc., 4% Cv. Sub. Nts., 9/1/04(1) 1,750,000 1,721,563
- ----------------------------------------------------------------------------------------------
Micron Technology, Inc., 7% Cv. Sub. Nts., 7/1/04 4,000,000 3,710,000
- ----------------------------------------------------------------------------------------------
Quantum Corp., 7% Cv. Sub. Nts., 8/1/04 6,500,000 6,110,000
- ----------------------------------------------------------------------------------------------
Telxon Corp.:
5.75% Cv. Sub. Nts., 1/1/03(1) 2,250,000 2,387,813
5.75% Cv. Sub. Nts., 1/1/03 2,500,000 2,653,125
-----------
32,517,501
</TABLE>
12 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Computer Software/Services--4.0%
America Online, Inc., 4% Cv. Sub. Nts., 11/15/02(2) $ 8,000,000 $ 8,740,000
- ----------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. (The), 3% McAfee Equity Linked
Participation Securities, 9/17/02(2) 8,000,000 7,712,000
- ----------------------------------------------------------------------------------------
Learning Co., Inc., 5.50% Cv. Sr. Nts., 11/1/00 3,000,000 2,662,500
- ----------------------------------------------------------------------------------------
MacNeal-Schwendler Corp., 7.875% Cv. Sub. Debs., 8/18/04 5,017,000 5,010,729
- ----------------------------------------------------------------------------------------
Microprose, Inc., 6.50% Cv. Sub. Nts., 9/15/02(1) 1,750,000 1,122,188
- ----------------------------------------------------------------------------------------
National Data Corp., 5% Cv. Sub. Nts., 11/1/03 10,100,000 9,658,125
- ----------------------------------------------------------------------------------------
Tecnomatix Technologies Ltd., 5.25% Cv. Sub. Nts., 8/15/04(1) 3,500,000 3,482,500
-----------
38,388,042
- ----------------------------------------------------------------------------------------
Electronics--9.8%
California Microwave, Inc., 5.25% Cv. Sub. Nts., 12/15/03 3,970,000 3,558,113
- ----------------------------------------------------------------------------------------
Checkpoint Systems, Inc., 5.25% Cv. Sub. Debs., 11/1/05 6,600,000 7,103,250
- ----------------------------------------------------------------------------------------
Cymer, Inc., 3.50%/7.25% Cv. Sub. Debs., 8/6/04(1) 2,000,000 1,500,000
- ----------------------------------------------------------------------------------------
Motorola, Inc., Zero Coupon Cv. Sub. Liquid Yield Option Nts.,
1.307%, 9/27/13(3)(5) 13,000,000 9,896,250
- ----------------------------------------------------------------------------------------
Park Electrochemical Corp., 5.50% Cv. Sub. Nts., 3/1/06 9,000,000 8,505,000
- ----------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. Ltd.,
Zero Coupon Credit Enhanced Debt Indexed to Stock,
4.929%, 7/3/02(1)(3) 6,250,000 6,703,125
- ----------------------------------------------------------------------------------------
Thermo Cardiosystems, Inc., 4.75% Cv. Sub. Debs., 5/15/04(1) 2,000,000 2,220,000
- ----------------------------------------------------------------------------------------
Thermo Electron Corp., 4.25% Cv. Sub. Nts., 1/1/03(1) 15,500,000 19,316,875
- ----------------------------------------------------------------------------------------
Thermo Instrument System, Inc., 4.50% Cv. Gtd
Sr. Debs., 10/15/03(1) 1,500,000 1,713,750
- ----------------------------------------------------------------------------------------
Thermo Optek Corp., 5% Cv. Sub. Debs., 10/15/00(1) 9,535,000 10,869,900
- ----------------------------------------------------------------------------------------
Thermo Voltek Corp., 3.75% Cv. Sub. Debs., 11/15/00 2,470,000 2,346,500
- ----------------------------------------------------------------------------------------
ThermoQuest Corp.:
5% Cv. Sub. Debs., 8/15/00 500,000 550,000
5% Cv. Sub. Debs., 8/15/00(1) 9,775,000 10,752,500
- ----------------------------------------------------------------------------------------
Tyco International Ltd., Zero Coupon Cv. Sub. Liquid
Yield Option Nts., 6.50%, 7/6/10(3)(5) 3,000,000 3,697,500
- ----------------------------------------------------------------------------------------
XILINX, Inc., 5.25% Cv. Sub. Nts., 11/1/02(1) 5,000,000 4,868,750
-----------
93,601,513
- ----------------------------------------------------------------------------------------
Telecommunications/Technology--4.1%
Comverse Technology, Inc., 5.75% Cv. Sub. Debs., 10/1/06 9,000,000 9,641,250
- ----------------------------------------------------------------------------------------
Gilat Satellite Networks Ltd., 6.50% Cv. Sub. Nts., 6/3/04(1) 7,250,000 6,733,438
- ----------------------------------------------------------------------------------------
Metricom, Inc., 8% Cv. Sub. Nts., 9/15/03 2,750,000 2,523,125
- ----------------------------------------------------------------------------------------
SmarTalk Teleservices, Inc., 5.75% Cv. Sub. Nts., 9/15/04(1) 9,000,000 9,618,750
- ----------------------------------------------------------------------------------------
United States Cellular Corp., Zero Coupon Cv. Sub.
Liquid Yield Option Nts., 5.783%, 6/15/15(3) 30,000,000 10,837,500
-----------
39,354,063
</TABLE>
13 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities--3.6%
- -------------------------------------------------------------------------------------------
Gas Utilities--0.6%
Consolidated Natural Gas Co., 7.25% Cv. Sub. Debs., 12/15/15 $ 5,000,000 $ 5,737,500
- -------------------------------------------------------------------------------------------
Telephone Utilities--3.0%
Bankers Trust Corp., 3.10% Common Stock Linked Nts.,
11/5/02 (ACC Corp.)(2) 8,000,000 9,720,000
- -------------------------------------------------------------------------------------------
GTE Corp., 6% Cv. Sub. Debs., 4/1/12 (Cv. into Cash
at 96.657% of Face) 11,004,000 10,632,615
- -------------------------------------------------------------------------------------------
Tel-Save Holdings, Inc.:
4.50% Cv. Sub. Nts., 9/15/02(1) 4,450,000 4,294,250
5% Cv. Sub. Nts., 12/15/04(1) 4,000,000 3,795,000
- -------------------------------------------------------------------------------------------
28,441,865
------------
Total Convertible Corporate Bonds and Notes (Cost $642,797,804) 675,625,962
Shares
===========================================================================================
Common Stocks--1.5%
- -------------------------------------------------------------------------------------------
American Home Products Corp. 19,040 1,456,560
- -------------------------------------------------------------------------------------------
Capstead Mortgage Corp. 86,952 1,733,605
- -------------------------------------------------------------------------------------------
CommScope, Inc.(9) 26,200 352,062
- -------------------------------------------------------------------------------------------
Danskin, Inc. Restricted Common Shares(2)(9) 3,492,903 1,113,363
- -------------------------------------------------------------------------------------------
General Semiconductor, Inc.(9) 20,000 231,250
- -------------------------------------------------------------------------------------------
Kaman Corp., Cl. A 115,061 1,884,124
- -------------------------------------------------------------------------------------------
NextLevel Systems, Inc.(9) 71,947 1,286,053
- -------------------------------------------------------------------------------------------
Orion Capital Corp. 60,002 2,786,343
- -------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 66,000 2,990,625
- -------------------------------------------------------------------------------------------
Thermolase Corp. Units (consisting of one share of common
stock and one redemption right)(9)(10) 49,220 845,969
-----------
Total Common Stocks (Cost $12,026,872) 14,679,954
===========================================================================================
Preferred Stocks--5.4%
- -------------------------------------------------------------------------------------------
Danskin, Inc. $88.2722 Cv. Preferred Stock, Series D(2)(9) 88 468,946
- -------------------------------------------------------------------------------------------
Fort James Corp., $3.50 Cum. Cv. Exchangeable:
Series N, Non-Vtg 50,000 2,706,250
Series L, Non-Vtg 18,600 1,036,950
- -------------------------------------------------------------------------------------------
Kaman Corp., $3.25 Depositary Shares each representing
one-fourth of a share of Cv. Preferred Stock, Series 2 61,390 4,205,215
- -------------------------------------------------------------------------------------------
Mobile Telecommunication Technologies Corp.:
$2.25 Cum. Cv. Exchangeable(1) 121,100 3,996,300
7.50% Cum. Cv., Series C(11) 5,000 6,500,000
- -------------------------------------------------------------------------------------------
PennCorp Financial Group, Inc., $3.50 Cv., Series II(1) 60,000 3,517,500
- -------------------------------------------------------------------------------------------
Phoenix Duff & Phelps Corp., $1.50 Cum. Cv., Series A 312,700 8,951,037
</TABLE>
14 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred Stocks (continued)
SFX Broadcasting, Inc., $3.25 Cum. Cv
Exchangeable, Series D(1) 30,000 $ 2,647,500
- ------------------------------------------------------------------------------------------
TCI Pacific Communications, Inc., 5% Cum
Exchangeable Sr. Preferred, Cl. A 107,000 17,655,000
-----------
Total Preferred Stocks (Cost $37,707,697) 51,684,698
Shares or
Face Amount
==========================================================================================
Other Securities--19.0%
- ------------------------------------------------------------------------------------------
Basic Materials--1.5%
- ------------------------------------------------------------------------------------------
Chemicals--0.5%
Merrill Lynch & Co., Inc., 6.25% Structured Yield Product
Exchangeable for Stock, 7/1/01 (IMC Global, Inc.) 150,000 5,175,000
- ------------------------------------------------------------------------------------------
Paper--1.0%
International Paper Capital Trust, 5.25% Cv. Preferred
Securities, 7/20/25 195,000 9,360,000
- ------------------------------------------------------------------------------------------
Consumer Cyclicals--2.3%
- ------------------------------------------------------------------------------------------
Autos & Housing--0.2%
Daimler Benz AG, American Depositary Nts., representing
5.75% Sub. Mandatory Cv. Nts., 6/14/02 27,988 2,099,100
- ------------------------------------------------------------------------------------------
Leisure & Entertainment--1.7%
Houston Industries, Inc., 7% Automatic Common Exchange
Securities, 7/1/00 (Time Warner, Inc.) 75,000 4,279,687
- ------------------------------------------------------------------------------------------
Mattel, Inc., $.4125 Preferred Redeemable Increased
Dividend Equity Securities, Series C, 7/1/00(5) 465,000 7,440,000
- ------------------------------------------------------------------------------------------
Wendy's Financing Trust I, $2.50 Term Convertible Securities,
Series A, 9/15/26 75,000 4,125,000
-----------
15,844,687
- ------------------------------------------------------------------------------------------
Media--0.4%
News Corp. Ltd. (The), 5% Exchangeable Trust Originated
Preferred Securities, 11/12/16 (British Sky Broadcasting
Group plc)(1) 40,000 3,555,000
- ------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--0.7%
- ------------------------------------------------------------------------------------------
Household Goods--0.7%
Newell Financial Trust I, 5.25% Cv. Preferred Stock, 12/1/27(1) 125,000 6,531,250
- ------------------------------------------------------------------------------------------
Financial--5.1%
- ------------------------------------------------------------------------------------------
Banks--1.0%
National Australia Bank Ltd., Exchangeable Capital Units (each
unit consists of $25 principal amount of 7.875% Perpetual Capital
Security and a purchase contract entitling the holder
to exchange units for ordinary shares of the bank) 322,900 9,182,469
</TABLE>
15 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or Market Value
Face Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial--2.9%
Bankers Trust Corp., 7% Common Stock Linked Nts., 8/16/99
(Sitel Corp.)(2) $6,000,000 $ 5,175,000
- -------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp., 6% Equity-Linked Sr
Medium-Term Nts., 4/29/98 (Charles Schwab Corp.)(2) $5,000,000 7,012,500
- -------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 7.25% Structured Yield Product
Exchangeable for Common Stock, 6/15/99 (Sun America, Inc.) 145,000 10,222,500
- -------------------------------------------------------------------------------------------
SunAmerica, Inc., 8.50% Premium Equity Redemption
Cumulative Securities, 10/31/99 125,000 5,820,312
-----------
28,230,312
- -------------------------------------------------------------------------------------------
Insurance--1.2%
Aetna, Inc., $4.75 Cv. Preferred Stock, 7/19/00 75,000 5,362,500
- -------------------------------------------------------------------------------------------
Allstate Corp., $2.30 Debt Exchangeable for Common
Stock, 4/15/98 (PMI Group, Inc.) 100,000 6,000,000
-----------
11,362,500
- -------------------------------------------------------------------------------------------
Industrial--3.6%
- -------------------------------------------------------------------------------------------
Industrial Materials--1.6%
Corning Delaware LP, 6% Cv. Monthly Income
Preferred Securities(5) 80,000 4,930,000
- -------------------------------------------------------------------------------------------
Owens Corning Capital LLC, 6.50% Cv. Monthly Income
Preferred Securities, Non-Vtg.(1) 210,000 10,290,000
-----------
15,220,000
- -------------------------------------------------------------------------------------------
Manufacturing--1.8%
Elsag Bailey Financing Trust, 5.50% Cv. Trust Originated
Preferred Securities, 12/31/35 85,000 3,230,000
- -------------------------------------------------------------------------------------------
Kennametal, Inc.:
6% Cum. Cv. Term Income Deferrable Equity Securities,
Non-Vtg., 3/31/16(1) 70,000 3,666,250
6% Cum. Cv. Term Income Deferrable Equity Securities,
Non-Vtg., 3/31/16 95,700 5,012,288
- -------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6% Yield Enhanced Equity-Linked
Debt Securities, 8/31/98 (Black & Decker Corp.)(2) 126,646 4,789,752
-----------
16,698,290
- -------------------------------------------------------------------------------------------
Transportation--0.2%
CNF Trust I, $2.50 Term Cum. Cv. Securities, Series A, 6/1/12(5) 40,000 2,310,000
- -------------------------------------------------------------------------------------------
Technology--2.3%
- -------------------------------------------------------------------------------------------
Computer Hardware--0.7%
Credit Suisse First Boston Corp., 6% Equity-Linked Sr
Medium-Term Nts., 2/17/98 (Intel Corp.)(2) $5,000,000 6,687,500
</TABLE>
16 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or Market Value
Face Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Computer Software--1.1%
Microsoft Corp., $2.196 Cv., Series A, Non-Vtg., 12/15/99 80,000 $7,190,000
- ------------------------------------------------------------------------------------------
Vanstar Financing Trust:
6.75% Trust Cv. Preferred Securities, 12/31/49(1) 35,000 1,242,500
6.75% Trust Cv. Preferred Securities, 12/31/49 55,000 1,952,500
------------
10,385,000
- ------------------------------------------------------------------------------------------
Telecommunications/Technology--0.5%
QUALCOMM Financial Trust I, 5.75% Trust Cv. Preferred
Securities, 2/24/12(1) 100,000 4,800,000
- ------------------------------------------------------------------------------------------
Utilities--3.5%
- ------------------------------------------------------------------------------------------
Electric Utilities--0.9%
AES Trust I, $2.6875 Term Convertible Securities,
Series A, 3/31/27(5) 100,000 7,175,000
- ------------------------------------------------------------------------------------------
CalEnergy Capital Trust II, 6.25% Trust Cv
Preferred Securities, 2/25/12(1) 40,000 1,805,000
-----------
8,980,000
- ------------------------------------------------------------------------------------------
Gas Utilities--0.5%
MCN Energy Group, Inc.:
8% Cv. Preferred Redeemable Increased Dividend
Equity Securities, 5/16/00 30,000 1,875,000
8.75% Cv. Preferred Redeemable Increased Dividend
Equity Securities, 4/30/99 90,100 3,085,925
-----------
4,960,925
- ------------------------------------------------------------------------------------------
Telephone Utilities--2.1%
Bear Stearns Cos., 6% Equity-Linked Participation Securities,
11/25/98 (ACC Corp.)(2) $ 5,000,004 6,872,506
- ------------------------------------------------------------------------------------------
SBC Communications, Inc., 7.75% Debt Exchangeable for
Common Stock, 3/15/01 (ADSs of Telefonos de Mexico) 100,000 5,275,000
- ------------------------------------------------------------------------------------------
Sprint Corp., 8.25% Debt Exchangeable for Common Stock,
3/31/00 (Southern New England Telecommunications Corp.) 181,300 8,113,175
- ------------------------------------------------------------------------------------------
20,260,681
-----------
Total Other Securities (Cost $163,721,169) 181,642,714
</TABLE>
17 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Units Market Value
See Note 1
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Rights, Warrants and Certificates--0.0%
- -----------------------------------------------------------------------------------------------------
Danskin, Inc.:
Escrow deposit to be used to purchase 686,237 shares of Restricted
Common Stock in Rights Offering(2) -- $ 205,871
Portion of Promissory Note to be used to purchase 342,560 shares
of Restricted Common Stock in Rights Offering(2) -- 102,768
Wts., Exp. 10/04(2) 367,801 44,136
- -----------------------------------------------------------------------------------------------------
Submicron Systems Corp. Wts., Exp. 12/00(2) 27,000 1,053
- -----------------------------------------------------------------------------------------------------
Travel Ports of America, Inc. Wts., Exp. 1/05(2) 5,300 7,420
---------
Total Rights, Warrants and Certificates (Cost $308,639) 361,248
Face
Amount
- -----------------------------------------------------------------------------------------------------
Repurchase Agreements--4.5%
- -----------------------------------------------------------------------------------------------------
Repurchase agreement with Smith, Barney, Harris, Upham & Co., Inc.
6.625%, dated 12/31/97, to be repurchased at $43,015,826 on 1/2/98,
collateralized by U.S. Treasury Bonds, 8.875%-11.25%, 2/15/15-2/15/19,
with a value of $44,050,015 (Cost $43,000,000) $43,000,000 43,000,000
- -----------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $899,562,181) 100.9% 966,994,576
- -----------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.9) (8,338,864)
---------- ------------
Net Assets 100.0% $958,655,712
========== ============
1. Represents securities sold under Rule 144A, which are exempt from registration under the
Securities Act of 1933, as amended. These securities have been determined to be liquid under
guidelines established by the Board of Trustees. These securities amount to $305,437,014 or
31.86% of the Fund's net assets as of December 31, 1997.
2. Identifies issues considered to be illiquid or restricted--See Note 6 of Notes to Financial
Statements.
3. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase.
4. When-issued security to be delivered and settled after December 31, 1997.
</TABLE>
18 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
- ---------------------------------------------------------------------------------------------
5. A sufficient amount of securities has been designated to cover outstanding written call
options, as follows:
<CAPTION>
Shares
Subject Expiration Exercise Premium Market Value
to Call Date Price Received See Note 1
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AES Corp. 60,000 2/98 $40.0 $178,194 $442,500
AES Corp. 60,000 5/98 40.0 268,191 547,500
- --------------------------------------------------------------------------------------------
CNF Transportation, Inc. 25,000 3/98 45.0 142,995 31,250
CNF Transportation, Inc. 5,000 3/98 47.5 22,349 2,813
- --------------------------------------------------------------------------------------------
Chevron Corp. 2,500 1/98 80.0 8,987 2,344
Chevron Corp. 20,000 3/98 75.0 86,897 120,000
Chevron Corp. 102,700 3/98 80.0 474,491 276,006
- --------------------------------------------------------------------------------------------
Corning, Inc. 30,000 2/98 37.5 62,848 56,250
Corning, Inc. 50,000 2/98 42.5 160,995 18,750
- --------------------------------------------------------------------------------------------
EMC Corp. 60,000 1/98 30.0 173,406 37,500
EMC Corp. 60,000 1/98 32.5 107,846 7,500
- --------------------------------------------------------------------------------------------
Home Depot, Inc. 30,000 2/98 55.0 152,845 153,750
Home Depot, Inc. 90,000 2/98 60.0 247,292 185,625
- --------------------------------------------------------------------------------------------
Mattel, Inc. 70,000 1/98 35.0 208,818 179,375
Mattel, Inc. 80,000 1/98 40.0 165,069 45,000
Mattel, Inc. 30,000 4/98 40.0 107,846 78,750
- --------------------------------------------------------------------------------------------
Motorola, Inc. 30,000 1/98 65.0 152,845 5,625
Motorola, Inc. 50,000 1/98 70.0 295,991 3,125
Motorola, Inc. 20,000 4/98 65.0 129,396 52,500
Motorola, Inc. 20,000 4/98 70.0 111,896 30,000
- --------------------------------------------------------------------------------------------
Solectron Corp. 30,000 1/98 45.0 122,846 15,000
Solectron Corp. 50,000 1/98 42.5 173,495 62,500
Solectron Corp. 20,000 4/98 37.5 81,897 125,000
- --------------------------------------------------------------------------------------------
Tyco International Ltd. 80,000 4/98 40.0 297,590 510,000
--------- ---------
$3,935,025 $2,988,663
========== ==========
</TABLE>
6. Represents the current interest rate for a variable rate security.
7. Non-income producing--issuer is in default of interest payment.
8. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
9. Non-income producing security.
10. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, face amount disclosed represents total underlying
principal.
11. Interest or dividend is paid in kind.
See accompanying Notes to Financial Statements.
19 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities, December 31, 1997
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Assets
<S> <C>
Investments, at value (cost $899,562,181)--see accompanying statement $966,994,576
- -----------------------------------------------------------------------------------
Cash 823,411
- -----------------------------------------------------------------------------------
Receivables:
Investments sold 10,434,688
Interest and dividends 7,774,939
Shares of beneficial interest sold 4,018,517
- -----------------------------------------------------------------------------------
Other 16,613
-------------
Total assets 990,062,744
===================================================================================
Liabilities
Options written, at value (premiums received $3,935,025)--
see accompanying statement--Note 5 2,988,663
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 17,115,629
Dividends 9,781,644
Accrued taxes--Note 1 806,841
Shares of beneficial interest redeemed 490,490
Other 223,765
--------------
Total liabilities 31,407,032
===================================================================================
Net Assets $958,655,712
==============
===================================================================================
Composition of Net Assets
Paid-in capital $889,591,068
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 685,887
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 68,378,757
--------------
Net assets $958,655,712
==============
</TABLE>
20 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
========================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$192,212,333 and 12,544,027 shares of beneficial interest outstanding) $15.32
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.25
- ----------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of
$383,755,244 and 25,004,414 shares of beneficial interest outstanding) $15.35
- ----------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of
$85,396,627 and 5,575,212 shares of beneficial interest outstanding) $15.32
- ----------------------------------------------------------------------------------------
Class M Shares:
Net asset value and redemption price per share (based on net assets of
$297,291,508 and 19,402,557 shares of beneficial interest outstanding) $15.32
Maximum offering price per share (net asset value plus sales charge
of 3.25% of offering price) $15.83
</TABLE>
See accompanying Notes to Financial Statements
21 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations Fpr the year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
==================================================================================
<S> <C>
Investment Income
Interest $ 40,206,440
- ----------------------------------------------------------------------------------
Dividends 3,412,949
------------
Total income 43,619,389
==================================================================================
Expenses
Distribution and service plan fees--Note 4:
Class A 340,094
Class B 2,961,198
Class C 622,555
Class M 2,129,479
- ----------------------------------------------------------------------------------
Management fees--Note 4 3,705,530
- ----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 163,285
Class B 337,129
Class C 61,981
Class M 311,167
- ----------------------------------------------------------------------------------
Registration and filing fees 269,350
- ----------------------------------------------------------------------------------
Accounting service fees--Note 4 239,689
- ----------------------------------------------------------------------------------
Shareholder reports 214,455
- ----------------------------------------------------------------------------------
Legal and auditing fees 62,138
- ----------------------------------------------------------------------------------
Custodian fees and expenses 43,410
- ----------------------------------------------------------------------------------
Trustees' fees and expenses 35,806
- ----------------------------------------------------------------------------------
Interest expense 26,431
- ----------------------------------------------------------------------------------
Other 185,934
- ----------------------------------------------------------------------------------
Total expenses 11,709,631
==================================================================================
Net Investment Income 31,909,758
==================================================================================
Realized and Unrealized Gain Net realized gain on:
Investments (including premiums on options exercised) 54,040,039
Closing and expiration of options written--Note 5 19,221
------------
Net realized gain 54,059,260
- ----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 43,452,225
- ----------------------------------------------------------------------------------
Net realized and unrealized gain 97,511,485
==================================================================================
Net Increase in Net Assets Resulting from Operations $129,421,243
=============
</TABLE>
See accompanying Notes to Financial Statements
22 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1997 1996
=========================================================================================================
<S> <C> <C>
Operations
Net investment income $ 31,909,758 $ 19,841,059
- ---------------------------------------------------------------------------------------------------------
Net realized gain 54,059,260 14,006,497
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 43,452,225 7,865,590
------------ -----------
Net increase in net assets resulting from operations 129,421,243 41,713,146
=========================================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (6,865,016) (2,123,534)
Class B (11,617,988) (4,911,332)
Class C (2,462,263) (648,607)
Class M (11,859,099) (12,157,589)
- ---------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,306,904) (2,201,758)
Class B (20,590,978) (4,975,362)
Class C (4,572,611) (903,669)
Class M (16,003,763) (6,479,192)
=========================================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 91,206,809 90,847,491
Class B 157,527,088 175,385,489
Class C 44,261,278 38,234,063
Class M 3,408,746 29,022,434
=========================================================================================================
Net Assets
Total increase 341,546,542 340,801,580
- ---------------------------------------------------------------------------------------------------------
Beginning of period 617,109,170 276,307,590
-------------- -------------
End of period (including overdistributed net investment
income of $4,113 at 12/31/96) $ 958,655,712 $ 617,109,170
=============== =============
</TABLE>
See accompanying Notes to Financial Statements.
23 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
------------------------------------
Year Ended December 31,
1997 1996(1) 1995(3)
=======================================================================================
<S> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $14.27 $13.96 $13.11
- ---------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .71 .73 .54
Net realized and unrealized gain (loss) 1.93 .65 1.48
------ ------ -----
Total income (loss) from investment
operations 2.64 1.38 2.02
- ---------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.72) (.72) (.68)
Distributions from net realized gain (.87) (.35) (.49)
------ ------ -----
Total dividends and distributions
to shareholders (1.59) (1.07) (1.17)
- ---------------------------------------------------------------------------------------
Net asset value, end of period $15.32 $14.27 $13.96
====== ====== ======
=======================================================================================
Total Return, at Net Asset Value(4) 18.77% 10.13% 15.42%
=======================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $192,212 $93,578 $2,502
--------------------------------------------------------------------------------------
Average net assets (in thousands) $145,929 $41,617 $1,799
--------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.58% 5.11% 5.63%(5)
Expenses 0.95% 0.98%(6) 1.05%(5)(6)
Expenses (excluding interest)(6)(7) 0.95% 0.97% 1.01%(5)
--------------------------------------------------------------------------------------
Portfolio turnover rate(8) 78.5% 52.7% 57.5%
1. On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
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 reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns.Total
returns are not annualized for periods of less than one full year.
5. Annualized.
6. The expense ratios reflect the effect of gross expenses paid indirectly by
the Fund.
</TABLE>
24 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Class C
------------------------------- -----------------------
Year Ended December 31, Year Ended December 31,
1997 1996(1) 1995(3) 1997 1996 (1)(2)
============================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $14.29 $13.98 $13.11 $14.27 $14.03
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .59 .62 .45 .59 .50
Net realized and unrealized gain (loss) 1.94 .65 1.51 1.93 .59
Total income (loss) from investment ------ ------ ------ ------ ------
operations 2.53 1.27 1.96 2.52 1.09
- ------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.60) (.61) (.60) (.60) (.50)
Distributions from net realized gain (.87) (.35) (.49) (.87) (.35)
------ ------ ----- ----- -----
Total dividends and distributions
to shareholders (1.47) (.96) (1.09) (1.47) (.85)
- --------------------------------------------
Net asset value, end of period $15.35 $14.29 $13.98 $15.32 $14.27
====== ====== ====== ====== ======
============================================================================================================
Total Return, at Net Asset Value(4) 17.93% 9.28% 15.09% 17.88% 7.74%
============================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $383,755 $211,176 $34,465 $85,397 $38,312
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $296,426 $113,784 $15,184 $62,343 $18,550
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.80% 4.31% 4.82% 3.82% 4.32%(5)
Expenses 1.72% 1.75%(6) 1.69% 1.70% 1.69%(5)(6)
Expenses (excluding interest)(6)(7) 1.72% 1.73% 1.64% 1.70% 1.67%(5)
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 78.5% 52.7% 57.5% 78.5% 52.7%
</TABLE>
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, 1997 were $831,794,079 and $596,914,610, respectively.
Per share information has been determined based on average shares outstanding
for the period.
25 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class M
------------------------------------------------
Year Ended December 31,
<S> <C> <C> <C> <C> <C>
1997 1996(1) 1995 1994 1993
- --------------------------------------------------------------------------------------------
Per Share Operating Data:
Net asset value, beginning of period $14.27 $13.96 $12.20 $13.16 $11.43
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .65 .70 .68 .59
Net realized and unrealized gain (loss) 1.94 .66 2.42 (.81) 1.79
------ ------ ------ ------ ------
Total income (loss) from
investment operations 2.56 1.31 3.12 (.13) 2.38
- --------------------------------------------------------------------------------------------
Dividends and distributions to share-
holders:
Dividends from net investment income (.64) (.65) (.87) (.69) (.65
Distributions from net realized gain (.87) (.35) (.49) (.14) --
------ ------ ------ ------ -----
Total dividends and distributions
to shareholders (1.51) (1.00) (1.36) (.83) (.65
- --------------------------------------------------------------------------------------------
Net asset value, end of period $15.32 $14.27 $13.96 $12.20 $13.16
====== ====== ====== ====== =====
============================================================================================
Total Return, at Net Asset Value(4) 18.19% 9.58% 26.00% (1.12)% 21.23%
============================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $297,292 $274,043 $239,341 $126,691 $69,375
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $285,621 $264,936 $181,719 $106,829 $36,923
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.05% 4.59% 5.12% 5.24% 4.70%
Expenses 1.46% 1.58%(6) 1.58%(6) 1.66% 1.78%
Expenses (excluding interest)(6)(7) 1.46% 1.55% 1.56% 1.65% 1.75%
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 78.5% 52.7% 57.5% 52.8% 88.7%
</TABLE>
1. On January 4, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
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 reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns.Total
returns are not annualized for periods of less than one full year.
5. Annualized.
6. The expense ratios reflect the effect of gross expenses paid
indirectly by the Fund.
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, 1997 were
$831,794,079 and $596,914,610, respectively.
Per share information has been determined based on average shares outstanding
for the period.
See accompanying Notes to Financial Statements.
26 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Bond Fund for Growth (the Fund), a portfolio of the Bond Fund
Series, is registered under the Investment Company Act of 1940, as amended, as a
non-diversified, open-end management investment company. 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. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager). 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 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 by a portfolio pricing service approved by the Board of Trustees. Such
securities which cannot be valued by an approved portfolio pricing service are
valued using dealer-supplied valuations provided the Manager is satisfied that
the firm rendering the quotes is reliable and that the quotes reflect current
market value, or are valued under consistently applied procedures established by
the Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. 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.
27 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies (continued)
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, 1997, securities with an aggregate market value of $443,750,
representing 0.05% 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.
- --------------------------------------------------------------------------------
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. During 1995, the Fund
acquired all of the assets and liabilities of another investment company which
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. As of December 31, 1997, the remaining accrued
tax liability for net unrealized gains on investments at the time of the
acquisition was $806,841.
28 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 its 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 fiscal year in which the income or realized gain was recorded by
the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended December 31, 1997, amounts have been reclassified to reflect a
decrease in overdistributed net investment income of $898,721, a decrease in
accumulated net realized gain on investments of $1,145,578, and an increase in
paid-in capital of $246,857.
- --------------------------------------------------------------------------------
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 f or
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.
29 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized 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, 1997 Year Ended December 31, 1996(1)
---------------------------- ------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,279,999 $111,599,725 6,494,619 $ 92,520,655
Dividends and distributions reinvested 932,388 14,314,572 249,431 3,554,945
Redeemed (2,225,551) (34,707,488) (366,014) (5,228,109)
---------- ----------- ---------- -----------
Net increase 5,986,836 $ 91,206,809 6,378,036 $ 90,847,491
========== ============ ========== ============
- ---------------------------------------------------------------------------------------------------------
Class B:
Sold 10,397,158 $160,305,660 12,294,846 $175,175,363
Dividends and distributions reinvested 1,506,208 23,000,990 577,315 8,234,848
Redeemed (1,674,594) (25,779,562) (561,285) (8,024,722)
---------- ----------- ---------- -----------
Net increase 10,228,772 $157,527,088 12,310,876 $175,385,489
========== ============ ========== ============
- ---------------------------------------------------------------------------------------------------------
Class C:
Sold 3,123,899 $ 47,976,523 2,679,311 $ 38,154,738
Dividends and distributions reinvested 309,297 4,711,704 91,900 1,310,288
Redeemed (543,468) (8,426,949) (85,727) (1,230,963)
---------- ----------- ---------- -----------
Net increase 2,889,728 $ 44,261,278 2,685,484 $ 38,234,063
========== ============ ========== ============
- ---------------------------------------------------------------------------------------------------------
Class M:
Sold 1,920,434 $ 29,581,986 5,031,985 $ 71,344,923
Dividends and distributions reinvested 1,354,464 20,607,753 1,047,016 14,881,567
Redeemed (3,076,456) (46,780,993) (4,018,081) (57,204,056)
---------- ----------- ---------- -----------
Net increase 198,442 $ 3,408,746 2,060,920 $ 29,022,434
========== ============ ========== ============
</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.
================================================================================
3. Unrealized Gains and Losses on Investments
At December 31, 1997, net unrealized appreciation on investments and options
written of $68,378,757 was composed of gross appreciation of $94,812,739, and
gross depreciation of $26,433,982.
30 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 of 0.625% on the first
$50 million of net assets, 0.50% of the next $250 million of net assets and
0.4375% on net assets in excess of $300 million.
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.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund and for other registered
investment companies. The Fund pays OFS an annual maintenance fee for each Fund
shareholder account and reimburses OFS for its out-of-pocket expenses.
For the year ended December 31, 1997, commissions (sales charges paid by
investors) on sales of Class A and Class M shares totaled $1,867,289 and
$760,191, respectively, of which $564,844 and $96,399, respectively, was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $5,894,745 and $434,925, respectively, of which $138,642
and $9,133, respectively, were paid to an affiliated broker/dealer. During the
year ended December 31, 1997, OFDI received contingent deferred sales charges of
$444,782 and $26,261, 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 shareholder accounts that hold Class A shares. Reimbursement is
made quarterly at an annual rate that may not exceed 0.25% of the average annual
net assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the year ended December 31, 1997, OFDI paid $32,539 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
31 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions With Affiliates (continued)
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its 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 for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and Class C shares. Each fee is 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, 1997,
OFDI paid $3,297 and $3,302, respectively, to an affiliated broker/dealer as
reimbursement for Class B and Class C personal service and maintenance expenses
and retained $2,652,827 and $461,741, respectively, as compensation for Class B
and Class C sales commissions and service fee advances, as well as financing
costs. If either Plan is terminated by the Fund, the Board of Trustees may allow
the Fund to continue payments of the asset-based sales charge to OFDI for
distributing shares before the Plan was terminated. At December 31, 1997, OFDI
had incurred unreimbursed expenses of $11,326,716 for Class B and $886,036 for
Class C.
The Fund has adopted a 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, 1997, OFDI paid $8,871 to an
affiliated broker/dealer as reimbursement for Class M personal service and
maintenance expenses and retained $732,265 as reimbursement for certain Class M
sales-related distribution expenses.
================================================================================
5. 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.
32 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option 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, 1997 was as follows:
<TABLE>
<CAPTION>
Call Options
-----------------------------
Number of Amount of
Options Premiums
- --------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at December 31, 1996 6,552 $1,651,120
Options written 29,029 10,106,235
Options closed or expired (21,816) (6,491,345)
Options exercised (3,013) (1,330,985)
------- ----------
Options outstanding at December 31, 1997 10,752 $3,935,025
======= ==========
================================================================================
</TABLE>
6. Illiquid and Restricted Securities
At December 31, 1997, 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
periodically) 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, 1997 was $87,321,885, which
represents 9.11% of the Fund's net assets, of which $32,241,129 is considered
restricted. Information concerning restricted securities is as follows:
33 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
<TABLE>
========================================================================================================
6. Illiquid and Restricted Securities (continued)
<CAPTION>
Valuation
Cost per Unit
Security Acquisition Date Per Unit Dec. 31, 1997
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bonds and Other Securities
Bankers Trust Corp.:
3.10% Common Stock Linked Nts., 11/5/02 (ACC Corp.) 10/29/97 100.00% 121.50%
7% Common Stock Linked Nts., 8/16/99 (Sitel Corp.) 8/12/97 100.00 86.25
- --------------------------------------------------------------------------------------------------------
Hudson Hotels Corp., 7.5% Cv. Sub. Debs., 7/1/01 7/8/96 100.00 95.20
- --------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc.:
8.50% Cv. Sr. Sub. Debs., 1/15/05 2/13/95-8/9/95 100.04 128.62
8.50% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S) 6/14/95-8/13/96 111.44 128.62
Stocks, Warrants and Other Securities
Danskin, Inc.:
Escrow deposit to be used to purchase
686,237 shares of Restricted Common Stock
in Rights Offering 8/14/95 $ .30 $ .30
$88.2722 Cv. Preferred Stock, Series D 8/14/95 5,000.00 5,312.50
Portion of Promissory Note to be used to purchase
342,560 shares of Restricted Common Stock
in Rights Offering 8/14/95 .30 .30
Restricted Common Shares 8/14/95-3/3/97 1.47 .32
Wts., Exp. 10/04 8/14/95 -- 0.12
- --------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 6% Yield
Enhanced Equity-Linked Debt Securities, 8/31/98
(Black & Decker Corp.) 9/5/96 39.48 37.82
- --------------------------------------------------------------------------------------------------------
SubMicron Systems Corp. Wts., Exp. 12/00 12/11/95 -- .04
- --------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc., Wts., Exp. 1/05 2/13/95 -- 1.40
========================================================================================================
</TABLE>
7. 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 funds
managed by the Manager in an unsecured line of credit with a bank, which permits
borrowings up to $50 million, collectively. Interest is charged to each fund,
based on its borrowings, at a rate equal to the Federal Funds Rate plus 0.625%.
In addition, a commitment fee of 0.07% is allocated among the three
participating funds at the end of each quarter, based on the average daily
unused portion of the committed line. The commitment fee is allocated among the
three funds based upon their respective average net assets for the period. The
commitment fee allocated to the Fund for the year ended December 31, 1997 was
$245.
The Fund had no borrowings outstanding at December 31, 1997. For the year
ended December 31, 1997, the average monthly loan balance was $468,393 at an
average interest rate of 6.056%. The Fund had no borrowings outstanding at any
month-end.
34 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of Bond Fund Series:
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 sole portfolio constituting Bond Fund Series, hereafter referred to as the
Fund) at December 31, 1997, 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 periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and finacial highlights (hereafter referred to as finacial
statements) are the responsibility of the Fund's management; our responsiblitiy
is to express an opinion on these finacial 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 statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1997 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where securities purchased had not been received, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Denver, Colorado
January 23, 1998
35 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
In early 1998 shareholders received information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.0915, $1.0564, $1.0572 and $1.0686 per share were paid to
Class A, Class B, Class C and Class M shareholders, respectively, on December
31, 1997, of which, for each class of shares, $0.1810 was designated as a
capital gain distribution in the "28% Rate Group" and $0.2476 was designated as
a capital gain distribution in the "20% Rate Group" for federal income tax
purposes. Whether received in stock or cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the fiscal year ended December 31, 1997 which
are not designated as capital gain distributions should be multiplied by 4.75%
to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
36 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
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 Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
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 OppenheimerFunds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
37 Oppenheimer Bond Fund for Growth
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
========================================================================================
<S> <C> <C>
Real Asset Funds
- ---------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
=======================================================================================
Stock Funds
- ---------------------------------------------------------------------------------------
Developing Markets Fund Discovery Fund Growth Fund
International Small Quest Small Cap Value Fund Global Fund
Company Fund MidCap Fund Quest Global Value Fund
Enterprise Fund Capital Appreciation Fund(1) Disciplined Value Fund
International Growth Fund Quest Capital Value Fund Quest Value Fund
========================================================================================
Stock & Bond Funds
- ----------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth & Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
========================================================================================
Bond Funds
- ----------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
========================================================================================
Municipal Funds
- ----------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
========================================================================================
Money Market Funds(4)
- ----------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
========================================================================================
LifeSpan
- ----------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain states.
4. 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 1998 OppenheimerFunds, Inc. All rights reserved.
38 Oppenheimer Bond Fund for Growth
<PAGE>
Information and services
- --------------------------------------------------------------------------------
Internet
24-hr access to account information
- --------------------------------------------------------------------------------
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- --------------------------------------------------------------------------------
1-800-525-7048
- --------------------------------------------------------------------------------
Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- --------------------------------------------------------------------------------
1-800-852-8457
- --------------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
- --------------------------------------------------------------------------------
1-800-533-3310
- --------------------------------------------------------------------------------
Telecommunication Device for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
- --------------------------------------------------------------------------------
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, or visit us at our website at www.oppenheimerfunds.com--
we're here to help.
[Logo] OppenheimerFunds(SM), Distributor, Inc.
RA0345.001.1297 February 27, 1998
