[FRONT COVER]
Oppenheimer Main Street Income & Growth Fund
Annual Report August 31, 1996
[PICTURE OF GARDENING COUPLE]
"We want
high
long-term
growth
and current
income, too."
[LOGO] OppenheimerFunds(R)
<PAGE>
News
Outstanding Total Return
Cumulative Total Return for the
5-Year Period Ended 8/31/96:
Oppenheimer Main Street
Income & Growth Fund
Class A (at net asset value)(1)
184.02%
Lipper Growth & Income
Funds Average(3)
80.49%
The Fund's Class A shares
are ranked **** among
1,650 (3-year) and 1,016
(5-year) equity funds for the
combined 3- and 5-year
period ended 8/31/96 by
Morningstar Mutual Funds.(4)
This Fund is for people who are looking for
high total return, from both the potential
for capital appreciation and current income.
How Your Fund Is Managed
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 fast-growing companies as well as income-producing stocks and bonds.
This disciplined approach helps to reduce risk through diversification and
enables the Fund to take advantage of a wide variety of market conditions.
Performance
Total return at net asset value for the 12 months ended 8/31/96 was 11.87% for
Class A shares, 11.01% for Class B shares and 11.05% for Class C shares.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 8/31/96 and since inception
of the Class on 2/3/88 were 5.44%, 21.77% and 19.95%, respectively. For Class B
shares, average annual total returns for the 1-year period and since inception
of the Class on 10/1/94 were 6.01% and 14.03%. For Class C shares, average
annual total returns for the 1-year period and since inception of the Class on
12/1/93 were 10.05% and 12.50%.(2)
Outlook
"We are very optimistic. Although we are cautious with regard to the market over
the short term, we believe we are invested in the kinds of small- and large-cap
companies that offer excellent long-term opportunities."
Bob Milnamow, Portfolio Manager
August 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. In reviewing the notes that follow on performance
and rankings, please be aware that past performance does not guarantee future
results. Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
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 8/31/95, 8/31/91
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 8/31/95 and 10/1/94 (inception of class), after the deduction of the
applicable contingent deferred sales charge of 5% (1-year) and 4% (since
inception). Class C returns show results of hypothetical investments on 8/31/95
and 12/1/93 (inception of class), after the deduction of the 1% contingent
deferred sales charge for the 1-year result. When such returns are calculated in
the same manner for the period ended 9/30/96, they are as follows: for Class A
shares, 7.53%, 22.27% and 20.41% for the 1- and 5-year periods and since
inception; for Class B shares, 8.25% and 16.23% for the 1-year period and since
inception; and for Class C shares, 12.27% and 13.99% for the 1-year period and
since inception. An explanation of the different performance calculations is in
the Fund's prospectus.
3. Source: Lipper Analytical Services, 8/31/96. The Lipper total return average
for the 5-year period was for 210 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, 8/31/96. Morningstar rankings are based on
risk-adjusted investment returns, after considering sales charges and expenses.
Investment return measures a fund's (or class's) 1-, 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" (next 22.5%) and 1 star is the "lowest" (bottom
10%). The 4-star current ranking is a weighted average of the 3- and 5-year
rankings for the class, which were 3 and 5 stars, weighted 40% and 60%,
respectively. There were 1,650 and 1,016 funds ranked in those respective
periods. The 1-year ranking is 3 stars, but is not included in the overall
ranking calculations. There were 2,953 funds ranked for the 1-year period.
Rankings are subject to change. The Fund's Class A, B and C shares have the same
portfolio but different expenses.
2 Oppenheimer Main Street Income & Growth Fund
<PAGE>
[PHOTO-JAMES C. SWAIN]
James C. Swain
Chairman
Oppenheimer
Main Street Income
& Growth Fund
[PHOTO-BRIDGET A. MACASKILL]
Bridget A. Macaskill
President
Oppenheimer
Main Street Income
& Growth Fund
Dear Shareholder,
Over the past few months, the stock market has shown investors just how
unpredictable it can be. During this time, the market has experienced some
remarkable shifts, both up and down. Despite the recent volatility, we remain
optimistic and see this activity as "normal" movement in a bull market rather
than the onset of a bear market. Here's why.
We entered this period agreeing with many experts that the stock market was
probably due for some kind of a downturn. After all, we had not experienced any
real market correction in six years, making this the longest bull market of the
post-World War II era. Although the market did decline significantly in June and
July, we believe that long-term it will remain strong for the following three
reasons: strong corporate profits; low inflation; and stabilized interest rates.
First, because corporate profits of U.S. companies had advanced at a
double-digit rate between 1992 and 1995, investors had fully expected this
year's profit tallies to be flat. But instead, corporate America continued to
perform. Corporate profits were strong during the first part of the year due to
the fact that many companies reduced their operating expenses and frequently
applied their profits to their businesses.
Second, it is our belief that in today's world, faster economic growth may
not necessarily mean higher inflation. For example, despite reports of an
increase in hourly wages, inflation has remained low. In fact, our outlook is
that inflation will remain under control, primarily because of the Federal
Reserve's conservative monetary policy over the last few years as well as the
declining federal government deficit which should help the stock market to
remain strong.
Third, the strength of the stock market earlier this year is all the more
noteworthy because it came during a time when interest rates moved up
sharply--the yield on the benchmark 30-year U.S. Treasury bond rose from under
6% in January to about 7% today. Interest rates have been rising partly because
investors are concerned about whether the economy is growing fast enough to
generate higher inflation. And, while it's impossible to predict how interest
rates will fluctuate, we believe they will stabilize over the next few months.
Rest assured, however, that we will continue to monitor this situation very
closely and would become very cautious in anticipating the stock market's
performance if inflation were to flare up.
Taking these factors into account this year, our managers have worked hard
to strive to meet their Fund's objective--being careful not to abandon their
investment styles in response to short-term changes in the market. Additionally,
they understand that, historically, a diversified portfolio of stocks has
provided superior growth over the long term. With that in mind, it is critical
for investors to remain focused on long-term goals and put near-term
fluctuations in their proper perspective.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
September 20, 1996
The Board of Trustees recently decided to change the fiscal year end of this
Fund from June 30 to August 31 in order to facilitate the auditing process. Due
to this change, the next shareholder report you receive will cover the six-month
period ended February 28, 1997.
3 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Q + A
An interview with your Fund's managers.
Q What
investments
benefited
performance?
How did the Fund perform over the period?
Through all the twists and turns the markets have taken this summer, the Fund
has performed well. We've continued to use the fixed-income securities as our
primary means of generating income, while we've positioned the growth portion of
the Fund in five strategic areas--emerging or improving industries; large growth
companies that define their industries; smaller companies with niche businesses;
companies undergoing restructuring; and fundamentally strong companies selling
at extremely low valuations.
What investments benefited performance?
An area that has been especially profitable for us is telecommunications. We've
also been particularly happy with the stocks of companies that continue to
increase their share in the long distance telephone market, as well as those
that sell computer systems to facilitate the movement of data between long
distance and local area networks. In our growing, global community, these
companies should remain highly visible.
Avoiding problem areas is also a great way to enhance performance which is
what we did when we sold our electric utilities holdings several quarters ago
and thus managed to escape the downturn that occurred in that sector.{1}
Did any investments not perform as expected?
Unfortunately, yes. Initially we thought the stocks of health management
organizations (HMOs) would do much better than they actually did. Earlier this
summer, we benefited as one of the HMOs we owned was acquired by a competitor as
part of the continuing consolidation that took place within the industry. While
1. The Fund's portfolio is subject to change.
4 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Facing page
Top left: Robert Milnamow,
Portfolio Manager
Top right: Michael Levine, Member
of Equity Investments Team
Bottom: Robert Doll, Executive VP,
Director of Equity Investments
This page
Top:Robert Milnamow
Bottom: Diane Sobin and Bruce
Bartlett, Members of Equity
Investments Team
A Tele-
communications
stocks have
been especially
profitable
for us.
some of these special situations were good buys, HMOs didn't perform as well as
expected due to their surprisingly weak operating performance. In fact, many
market participants felt that these firms would respond to their operating
problems by putting additional cost pressures on medical providers--causing
declines in this sector too. These two factors have hurt the performance of
numerous health care stocks in the portfolio during the period.
Do you plan to make any changes to the Fund's asset mix?
Our asset mix has remained relatively constant over the year, with roughly 75%
of the portfolio in stocks and the remainder in fixed-income securities and cash
and cash equivalents. Since we are relatively cautious with regard to the
overall stock market, we expect to maintain this 75% equity weighting. This
mixture contrasts with most growth and income funds which tend to have a higher
concentration in equities because of their strategy of attempting to generate
income through their equity holdings. However, if the equity market were to
continue to decline as it did in July, we would look to increase our equity
allocation in companies we feel are now good buys.
What is your outlook for the Fund?
We are very optimistic. Our many years of financial experience have enabled us
to structure the Fund to benefit from our five strategic equity areas, and to
successfully make use of fixed-income securities. This structure offers an
unusual combination of concentrations in both large and small growth companies,
as well as enough flexibility to find the very best opportunities in the market.
Although we are cautious with regard to the market over the short term, we
believe we are invested in the kinds of small- and large-cap companies that
offer excellent long-term opportunities. [ ]
5 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments August 31, 1996
Face Market Value
Amount See Note 1
====================================================================================================================================
<S> <C> <C> <C>
U.S. Government Obligations--1.7%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 5%, 1/31/98 $50,000,000 $ 49,203,094
----------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 5.50%, 11/15/98 50,000,000 49,062,500
------------
Total U.S. Government Obligations (Cost $100,435,512) 98,265,594
====================================================================================================================================
Non-Convertible Corporate Bonds and Notes--0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 14.04%, 11/15/99(1) 12,000,000 7,920,000
----------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
12.45%, 11/15/99(1) 3,000,000 1,980,000
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $9,815,861) 9,900,000
====================================================================================================================================
Convertible Corporate Bonds and Notes--2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
ALZA Corp., 5% Cv. Sub. Debs., 5/1/06 12,800,000 12,528,000
----------------------------------------------------------------------------------------------------------------
Continental Airlines, Inc., 6.75% Cv. Sub. Nts., 4/15/06(2) 15,000,000 14,362,500
----------------------------------------------------------------------------------------------------------------
Corporate Express, Inc., 4.50% Cv. Nts., 7/1/00(2) 19,000,000 18,667,500
----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 5% Cv. Sub. Nts., 10/1/03 5,000,000 5,743,750
----------------------------------------------------------------------------------------------------------------
First Financial Management Corp., 5% Cv. Debs., 12/15/99 5,000,000 9,150,000
----------------------------------------------------------------------------------------------------------------
NovaCare, Inc., 5.50% Cv. Sub. Debs., 1/15/00 5,500,000 4,867,500
----------------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.50% Cv. Sub. Debs., 8/15/00(3)(4) 1,000,000 100,000
----------------------------------------------------------------------------------------------------------------
Roche Holdings, Inc., Zero Coupon Cv. Nts., 7%, 4/20/10(1)(2) 48,000,000 21,060,000
----------------------------------------------------------------------------------------------------------------
Sports & Recreation, Inc., 4.25% Cv. Sub. Nts., 11/1/00 7,500,000 5,465,625
----------------------------------------------------------------------------------------------------------------
Staples, Inc., 4.50% Cv. Nts., 10/1/00(2) 7,000,000 7,708,750
----------------------------------------------------------------------------------------------------------------
Tele-Communications International, Inc., 4.50% Cv. Sub. Debs., 2/15/06 5,400,000 4,549,500
----------------------------------------------------------------------------------------------------------------
Theratx, Inc., 8% Cv. Sub. Debs., 2/1/02 6,000,000 5,745,000
----------------------------------------------------------------------------------------------------------------
Time Warner, Inc., Zero Coupon Cv. Sr. Sub. Nts., 5.08%, 6/22/13(1) 20,000,000 8,350,000
------------
Total Convertible Corporate Bonds and Notes (Cost $114,505,100) 118,298,125
Shares
====================================================================================================================================
Common Stocks--70.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Materials--4.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.5% IMC Global, Inc. 1,676,400 72,085,200
----------------------------------------------------------------------------------------------------------------
Monsanto Co. 4,004,000 128,628,500
----------------------------------------------------------------------------------------------------------------
Sigma-Aldrich Corp. 60,000 3,165,000
------------
203,878,700
- ------------------------------------------------------------------------------------------------------------------------------------
Gold--0.5% Newmont Mining Corp. 509,100 26,918,662
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--15.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.2%
Oakwood Homes Corp. 545,200 12,812,200
</TABLE>
6 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Leisure & Entertainment--7.5%
Atlantic Southeast Airlines, Inc. 305,000 $ 7,015,000
----------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 1,625,000 92,625,000
----------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 925,000 67,062,500
----------------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A 1,603,035 39,274,357
----------------------------------------------------------------------------------------------------------------
Harrah's Entertainment, Inc.(5) 1,800,000 34,200,000
----------------------------------------------------------------------------------------------------------------
ITT Corp. (New)(5) 1,220,000 64,965,000
----------------------------------------------------------------------------------------------------------------
McDonald's Corp. 2,742,300 127,174,162
----------------------------------------------------------------------------------------------------------------
Primadonna Resorts, Inc.(5) 70,000 1,417,500
------------
433,733,519
- ------------------------------------------------------------------------------------------------------------------------------------
Media--2.7% Cox Communications, Inc., Cl. A(5) 760,000 15,010,000
----------------------------------------------------------------------------------------------------------------
Evergreen Media Corp., Cl. A(5) 675,000 21,262,500
----------------------------------------------------------------------------------------------------------------
Infinity Broadcasting Corp., Cl. A(5) 1,150,000 31,481,250
----------------------------------------------------------------------------------------------------------------
Omnicom Group, Inc. 1,227,900 55,715,962
----------------------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(5) 1,110,000 34,965,000
------------
158,434,712
- ------------------------------------------------------------------------------------------------------------------------------------
Retail: General--2.4%
Dillard Department Stores, Inc., Cl. A 700,000 23,800,000
----------------------------------------------------------------------------------------------------------------
Eckerd Corp.(5) 1,175,000 28,787,500
----------------------------------------------------------------------------------------------------------------
Kohl's Corp.(5) 463,000 17,594,000
----------------------------------------------------------------------------------------------------------------
May Department Stores Co. 1,029,400 46,837,700
----------------------------------------------------------------------------------------------------------------
Nordstrom, Inc. 615,000 23,985,000
------------
141,004,200
- ------------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--2.6%
Alco Standard Corp. 600,000 26,175,000
----------------------------------------------------------------------------------------------------------------
Circuit City Stores, Inc. 1,742,000 54,873,000
----------------------------------------------------------------------------------------------------------------
Nine West Group, Inc.(5) 525,000 27,037,500
----------------------------------------------------------------------------------------------------------------
Office Depot, Inc.(5) 1,300,000 20,637,500
----------------------------------------------------------------------------------------------------------------
Talbots, Inc. (The) 702,200 24,050,350
------------
152,773,350
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--19.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Beverages--0.5% Anheuser-Busch Cos., Inc. 112,500 8,521,875
----------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 600,000 17,250,000
------------
25,771,875
- ------------------------------------------------------------------------------------------------------------------------------------
Food--4.7% Campbell Soup Co. 780,000 50,797,500
----------------------------------------------------------------------------------------------------------------
CPC International, Inc. 427,100 29,416,512
----------------------------------------------------------------------------------------------------------------
General Mills, Inc. 728,300 40,056,500
----------------------------------------------------------------------------------------------------------------
H.J. Heinz Co. 1,155,000 36,382,500
----------------------------------------------------------------------------------------------------------------
Kellog Co. 580,000 39,150,000
----------------------------------------------------------------------------------------------------------------
Quaker Oats Co. 759,300 24,961,988
----------------------------------------------------------------------------------------------------------------
Ralston-Ralston Purina Group 500,200 31,262,500
----------------------------------------------------------------------------------------------------------------
Sysco Corp. 600,000 19,275,000
------------
271,302,500
</TABLE>
7 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Continued)
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Healthcare/Drugs--6.4%
American Home Products Corp. 1,100,000 $65,175,000
----------------------------------------------------------------------------------------------------------------
Amgen, Inc.(5) 900,000 52,425,000
----------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 500,000 21,119,324
----------------------------------------------------------------------------------------------------------------
Johnson & Johnson 400,000 19,700,000
----------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 1,450,000 95,156,250
----------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 1,072,400 59,920,350
----------------------------------------------------------------------------------------------------------------
Warner-Lambert Co. 1,000,000 59,500,000
------------
372,995,924
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies &
Services--4.1%
Baxter International, Inc. 1,426,000 63,635,250
----------------------------------------------------------------------------------------------------------------
Becton, Dickinson & Co. 519,200 21,222,300
----------------------------------------------------------------------------------------------------------------
Boston Scientific Corp.(5) 1,230,050 56,428,544
----------------------------------------------------------------------------------------------------------------
Guidant Corp. 500,000 25,375,000
----------------------------------------------------------------------------------------------------------------
Health Management Association, Inc., Cl. A(5) 258,800 5,887,700
----------------------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp.(5) 1,050,000 33,993,750
----------------------------------------------------------------------------------------------------------------
St. Jude Medical, Inc.(5) 600,000 21,525,000
----------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.(5) 450,000 9,450,000
------------
237,517,544
- ------------------------------------------------------------------------------------------------------------------------------------
Household Goods--2.0%
Avon Products, Inc. 253,400 12,131,525
----------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Co. 431,900 35,091,875
----------------------------------------------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 547,000 23,521,000
----------------------------------------------------------------------------------------------------------------
Kao Corp. 1,225,000 14,551,096
----------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 350,000 31,106,250
------------
116,401,746
- ------------------------------------------------------------------------------------------------------------------------------------
Tobacco--1.3% Philip Morris Cos., Inc. 825,000 74,043,750
- ------------------------------------------------------------------------------------------------------------------------------------
Energy--4.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Energy Services &
Producers--1.3%
Apache Corp. 750,000 22,031,250
----------------------------------------------------------------------------------------------------------------
BJ Services Co.(5) 550,000 20,693,750
----------------------------------------------------------------------------------------------------------------
Schlumberger Ltd. 260,000 21,937,500
----------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc.(5) 325,000 9,343,750
------------
74,006,250
- ------------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated--3.2%
Ashland, Inc. 475,000 17,634,375
----------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 325,000 37,943,750
----------------------------------------------------------------------------------------------------------------
Chevron Corp. 220,000 12,952,500
----------------------------------------------------------------------------------------------------------------
Mobil Corp. 220,000 24,805,000
----------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 185,000 27,634,375
----------------------------------------------------------------------------------------------------------------
Texaco, Inc. 375,000 33,281,250
----------------------------------------------------------------------------------------------------------------
Unocal Corp. 825,000 28,256,250
------------
182,507,500
</TABLE>
8 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Financial--9.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Banks--3.0% BankAmerica Corp. 500,000 $ 38,750,000
----------------------------------------------------------------------------------------------------------------
Commercial Federal Corp. 375,000 14,625,000
----------------------------------------------------------------------------------------------------------------
First Bank System, Inc. 780,700 50,159,975
----------------------------------------------------------------------------------------------------------------
Summit Bancorp 645,000 24,993,750
----------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 183,333 45,604,084
------------
174,132,809
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--5.4%
American Express Co. 2,122,900 92,876,875
----------------------------------------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 1,027,200 40,574,400
----------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 898,100 44,905,000
----------------------------------------------------------------------------------------------------------------
Nomura Securities Co. Ltd. 1,700,000 29,585,618
----------------------------------------------------------------------------------------------------------------
PMI Group, Inc. (The) 175,000 8,553,125
----------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 2,277,200 98,773,550
------------
315,268,568
- ------------------------------------------------------------------------------------------------------------------------------------
Insurance--1.0% Allstate Corp. 500,000 22,312,500
----------------------------------------------------------------------------------------------------------------
Amerin Corp.(5) 385,000 8,758,750
----------------------------------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 1,000,000 24,375,000
------------
55,446,250
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial--5.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--3.0%
AMP, Inc. 600,000 22,950,000
----------------------------------------------------------------------------------------------------------------
Emerson Electric Co. 200,000 16,750,000
----------------------------------------------------------------------------------------------------------------
General Electric Co. 200,000 16,625,000
----------------------------------------------------------------------------------------------------------------
Honeywell, Inc. 1,400,000 81,375,000
----------------------------------------------------------------------------------------------------------------
Raychem Corp. 550,000 37,743,750
------------
175,443,750
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Materials--0.5%
Avery-Dennison Corp. 614,500 31,416,313
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.7%
Interpublic Group of Companies, Inc. 317,900 14,384,975
----------------------------------------------------------------------------------------------------------------
Millipore Corp. 700,000 26,775,000
------------
41,159,975
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing--0.8%
Mitsubishi Heavy Industries Ltd. 4,200,000 33,220,975
----------------------------------------------------------------------------------------------------------------
Olin Corp. 150,100 11,895,425
------------
45,116,400
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation--0.8%
Conrail, Inc. 638,000 43,463,750
- ------------------------------------------------------------------------------------------------------------------------------------
Technology--11.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.3%
Boeing Co. 300,000 27,150,000
----------------------------------------------------------------------------------------------------------------
Raytheon Co. 600,000 30,900,000
----------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 300,000 15,600,000
------------
73,650,000
</TABLE>
9 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--1.4%
Adaptec, Inc.(5) 520,000 $ 25,935,000
----------------------------------------------------------------------------------------------------------------
QUALCOMM, Inc. 300,000 13,012,500
----------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(5) 862,300 41,390,400
-------------
80,337,900
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Software--3.4%
BMC Software, Inc.(5) 325,000 24,212,500
----------------------------------------------------------------------------------------------------------------
Electronic Data Systems Corp. 800,000 43,600,000
----------------------------------------------------------------------------------------------------------------
First Data Corp. 776,800 60,590,400
----------------------------------------------------------------------------------------------------------------
Microsoft Corp.(5) 315,000 38,587,500
----------------------------------------------------------------------------------------------------------------
PLATINUM Technology, Inc.(5) 1,000,000 10,750,000
----------------------------------------------------------------------------------------------------------------
Sungard Data Systems, Inc.(5) 434,000 18,553,500
-------------
196,293,900
- ------------------------------------------------------------------------------------------------------------------------------------
Electronics--2.3% General Instrument Corp.(5) 700,000 19,162,500
----------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 675,000 37,715,625
----------------------------------------------------------------------------------------------------------------
Intel Corp. 600,000 47,887,500
----------------------------------------------------------------------------------------------------------------
Thermo Electron Corp.(5) 637,500 25,260,938
----------------------------------------------------------------------------------------------------------------
VeriFone, Inc.(5) 113,900 5,438,725
-------------
135,465,288
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications-
Technology--3.3%
ADC Telecommunications, Inc.(5) 425,000 24,118,750
----------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(5) 825,000 43,518,750
----------------------------------------------------------------------------------------------------------------
LCI International, Inc.(5) 623,500 22,056,313
----------------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc.(5) 11,556 489,686
----------------------------------------------------------------------------------------------------------------
Millicom, Inc.(5) 75,000 --
----------------------------------------------------------------------------------------------------------------
Newbridge Networks Corp.(5) 275,000 15,846,875
----------------------------------------------------------------------------------------------------------------
Tellabs, Inc.(5) 290,000 18,378,750
----------------------------------------------------------------------------------------------------------------
WorldCom, Inc.(5) 3,210,139 67,412,919
-------------
191,822,043
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities--0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.7%
Sonat, Inc. 950,000 41,918,750
-------------
Total Common Stocks (Cost $3,714,040,654) 4,085,038,128
====================================================================================================================================
Preferred Stocks--1.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv., Series I 439,000 10,920,125
----------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc.,
Depositary Shares each representing 0.05 Shares
of Step-Up Cv. Preferred Stock 919,000 24,238,625
----------------------------------------------------------------------------------------------------------------
LCI International, Inc., 5% Cum. Cv. Exchangeable Preferred Stock 250,000 22,250,000
----------------------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., 6.50% Cv. Preferred(2)(5) 105,000 5,801,250
-------------
Total Preferred Stocks (Cost $48,049,847) 63,210,000
</TABLE>
10 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
====================================================================================================================================
<S> <C> <C> <C>
Other Securities--2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co., 9% Exchangeable Nts. for
Common Stock of Lyondell Petrochemical Co., 9/15/97 425,000 $ 9,721,875
----------------------------------------------------------------------------------------------------------------
Compania de Inversiones en Telecomunicaciones SA, 7%
Provisionally Redeemable Income Debt Exchangeable for Stock, 3/3/98(2) 225,000 10,912,500
----------------------------------------------------------------------------------------------------------------
Continental Airlines Finance Trust, 8.50% Cv. Trust
Originated Preferred Securities(2) 125,000 6,625,000
----------------------------------------------------------------------------------------------------------------
Cooper Industries, Inc., 6% Debt Exchangeable Nts. for Common Stock
of Wyman-Gordon Co., 1/1/99 121,000 2,329,250
----------------------------------------------------------------------------------------------------------------
James River Corp. of Virginia, Depositary Shares each
representing a one-hundredth interest in a share of Series P,
9% Cum. Cv. Preferred Stock, Dividend Enhanced Convertible Stock 500,000 12,437,500
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 7.25% Structured Yield Product
Exchangeable for Common Stock of SunAmerica, Inc., 6/15/99 321,000 19,219,875
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6% Cv. Structured Yield Product
Exchangeable for Common Stock of Cox Communications, Inc., 6/1/99 235,000 4,905,625
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6.50% Cv. Structured Yield Product
Exchangeable for Common Stock of MGIC Investment Corp. , 8/15/98 200,000 11,600,000
----------------------------------------------------------------------------------------------------------------
MFS Communications Co., Inc., 8% Cv. Depositary Shares
representing one share of Dividend Enhanced Convertible Stock 515,000 37,080,000
----------------------------------------------------------------------------------------------------------------
SunAmerica, Inc., $3.10 Depositary Shares
each representing one-fiftieth of a share of Series E
Mandatory Conversion Premium Dividend Preferred Stock 199,500 16,458,750
----------------------------------------------------------------------------------------------------------------
Westinghouse Electric Corp., Participating Equity
Preferred Stock, $1.30 Cv., Series C(2) 1,300,000 20,312,500
-------------
Total Other Securities (Cost $126,250,433) 151,602,875
Units
====================================================================================================================================
Rights, Warrants and Certificates--0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 18,750 --
Face
Amount
====================================================================================================================================
Short-Term Notes--20.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers--3.4%
Goldman Sachs & Co., 5.28%, 9/13/96 $50,000,000 49,912,000
----------------------------------------------------------------------------------------------------------------
Goldman Sachs & Co., 5.30%, 9/6/96 50,000,000 49,963,194
----------------------------------------------------------------------------------------------------------------
Goldman Sachs & Co., 5.30%, 9/9/96 50,000,000 49,941,111
----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.28%, 9/19/96 50,000,000 49,868,000
-----------
199,684,305
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial Finance--4.2%
CIT Group Holdings, Inc., 5.28%, 9/27/96 50,000,000 49,809,333
----------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.29%, 10/3/96 50,000,000 49,764,889
----------------------------------------------------------------------------------------------------------------
Countrywide Home Loan, 5.25%, 9/12/96 50,000,000 49,919,792
----------------------------------------------------------------------------------------------------------------
Countrywide Home Loan, 5.32%, 9/16/96 50,000,000 49,889,167
----------------------------------------------------------------------------------------------------------------
Countrywide Home Loan, 5.42%, 9/11/96 45,000,000 44,934,125
-------------
244,317,306
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Finance--0.9%
American Express Credit Corp., 5.28%, 9/9/96 50,000,000 49,941,333
</TABLE>
11 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Investments (Continued)
Face Market Value
Amount See Note 1
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--6.9%
Associates Corp. of North America, 5.28%, 9/18/96 $50,000,000 $ 49,875,333
----------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.44%, 10/4/96 50,000,000 49,758,000
----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.27%, 9/17/96 50,000,000 49,882,889
----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.27%, 9/25/96 50,000,000 49,824,333
----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.28%, 9/11/96 50,000,000 49,926,667
----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.29%, 10/1/96 50,000,000 49,779,583
----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.29%, 10/2/96 50,000,000 49,772,236
----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.30%, 9/20/96 50,000,000 49,860,139
--------------
398,679,180
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.5%
PHH Corp., 5.28%, 9/10/96 30,000,000 29,960,400
- ------------------------------------------------------------------------------------------------------------------------------------
Leasing & Factoring--0.9%
Hertz Corp. (The), 5.29%, 10/7/96 50,000,000 49,735,500
- ------------------------------------------------------------------------------------------------------------------------------------
Special Purpose Financial--3.6%
CIESCO L.P., 5.25%, 9/10/96 50,000,000 49,934,375
----------------------------------------------------------------------------------------------------------------
New Center Asset Trust, 5.27%, 9/24/96 50,000,000 49,831,653
----------------------------------------------------------------------------------------------------------------
New Center Asset Trust, 5.28%, 9/23/96 50,000,000 49,838,667
----------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 5.30%, 9/26/96 20,750,000 20,673,629
----------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 5.32%, 10/1/96 41,470,000 41,286,150
----------------------------------------------------------------------------------------------------------------
211,564,474
--------------
Total Short-Term Notes (Cost $1,183,882,498) 1,183,882,498
====================================================================================================================================
Repurchase Agreement--1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 5.25%, dated
8/30/96, to be repurchased at $70,941,358 on 9/3/96, collateralized by
U.S. Treasury Nts., 5.625%--7.375%, 8/31/97--8/15/03, with a value of
$72,367,620 (Cost $70,900,000) 70,900,000 70,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $5,367,879,904) 99.8% 5,781,097,220
Other Assets Net of Liabilities 0.2 14,271,252
----- --------------
Net Assets 100.0% $5,795,368,472
===== ==============
</TABLE>
1. For zero coupon bonds, the interest rate shown is the
effective yield on the date of purchase.
2. 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 $105,450,000 or 1.82% of the
Fund's net assets, at August 31, 1996.
3. Identifies issues considered to be illiquid--See Note 7
of Notes to Financial Statements.
4. Non-income producing--issuer is in default of interest
payment.
5. Non-income producing security.
See accompanying Notes to Financial Statements.
12 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities August 31, 1996
====================================================================================================================================
<S> <C> <C>
Assets Investments, at value (cost $5,367,879,904)--see accompanying statement $5,781,097,220
----------------------------------------------------------------------------------------------------------------
Cash 432,123
----------------------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 27,769,617
Investments sold 13,015,784
Interest and dividends 10,520,370
----------------------------------------------------------------------------------------------------------------
Other 43,163
--------------
Total assets 5,832,878,277
====================================================================================================================================
Liabilities Unrealized depreciation on forward foreign currency exchange contracts--Note 5 1,562
----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 24,118,260
Shares of capital stock redeemed 9,079,720
Distribution and service plan fees 2,356,260
Daily variation on futures contracts--Note 6 762,500
Shareholder reports 517,774
Transfer and shareholder servicing agent fees 187,783
Dividends 21,458
Directors' fees 1,908
Other 462,580
--------------
Total liabilities 37,509,805
====================================================================================================================================
Net Assets $5,795,368,472
==============
====================================================================================================================================
Composition of Par value of shares of capital stock $ 2,078,980
Net Assets ----------------------------------------------------------------------------------------------------------------
Additional paid-in capital 4,964,478,272
----------------------------------------------------------------------------------------------------------------
Undistributed net investment income 17,097,695
----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 399,260,271
----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 412,453,254
--------------
Net assets $5,795,368,472
==============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets
of $3,142,824,663 and 112,443,525 shares of capital stock outstanding) $27.95
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $29.66
----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,908,541,588 and 68,668,350 shares of capital stock outstanding) $27.79
----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $744,002,221 and 26,786,091 shares of capital stock outstanding) $27.78
See accompanying Notes to Financial Statements
</TABLE>
13 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations Two Months
Ended Aug. 31, Year Ended
1996(1) June 30, 1996
====================================================================================================================================
<S> <C> <C> <C>
Investment Income Dividends $ 11,201,004 $ 57,829,926
Foreign withholding taxes (144,262) (547,215)
----------------------------------------------------------------------------------------------------------------
Interest 13,334,612 50,532,908
------------- ------------
Total income 24,391,354 107,815,619
====================================================================================================================================
Expenses Distribution and service plan fees--Note 4:
Class A 1,271,041 6,090,603
Class B 3,086,859 11,543,736
Class C 1,234,633 5,863,969
----------------------------------------------------------------------------------------------------------------
Management fees--Note 4 4,428,137 19,932,096
----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,782,654 8,422,999
----------------------------------------------------------------------------------------------------------------
Shareholder reports 422,226 1,640,660
----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 142,574 616,042
Class B 97,734 374,111
Class C 24,404 89,426
----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 50,600 152,300
----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 14,446 78,251
----------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 10,474 57,304
----------------------------------------------------------------------------------------------------------------
Insurance expenses 8,108 48,598
----------------------------------------------------------------------------------------------------------------
Other 80,218 578,835
------------- ------------
Total expenses 12,654,108 55,488,930
====================================================================================================================================
Net Investment Income 11,737,246 52,326,689
====================================================================================================================================
Realized and Net realized gain (loss) on investments:
Unrealized Unaffiliated companies (including premiums on options exercised) 41,797,367 383,597,624
Gain (Loss) Affiliated companies -- (2,265,938)
Foreign currency transactions (3,159,491) 2,544,567
Closing and expiration of options written -- 356,939
------------- ------------
Net realized gain 38,637,876 384,233,192
----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (245,784,461) 365,193,559
Translation of assets and liabilities denominated in foreign currencies 5,501,162 (12,824,005)
------------- ------------
Net change (240,283,299) 352,369,554
------------- ------------
Net realized and unrealized gain (loss) (201,645,423) 736,602,746
====================================================================================================================================
Net Increase (Decrease) in Net Assets Resulting From Operations $(189,908,177) $788,929,435
============= ============
</TABLE>
1. The Fund changed its fiscal year end from June 30 to
August 31.
See accompanying Notes to Financial Statements.
14 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Two Months
Ended
Aug. 31, Year Ended June 30,
1996(1) 1996 1995
====================================================================================================================================
<S> <C> <C> <C> <C>
Operations Net investment income $ 11,737,246 $ 52,326,689 $ 37,933,945
----------------------------------------------------------------------------------------------------------------
Net realized gain 38,637,876 384,233,192 13,180,181
----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (240,283,299) 352,369,554 329,165,454
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations (189,908,177) 788,929,435 380,279,580
====================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A -- (40,531,298) (29,280,412)
Shareholders Class B -- (11,334,670) (3,312,668)
Class C -- (5,305,754) (4,868,193)
----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (7,115,385) (140,642)
Class B -- (3,165,821) (10,803)
Class C -- (1,650,409) (35,755)
====================================================================================================================================
Capital Stock Net increase in net assets resulting from capital stock
Transactions transactions--Note 2:
Class A 98,647,005 790,272,185 947,214,116
Class B 169,401,905 986,624,829 580,665,761
Class C 27,973,044 178,504,196 233,648,051
====================================================================================================================================
Net Assets Total increase 106,113,777 2,675,227,308 2,104,159,035
----------------------------------------------------------------------------------------------------------------
Beginning of period 5,689,254,695 3,014,027,387 909,868,352
-------------- -------------- --------------
End of period (including undistributed net investment
income of $17,097,695, $1,372,571 and $1,145,174,
respectively) $5,795,368,472 $5,689,254,695 $3,014,027,387
============== ============== ==============
</TABLE>
1. The Fund changed its fiscal year end from June 30 to
August 31.
See accompanying Notes to Financial Statements.
15 Oppenheimer Main Street Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
Class A
------------------------------------------------------------------------------------
Two Months
Ended
August 31, Year Ended June 30,
1996(2) 1996 1995 1994 1993 1992
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $28.89 $24.07 $20.40 $19.88 $15.46 $13.22
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .07 .40 .47 .37 .16 .25
Net realized and unrealized gain (loss) (1.01) 4.93 3.66 2.50 6.65 4.72
------ ------ ------ ------ ------ ------
Total income (loss) from investment operations (.94) 5.33 4.13 2.87 6.81 4.97
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.43) (.46) (.36) (.19) (.22)
Distributions from net realized gain -- (.08) -- -- (2.20) (2.51)
Distributions in excess of gains -- -- -- (1.99) -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions to
shareholders -- (.51) (.46) (2.35) (2.39) (2.73)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $27.95 $28.89 $24.07 $20.40 $19.88 $15.46
====== ====== ====== ====== ====== ======
====================================================================================================================================
Total Return, at Net Asset Value(4) (3.25)% 22.26% 20.52% 14.34% 46.38% 39.48%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in millions) $3,143 $3,147 $1,924 $ 740 $ 58 $ 27
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $3,090 $2,516 $1,319 $ 270 $ 39 $ 23
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.57%(5) 1.55% 2.31% 2.46% 1.02% 1.63%
Expenses 0.98%(5) 0.99% 1.07% 1.28% 1.46% 1.66%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 17.5% 92.6% 101.3% 199.4% 283.0% 290.1%
Average brokerage commission rate(7) $0.0590 $0.0571 -- -- -- --
<CAPTION>
Class B Class C
------------------------------------ --------------------------------------
Two Months Two Months
Ended Ended
August 31, Year Ended June 30, August 31, Year Ended June 30,
1996(2) 1996 1995(3) 1996(2) 1996 1995 1994(1)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $28.77 $24.00 $21.49 $28.75 $23.97 $20.33 $20.76
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .04 .23 .25 .04 .21 .33 .13
Net realized and unrealized gain (loss) (1.02) 4.87 2.54 (1.01) 4.88 3.62 (.42)
------ ------ ------ ------ ------ ------ ------
Total income (loss) from investment operations (.98) 5.10 2.79 (.97) 5.09 3.95 (.29)
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.25) (.28) -- (.23) (.31) (.14)
Distributions from net realized gain -- (.08) -- -- (.08) -- --
Distributions in excess of gains -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions to
shareholders -- (.33) (.28) -- (.31) (.31) (.14)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $27.79 $28.77 $24.00 $27.78 $28.75 $23.97 $20.33
====== ====== ====== ====== ====== ====== ======
===============================================================================================================================
Total Return, at Net Asset Value(4) (3.41)% 21.34% 13.15% (3.37)% 21.35% 19.63% (0.97)%
===============================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in millions) $1,909 $1,800 $ 628 $ 744 $ 741 $ 462 $ 170
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,818 $1,155 $ 249 $ 730 $ 588 $ 325 $ 72
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.82%(5) 0.74% 1.25%(5) 0.82%(5) 0.80% 1.57% 1.86%(5)
Expenses 1.74%(5) 1.76% 1.89%(5) 1.73%(5) 1.74% 1.82% 2.11%(5)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 17.5% 92.6% 101.3% 17.5% 92.6% 101.3% 199.4%
Average brokerage commission rate(7) $0.0590 $0.0571 -- $0.0590 $0.0571 -- --
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to June 30,
1994.
2. The Fund changed its fiscal year end from June 30 to August 31.
3. For the period from October 1, 1994 (inception of offering) to June 30, 1995.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
5. Annualized.
6. The 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 August 31, 1996 were $815,164,979 and $1,001,434,430, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
16 & 17 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Notes to Financial Statements
================================================================================
1. Significant Oppenheimer Main Street Income & Growth Fund (the Fund)
Accounting is a separate series of Oppenheimer Main Street Funds,
Policies Inc., an open-end management investment company
registered under the Investment Company Act of 1940, as
amended. On August 27, 1996, the Board of Trustees
elected to change the fiscal year end of the Fund from
June 30 to August 31. Accordingly, these financial
statements include information for the two month period
from July 1, 1996 to August 31, 1996. The Fund's
investment objective is to seek high total return (which
includes current income and capital appreciation in the
value of its shares) from equity and debt securities. The
Fund's investment adviser is Oppen heimerFunds, Inc. (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 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 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 are
valued 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 foreign currency exchange 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 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 Statement of
Operations.
18 Oppenheimer Main Street Income & Growth Fund
<PAGE>
================================================================================
1. Significant Repurchase Agreements. The Fund requires the custodian
Accounting to take possession, to have legally segregated in the
Policies Federal Reserve Book Entry System or to have segregated
(continued) within the custodian's vault, all securities held as
collateral for repurchase agreements. The market value of
the underlying securities is required to be at least 102%
of the resale price at the time of purchase. If the
seller of the agreement defaults and the value of the
collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
---------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses.
Income, expenses (other than those attributable to a
specific class) and gains and losses are allocated daily
to each class of shares based upon the relative
proportion of net assets represented by such class.
Operating expenses directly attributable to a specific
class are charged against the operations of that class.
---------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply
with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute all
of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or excise tax
provision is required.
---------------------------------------------------------
Distributions to Shareholders. Dividends and
distributions to shareholders are recorded on the
ex-dividend date.
---------------------------------------------------------
Classification of Distributions to Shareholders. Net
investment income (loss) and net realized gain (loss) may
differ for financial statement and tax purposes. The
character of the distributions made during the year from
net investment income or net realized gains may differ
from the 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. In addition, to properly
reflect foreign currency gain in the components of
capital, $3,987,878 of foreign exchange gain determined
according to U.S. federal income tax rules has been
reclassified from net realized gain to undistributed net
investment income.
---------------------------------------------------------
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.
The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts
of income and expenses during the reporting period.
Actual results could differ from those estimates.
19 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Notes to Financial Statements (Continued)
================================================================================
2. Capital Stock The Fund has authorized 350 million shares of $.01 par
value capital stock (200 million for Class A, 100 million
for Class B, and 50 million for Class C). Transactions in
shares of capital stock were as follows:
<TABLE>
<CAPTION>
Two Months Ended Aug. 31, 1996(2) Year Ended June 30, 1996 Year Ended June 30, 1995(1)
-------------------------------- ------------------------ ---------------------------
Shares Amount Shares Amount Shares Amount
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Sold 7,371,957 $ 205,620,158 45,286,889 $1,228,619,819 55,373,867 $1,208,049,807
Dividends and distributions reinvested -- -- 1,659,231 45,287,552 1,265,292 27,814,867
Redeemed (3,858,492) (106,973,153) (17,949,894) (483,635,186) (12,955,862) (288,650,558)
------------- ------------- ------------- ------------- ------------- -------------
Net increase 3,513,465 $ 98,647,005 28,996,226 $ 790,272,185 43,683,297 $ 947,214,116
============= ============ ============= ============ ============= ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 7,450,147 $ 206,982,201 40,869,800 $1,108,078,820 27,077,516 $ 600,973,013
Dividends and distributions reinvested -- -- 503,255 13,692,209 136,393 3,097,456
Redeemed (1,363,728) (37,580,296) (4,980,225) (135,146,200) (1,024,808) (23,404,708)
------------- ------------- ------------- ------------- ------------- -------------
Net increase 6,086,419 $ 169,401,905 36,392,830 $ 986,624,829 26,189,101 $ 580,665,761
============= ============ ============= ============ ============= ============
- ------------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 1,781,668 $ 49,599,528 10,384,545 $ 281,240,862 13,345,163 $ 288,841,445
Dividends and distributions reinvested -- -- 238,379 6,449,836 208,621 4,536,885
Redeemed (783,587) (21,626,484) (4,094,549) (109,186,502) (2,671,307) (59,730,279)
------------- ------------- ------------- ------------- ------------- -------------
Net increase 998,081 $ 27,973,044 6,528,375 $ 178,504,196 10,882,477 $ 233,648,051
============= ============ ============= ============ ============= ============
</TABLE>
1. 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.
2. The Fund changed its fiscal year end from June 30 to
August 31.
========================================================
3. Unrealized Gains At August 31, 1996, net unrealized appreciation on
and Losses investments and options written of $412,454,816 was
on Investments composed of gross appreciation of $524,281,123, and
gross depreciation of $111,826,307.
================================================================================
4. Management Fees Management fees paid to the Manager were in accordance
And Other Transactions with the investment advisory agreement with the Fund
With Affiliates which provides for a fee of 0.65% of the first $200
million of net assets of the Fund, 0.60% of the next
$150 million, 0.55% of the next $150 million and 0.45%
of 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
applicable regulatory limit on Fund expenses.
For the period ended August 31, 1996, commissions
(sales charges paid by investors) on sales of Class A
shares totaled $5,372,166, of which $1,443,507 was
retained by OppenheimerFunds Distributor, Inc. (OFDI),
a subsidiary of the Manager as general distributor,
and by an affiliated broker/dealer. Sales charges
advanced to broker/dealers by OFDI on sales of the
Fund's Class B and Class C shares totaled $7,698,420
and $468,253, respectively, of which $226,169 and
$11,023 was paid to an affiliated broker/dealer.
During the two months ended August 31, 1996, OFDI
received contingent deferred sales charges of $594,878
and $39,798 upon redemption of Class B and Class C
shares.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent
for the Fund, and for other registered investment
companies. OFS's total costs of providing such services
are allocated ratably to these companies.
20 Oppenheimer Main Street Income & Growth Fund
<PAGE>
================================================================================
4. Management Fees The Fund has adopted a Service Plan for Class A shares
And Other to reimburse OFDI for a portion of its costs incurred
Transactions With in connection with the personal service and
Affiliates maintenance of accounts that hold Class A shares.
(continued) Reimbursement is made quarterly at an annual rate that
may not exceed 0.25% of the average annual net assets
of Class A shares of the Fund. OFDI uses the service
fee to reimburse brokers, dealers, banks and other
financial institutions quarterly for providing
personal service and maintenance of accounts of their
customers that hold Class A shares. During the two
months ended August 31, 1996, OFDI paid $52,056 to an
affiliated broker/dealer as reimbursement for Class A
personal service and maintenance expenses.
The Fund has adopted reimbursement type Distribution
and Service Plans for Class B and Class C shares to
reimburse OFDI for its services and costs in
distributing Class B and Class C shares and servicing
accounts. Under the Plans, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on
Class B shares that are outstanding for 6 years or
less and on Class C shares, as reimbursement for sales
commissions paid from its own resources at the time of
sale and associated financing costs. If the Plans are
terminated by the Fund, the Board of Directors may
allow the Fund to continue payments of the asset-based
sales charge to OFDI for certain expenses it incurred
before the Plans were terminated. OFDI also receives a
service fee of 0.25% per year as reimbursement for
costs incurred in connection with the personal service
and maintenance of accounts that hold shares of the
Fund, including amounts paid to brokers, dealers,
banks and other financial institutions. Both fees are
computed on the average annual net assets of Class B
and Class C shares, determined as of the close of each
regular business day. During the two months ended
August 31, 1996, OFDI paid $4,866 and $17,862,
respectively, to an affiliated broker/dealer as
reimbursement for Class B and Class C personal service
and maintenance expenses and retained $2,701,596 and
$457,848, respectively, as reimbursement for Class B
and Class C sales commissions and service fee
advances, as well as financing costs. At August 31,
1996, OFDI had incurred unreimbursed expenses of
$76,673,677 for Class B and $7,711,148 for Class C.
================================================================================
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.
Securities held in segregated accounts to cover net
exposure on outstanding forward contracts are noted in
the Statement of Investments where applicable.
Unrealized appreciation or depreciation on forward
contracts is 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 August 31, 1996, the Fund had outstanding forward
contracts to sell foreign currencies as follows:
<PAGE>
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized
Contracts to Sell Exchange Date Amount (000s) August 31, 1996 Depreciation
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
Swedish Krona (SEK) 9/2/96 4,673 SEK $705,529 $1,562
</TABLE>
21 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Notes to Financial Statements (Continued)
================================================================================
6. Futures The Fund may buy and sell interest rate futures
Contracts contracts in order to gain exposure to or protect
against changes in interest rates. The Fund may also
buy or write put or call options on these futures
contracts.
The Fund generally sells futures contracts to hedge
against increases in interest rates and the resulting
negative effect on the value of fixed rate portfolio
securities. The Fund may also purchase futures
contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective
than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an
amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation
margin) are made or received by the Fund each day. The
variation margin payments are equal to the daily
changes in the contract value and are recorded as
unrealized gains and losses. The Fund recognizes a
realized gain or loss when the contract is closed or
expires.
Securities held in collateralized accounts to cover
initial margin requirements on open futures contracts
are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a
receivable or payable for the daily mark to market for
variation margin.
Risks of entering into futures contracts (and
related options) include the possibility that there
may be an illiquid market and that a change in the
value of the contract or option may not correlate with
changes in the value of the underlying securities.
At August 31, 1996, the Fund had outstanding
futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Contracts to Buy Date Contracts August 31, 1996 Depreciation
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 9/20/96 305 $99,330,875 $762,500
</TABLE>
================================================================================
7. Illiquid and At August 31, 1996, investments in securities
Restricted included issues that are illiquid or restricted. The
Securities securities are often purchased in private placement
transactions, are not registered under the Securities
Act of 1933, may have contractual restrictions on
resale, and are valued under methods approved by the
Board of Directors as reflecting fair value. A
security may also be considered illiquid if its
valuation has not changed for a certain period of
time. The Fund intends to invest no more than 10% of
its net assets (determined at the time of purchase and
reviewed from time to time) in illiquid or restricted
securities. The aggregate value of these securities
subject to this limitation at August 31, 1996 was
$100,000, which represents less than 0.01% of the
Fund's net assets. Information concerning these
securities is as follows:
<TABLE>
<CAPTION>
Valuation Per Unit
Security Acquisition Date Cost Per Unit As of August 31, 1996
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Physicians Clinical Laboratory, Inc., 1/12/94-10/25/95 $1.06 $0.10
7.50% Cv. Sub. Debs., 8/15/00
</TABLE>
22 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 &
Growth Fund as of August 31, 1996, the related
statements of operations for the two months then ended
and the year ended June 30, 1996, the statements of
changes in net assets for the two months ended August
31, 1996 and the years ended June 30, 1996 and 1995,
and the financial highlights for the period July 1,
1991 to August 31, 1996. 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 August 31, 1996 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 & Growth Fund at August 31, 1996, 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
September 23, 1996
23 Oppenheimer Main Street Income & Growth Fund
<PAGE>
Federal Income Tax Information (Unaudited)
================================================================================
In early 1997, shareholders will receive information
regarding all dividends and distributions paid to them
by the Fund during calendar year 1996. Regulations of
the U.S. Treasury Department require the Fund to report
this information to the Internal Revenue Service.
Dividends paid by the Fund during the period ended
August 31, 1996 which are not designated as capital
gain distributions should be multiplied by 27.15% 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 adviser for
specific guidance.
24 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
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
George C. Bowen, Vice President, Treasurer
and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Robert Doll, Vice President
Robert J. Milnamow, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Adviser OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder
Servicing Agent OppenheimerFunds Services
================================================================================
Custodian of
Portfolio Securities The Bank of New York
================================================================================
Independent 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.
25 Oppenheimer Main Street Income & Growth Fund
<PAGE>
OppenheimerFunds Family
<TABLE>
<CAPTION>
==============================================================================================================
<S> <C> <C>
OppenheimerFunds offers over 50 funds designed to
fit virtually every investment goal. Whether you're
investing for retirement, your children's education or
tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a
respected financial institution with over 35 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed-income
investments--with over 3 million shareholder accounts
and more than $50 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to
exchange shares. And you can exchange shares easily by
mail or by telephone.1 For more information on
Oppenheimer funds, please contact your financial
adviser or call us at 1-800-525-7048 for a prospectus.
You may also write us at the address shown on the back
cover. As always, please read the prospectus carefully
before you invest.
==============================================================================================================
Stock Funds Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
==============================================================================================================
Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
==============================================================================================================
Bond Funds International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
==============================================================================================================
Municipal Funds California Municipal Fund(3) Insured Municipal Fund
Florida Municipal Fund(3) Intermediate Municipal Fund
New Jersey Municipal Fund(3)
New York Municipal Fund3 Rochester Division
Pennsylvania Municipal Fund(3) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
===============================================================================================================
Money Market Funds(4) Money Market Fund Cash Reserves
===============================================================================================================
LifeSpan Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
26 Oppenheimer Main Street Income & Growth Fund
<PAGE>
[BACK COVER]
Information
General Information
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PhoneLink
24 hours a day, automated
information and transactions
1-800-533-3310
Telecommunications Device
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RA0700.001.0896 October 31, 1996
[Picture of Man]
[Caption] Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
[LOGO] OppenheimerFunds(R)
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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