OPPENHEIMER MAIN STREET INCOME & GROWTH FUND
Supplement dated July 14, 1995 to the
Prospectus dated October 1, 1994
The following changes are made to the Prospectus:
1. The supplements dated January 3, 1995 and May 1, 1995 are replaced
by this supplement.
2. Under "Expenses" on page 3, the chart "Shareholder Transaction
Expenses" is amended by deleting the references to the $5.00 fee for
"Exchanges" and inserting "None" on that line under the headings for
Class A Shares, Class B Shares and Class C Shares; existing footnote 3 is
deleted from that chart. A new line entitled "Redemption Fee" is added
to the chart with the word "None" under the headings for Class A, B and
C shares, with a reference to a new footnote (3) after each, and the
footnote is added under the chart as follows: "(3) There is a $10
transaction fee for redemptions paid by Federal Funds wire, but not for
redemptions paid by check or ACH wire through AccountLink (see 'How To
Sell Shares')."
3. Footnote 1 under the "Shareholder Transaction Expenses" chart in
"Expenses" on page 3 is changed to read as follows:
1. If you invest more than $1 million (more than $500,000 for
purchases by OppenheimerFunds prototype 401(k) plans) in Class
A shares, you may have to pay a sales charge of up to 1% if you
sell your shares within 18 calendar months from the end of the
calendar month in which you purchased those shares. See "How to
Buy Shares -- Class A Shares," below.
4. The second sentence of the section captioned "Organization and
History" under "How the Fund is Managed" on page 10 is amended to
read as follows: "The Fund is a diversified mutual fund and
commenced operations on February 3, 1988."
5. The section titled "Debt Securities" on page 6 is deleted and
replaced with the following:
- Investments in Bonds and Convertible Securities. The Fund
invests in bonds, debentures and other debt securities to seek its
investment objective. The Fund's investments may include investment-
grade bonds rated at least "Baa" by Moody's Investors Service, Inc.
("Moody's") or at least "BBB" by Standard & Poor's Corporation
("Standard & Poor's") or having comparable ratings by other rating
organizations. If the securities are unrated, they must be judged
by the Manager to be of comparable quality to rated bonds within
those grades.
The Fund may invest up to 25% of its total assets in "lower grade"
debt securities. Those are debt securities rated less than
investment-grade or unrated securities judged by the Manager to be
of comparable quality to lower-rated debt securities. The Fund may
invest no more than 10% of its total assets in lower-grade debt
securities that are not convertible. The Fund considers convertible
securities to be "equity equivalents" because of the conversion
feature and the security's rating has less impact on the investment
decision than in the case of non-convertible securities.
- Special Risks of Lower-Grade Securities. High yield, lower-grade
securities, whether rated or unrated, often have speculative
characteristics. Lower-grade securities have special risks that make
them riskier investments than investment grade securities. They may
be subject to greater market fluctuations and risk of loss of income
and principal than lower yielding, investment-grade securities.
There may be less of a market for them and therefore they may be
harder to sell at an acceptable price. There is a relatively greater
possibility that the issuer's earnings may be insufficient to make
the payments of interest due on the bonds. The issuer's low
creditworthiness may increase the potential for its insolvency.
These risks mean that the Fund may not achieve the expected income
from lower-grade securities, and that the Fund's net asset value per
share may be affected by declines in value of these securities.
However, the Fund's limitations on investments in these types of
securities may reduce some of the risk, as will the Fund's policy of
diversifying its investments. Also, convertible securities may be
less subject to some of these risks than other debt securities, to
the extent they can be converted into stock, which may be more liquid
and less affected by these other risk factors.
6. In "How to Buy Shares," the section entitled "Class A Shares" under
"Classes of Shares" on page 13 is changed to read as follows:
If you buy Class A shares, you may pay an initial sales charge
on investments up to $1 million (up to $500,000 for purchases
by OppenheimerFunds prototype 401(k) plans). If you purchase
Class A shares as part of an investment of at least $1 million
($500,000 for OppenheimerFunds prototype 401(k) plans) in shares
of one or more OppenheimerFunds, you will not pay an initial
sales charge, but if you sell any of those shares within 18
months of buying them, you may pay a contingent deferred sales
charge. The amount of that sales charge will vary depending on
the amount you invested. Sales charge rates are described in
"Class A Shares" below.
7. In "How to Buy Shares," the section entitled "Which Class of Shares
Should You Choose?" on pages 13 and 14 is changed by adding a new final
sentence to the second paragraph of that section as follows:
The discussion below of the factors to consider in purchasing
a particular class of shares assumes that you will purchase only
one class of shares and not a combination of shares of different
classes.
8. Under "How Long Do You Expect to Hold Your Investment?" in "How to
Buy Shares" on page 14, the fourth paragraph of that sub-section is
amended by revising the first two sentences to read as follows:
For investors who invest $500,000 or more, in most cases Class
A shares will be the more advantageous choice, no matter how
long you intend to hold your shares. For that reason, the
Distributor normally will not accept purchase orders of $500,000
or more for Class B shares from a single investor. For similar
reasons, the Distributor normally will not accept purchase
orders of $1 million or more for Class C shares from a single
investor.
9. (a) The section captioned "At What Price Are Shares Sold?" under
"How to Buy Shares" on page 15 is amended to change the time of day
at which the net asset value is determined, by revising the second
sentence to read as follows: "In most cases, to enable you to receive
that day's offering price, the Distributor must receive your order
by the time of day The New York Stock Exchange closes, which is
normally 4:00 P.M., New York time, but may be earlier on some days
(all references to time in this Prospectus mean "New York time")."
(b) The fourth sentence of the section captioned "At What Price
Are Shares Sold?" under "How to Buy Shares" on page 15 is
revised to read as follows: "If you buy shares through a dealer,
the dealer must receive your order by the close of The New York
Stock Exchange on a regular business day and transmit it to the
Distributor so that it is received before the Distributor's
close of business that day, which is normally 5:00 P.M."
10. In "How to Buy Shares," the first paragraph of the section "Class A
Contingent Deferred Sales Charge" on page 16 is amended in its entirety
to read as follows:
There is no initial sales charge on purchases of Class A shares
of any one or more of the OppenheimerFunds in the following
cases:
- purchases aggregating $1 million or more, or
- purchases by an OppenheimerFunds prototype 401(k)
plan that: (1) buys shares costing $500,000 or more
or (2) has, at the time of purchase, 100 or more
eligible participants, or (3) certifies that it
projects to have annual plan purchases of $200,000 or
more.
Shares of any of the OppenheimerFunds that offers only one
class of shares that has no designation are considered "Class
A shares" for this purpose. The Distributor pays dealers of
record commissions on those purchases in an amount equal to the
sum of 1.0% of the first $2.5 million, plus 0.50% of the next
$2.5 million, plus 0.25% of purchases over $5 million. That
commission will be paid only on the amount of those purchases
in excess of $1 million ($500,000 for purchases by
OppenheimerFunds 401(k) prototype plans) that were not
previously subject to a front-end sales charge and dealer
commission.
11. In "Reduced Sales Charges for Class A Purchases" on page 17, the
first sentence of the section "Right of Accumulation" is changed to read
as follows:
To qualify for the lower sales charge rates that apply to larger
purchases of Class A shares, you and your spouse can add
together Class A and Class B shares you purchase for your
individual accounts, or jointly, or for trust or custodial
accounts on behalf of your children who are minors.
The first two sentences of the second paragraph of that section are
revised to read as follows:
Additionally, you can add together current purchases of
Class A and Class B shares of the Fund and other
OppenheimerFunds to reduce the sales charge rate that applies
to current purchases of Class A shares. You can also count Class
A and Class B shares of OppenheimerFunds you previously
purchased subject to an initial or contingent deferred sales
charge to reduce the sales charge rate for current purchases of
Class A shares, provided that you still hold that investment in
one of the OppenheimerFunds.
12. The first sentence of the section entitled "Letter of Intent" is
revised to read as follows:
Under a Letter of Intent, if you purchase Class A shares or
Class A shares and Class B shares of the Fund and other
OppenheimerFunds during a 13-month period, you can reduce the
sales charge rate that applies to your purchases of Class A
shares. The total amount of your intended purchases of both
Class A and Class B shares will determine the reduced sales
charge rate for the Class A shares purchased during that period.
13. In the section entitled "Waivers of Class A Sales Charges" on page
17, the following changes are made:
The first sentence of the first paragraph is replaced by a new
introductory paragraph set forth below and the list of circumstances
describing the sales charge waivers follows a new initial sentence:
- Waivers of Class A Sales Charges. The Class A sales charges
are not imposed in the circumstances described below. There is
an explanation of this policy in "Reduced Sales Charges" in the
Statement of Additional Information.
Waivers of Initial and Contingent Deferred Sales Charges
for Certain Purchasers. Class A shares purchased by the
following investors are not subject to any Class A sales
charges:
The introductory phrase preceding the list of sales charge waivers in the
second paragraph is replaced by the following and a new subsection (d) is
added to that same paragraph following subsection (c):
Waivers of Initial and Contingent Deferred Sales Charges
in Certain Transactions. Class A shares issued or purchased in
the following transactions are not subject to Class A sales
charges:
. . .
(d) shares purchased and paid for with the proceeds of
shares redeemed in the prior 12 months from a mutual fund (other
than a fund managed by the Manager or any of its subsidiaries)
on which an initial sales charge or contingent deferred sales
charge was paid (this waiver also applies to shares purchased
by exchange of shares of Oppenheimer Money Market Fund, Inc.
that were purchased and paid for in this manner); this waiver
must be requested when the purchase order is placed for your
shares of the Fund, and the Distributor may require evidence of
your qualification for this waiver.
The third paragraph of that section is revised to read as follows:
Waivers of the Class A Contingent Deferred Sales Charge.
The Class A contingent deferred sales charge does not apply to
purchases of Class A shares at net asset value without sales
charge as described in the two sections above. It is also waived
if shares that would otherwise be subject to the contingent
deferred sales charge are redeemed in the following cases:
- for retirement distributions or loans to participants or
beneficiaries from qualified retirement plans, deferred
compensation plans or other employee benefit plans, including
OppenheimerFunds prototype 401(k) plans (these are all referred
to as "Retirement Plans"); or
- to return excess contributions made to Retirement Plans; or
- to make Automatic Withdrawal Plan payments that are
limited annually to no more than 12% of the original account
value; or
- involuntary redemptions of shares by operation of law or
involuntary redemptions of small accounts (see "Shareholder
Account Rules and Policies," below); or
- if, at the time a purchase order is placed for Class A
shares that would otherwise be subject to the Class A contingent
deferred sales charge, the dealer agrees to accept the dealer's
portion of the commission payable on the sale in installments
of 1/18th of the commission per month (and no further commission
will be payable if the shares are redeemed within 18 months of
purchase); or
- for distributions from OppenheimerFunds prototype 401(k)
plans for any of the following cases or purposes: (1) following
the death or disability (as defined in the Internal Revenue
Code) of the participant or beneficiary (the death or disability
must occur after the participant's account was established); (2)
hardship withdrawals, as defined in the plan; (3) under a
Qualified Domestic Relations Order, as defined in the Internal
Revenue Code; (4) to meet the minimum distribution requirements
of the Internal Revenue Code; (5) to establish "substantially
equal periodic payments" as described in Section 72(t) of the
Internal Revenue Code, or (6) separation from service.
14. The first paragraph of the section entitled "Waivers of Class B Sales
Charge" on page 18 is amended by replacing the introductory phrase of that
paragraph with the sentences below and adding a new section at the end of
that paragraph as follows:
- Waivers of Class B Sales Charge. The Class B contingent
deferred sales charge will not be applied to shares purchased
in certain types of transactions nor will it apply to Class B
shares redeemed in certain circumstances as described below. The
reasons for this policy are in "Reduced Sales Charges" in the
Statement of Additional Information.
Waivers for Redemptions of Shares in Certain Cases. The
Class B contingent deferred sales charge will be waived for
redemptions of shares in the following cases:
. . . .
(5) for distributions from OppenheimerFunds prototype
401(k) plans (a) for hardship withdrawals; (b) under a Qualified
Domestic Relations Order, as defined in the Internal Revenue
Code; (c) to meet minimum distribution requirements as defined
in the Internal Revenue Code; (d) to make "substantially equal
periodic payments" as described in Section 72(t) of the Internal
Revenue Code; or (e) for separation from service.
15. The first paragraph of the section entitled "Waivers of Class C Sales
Charge" on page 20 is amended by replacing the introductory phrase of that
paragraph with the sentences below and adding a new section at the end of
that paragraph as follows:
- Waivers of Class C Sales Charge. The Class C contingent
deferred sales charge will not be applied to shares purchased
in certain types of transactions nor will it apply to Class C
shares redeemed in certain circumstances as described below.
The reasons for this policy are in "Reduced Sales Charges" in
the Statement of Additional Information.
Waivers for Redemptions of Shares in Certain Cases. The
Class C contingent deferred sales charge will be waived for
redemptions of shares in the following cases:
. . . .
(4) for distributions from OppenheimerFunds prototype
401(k) plans (a) for hardship withdrawals; (b) under a Qualified
Domestic Relations Order, as defined in the Internal Revenue
Code; (c) to meet minimum distribution requirements as defined
in the Internal Revenue Code; (d) to make "substantially equal
periodic payments" as described in Section 72(t) of the Internal
Revenue Code; or (e) for separation from service.
16. In the section entitled "Reinvestment Privilege" on page 21, the
first three sentences are revised to read as follows:
If you redeem some or all of your Class A or B shares of the
Fund, you have up to 6 months to reinvest all or part of the
redemption proceeds in Class A shares of the Fund or other
OppenheimerFunds without paying a sales charge. This privilege
applies to Class A shares that your purchased subject to an
initial sales charge and to Class A or B shares on which you
paid a contingent deferred sales charge when you redeemed them.
It does not apply to Class C shares.
17. In the section entitled "Retirement Plans" on page 21, the following
is added to the list of plans offered by the Distributor:
- 401(k) prototype retirement plans for businesses
18. The second sentence of the section captioned "Selling Shares by
Telephone" under "How to Sell Shares" on page 22 is revised to read as
follows:
To receive the redemption price on a regular business day, your call
must be received by the Transfer Agent by the close of The New York
Stock Exchange that day, which is normally 4:00 P.M., but may be
earlier on some days.
19. The subheading "Telephone Redemptions Through AccountLink" on page
23 under "How To Sell Shares" is amended to read "Telephone Redemptions
Through AccountLink or By Wire," and a second paragraph is added to that
sub-section as follows:
Shareholders may also have the Transfer Agent send redemption
proceeds of $2,500 or more by Federal Funds wire to a designated
commercial bank account. The bank must be a member of the
Federal Reserve wire system. There is a $10 fee for each
Federal Funds wire. To place a wire redemption request, call the
Transfer Agent at 1-800-852-8457. The wire will normally be
transmitted on the next bank business day after the shares are
redeemed. There is a possibility that the wire may be delayed
up to seven days to enable the Fund to sell securities to pay
the redemption proceeds. No dividends are accrued or paid on the
proceeds of shares that have been redeemed and are awaiting
transmittal by wire. To establish wire redemption privileges on
an account that is already established, please contact the
Transfer Agent for instructions.
20. The second and third sentences in the first paragraph of "How To
Exchange Shares" on page 23 are deleted.
21. The section captioned "How To Exchange Shares" on page 23 is amended
by revising the first sentence in the first "bulleted" paragraph following
"Telephone Exchange Requests" to read as two sentences as follows:
Shares are normally redeemed from one fund and purchased from the
other fund in the exchange transaction on the same regular business
day on which the Transfer Agent receives an exchange request that is
in proper form by the close of The New York Stock Exchange that day,
which is normally 4:00 P.M., but may be earlier on some days.
However, either fund may delay the purchase of shares of the fund you
are exchanging into if it determines it would be disadvantaged by a
same-day transfer of the proceeds to buy shares.
22. The first sentence of the section captioned "Net Asset Value Per
Share" under "Shareholder Account Rules and Policies" on page 24 is
revised to read as follows:
Net Asset Value Per Share is determined for each class of shares as
of the close of The New York Stock Exchange on each regular business
day by dividing the value of the Fund's net assets attributable to
a class by the number of shares of that class that are outstanding.
July 14, 1995 PS0700.006
<PAGE>
OPPENHEIMER MAIN STREET INCOME & GROWTH FUND
Supplement dated July 14, 1995
to the Statement of Additional Information dated October 1, 1994
The Statement of Additional Information is amended as follows:
1. The supplement dated January 3, 1995 is replaced by this supplement.
2. The first sentence of the section entitled "Determination of Net
Asset Value Per Share" under "How to Buy Shares" on page 24 is amended to
read as follows, and a new second sentence is added to that section as
follows:
The net asset values per share of Class A, Class B and Class C
shares of the Fund are determined as of the close of business
of The New York Stock Exchange (the "NYSE") on each day that the
NYSE is open by dividing the Fund's net assets attributable to
a class by the number of shares of that class that are
outstanding. The NYSE normally closes at 4:00 P.M., New York
time, but may close earlier on some days (for example, in case
of weather emergencies or on days falling before a holiday).
3. The section entitled "AccountLink" under "How to Buy Shares" on page
25 is revised by replacing the text after the second sentence with the
following:
Dividends will begin to accrue on shares purchased by the
proceeds of ACH transfers on the business day the Fund receives
Federal Funds for the purchase through the ACH system before the
close of the NYSE. The NYSE normally closes at 4:00 P.M., but
may close earlier on certain days. If Federal Funds are
received on a business day after the close of the NYSE, the
shares will be purchased and dividends will begin to accrue on
the next regular business day. The proceeds of ACH transfers
are normally received by the Fund three days after the transfers
are initiated. The Distributor and the Fund are not responsible
for any delays in purchasing shares resulting from delays in ACH
transmissions.
4. In the section entitled "Letters of Intent" on pages 26, the first
paragraph in that section is replaced by the following:
- Letters of Intent. A Letter of Intent (referred to as a
"Letter") is an investor's statement in writing to the
Distributor of the intention to purchase Class A shares or Class
A and Class B shares of the Fund (and other OppenheimerFunds
during a 13-month period (the "Letter of Intent period"), which
may, at the investor's request, include purchases made up to 90
days prior to the date of the Letter. The Letter states the
investor's intention to make the aggregate amount of purchases
of shares which, when added to the investor's holdings of shares
of those funds, will equal or exceed the amount specified in the
Letter. Purchases made at net asset value without sales charge
do not count toward satisfying the amount of the Letter. A
letter enables an investor to count the Class A and Class B
shares purchased under the Letter to obtain the reduced sales
charge rate on purchases of Class A shares of the Fund (and
other OppenheimerFunds) that applies under the Right of
Accumulation to current purchases of Class A shares. Each
purchase of Class A shares under the Letter will be made at the
public offering price (including the sales charge) that applies
to a single lump-sum purchase of shares in the amount intended
to be purchased under the Letter.
5. In the section entitled "Letters of Intent" on pages 26 and 27, a new
third paragraph is added as follows:
For purchases of shares of the Fund and other OppenheimerFunds
by OppenheimerFunds prototype 401(k) plans under a Letter of
Intent, the Transfer Agent will not hold shares in escrow. If
the intended purchase amount under the Letter entered into by
an OppenheimerFunds prototype 401(k) plan is not purchased by
the plan by the end of the Letter of Intent period, there will
be no adjustment of commissions paid to the broker-dealer or
financial institution of record for accounts held in the name
of that plan.
6. In the section entitled "Terms of Escrow for Letters of Intent" on
page 28, item 5 of that section is replaced by the following:
5. The shares eligible for purchase under the Letter (or the
holding of which may be counted toward completion of a Letter)
include (a) Class A shares sold with a front-end sales charge
or subject to a Class A contingent deferred sales charge, (b)
Class B shares acquired subject to a contingent deferred sales
charge, and (c) Class A or B shares acquired by reinvestment of
dividends and distributions or acquired in exchange for either
(i) Class A shares of one of the other OppenheimerFunds that
were acquired subject to a Class A initial or contingent
deferred sales charge or (ii) Class B shares of one of the other
OppenheimerFunds that were acquired subject to a contingent
deferred sales charge.
7. In the section entitled "Distributions from Retirement Plans" on page
30, the phrase "401(k) plans" is added after "403(b)(7) custodial plans"
in the first sentence, and the third sentence of that section is revised
to read as follows:
Participants, other than self-employed persons maintaining a
plan account in their own name) in OppenheimerFunds-sponsored
prototype pension, profit-sharing or 401(k) plans may not
directly redeem or exchange shares held for their account under
those plans.
8. In the section entitled "Special Arrangements for Repurchase of
Shares from Dealers and Brokers" on page 30, the second and third
sentences of that section are revised to read as follows:
The repurchase price per share will be the net asset value next
computed after the Distributor receives the order placed by the
dealer or broker, except that if the Distributor receives a
repurchase order from a dealer or broker after the close of the
NYSE on a regular business day, it will be processed at that
day's net asset value if the order was received by the dealer
or broker from its customer prior to the time the NYSE closes
(normally, that is 4:00 P.M., but may be earlier on some days)
and the order was transmitted to and received by the Distributor
prior to its close of business that day (normally 5:00 P.M.).
Ordinarily, for accounts redeemed by a broker-dealer under this
procedure, payment will be made within three business days after
the shares have been redeemed upon the Distributor's receipt of
the required redemption documents in proper form, with the
signature(s) of the registered owners guaranteed on the
redemption document as described in the Prospectus.
9. In the section entitled "How to Exchange Shares" on pages 32 and 33,
the second full paragraph is changed by adding new third and fourth
sentences as follows:
However, shares of Oppenheimer Money Market Fund, Inc. purchased
with the redemption proceeds of shares of other mutual funds
(other than funds managed by the Manager or its subsidiaries)
redeemed within the 12 months prior to that purchase may
subsequently be exchanged for shares of other OppenheimerFunds
without being subject to an initial or contingent deferred sales
charge, whichever is applicable. To qualify for that privilege,
the investor or the investor's dealer must notify the
Distributor of eligibility for this privilege at the time the
shares of Oppenheimer Money Market Fund, Inc. are purchased,
and, if requested, must supply proof of entitlement to this
privilege.
July 14, 1995 PX0700.003
