<PAGE>
OPPENHEIMER MAIN STREET INCOME & GROWTH FUND
Annual Report June 30, 1995
[Photo]
"We want to go after the highest long-term GROWTH available."
[Logo]OPPENHEIMERFUNDS
<PAGE>
This Fund is for people who want high total RETURN from both the potential
for capital appreciation and from current income.
[SIDEBAR]
NEWS
-------------------------------
BEAT THE AVERAGE
-------------------------------
Cumulative Total Return for the 5-Year Period Ended 6/30/95:
Oppenheimer Main Street Income & Growth Fund Class A (at net asset value)(1)
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211.16%
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Lipper Growth & Income Funds Average(3)
-------------------------------
70.00%
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THE FUNDS CLASS A SHARES ARE RANKED ***** AMONG 1,234 EQUITY FUNDS FOR THE
3- AND 5-YEAR PERIODS ENDED 6/30/95.(4)
MORNINGSTAR MUTUAL FUNDS
6/30/95
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HOW YOUR FUND IS MANAGED
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Oppenheimer Main Street Income & Growth Fund offers long-term investors the
opportunity for high total return. This strategy offers the potential for
long-term growth plus the added advantage of income by investing in the
stocks of companies offering the potential for long-term growth as well as
income-producing stocks and bonds. Of course, the value of the growth stocks
the Fund invests in can fluctuate over short periods of time.
This disciplined approach helps to reduce risk through diversification and
enables the Fund to take advantage of a wide variety of market conditions.
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PERFORMANCE
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Total return at net asset value for the 12 months ended 6/30/95 was 20.52%
for Class A shares and 19.63% for Class C shares. For Class B shares,
total return at net asset value since inception of the Class on 10/1/94 was
13.15%.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 6/30/95 and since
inception of the Class on 2/3/88 were 13.59%, 24.01% and 20.68%,
respectively. For Class B shares, total return since inception of the Class
on 10/1/94 was 8.15%. For Class C shares, average annual total returns for
the 1-year period ended 6/30/95 and since inception of the Class on 12/1/93
were 18.63% and 10.98%, respectively.(2)
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OUTLOOK
--------------------------------------------------------------------------------
"Because we expect small to medium cap stocks to begin to participate more
fully in a rising market, these stocks are a significant area of focus, and
we feel the Fund is positioned to do quite well."
Robert Doll, Portfolio Manager
July 5, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and
principal value on an investment in the Fund will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
1. Based on the change in net asset value per share for the period
shown, without deducting any sales charges. Such performance would have been
lower if sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 6/30/94,
6/30/90 and 2/3/88 (inception of class), after deducting the current maximum
initial sales charge of 5.75%. Class B returns show results of hypothetical
investments on 10/1/94 (inception of class), and with the deduction of the
applicable contingent deferred sales charge of 5% (since inception). Class C
returns show results of hypothetical investments on 6/30/94 and 12/1/93
(inception of class), with the 1% contingent deferred sales charge deducted
for the 1-year result. An explanation of the different performance
calculations is in the Fund's prospectus.
3. Source: Lipper Analytical Services. The Lipper total return average for
the 5-year period was for 187 growth and income funds. The average is shown
for comparative purposes only. Oppenheimer Main Street Income & Growth Fund
is characterized by Lipper as a growth and income fund. Lipper performance
does not take sales charges into consideration.
4. Source: MORNINGSTAR MUTUAL FUNDS, 6/30/95. Morningstar, Inc., an
independent mutual fund monitoring service, produces proprietary monthly
rankings of funds in broad investment categories (equity, taxable bond,
tax-exempt bond, or "hybrid") based on risk-adjusted investment returns, after
considering sales charges and expenses. Investment return measures a fund's
(or class's) 3-, 5- and 10-year (depending on the inception of the class or
fund) average annual total returns in excess of 90-day U.S. Treasury bill
returns. Risk measures a fund's (or class's) performance below 90-day U.S.
Treasury bill returns. Risk and returns are combined to produce star
rankings, reflecting performance relative to the average fund in a fund's
category. Five stars is the "highest" ranking (top 10%), 4 stars is "above
average" and 1 star is the "lowest" (bottom 1%). The 5-star current ranking is
a weighted average of the 3- and 5-year rankings for the class, which were
both 5 stars, respectively, weighted 40%/60%, respectively. There were 1,234
and 906 funds ranked in those respective periods. Rankings are subject to
change. The Fund's Class A, B and C shares have the same portfolio.
2 Oppenheimer Main Street Income & Growth Fund
<PAGE>
[PHOTO]
JAMES C. SWAIN
CHAIRMAN
Oppenheimer Main Street Income & Growth Fund
[PHOTO]
JON S. FOSSEL
PRESIDENT
Oppenheimer Main Street Income & Growth Fund
Dear OppenheimerFunds Shareholder,
In the first six months of 1995, the stock and bond markets have improved
significantly. The Federal Reserve's seven interest rate hikes between
February 1994 and February 1995 appear to have achieved their intended
effect, as the rate of economic growth has slowed throughout the year. This
economic outlook of sustainable, healthy growth with low inflation, falling
interest rates, and talk of deficit reduction inspired investors' confidence
in the stock market. As a result, the Dow Jones Industrial Average hit record
highs repeatedly in the first half of the year.
The stock market has been strong for other reasons as well. Overall,
corporate America has done an excellent job of restructuring, and has become
more productive and profitable. Combined with continued investment in
technology and increased competitiveness abroad as a result of a weaker
dollar, these events resulted in spectacular first quarter earnings reports.
While the market's rise this year has been dramatic, it has caused our
equity investment team to become slightly more cautious. Because the market
has already registered significant gains this year, the stock market is
starting to see signs of short-term volatility, and your Fund's managers want
to protect the gains the Fund has made.
Still, the market's expansion has been fueled by underlying fundamental
strengths. So, while we are cautious, we believe it has room to continue.
Congress's continuing emphasis on deficit reduction, plus Washington's
commitment to correcting our trade imbalance, should benefit the market--in
addition to attracting foreign investments to U.S. stocks, creating even
greater demand and possibly pushing their prices up further.
Should the economy slow more than anticipated, however, we would expect to
see earnings slow eventually, which could cause the market to hesitate. In
this event, smaller companies and international stocks could begin to
outperform the large, globally-oriented companies that have led the market so
far this year. However, until your Fund's managers see signs of either
increased inflation or recession on the horizon, they remain constructive on
the market in general and will view any volatility in the near term as a time
to search for buying opportunities.
At OppenheimerFunds, our approach to the stock market is to invest with a
long-term view, to participate in upswings while remaining prudent, and,
finally, to know when to become more defensive to protect the gains we have
made.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, and we
look forward to helping you continue to reach your investment goals in the
future.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
July 24, 1995
3 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Q + A [Photo] [Photo]
An interview with your Fund's manager.
Q Where are you finding the BEST opportunities?
HOW HAVE SMALLER COMPANY STOCKS FARED IN THE CURRENT STRONG STOCK MARKET?
The stocks of smaller companies have done quite well recently, though
year-to-date the market has been led primarily by larger company stocks. The
market has favored larger companies because their earnings--in part due to the
advantage a weak dollar bought them overseas--were unusually impressive.
Historically, however, because smaller companies' growth rates have exceeded
those of larger companies, their stocks have outperformed those of larger
companies overall and we expect to see a return to this trend toward the end
of the year. Of course, past performance is not indicative of future results.
WHERE ARE YOU FINDING THE BEST OPPORTUNITIES FOR GROWTH POTENTIAL?
One area we feel strongly about--and one which has helped our recent
performance--has been technology stocks. In particular, we like Adobe Systems,
a software manufacturer specializing in desktop publishing applications and
Autodesk, a provider of design automation software. We also like
semiconductor stocks. Our feeling is that though technology stocks have been
heading up since last year, there is still room for growth as computing
continues to take a larger role in everyday life.(1)
Financial stocks have also been strong performers. In this area, we're
shifting away from some of the larger bank stocks toward savings & loan
stocks that offer both compelling valuations and high dividend yields.
Another sector that has really begun to perform is airlines. Fundamentals,
which had started to improve in 1994, have gotten even better. Although
capacity has come down,
[Photo]
1. The Fund's portfolio is subject to change.
4 Oppenheimer Main Street Income & Growth Fund
<PAGE>
FACING PAGE
Top left: Diane Sobin,
Portfolio Manager
Top right: The equity trading desk
Bottom: Mark Binning, Securities
Coordinator, consults with
Lawrence Apolito, VP Equity Trading
THIS PAGE
Right: Robert Doll,
Portfolio Manager
Bottom: Bruce Bartlett,
Portfolio Manager
A Companies that are positioned to do well because of their fundamental
STRENGTHS.
managements have cut costs, and improvements in the economy have increased
demand. In addition to some regional carriers, we bought Delta Airlines
convertible bonds and preferred stock. In this case, we collected income
while waiting for the common stock prices to move up.
WHILE THE MARKET IS UP, THERE IS GREAT VARIANCE IN THE PERFORMANCE OF
INDIVIDUAL STOCKS. HOW HAS THIS SITUATION IMPACTED THE FUND?
We're taking advantage of the volatility in the market. We've added to
hospital management companies' stocks, which we've been able to obtain at
reduced prices because of overblown fears of price competition and margin
pressures, yet we continue to believe the long-term outlook for well-managed
companies in this sector is very good.
[Photo]
WHAT IS YOUR OUTLOOK FOR THE STOCK MARKET AND HOW WILL IT REACT TO A SLOWING
ECONOMY?
In our view, the economy still seems to be healthy. Initial talk was about a
soft landing--a slowdown in growth to a more moderate pace with inflation--but
now it looks like its going to be a little harder. Either way, our strategy
is to try to identify companies that exhibit strong earnings growth, have
quality management, and have the ability to sustain growth in the future
regardless of economic factors. We're a bottom-up manager, so our focus is on
finding companies that are positioned to do well because of their fundamental
strengths.
WHAT TYPES OF SECURITIES ARE CURRENTLY PROVIDING INCOME TO THE FUND?
[Photo]
We typically employ a combination of securities, including high yield stocks,
government and corporate bonds and convertible securities that are shifted in
favor of whichever area seems most attractive from a total return point of
view. Right now, we are weighted more heavily in stocks.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Because we expect small to medium cap stocks to begin to participate more
fully in a rising market, these stocks are a significant area of focus and we
feel the Fund is positioned to do quite well. Meanwhile, we are currently
holding roughly 10% cash as a result of huge inflows from investors which
could limit the Fund's exposure to any near-term volatility while the market
digests economic news. / /
5 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS June 30, 1995
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FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS AND NOTES--6.0%
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BASIC MATERIALS--0.3%
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CHEMICALS--0.2% IMC Global, Inc., 6.25% Cv. Sub. Debs., 12/1/01 $ 6,000,000 $ 6,120,000
------------------------------------------------------------------------------------------------------------------------------------
GOLD--0.1% Agnico Eagle Mines Ltd., 3.50% Cv. Sr. Nts., 1/27/04 2,625,000 2,244,375
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--1.4%
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LEISURE & ENTERTAINMENT--0.1% Discovery Zone, Inc., Zero Coupon Cv. Sub. Liquid Yield Option
Nts., 10/14/13 10,000,000 3,362,500
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MEDIA--0.9% Time Warner, Inc., 8.75% Cv. Sr. Nts., 1/10/15 24,000,000 24,960,000
------------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.3% Federated Department Stores, Inc., 9.72% Cv. Sr. Disc. Nts., 2/15/04 5,000,000 5,056,250
---------------------------------------------------------------------------------------------------
Unifi, Inc., 6% Cv. Sub. Nts., 3/15/02 5,000,000 5,006,250
--------------
10,062,500
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RETAIL: SPECIALTY--0.1% Sports & Recreation, Inc., 4.25% Cv. Sub. Nts., 11/1/00 3,500,000 2,695,000
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--1.4%
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HEALTHCARE/DRUGS--0.6% Roche Holdings, Inc., Zero Coupon Cv. Nts., 4/20/10(1) 48,000,000 19,080,000
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & Fisher Scientific International, Inc., 4.75% Cv. Sub. Nts., 3/1/03(2) 3,000,000 3,213,750
SERVICES--0.8% ---------------------------------------------------------------------------------------------------
ICN Pharmaceuticals, Inc., 8.50% Cv. Sub. Debs., 11/15/99 7,400,000 7,252,000
---------------------------------------------------------------------------------------------------
Novacare, Inc., 5.50% Cv. Sub. Debs., 1/15/00 6,500,000 5,622,500
---------------------------------------------------------------------------------------------------
Pacific Physician Services, Inc., 5.50% Cv. Sub. Debs., 12/15/03 2,500,000 1,918,750
---------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.50% Cv. Sub. Debs., 8/15/00(1) 1,000,000 831,250
---------------------------------------------------------------------------------------------------
Theratx, Inc., 8% Cv. Sub. Debs., 2/1/02(1) 6,000,000 5,467,500
--------------
24,305,750
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FINANCIAL--0.1%
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BANKS--0.1% Banco de Galicia y Buenos Aires SA, 7% Cv. Negotiable Obligation
Bonds, 8/1/02 3,000,000 2,115,000
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INDUSTRIAL--1.0%
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INDUSTRIAL SERVICES--0.3% WMX Technologies, Inc., 2% Cv. Sub. Nts., 1/24/05 10,000,000 8,425,000
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.7% AMR Corp., 6.125% Cv. Sub. Debs., 11/1/24 15,000,000 15,675,000
---------------------------------------------------------------------------------------------------
Delta Airlines, Inc., 3.23% Cv. Sub. Nts., 6/15/03 6,000,000 5,775,000
--------------
21,450,000
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TECHNOLOGY--1.8%
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COMPUTER HARDWARE--0.7% Conner Peripherals, Inc., 6.50% Cv. Debs., 3/1/02 3,000,000 2,531,250
---------------------------------------------------------------------------------------------------
Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02(1) 8,000,000 8,440,000
---------------------------------------------------------------------------------------------------
Data General Corp., 7.75% Cv. Sub. Debs., 6/1/01 8,000,000 7,240,000
---------------------------------------------------------------------------------------------------
Seagate Technology, Inc., 6.75% Cv. Sub. Debs., 5/1/12 3,000,000 3,135,000
--------------
21,346,250
</TABLE>
6 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
COMPUTER SOFTWARE--0.2% First Financial Management Corp., 5% Cv. Debs., 12/15/99 $ 5,000,000 $ 6,675,000
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COMPUTER SOFTWARE & Synoptics Communications, Inc., 5.25% Cv. Sub. Debs., 5/15/03(1) 3,500,000 3,329,375
SERVICES--0.1%
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ELECTRONICS--0.4% ADT Operations, Inc., Zero Coupon Sub. Nts., 7/6/10 10,000,000 3,925,000
---------------------------------------------------------------------------------------------------
Altera Corp., 5.75% Cv. Sub. Nts., 6/15/02(1) 7,000,000 7,446,250
--------------
11,371,250
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TELECOMMUNICATIONS- Telekom Malaysia Berhad, 4% Cv. Debs., 10/3/04(1) 3,250,000 3,136,250
TECHNOLOGY--0.4% ---------------------------------------------------------------------------------------------------
U.S. Cellular Corp., Zero Coupon Cv. Liquid Yield Option Nts., 6/15/15 16,250,000 5,078,125
---------------------------------------------------------------------------------------------------
Worldcom, Inc., 5% Cv. Sub. Nts., 8/15/03 4,000,000 3,820,000
--------------
12,034,375
--------------
Total Convertible Corporate Bonds and Notes (Cost $166,782,577) 179,576,375
<CAPTION>
SHARES
====================================================================================================================================
<S> <C> <C> <C>
COMMON STOCKS--78.6%
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BASIC MATERIALS--3.3%
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CHEMICALS--2.4% Bush Boake Allen, Inc.(3) 400,000 12,150,000
---------------------------------------------------------------------------------------------------
Hercules, Inc. 370,000 18,037,500
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IMC Global, Inc. 375,000 20,296,875
---------------------------------------------------------------------------------------------------
Mississippi Chemical Corp. 300,000 5,981,250
---------------------------------------------------------------------------------------------------
W.R. Grace & Co. 275,000 16,878,125
--------------
73,343,750
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METALS--0.4%
Aluminum Co. of America 200,500 10,050,063
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Zemex Corp.(3) 140,000 1,312,500
--------------
11,362,563
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PAPER--0.5% Scott Paper Co. 300,000 14,850,000
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CONSUMER CYCLICALS--14.0%
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AUTOS & HOUSING--0.8% Chrysler Corp. 275,000 13,165,625
---------------------------------------------------------------------------------------------------
Edelbrock Corp.(3) 225,000 3,037,500
---------------------------------------------------------------------------------------------------
Oakwood Homes Corp. 350,000 8,968,750
--------------
25,171,875
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LEISURE & ENTERTAINMENT--5.4% Atlantic Southeast Airlines, Inc. 950,000 28,618,750
---------------------------------------------------------------------------------------------------
Aztar Corp.(3) 800,000 7,400,000
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Brunswick Corp. 450,000 7,650,000
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Buffets, Inc.(3) 910,000 12,512,500
---------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(3) 951,000 33,522,750
---------------------------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B(3) 600,000 15,075,000
---------------------------------------------------------------------------------------------------
Eastman Kodak Co. 425,000 25,765,625
</TABLE>
7 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS (Continued)
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MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
LEISURE & ENTERTAINMENT FelCor Suite Hotels, Inc. 100,000 $ 2,550,000
(CONTINUED) ---------------------------------------------------------------------------------------------------
Imax Corp.(3) 225,000 2,503,125
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Southwest Airlines Co. 350,000 8,356,250
---------------------------------------------------------------------------------------------------
Walt Disney Co. 325,000 18,078,125
--------------
162,032,125
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MEDIA--2.1% CBS, Inc. 150,000 10,050,000
---------------------------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 650,000 12,065,625
---------------------------------------------------------------------------------------------------
Cox Communications, Inc.(3) 600,000 11,625,000
---------------------------------------------------------------------------------------------------
Houghton Mifflin Co. 125,000 6,593,750
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Katz Media Group, Inc.(3) 8,400 133,350
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United International Holdings, Inc., Cl. A(3) 350,000 5,862,500
---------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(3) 400,000 18,550,000
--------------
64,880,225
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RETAIL: GENERAL--2.3% Big B, Inc. 300,000 4,237,500
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Dayton Hudson Corp. 150,000 10,762,500
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Dillard Department Stores, Inc., Cl. A 450,000 13,218,750
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Duckwall-ALCO Stores, Inc.(3)(4) 300,000 2,775,000
---------------------------------------------------------------------------------------------------
Eckerd Corp.(3) 450,000 14,400,000
---------------------------------------------------------------------------------------------------
Kohl's Corp.(3) 200,000 9,125,000
---------------------------------------------------------------------------------------------------
Unifi, Inc. 600,000 14,400,000
--------------
68,918,750
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RETAIL: SPECIALTY--3.4% Cameron Ashley, Inc.(3) 125,000 1,656,250
---------------------------------------------------------------------------------------------------
Ellett Brothers, Inc. 250,000 1,687,500
---------------------------------------------------------------------------------------------------
Home Shopping Network, Inc.(3) 1,250,000 10,625,000
---------------------------------------------------------------------------------------------------
Nike, Inc., Cl. B 225,000 18,900,000
---------------------------------------------------------------------------------------------------
Nine West Group, Inc.(3) 250,000 9,125,000
---------------------------------------------------------------------------------------------------
Rite Aid Corp. 575,000 14,734,375
---------------------------------------------------------------------------------------------------
Tandy Corp. 240,000 12,450,000
---------------------------------------------------------------------------------------------------
Tech Data Corp.(3) 1,150,000 13,153,125
---------------------------------------------------------------------------------------------------
The Limited, Inc. 775,000 17,050,000
---------------------------------------------------------------------------------------------------
U.S. Office Products Co.(3) 200,000 2,400,000
--------------
101,781,250
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CONSUMER NON-CYCLICALS--12.7%
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BEVERAGES--0.3% Canandaigua Wine Co., Inc., Cl. A(3) 200,000 8,950,000
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FOOD--1.1% IBP, Inc. 500,000 21,750,000
---------------------------------------------------------------------------------------------------
Penn Traffic Co.(3) 350,000 12,381,250
---------------
34,131,250
</TABLE>
8 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
HEALTHCARE/DRUGS--4.6% Amgen, Inc.(3) 450,000 $ 36,196,875
---------------------------------------------------------------------------------------------------
Bergen Brunswig Corp., Cl. A 425,000 9,721,875
---------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 125,000 8,515,625
---------------------------------------------------------------------------------------------------
Dentsply International, Inc. 350,000 12,600,000
---------------------------------------------------------------------------------------------------
Genentech, Inc.(3) 575,000 27,959,375
---------------------------------------------------------------------------------------------------
Genzyme Corp.(3) 300,000 12,000,000
---------------------------------------------------------------------------------------------------
Healthsource, Inc.(3) 125,000 4,375,000
---------------------------------------------------------------------------------------------------
Matrix Pharmaceutical, Inc.(3) 150,000 2,025,000
---------------------------------------------------------------------------------------------------
Merck & Co., Inc. 250,000 12,250,000
---------------------------------------------------------------------------------------------------
Warner-Lambert Co. 150,000 12,956,250
--------------
138,600,000
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES Baxter International, Inc. 250,000 9,093,750
& SERVICES--5.3% ---------------------------------------------------------------------------------------------------
Beverly Enterprises, Inc.(3) 1,150,000 14,231,250
---------------------------------------------------------------------------------------------------
Boston Scientific Corp.(3) 500,000 15,937,500
---------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 300,000 12,975,000
---------------------------------------------------------------------------------------------------
Heart Technology, Inc.(3) 450,000 8,718,750
---------------------------------------------------------------------------------------------------
Mariner Health Group, Inc.(3) 125,000 1,406,250
---------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.(3) 230,000 10,867,500
---------------------------------------------------------------------------------------------------
Spine-Tech, Inc.(3) 200,000 2,150,000
---------------------------------------------------------------------------------------------------
Summit Care Corp.(3) 75,000 1,368,750
---------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.(3) 825,000 11,859,375
---------------------------------------------------------------------------------------------------
Theratx, Inc.(3) 25,000 334,375
---------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 400,000 12,250,000
---------------------------------------------------------------------------------------------------
United Healthcare Corp. 1,150,000 47,581,250
---------------------------------------------------------------------------------------------------
Ventritex, Inc.(3) 575,000 9,703,125
--------------
158,476,875
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HOUSEHOLD GOODS--0.3% Avon Products, Inc. 150,000 10,050,000
------------------------------------------------------------------------------------------------------------------------------------
TOBACCO--1.1% Philip Morris Cos., Inc. 425,000 31,609,375
------------------------------------------------------------------------------------------------------------------------------------
ENERGY--6.2%
------------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES Apache Corp. 250,000 6,843,750
& PRODUCERS--1.8% ---------------------------------------------------------------------------------------------------
Baker Hughes, Inc. 353,000 7,236,500
---------------------------------------------------------------------------------------------------
BJ Services Co.(3) 225,000 5,118,750
---------------------------------------------------------------------------------------------------
Nabors Industries, Inc.(3) 175,000 1,443,750
---------------------------------------------------------------------------------------------------
Pogo Producing Co. 200,000 4,575,000
---------------------------------------------------------------------------------------------------
Pride Petroleum Services, Inc.(3) 35,000 262,500
---------------------------------------------------------------------------------------------------
Schlumberger Ltd. 350,000 21,743,750
---------------------------------------------------------------------------------------------------
Weatherford International, Inc.(3) 500,000 6,375,000
--------------
53,599,000
</TABLE>
9 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS (Continued)
---------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
OIL-INTEGRATED--4.4% Arethusa (Off Shore) Ltd. 225,000 $ 4,050,000
---------------------------------------------------------------------------------------------------
Ashland, Inc. 425,000 14,928,125
---------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 200,000 21,950,000
---------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 1,250,000 28,593,750
---------------------------------------------------------------------------------------------------
Parker & Parsley Petroleum Co. 250,000 4,906,250
---------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 150,000 18,281,250
---------------------------------------------------------------------------------------------------
Sun Co., Inc. 425,000 11,634,375
---------------------------------------------------------------------------------------------------
Texaco, Inc. 225,000 14,765,625
---------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 450,000 13,612,500
---------------
132,721,875
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--7.9%
------------------------------------------------------------------------------------------------------------------------------------
BANKS--5.8% Ahmanson (H.F.) & Co. 600,000 13,200,000
---------------------------------------------------------------------------------------------------
BankAmerica Corp. 325,000 17,103,125
---------------------------------------------------------------------------------------------------
Chase Manhattan Corp. 200,000 9,400,000
---------------------------------------------------------------------------------------------------
Coast Savings Financial, Inc.(3) 325,000 6,703,125
---------------------------------------------------------------------------------------------------
Commercial Federal Corp.(3) 300,000 8,175,000
---------------------------------------------------------------------------------------------------
CoreStates Financial Corp. 875,000 30,515,625
---------------------------------------------------------------------------------------------------
First Bank System, Inc. 325,000 13,325,000
---------------------------------------------------------------------------------------------------
First Chicago Corp. 300,000 17,962,500
---------------------------------------------------------------------------------------------------
First Interstate Bancorp 125,000 10,031,250
---------------------------------------------------------------------------------------------------
Mellon Bank Corp. 450,000 18,731,250
---------------------------------------------------------------------------------------------------
Midlantic Corp.(5) 240,000 9,600,000
---------------------------------------------------------------------------------------------------
UJB Financial Corp. 450,000 13,668,750
---------------------------------------------------------------------------------------------------
Washington Mutual, Inc. 300,000 7,031,250
--------------
175,446,875
------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.4% Duke Realty Investments, Inc. 200,000 5,650,000
---------------------------------------------------------------------------------------------------
H & R Block, Inc. 575,000 23,646,875
---------------------------------------------------------------------------------------------------
Health Care Property Investors, Inc. 125,000 4,000,000
---------------------------------------------------------------------------------------------------
Piper Jaffray Cos., Inc. 250,000 3,781,250
---------------------------------------------------------------------------------------------------
The PMI Group, Inc. 125,000 5,421,875
--------------
42,500,000
------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.7% Aetna Life & Casualty Co. 200,000 12,575,000
---------------------------------------------------------------------------------------------------
St. Paul Cos., Inc. 170,000 8,372,500
--------------
20,947,500
</TABLE>
10 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
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MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
INDUSTRIAL--6.9%
------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.7% General Electric Co. 345,000 $ 19,449,375
---------------------------------------------------------------------------------------------------
Honeywell, Inc. 450,000 19,406,250
---------------------------------------------------------------------------------------------------
Raychem Corp. 300,000 11,512,500
--------------
50,368,125
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.8% Centex Construction Products, Inc.(3) 600,000 7,725,000
---------------------------------------------------------------------------------------------------
Manville Corp.(3) 400,000 5,500,000
---------------------------------------------------------------------------------------------------
Martin Marietta Materials, Inc. 350,000 7,000,000
---------------------------------------------------------------------------------------------------
U.S. Can Corp.(3) 250,000 3,906,250
--------------
24,131,250
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.5% First Data Corp. 250,000 14,218,750
---------------------------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 350,000 10,325,000
---------------------------------------------------------------------------------------------------
Sensormatic Electronics Corp. 575,000 20,412,500
---------------
44,956,250
------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--2.0% American Standard Cos., Inc. 350,000 9,581,250
---------------------------------------------------------------------------------------------------
Hanson PLC, ADR 700,000 12,337,500
---------------------------------------------------------------------------------------------------
Harmon Industries, Inc. 135,000 2,261,250
---------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 600,000 21,750,000
---------------------------------------------------------------------------------------------------
Tyco Laboratories, Inc. 301,100 16,259,400
--------------
62,189,400
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.9% Airborne Freight Corp. 400,000 8,100,000
---------------------------------------------------------------------------------------------------
Consolidated Freightways, Inc. 600,000 13,275,000
---------------------------------------------------------------------------------------------------
Landstar System, Inc.(3) 200,000 5,150,000
--------------
26,525,000
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--21.3%
------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.7% Lockheed Martin Corp. 325,000 20,515,625
---------------------------------------------------------------------------------------------------
Tracor, Inc.(3) 200,000 2,725,000
--------------
23,240,625
</TABLE>
11 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
---------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
COMPUTER HARDWARE--5.2% 3DO Co. (The)(3) 399,900 $ 4,823,794
---------------------------------------------------------------------------------------------------
Adaptec, Inc.(3) 500,000 18,500,000
---------------------------------------------------------------------------------------------------
ADFlex Solutions, Inc.(3) 150,000 3,675,000
---------------------------------------------------------------------------------------------------
Applied Digital Acess, Inc. 300,000 3,900,000
---------------------------------------------------------------------------------------------------
Bay Networks, Inc.(3) 500,001 20,687,541
---------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(3) 350,000 18,637,500
---------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(3) 600,000 30,337,500
---------------------------------------------------------------------------------------------------
International Business Machines Corp. 200,000 19,200,000
---------------------------------------------------------------------------------------------------
Moore Corp. Ltd. 375,000 8,296,875
---------------------------------------------------------------------------------------------------
Quantum Corp.(3) 300,000 6,862,500
---------------------------------------------------------------------------------------------------
Sun Microsystems, Inc.(3) 425,000 20,612,500
--------------
155,533,210
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--7.4% Acclaim Entertainment, Inc.(3) 350,000 6,453,125
---------------------------------------------------------------------------------------------------
Adobe Systems, Inc. 550,000 31,900,000
---------------------------------------------------------------------------------------------------
Autodesk, Inc. 750,000 32,250,000
---------------------------------------------------------------------------------------------------
Black Box Corp.(3) 150,000 2,137,500
---------------------------------------------------------------------------------------------------
Compuware Corp.(3) 850,000 26,137,500
---------------------------------------------------------------------------------------------------
First Financial Management Corp. 100,000 8,550,000
---------------------------------------------------------------------------------------------------
Information Resources, Inc.(3) 400,000 5,700,000
---------------------------------------------------------------------------------------------------
Informix Corp.(3) 500,000 12,687,500
---------------------------------------------------------------------------------------------------
Intersolv, Inc.(3) 75,000 1,743,750
---------------------------------------------------------------------------------------------------
Intuit, Inc.(3) 75,000 5,700,000
---------------------------------------------------------------------------------------------------
Keane, Inc.(3) 200,000 4,975,000
---------------------------------------------------------------------------------------------------
McAfee Associates, Inc.(3) 325,000 9,851,562
---------------------------------------------------------------------------------------------------
Micrografx, Inc.(3) 385,000 3,224,375
---------------------------------------------------------------------------------------------------
NetManage, Inc.(3) 275,000 4,675,000
---------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 315,000 18,068,906
---------------------------------------------------------------------------------------------------
Oracle Systems Corp.(3) 200,000 7,725,000
---------------------------------------------------------------------------------------------------
Pairgain Technologies, Inc.(3) 300,000 5,737,500
---------------------------------------------------------------------------------------------------
Platinum Software Corp.(3) 465,000 6,742,500
---------------------------------------------------------------------------------------------------
Platinum Technology, Inc.(3) 265,000 4,803,125
---------------------------------------------------------------------------------------------------
Read-Rite Corp.(3) 450,000 12,037,500
---------------------------------------------------------------------------------------------------
Structural Dynamics Research Corp.(3) 360,000 4,657,500
---------------------------------------------------------------------------------------------------
System Software Associates, Inc. 300,000 6,000,000
---------------------------------------------------------------------------------------------------
Virtuality Group PLC(3) 275,000 888,120
--------------
222,645,463
</TABLE>
12 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
ELECTRONICS--4.3% Advanced Micro Devices, Inc. 350,000 $ 12,731,250
---------------------------------------------------------------------------------------------------
Alliance Semiconductor Corp.(3) 150,000 7,350,000
---------------------------------------------------------------------------------------------------
Intel Corp. 300,000 18,993,750
---------------------------------------------------------------------------------------------------
ITI Technologies, Inc.(3) 250,000 5,937,500
---------------------------------------------------------------------------------------------------
Loral Corp. 250,000 12,937,500
---------------------------------------------------------------------------------------------------
Micron Technology, Inc. 325,000 17,834,375
---------------------------------------------------------------------------------------------------
Motorola, Inc. 300,000 20,137,500
---------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 125,000 16,734,375
---------------------------------------------------------------------------------------------------
Thermo Electron Corp.(3) 450,000 18,112,500
--------------
130,768,750
------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- A+ Communications, Inc.(3) 245,000 3,246,250
TECHNOLOGY--3.7% ---------------------------------------------------------------------------------------------------
AT&T Corp. 500,000 26,562,500
---------------------------------------------------------------------------------------------------
Atlantic Tele-Network, Inc. 250,000 2,031,250
---------------------------------------------------------------------------------------------------
Globalstar Telecommunications Ltd.(4) 500,000 6,625,000
---------------------------------------------------------------------------------------------------
IntelCom Group, Inc.(3) 400,000 3,396,250
---------------------------------------------------------------------------------------------------
LCI International, Inc.(3) 75,000 2,296,875
---------------------------------------------------------------------------------------------------
Millicom International Cellular SA(3) 750,000 22,218,750
---------------------------------------------------------------------------------------------------
Millicom, Inc.(3) 75,000 --
---------------------------------------------------------------------------------------------------
Paging Network, Inc.(3) 200,000 6,850,000
---------------------------------------------------------------------------------------------------
Palmer Wireless, Inc.(3) 225,000 3,684,375
---------------------------------------------------------------------------------------------------
VTEL Corp.(3) 400,000 5,300,000
---------------------------------------------------------------------------------------------------
WorldCom, Inc.(3) 1,075,000 29,025,000
--------------
111,236,250
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--6.3%
------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--3.6% Detroit Edison Co. 550,000 16,225,000
---------------------------------------------------------------------------------------------------
Houston Industries, Inc. 525,000 22,115,625
---------------------------------------------------------------------------------------------------
Pacific Gas & Electric Co. 750,000 21,750,000
---------------------------------------------------------------------------------------------------
Peco Energy Co. 500,000 13,812,500
---------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 700,000 19,425,000
---------------------------------------------------------------------------------------------------
Texas Utilities Co. 425,000 14,609,375
--------------
107,937,500
------------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.8% Panhandle Eastern Corp. 400,000 9,750,000
---------------------------------------------------------------------------------------------------
Sonat, Inc. 500,000 15,250,000
--------------
25,000,000
------------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.9% GTE Corp. 825,000 28,153,125
---------------------------------------------------------------------------------------------------
US West, Inc. 700,000 29,137,500
--------------
--------------
57,290,625
--------------
Total Common Stocks (Cost $2,090,882,702) 2,371,195,736
</TABLE>
13 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
---------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
PREFERRED STOCKS--3.5%
------------------------------------------------------------------------------------------------------------------------------------
AK Steel Holding Corp., 7% Cv. Stock Appreciation Income
Linked Securities 200,000 $ 5,750,000
---------------------------------------------------------------------------------------------------
Atlantic Richfield Co., 9% Exchangeable Notes for Common Stock of
Lyondell Petrochemical Co., 9/15/97 390,000 10,140,000
---------------------------------------------------------------------------------------------------
Compania de Inversiones en Telecomunicaciones SA,
Provisionally Redeemable Income Debt Exchangeable for Stock,
7%, 3/3/98(1) 225,000 11,531,250
---------------------------------------------------------------------------------------------------
Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 350,000 20,475,000
---------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cv. Depositary Shares 400,000 8,650,000
---------------------------------------------------------------------------------------------------
James River Corp. of Virginia, Dividend Enhanced Convertible
Stock, 9% Cv. Exchangeable Depositary Shares, Series P 300,000 7,425,000
---------------------------------------------------------------------------------------------------
Kaiser Aluminum Corp., $.65 Cv., Series A 150,000 1,443,750
---------------------------------------------------------------------------------------------------
LCI International, Inc., 5% Cum. Cv. Exchangeable Preferred Stock 200,000 8,350,000
---------------------------------------------------------------------------------------------------
MFS Communications Company, Inc., 8% Depositary Cv. Shares
Representing 1 Share of Dividend Enhanced Convertible Stock 500,000 17,250,000
---------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 250,000 10,750,000
---------------------------------------------------------------------------------------------------
WHX Corp., $3.75 Cv., Series B 125,000 5,453,125
--------------
Total Preferred Stocks (Cost $99,912,604) 107,218,125
<CAPTION>
UNITS
====================================================================================================================================
<S> <C> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
------------------------------------------------------------------------------------------------------------------------------------
American Satellite Networks, Inc. Wts., Exp. 6/99 (Cost $0) 18,750 --
<CAPTION>
DATE/PRICE SHARES
====================================================================================================================================
<S> <C> <C> <C> <C>
PUT OPTIONS PURCHASED--0.0% AT&T Corp., Put Opt. (Cost $45,750) Jul. 95/$45 1,000 6,250
</TABLE>
14 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--11.0% Repurchase agreement with First Chicago Capital Markets, 6.125%,
dated 6/30/95, to be repurchased at $330,337,524 on 7/3/95,
collateralized by U.S. Treasury Bonds, 11.25%, 2/15/15, with a value
of $33,682,964, U.S. Treasury Nts., 4.75%--7.875%, 3/31/96--8/15/01,
with a value of $220,327,251, and U.S.Treasury Bills
maturing 9/28/95--12/14/95, with a value of $83,092,109
(Cost $330,169,000) $330,169,000 $ 330,169,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $2,687,792,633) 99.1% 2,988,165,486
------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.9 25,861,901
------------ --------------
NET ASSETS 100.0% $3,014,027,387
------------ --------------
------------ --------------
<FN>
1. Represents a security sold under Rule 144A, which is exempt from registration under the
Securities Act of 1933, as amended. This security has been determined to be liquid under
guidelines established by the Board of Directors. These securities amount to $59,261,875 or
1.97% of the Fund's net assets, at June 30, 1995.
2. Represents the current interest rate for a variable rate security.
3. Non-income producing security.
4. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer
and is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the
period ended June 30, 1995. The aggregate fair value of all securities of affiliated companies as
of June 30, 1995 amounted to $9,400,000. Transactions during the period in
which the issuer was an affiliate are as follows:
BALANCE JUNE 30, 1994 GROSS ADDITIONS GROSS REDUCTIONS BALANCE JUNE 30, 1995
----------------------- --------------------- --------------------- ----------------------
SHARES COST SHARES COST SHARES COST SHARES COST
-----------------------------------------------------------------------------------------------------------------------------------
Standish Care Co., $4.50 Cv.,
Series A 60,000 $ 649,995 -- $ -- 60,000 $ 649,995 -- $ --
-----------------------------------------------------------------------------------------------------------------------------------
CMG Information SVS Inc. 234,000 1,967,000 -- -- 234,000 1,967,000 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Duckwall--ALCO Stores, Inc. -- -- 325,000 2,942,188 25,000 231,250 300,000 2,710,938
-----------------------------------------------------------------------------------------------------------------------------------
Globalstar Telecommunications
Ltd. -- -- 800,000 15,968,750 300,000 6,000,000 500,000 9,968,750
---------- ----------- ---------- -----------
$2,616,995 $18,910,938 $8,848,245 $12,679,688
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
5. A sufficient amount of liquid assets has been designated to cover outstanding call options, as
follows:
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
----------------------------------------------------------------------------------------------------------------------------------
Midlantic Corp . 40,000 7/95 40.00 $38,799 $45,000
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995
-----------------------------------------------------------------------------------------------------
==================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $2,687,792,633)--see accompanying statement $2,988,165,486
-----------------------------------------------------------------------------------------------------
Cash 19,369
-----------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 189
-----------------------------------------------------------------------------------------------------
Receivables:
Investments sold 36,726,937
Shares of capital stock sold 18,670,958
Interest and dividends 7,239,905
-----------------------------------------------------------------------------------------------------
Other 45,819
--------------
Total assets 3,050,868,663
==================================================================================================================================
LIABILITIES Options written, at value (premiums received $38,799)--see accompanying
statement--Note 6 45,000
-----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 24,466,574
Shares of capital stock redeemed 9,475,352
Distribution and service plan fees--Note 4 1,651,064
Transfer and shareholder servicing agent fees--Note 4 84,239
Directors' fees 6,047
Other 1,113,000
--------------
Total liabilities 36,841,276
==================================================================================================================================
Net Assets $3,014,027,387
--------------
--------------
==================================================================================================================================
COMPOSITION OF Par value of shares of capital stock $ 1,253,826
NET ASSETS -----------------------------------------------------------------------------------------------------
Additional paid-in capital 2,713,880,262
-----------------------------------------------------------------------------------------------------
Undistributed net investment income 1,145,174
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss from investments, written options and foreign
currency transactions (2,618,874)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 300,366,999
--------------
==================================================================================================================================
Net Assets $3,014,027,387
--------------
--------------
==================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $1,923,950,588 and 79,933,834 shares of capital stock outstanding) $24.07
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $25.54
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $628,498,685 and 26,189,101 shares of capital stock outstanding) $24.00
-----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $461,578,114 and 19,259,635 shares of capital stock outstanding) $23.97
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1995
-----------------------------------------------------------------------------------------------------
==================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Interest $25,316,747
-----------------------------------------------------------------------------------------------------
Dividends (net of withholding taxes of $340,015) 36,196,886
-------------
Total income 61,513,633
==================================================================================================================================
EXPENSES Management fees--Note 4 8,976,524
-----------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 3,170,564
Class B--Note 4 1,824,878
Class C--Note 4 3,218,116
-----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 3,782,950
-----------------------------------------------------------------------------------------------------
Shareholder reports 1,138,881
-----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 578,158
Class B 246,580
Class C 143,142
-----------------------------------------------------------------------------------------------------
Legal and auditing fees 59,536
-----------------------------------------------------------------------------------------------------
Directors' fees and expenses 49,442
-----------------------------------------------------------------------------------------------------
Other 390,917
-------------
Total expenses 23,579,688
==================================================================================================================================
Net Investment Income 37,933,945
==================================================================================================================================
REALIZED AND UNREALIZED Net realized gain (loss) on:
GAIN (LOSS) ON INVESTMENTS, Investments 11,915,204
OPTIONS WRITTEN AND Closing and expiration of options written--Note 6 (357,261)
FOREIGN CURRENCY Foreign currency transactions 1,622,238
TRANSACTIONS -------------
Net realized gain 13,180,181
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 328,720,508
Translation of assets and liabilities denominated in foreign currencies 444,946
-------------
Net change 329,165,454
-------------
Net realized and unrealized gain on investments, options written and
foreign currency transactions 342,345,635
==================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $380,279,580
-------------
-------------
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
1995 1994
==================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 37,933,945 $ 7,435,686
-----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written
and foreign currency transactions 13,180,181 (12,425,245)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on
investments and translation of assets and liabilities
denominated in foreign currencies 329,165,454 (36,662,021)
------------- -------------
Net increase (decrease) in net assets resulting from
operations 380,279,580 (41,651,580)
==================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.4612 and $.356 per share, respectively) (29,280,412) (5,859,657)
SHAREHOLDERS Class B ($.2822 per share) (3,312,668) --
Class C ($.3112 and $.136 per share, respectively) (4,868,193) (815,401)
-----------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments,
options written and foreign currency transactions:
Class A ($.0024 per share) (140,642) --
Class B ($.0024 per share) (10,803) --
Class C ($.0024 per share) (35,755) --
-----------------------------------------------------------------------------------------------------
Distributions in excess of gain on investments,
options written and foreign currency transactions:
Class A ($1.989 per share) -- (9,339,980)
==================================================================================================================================
CAPITAL STOCK
TRANSACTIONS
Net increase in net assets resulting from Class A capital
stock transactions--Note 2 947,214,116 727,055,604
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B capital
stock transactions--Note 2 580,665,761 --
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C capital
stock transactions--Note 2 233,648,051 182,249,457
==================================================================================================================================
NET ASSETS Total increase 2,104,159,035 851,638,443
-----------------------------------------------------------------------------------------------------
Beginning of period 909,868,352 58,229,909
------------- -------------
End of period (including undistributed net investment
income of $1,145,174 and $706,011, respectively) $3,014,027,387 $909,868,352
------------- -------------
------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Financial Highlights
-----------------------------------------------------------------------------------------------------
Class A Class B Class C
Period
Ended
Year Ended June 30, June 30, Year Ended June 30,
1995 1994 1993 1992 1991 1990 1989 1988(3) 1995(2) 1995 1994(1)
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE
OPERATING DATA:
Net asset value,
beginning of period $20.40 $19.88 $15.46 $13.22 $12.38 $11.67 $10.13 $9.60 $21.49 $20.33 $20.76
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .47 .37 .16 .25 .38 .17 .24(4) .05 .25 .33 .13
Net realized and
unrealized gain
(loss) on
investments, options
written and
foreign currency
transactions 3.66 2.50 6.65 4.72 .87 .88 1.62 .52 2.54 3.62 (.42)
------ ------ ----- ----- ------ ------ ----- ----- ------ ----- -------
Total income (loss)
from investment
operations 4.13 2.87 6.81 4.97 1.25 1.05 1.86 .57 2.79 3.95 (.29)
----------------------------------------------------------------------------------------------------------------------------------
Dividends and
distributions to
shareholders:
Dividends from net
investment income (.46) (.36) (.19) (.22) (.41) (.19) (.19) (.04) (.28) (.31) (.14)
Distributions from net
realized gain on
investments, options
written and foreign
currency transactions --(5) -- (2.20) (2.51) -- (.15) (.13) -- --(5) --(5) --
Distributions in
excess of gains -- (1.99) -- -- -- -- -- -- -- -- --
------ ------ ----- ----- ------ ------ ----- ----- ------ ----- -------
Total dividends and
distributions
to shareholders (.46) (2.35) (2.39) (2.73) (.41) (.34) (.32) (.04) (.28) (.31) (.14)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $24.07 $20.40 $19.88 $15.46 $13.22 $12.38 $11.67 $10.13 $24.00 $23.97 $20.33
------ ------ ----- ----- ------ ------ ----- ----- ------ ----- -------
------ ------ ----- ----- ------ ------ ----- ----- ------ ----- -------
==================================================================================================================================
TOTAL RETURN, AT
NET ASSET VALUE(6) 20.52% 14.34% 46.38% 39.48% 10.60% 9.07% 18.77% 5.94% 13.15% 19.63% (.97)%
==================================================================================================================================
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in thousands) $1,923,951 $739,552 $58,230 $26,926 $15,968 $13,851 $1,256 $345 $628,499 $461,578 $170,316
----------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $1,319,271 $270,417 $38,974 $23,018 $14,563 $ 7,520 $ 788 $118 $248,775 $325,025 $71,924
----------------------------------------------------------------------------------------------------------------------------------
Number of shares
outstanding at end of
period (in thousands) 79,934 36,251 2,929 1,742 1,208 1,119 108 34 26,189 19,260 8,377
----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net
assets:
Net investment income 2.31% 2.46% 1.02% 1.63% 3.15% 2.33% 2.67% 2.86%(7) 1.25%(7) 1.57% 1.86%(7)
Expenses, before
Reimbursement
from or assumption by
the Manager 1.07% 1.28% 1.46% 1.66% 1.84% 2.21% 2.46% 10.54%(7) 1.89%(7) 1.82% 2.11%(7)
Expenses, net of
reimbursement
from or assumption
by the Manager N/A N/A N/A N/A N/A N/A 2.12%(4) N/A N/A N/A N/A
----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover
rate(8) 101.3% 199.4% 283.0% 290.1% 208.9% 214.3% 136.8% 18.8% 101.3% 101.3% 199.4%
<FN>
1. For the period from December 1, 1993 (inception of offering) to June 30,
1994.
2. For the period from October 1, 1994 (inception of offering) to June 30,
1995.
3. For the period from February 3, 1988 (commencement of operations) to June
30, 1988.
4. Net investment income would have been $.20 per share absent the voluntary
expense reimbursement, resulting in an expense ratio of 2.46%.
5. Less than $.005 per share.
6. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Sales charges are not reflected in the total returns. Total returns
are not annualized for periods of less than one full year.
7. Annualized.
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 June 30, 1995 were
$3,253,638,111 and $1,681,087,055, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------------------------------
==============================================================================
1. SIGNIFICANT Oppenheimer Main Street Income & Growth Fund
ACCOUNTING (the Fund) is a separate series of Oppenheimer
POLICIES Main Street Funds, Inc., an open-end management
investment company registered under the
Investment Company Act of 1940, as amended. The
Fund's investment advisor is Oppenheimer
Management Corporation (the Manager). The Fund
offers Class A, Class B and Class C shares.
Class B and Class C shares may be subject to a
contingent deferred sales charge. All three
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 securities for which such information
is regularly reported are valued at the last
sale price of the day or, in the absence of
sales, at values based on the closing bid or
asked price or the last sale price on the prior
trading day. Long-term and short-term
"non-money market" debt securities are valued
by a portfolio pricing service approved by the
Board of Directors. Such securities which
cannot be valued by the approved portfolio
pricing service are valued using
dealer-supplied valuations provided the Manager
is satisfied that the firm rendering the quotes
is reliable and that the quotes reflect current
market value, or under consistently applied
procedures established by the Board of
Directors 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. Forward contracts are valued based on
the closing prices of the forward currency
contract rates in the London foreign exchange
markets on a daily basis as provided by a
reliable bank or dealer. 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 or asked price closest to the last
reported sale price is used.
-----------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting
records of the Fund are maintained in U.S.
dollars. Prices of securities denominated in
foreign currencies are translated into U.S.
dollars at the closing rates of exchange.
Amounts related to the purchase and sale of
securities and investment income are translated
at the rates of exchange prevailing on the
respective dates of such transactions.
The effect of changes in foreign currency exchange
rates on investments is separately identified
from the fluctuations arising from changes in
market values of securities held and reported
with all other foreign currency gains and
losses in the Fund's results of operations.
-----------------------------------------------------
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 INCOME TAXES. The Fund intends to
continue to comply with provisions of the
Internal Revenue Code applicable to regulated
investment companies and to distribute all of
its taxable income, including any net realized
gain on investments not offset by loss
carryovers, to shareholders. Therefore, no
federal income or excise tax provision is
required.
-----------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders are recorded on
the ex-dividend date.
20 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
-----------------------------------------------------
==============================================================================
1. SIGNIFICANT CLASSIFICATION OF DISTRIBUTIONS TO
ACCOUNTING SHAREHOLDERS. Net investment income (loss) and
POLICIES net realized gain (loss) may differ for
(CONTINUED) financial statement and tax purposes primarily
because of the recognition of certain foreign
currency gains (losses) as ordinary income
(loss) for tax purposes. The character of the
distributions made during the year from net
investment income or net realized gains may
differ from their ultimate characterization for
federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal
year in which amounts are distributed may
differ from the year that the income or
realized gain (loss) was recorded by the Fund.
Effective July 1, 1993, the Fund adopted
Statement of Position 93-2: Determination,
Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment
Companies. As a result, the Fund changed the
classification of distributions to shareholders
to better disclose the differences between
financial statement amounts and distributions
determined in accordance with income tax
regulations. Accordingly, during the year ended
June 30, 1995, amounts have been reclassified
to reflect a decrease in accumulated net
realized loss on investments of $33,509, and a
decrease in undistributed net investment income
of $33,509.
-----------------------------------------------------
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. Discount on securities
purchased is amortized over the life of the
respective securities, in accordance with
federal income tax requirements. Realized gains
and losses on investments and unrealized
appreciation and depreciation are determined on
an identified cost basis, which is the same
basis used for federal income tax purposes.
==============================================================================
2. CAPITAL STOCK The Fund has authorized 350,000,000 shares of
$.01 par value capital stock (200,000,000 for
Class A, 100,000,000 for Class B, and
50,000,000 for Class C). Transactions in shares
of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30, 1995(2) YEAR ENDED JUNE 30, 1994(1)
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 55,373,867 $1,208,049,807 34,877,614 $761,137,297
Dividends and distributions
reinvested 1,265,292 27,814,867 704,717 14,641,214
Redeemed (12,955,862) (288,650,558) (2,260,838) (48,722,907)
------------ ------------- ---------- ------------
Net increase 43,683,297 $947,214,116 33,321,493 $727,055,604
------------ ------------- ---------- ------------
------------ ------------- ---------- ------------
-------------------------------------------------------------------------------------------
Class B:
Sold 27,077,516 $600,973,013 -- $ --
Dividends and distributions
reinvested 136,393 3,097,456 -- --
Redeemed (1,024,808) (23,404,708) -- --
------------ ------------- ---------- ------------
Net increase 26,189,101 $580,665,761 -- $ --
------------ ------------- ---------- ------------
------------ ------------- ---------- ------------
-------------------------------------------------------------------------------------------
Class C:
Sold 13,345,163 $288,841,445 8,563,107 $186,240,396
Dividends and distributions
reinvested 208,621 4,536,885 35,985 747,590
Redeemed (2,671,307) (59,730,279) (221,934) (4,738,529)
------------ ------------- ---------- ------------
Net increase 10,882,477 $233,648,051 8,377,158 $182,249,457
------------ ------------- ---------- ------------
------------ ------------- ---------- ------------
<FN>
1. For the year ended June 30, 1994 for Class A shares and for the period from
December 1, 1993 (inception of offering) to June 30, 1994 for Class C
shares.
2. For the year ended June 30, 1995 for Class A and Class C shares and for the
period from October 1, 1994 (inception of offering) to June 30, 1995 for
Class B shares.
</TABLE>
==============================================================================
3. UNREALIZED GAINS At June 30, 1995, net unrealized appreciation
AND LOSSES ON of investments of $300,366,841 was composed of
INVESTMENTS gross appreciation of $337,635,238, and gross
depreciation of $37,268,397.
21 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
-----------------------------------------------------
==============================================================================
4. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER accordance with the investment advisory
TRANSACTIONS agreement with the Fund which provides for a
WITH AFFILIATES fee of .65% on the first $200 million of
average annual net assets with a reduction of
.05% on each $150 million thereafter to $500
million and .45% on net assets in excess of 500
million. The Manager has agreed to reimburse
the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent state
regulatory limit on Fund expenses.
For the year ended June 30, 1995,
commissions (sales charges paid by investors)
on sales of Class A shares totaled $36,545,570,
of which $8,951,501 was retained by Oppenheimer
Funds 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
$22,189,541 and $2,739,931, respectively, of
which $309,732 and $48,816 was paid to an
affiliated broker/dealer. During the year ended
June 30, 1995, OFDI received contingent
deferred sales charges of $393,448 and $233,149
upon redemption of Class B and Class C shares.
Oppenheimer Shareholder Services (OSS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and
for other registered investment companies.
OSS's total costs of providing such services
are allocated ratably to these companies.
Under separate approved plans, each class
may expend up to .25% of average net assets
annually to reimburse OFDI for costs incurred
in connection with the personal service and
maintenance of accounts that hold shares of the
Fund, including amounts paid to brokers,
dealers, banks and other institutions. In
addition, Class B and Class C shares are
subject to an asset-based sales charge of .75%
of net assets annually, to reimburse OFDI for
sales commissions paid from its own resources
at the time of sale and associated financing
costs. In the event of termination or
discontinuance of the Class B or Class C plan,
the Board of Directors may allow the Fund to
continue payment of the asset-based sales
charge to OFDI for distribution expenses
incurred on Class B or Class C shares sold
prior to termination or discontinuance of the
plan. During the year ended June 30, 1995, OFDI
paid $123,043 and $9,496 to an affiliated
broker/dealer as reimbursement for Class A and
Class C personal service and maintenance
expenses, respectively, and retained $1,795,939 and
$2,894,505 as reimbursement for Class B and Class C
sales commissions and service fee advances, as well
as financing costs, respectively.
==============================================================================
5. FORWARD CONTRACTS A forward foreign currency exchange contract
(forward contract) is a commitment to purchase
or sell a foreign currency at a future date, at
a negotiated rate.
The Fund uses forward contracts to seek to
manage foreign currency risks. They may also be
used to tactically shift portfolio currency
risk. The Fund generally enters into forward
contracts as a hedge upon the purchase or sale
of a security denominated in a foreign
currency. In addition, the Fund may enter into
such contracts as a hedge against changes in
foreign currency exchange rates on portfolio
positions.
Forward contracts are valued based on the
closing prices of the forward currency contract
rates in the London foreign exchange markets on
a daily basis as provided by a reliable bank or
dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward
transaction.
In this report, securities held in
segregated accounts to cover net exposure on
outstanding forward contracts are noted in the
Statement of Investments where applicable.
Gains and losses on outstanding contracts
(unrealized appreciation or depreciation on
forward contracts) are reported in the
Statement of Assets and Liabilities. Realized
gains and losses are reported with all other
foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the
counterparty to meet the terms of the contract
and unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
At June 30, 1995, the Fund had outstanding
forward contracts to purchase and sell foreign
currencies as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT VALUATION AS OF APPRECIATION
CONTRACTS TO SELL EXPIRATION DATE AMOUNT (000) JUNE 30, 1995 (DEPRECIATION)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
British Pound Sterling 7/6/95 77 $ 77,400 $(107)
----------------------------------------------------------------------------------------
British Pound Sterling 7/7/95 157 157,182 296
--------- -----
$234,582 $ 189
--------- -----
--------- -----
</TABLE>
22 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
-----------------------------------------------------
==============================================================================
6. OPTION ACTIVITY The Fund may buy and sell put and call options,
or write covered call options on portfolio
securities in order to produce incremental
earnings or protect against changes in the
value of portfolio securities.
The Fund generally purchases put options or
writes covered call options to hedge against
adverse movements in the value of portfolio
holdings. When an option is written, the Fund
receives a premium and becomes obligated to
sell or purchase the underlying security at a
fixed price, upon exercise of the option.
Options are valued daily based upon the last
sale price on the principal exchange on which
the option is traded and unrealized
appreciation or depreciation is recorded. The
Fund will realize a gain or loss upon the
expiration or closing of the option
transaction. When an option is exercised, the
proceeds on sales for a written call option,
the purchase cost for a written put option, or
the cost of the security for a purchased put or
call option is adjusted by the amount of
premium received or paid.
In this report, securities designated to
cover outstanding call options are noted in the
Statement of Investments. Shares subject to
call, expiration date, exercise price, premium
received and market value are detailed in a
footnote to the Statement of Investments.
Options written are reported as a liability in
the Statement of Assets and Liabilities. Gains
and losses are reported in the Statement of
Operations.
The risk in writing a call option is that
the Fund gives up the opportunity for profit if
the market price of the security increases and
the option is exercised. The risk in writing a
put option is that the Fund may incur a loss if
the market price of the security decreases and
the option is exercised. The risk in buying an
option is that the Fund pays a premium whether
or not the option is exercised. The Fund also
has the additional risk of not being able to
enter into a closing transaction if a liquid
secondary market does not exist.
Written option activity for the year ended
June 30, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
----------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
-------------------------------------------------------------------
<S> <C> <C>
Options outstanding at June 30, 1994 1,250 $239,992
-------------------------------------------------------------------
Options written 3,480 1,263,018
-------------------------------------------------------------------
Options closed or expired (3,580) (1,316,466)
-------------------------------------------------------------------
Options exercised (750) (147,745)
-------------------------------------------------------------------
Options outstanding at June 30, 1995 400 $38,799
------- ----------
------- ----------
</TABLE>
23 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
Independent Auditors' Report
-----------------------------------------------------
==============================================================================
The Board of Directors and Shareholders of
Oppenheimer Main Street Income & Growth Fund:
We have audited the accompanying statement of
assets and liabilities, including the statement
of investments, of Oppenheimer Main Street
Income and Growth Fund as of June 30, 1995, the
related statement of operations for the year
then ended, the statements of changes in net
assets for the years ended June 30, 1995 and
1994, and the financial highlights for the
period February 3, 1988 (commencement of
operations) to June 30, 1995. These financial
statements and financial highlights are the
responsibility of the Fund's management. Our
responsibility is to express an opinion on
these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about
whether the financial statements and financial
highlights are free of material misstatement.
An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures
in the financial statements. Our procedures
included confirmation of securities owned at
June 30, 1995 by correspondence with the
custodian and brokers; where replies were not
received from brokers, we performed other
auditing procedures. An audit also includes
assessing the accounting principles used and
significant estimates made by management, as
well as evaluating the overall financial
statement presentation. We believe that our
audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements
and financial highlights present fairly, in all
material respects, the financial position of
Oppenheimer Main Street Income and Growth Fund
at June 30, 1995, the results of its
operations, the changes in its net assets, and
the financial highlights for the respective
stated periods, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
July 24, 1995
24 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
-----------------------------------------------------
==============================================================================
In early 1996, shareholders will receive
information regarding all dividends and
distributions paid to them by the Fund during
calendar year 1995. Regulations of the U.S.
Treasury Department require the Fund to report
this information to the Internal Revenue
Service.
A distribution of $.0024 per share was paid
on December 21, 1994, of which $.0009 was
designated as a "capital gain distribution"
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 held
for more than one year (long-term capital
gains).
Dividends paid by the Fund during the fiscal
year ended June 30, 1995 which are not
designated as capital gain distributions should
be multiplied by 70.15% 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.
25 Oppenheimer Main Street Income & Growth Fund
<PAGE>
-----------------------------------------------------
OPPENHEIMER MAIN STREET INCOME & GROWTH FUND
-----------------------------------------------------
A SERIES OF OPPENHEIMER MAIN STREET FUNDS, INC.
==============================================================================
OFFICERS AND DIRECTORS James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, President and Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Andrew J. Donohue, Vice President
Robert Doll, Vice President
Bruce Bartlett, Vice President
Diane Sobin, Vice President
George C. Bowen, Vice President,
Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
==============================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
==============================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
==============================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
==============================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
==============================================================================
INDEPENDENT AUDITORS Deloitte & Touche LLP
==============================================================================
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of
Oppenheimer Main Street Income & Growth Fund.
This report must be preceded or accompanied by
a Prospectus of Oppenheimer Main Street Income
& Growth Fund. For material information
concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by
any bank, and are not insured by the FDIC or
any other agency, and involve investment risks,
including possible loss of the principal amount
invested.
26 Oppenheimer Main Street Income & Growth Fund
<PAGE>
------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
------------------------------------------------------------
================================================================================
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're investing
for retirement, your children's education or tax-free
income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a
respected financial institution with over 30 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed income investments
with over 2.6 million shareholder accounts and more than
$35 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to
exchange shares of eligible funds of the same class. And
you can exchange shares easily by mail or by telephone.(1)
For more information on OppenheimerFunds, please contact
your financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on
the back cover. As always, please read the prospectus
carefully before you invest.
================================================================================
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals
Fund
================================================================================
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
================================================================================
BOND FUNDS High Yield Fund Strategic Short-Term
Champion High Yield Fund Income Fund
Strategic Income & Growth Fund International Bond Fund
Strategic Income Fund Bond Fund(4)
Strategic Investment Grade Bond U.S. Government Trust
Fund Limited-Term Government
Fund
================================================================================
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(5) New Jersey Tax-Exempt
California Tax-Exempt Fund(5) Fund(5)
Pennsylvania Tax-Exempt Fund(5) Tax-Free Bond Fund
Florida Tax-Exempt Fund(5) Insured Tax-Exempt Bond
Fund
Intermediate Tax-Exempt
Bond Fund
================================================================================
MONEY MARKET FUNDS Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Formerly Investment Grade Bond Fund.
5. Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-C-Copyright 1995 Oppenheimer Management Corporation. All
rights reserved.
27 Oppenheimer Main Street Income & Growth Fund
<PAGE>
INFORMATION
[SIDEBAR]
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
1-800-835-3104
"HOW MAY I HELP YOU?"
As an OppenheimerFunds 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 OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. 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 OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
------------------------------------------------------------------------------
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P.O. Box 5270
Denver, CO 80217-5270
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