<PAGE> 1
[PHOTO]
OPPENHEIMER MAIN STREET INCOME & GROWTH FUND(R)
Semiannual Report February 28, 1997
"We want
high
long-term
growth
and current
income, too."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO ARE LOOKING FOR HIGH TOTAL RETURN, FROM BOTH THE
POTENTIAL FOR CAPITAL APPRECIATION AND CURRENT INCOME.
NEWS
OUTSTANDING TOTAL RETURN
Cumulative Total Return for the
5-Year Period Ended 3/31/97:
Oppenheimer Main Street
Income & Growth Fund
Class A (at net asset value)(1)
150.70%
Lipper Growth & Income Average
for 212 Growth & Income Funds
for the 5-Year Period Ended
3/31/97(3)
94.33%
THE FUND'S CLASS A SHARES
ARE RANKED **** AMONG
1,919 (3-YEAR) AND 1,076
(5-YEAR) DOMESTIC EQUITY
FUNDS FOR THE COMBINED
3- AND 5-YEAR PERIODS ENDED
3/31/97 BY MORNINGSTAR
MUTUAL FUNDS.(4)
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 can help to reduce risk through diversification and enable
the Fund to take advantage of a wide variety of market conditions.
PERFORMANCE
Cumulative total returns for the six months ended 2/28/97 was 16.58% for Class
A shares, 16.14% for Class B shares, 16.14% for Class C shares and 10.07% for
Class Y shares, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-
and 5-year periods ended 3/31/97 and since inception on 2/3/88 were 4.85%,
18.76% and 20.07%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 3/31/97 and since inception on 10/1/94 were
5.39% and 16.09%. For Class C shares, average annual total returns for the
1-year period ended 3/31/97 and since inception on 12/1/93 were 9.41% and
13.94%. For Class Y shares, cumulative total return since inception on 11/1/96
was 6.05%.(2)
OUTLOOK
"The Fund's long-term record shows that over time, mid-capitalization stocks
have tended to outperform large-capitalization stocks. We stand by the Fund's
investment fundamentals and expect competitive returns in the future."
Bob Milnamow, Portfolio Manager
February 28, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. For more complete
information, please review the prospectus carefully before you invest.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class B returns include the applicable contingent deferred sales charge of 5%
(1-year) and 3% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
performance calculations is in the Fund's prospectus. Class B and Class C
shares are subject to an annual 0.75% asset-based sales charge.
3. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Main Street Income &
Growth Fund is characterized by Lipper as a growth and income fund. Lipper
performance is based on total return and does not take sales charges into
account.
4. Source: Morningstar Mutual Funds, 3/31/97. Morningstar, Inc., ranks mutual
funds in broad investment classes, based on risk-adjusted investment returns
after considering sales charges and expenses. Risk and returns are measured as
performance above and below 90-day U.S. Treasury bill returns, respectively.
Current star rankings are based on the weighted average of 3-, 5- and 10-year
(if applicable) rankings for a fund or class and are subject to change monthly.
Top 10%: 5 stars. Next 22.5%: 4 stars. Middle 35%: 3 stars. Next 22.5%: 2
stars. Bottom 10%: 1 star. The Fund is ranked 3 stars (3-year) and 5 stars
(5-year), weighted 40% and 60%, respectively, and 2 stars (1-year) among 3,048
funds.
2 Oppenheimer Main Street Income & Growth Fund
<PAGE> 3
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Main Street Income &
Growth Fund
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Main Street Income &
Growth Fund
DEAR SHAREHOLDER,
As we advised you at year end, we don't expect 1997's stock market to report
the record-breaking returns we saw last year. However, we do believe it may be
a period in which investors can take advantage of some great buying
opportunities created by lower stock valuations. Our optimism can be traced to
solid economic fundamentals that should remain stable throughout the calendar
year and the robust investing habits of aging baby boomers.
First, the economy has been expanding slowly, but steadily. Interest
rates have remained relatively low despite the Federal Reserve's recent
increase in short-term rates. In turn, low interest rates translate into
reduced borrowing rates for companies and individuals. Companies have taken
advantage of the savings by using it to improve their technologies, thereby
increasing their productivity and efficiency. By downsizing and implementing
other cost-cutting strategies, companies in the United States should now be
better equipped to compete globally.
In addition, inflation has been at its lowest level in three decades.
While it's true that an increase in interest rates often indicates an
accelerating economy, the Federal Reserve has been quick to acknowledge that
inflation and growth are under control. In fact, they've labeled the recent
move as a "preemptive" act to keep inflation at these low levels and extend the
economy's healthy growth cycle.
Second, monthly cash flows into mutual funds have been higher, largely
due to the savings pattern of the baby boomers. The first wave of this
generation--those just turning 50--are beginning to direct more money toward
their retirement. Concerned about proposed cutbacks in Social Security
benefits, more and more individuals believe they will have to fund a large
portion of their retirement themselves. And, as they gradually pay off their
children's college expenses and reduce their mortgages, they are positioned to
save more aggressively.
For these reasons we remain confident about the opportunities
available in the stock market this year. Of course, selectivity will be the key
to allocating an effective portfolio. Therefore, it will be important to base
choices on the individual merits of a company, such as strong management,
fundamental business policies and long-term prospects for the future. And for
investors, as always, maintaining a long-term time horizon is essential.
Because, while short-term swings will certainly occur and past performance is
no guarantee of future results, the market's long-term trend has been to move
higher and higher.
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
March 21, 1997
3 Oppenheimer Main Street Income & Growth Fund
<PAGE> 4
Q + A
[PHOTO]
Q WHAT
INVESTMENTS
WERE A
BENEFIT TO
PERFORMANCE?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW DID THE FUND PERFORM?
Oppenheimer Main Street Income & Growth Fund's Class A shares turned in a solid
performance with a return of 16.58% for the six-month period ended February 28,
1997, without deducting sales charges.(1) During this period, large-company,
large-capitalization stocks posted significantly higher returns than smaller
companies with lower market value. Many of our peers invest almost exclusively
in these giant companies, and that narrow focus on large companies helped them
to outperform the Fund during the period. Oppenheimer Main Street Income &
Growth Fund has always invested in companies of all sizes in the belief that
investments in small and mid-capitalization stocks should enhance the returns
of a portfolio over the long term.
The Fund also allocated more assets to the fixed income market than
some of its peers in order to generate income, whereas other growth and income
funds tend to generate income primarily through common stock dividends. Over
the last six months, the performance of fixed income investments has
significantly lagged the performance of stocks. We expect that over time our
greater exposure to small and middle size companies should produce superior
returns.
WHAT INVESTMENTS BENEFITED PERFORMANCE?
The Fund's pharmaceutical holdings realized strong returns because of an
abundance of new products introduced on the market. The influx of new products
primarily reflects a combination of research and development efforts begun by
drug companies in the 1980s, matched with more rapid FDA approvals. Also, many
of our bank and brokerage-
[PHOTO]
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
4 Oppenheimer Main Street Income & Growth Fund
<PAGE> 5
[PHOTO]
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 THE FUND'S
PHARMACEUTICAL
HOLDINGS
REALIZED STRONG
RETURNS.
company holdings performed well due to a strong equity environment and internal
cost-cutting. A record number of investors flocked to the markets and, as a
result, many companies within the financial services sector flourished.
Technology, another strong performer this period, is a key factor in
today's leaner and more efficient corporate environment. Recent innovations
have helped increase productivity, as well as boost profits and lower operating
costs. The Fund benefited from our holdings in a leading semiconductor company
that recently launched a myriad of new products for the personal computer
industry.
In addition, our holdings in a leading agricultural biotechnology
firm were advantageous to the Fund. This company manufactures herbicides that
control weeds and, at the same time, allows newly planted seeds to grow in
spite of the herbicide, which helps farmers obtain more yield out of their
crops.(2)
DID ANY INVESTMENTS NOT PERFORM AS EXPECTED?
Some of our investments in health maintenance organizations (HMOs) were
disappointing because premium prices were less than expected and medical costs
were higher after a period of subdued medical inflation. Increased competition
in the gaming industry also caused earning problems for some of our
hotel/gaming companies which led to lower-than-expected performance.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
Since we expect slower overall growth in 1997, we are taking a more defensive
position by marginally reducing the Fund's exposure to high-growth equities and
seeking income from mature stock companies with higher dividend yields. We are
also looking at defensive sectors, like pharmaceuticals and the food industry,
that traditionally provide solid returns in slower-growth periods.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Although we expect slower growth in the coming period, we remain optimistic
about the Fund's investment strategy. The Fund's long-term record shows that
over time, mid-capitalization stocks have tended to outperform
large-capitalization stocks. We stand by the Fund's investment fundamentals and
expect competitive returns in the future.
[PHOTO]
2. The Fund's portfolio is subject to change.
5 Oppenheimer Main Street Income & Growth Fund
<PAGE> 6
STATEMENT OF INVESTMENTS February 28, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--9.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Beneficial Corp., 5.31%, 3/3/97 $ 25,000,000 $ 24,992,625
--------------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.25%, 4/1/97 50,000,000 49,773,958
--------------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.31%, 3/11/97 50,000,000 49,926,250
--------------------------------------------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc., 5.32%, 3/5/97 50,000,000 49,970,444
--------------------------------------------------------------------------------------------------------------------------
Countrywide Home Loans, 5.34%, 3/3/97 50,000,000 49,985,167
--------------------------------------------------------------------------------------------------------------------------
General Electric Capital Services, Inc., 5.25%, 3/21/97 50,000,000 49,854,167
--------------------------------------------------------------------------------------------------------------------------
General Electric Capital Services, Inc., 5.27%, 4/2/97 50,000,000 49,765,778
--------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, L.P., 5.28%, 3/18/97 50,000,000 49,875,333
--------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, L.P., 5.30%, 3/4/97 50,000,000 49,977,917
--------------------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.31%, 3/4/97 50,000,000 49,977,875
--------------------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.32%, 3/10/97 50,000,000 49,933,500
--------------------------------------------------------------------------------------------------------------------------
PHH Corp., 5.30%, 3/12/97 35,000,000 34,943,319
--------------------------------------------------------------------------------------------------------------------------
PHH Corp., 5.32%, 4/3/97 50,000,000 49,756,167
--------------------------------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp., 5.27%, 3/25/97 28,325,000 28,225,485
--------------------------------------------------------------------------------------------------------------------------
Prudential Funding Corp., 5.30%, 3/12/97 50,000,000 49,919,028
-------------
Total Short-Term Notes (Cost $686,877,013) 686,877,013
=================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--3.3%
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.50%, 11/15/26 149,950,000 143,342,737
--------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 5%, 1/31/98 50,000,000 49,656,250
--------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 5.50%, 11/15/98 50,000,000 49,593,750
-------------
Total U.S. Government Obligations (Cost $244,444,307) 242,592,737
=================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.2%
- ---------------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc.,
Zero Coupon Sr. Sec. Disc. Nts., Series B, 12.452%, 11/15/99(1) 12,000,000 8,940,000
--------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc.,
Zero Coupon Sr. Sec. Disc. Nts., 14%, 11/15/99(1) 3,000,000 2,235,000
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $10,482,516) 11,175,000
=================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.8%
- ---------------------------------------------------------------------------------------------------------------------------------
ALZA Corp., 5% Cv. Sub. Debs., 5/1/06 12,800,000 12,736,000
--------------------------------------------------------------------------------------------------------------------------
Continental Airlines, Inc., 6.75% Cv. Sub. Nts., 4/15/06(2) 15,000,000 17,118,750
--------------------------------------------------------------------------------------------------------------------------
Corporate Express, Inc., 4.50% Cv. Sub. Nts., 7/1/00(2) 10,000,000 9,150,000
--------------------------------------------------------------------------------------------------------------------------
Saks Holdings, Inc., 5.50% Cv. Sub. Nts., 9/15/06 4,800,000 4,896,000
--------------------------------------------------------------------------------------------------------------------------
Tele-Communications International, Inc., 4.50% Cv. Sub. Debs., 2/15/06 5,400,000 4,178,250
--------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., Zero Coupon Cv. Sr. Sub. Nts., 5.083%, 6/22/13(1) 20,000,000 8,675,000
-------------
Total Convertible Corporate Bonds and Notes (Cost $56,824,207) 56,754,000
</TABLE>
6 Oppenheimer Main Street Income & Growth Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
COMMON STOCKS--81.0%
- ---------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.9%
- ---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--2.9%
Du Pont (E.I.) De Nemours & Co. 300,000 $ 32,175,000
--------------------------------------------------------------------------------------------------------------------------
IMC Global, Inc. 1,028,400 35,865,450
--------------------------------------------------------------------------------------------------------------------------
Monsanto Co. 2,604,000 94,720,500
--------------------------------------------------------------------------------------------------------------------------
Olin Corp. 634,800 25,392,000
--------------------------------------------------------------------------------------------------------------------------
Sigma-Aldrich Corp. 660,000 20,212,500
-------------
208,365,450
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.3%
- ---------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.5%
Oakwood Homes Corp. 445,200 8,792,700
--------------------------------------------------------------------------------------------------------------------------
Stanley Works (The) 809,600 30,967,200
-------------
39,759,900
- ---------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--6.4%
Brinker International, Inc.(3) 400,000 4,750,000
--------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 955,000 70,908,750
--------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 800,000 71,700,000
--------------------------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A 1,553,035 31,448,959
--------------------------------------------------------------------------------------------------------------------------
Harrah's Entertainment, Inc.(3) 1,000,000 18,500,000
--------------------------------------------------------------------------------------------------------------------------
ITT Corp. (New)(3) 1,000,000 56,500,000
--------------------------------------------------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon(3) 600,000 15,900,000
--------------------------------------------------------------------------------------------------------------------------
McDonald's Corp. 3,842,300 166,179,475
--------------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(3) 465,000 11,101,875
--------------------------------------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(3) 710,000 25,027,500
-------------
472,016,559
- ---------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.4%
Cox Communications, Inc., Cl. A(3) 1,160,000 23,345,000
--------------------------------------------------------------------------------------------------------------------------
Evergreen Media Corp., Cl. A(3) 600,000 18,000,000
--------------------------------------------------------------------------------------------------------------------------
Omnicom Group, Inc. 1,227,900 60,934,537
--------------------------------------------------------------------------------------------------------------------------
Scholastic Corp.(3) 325,000 10,725,000
--------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 1,524,900 62,520,900
-------------
175,525,437
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.4%
Federated Department Stores, Inc.(3) 1,100,000 38,225,000
--------------------------------------------------------------------------------------------------------------------------
Kohl's Corp.(3) 263,000 12,098,000
--------------------------------------------------------------------------------------------------------------------------
May Department Stores Cos. 1,029,400 47,995,775
--------------------------------------------------------------------------------------------------------------------------
Nordstrom, Inc. 100,000 3,675,000
-------------
101,993,775
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.6%
Circuit City Stores-Circuit City Group 1,042,000 32,562,500
--------------------------------------------------------------------------------------------------------------------------
Gap, Inc. (The) 2,250,000 74,250,000
--------------------------------------------------------------------------------------------------------------------------
Ikon Office Solutions, Inc. 400,000 16,500,000
--------------------------------------------------------------------------------------------------------------------------
Nine West Group, Inc.(3) 741,000 34,827,000
--------------------------------------------------------------------------------------------------------------------------
Talbots, Inc. (The) 487,200 15,651,300
--------------------------------------------------------------------------------------------------------------------------
Tiffany & Co. 509,100 17,691,225
-------------
191,482,025
</TABLE>
7 Oppenheimer Main Street Income & Growth Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER NON-CYCLICALS--23.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.6%
Anheuser-Busch Cos., Inc. 1,125,000 $ 50,062,500
--------------------------------------------------------------------------------------------------------------------------
Coca-Cola Co. (The) 300,000 18,300,000
--------------------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 1,575,000 51,778,125
-------------
120,140,625
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD--5.1%
Campbell Soup Co. 600,000 54,075,000
--------------------------------------------------------------------------------------------------------------------------
CPC International, Inc. 427,100 35,929,787
--------------------------------------------------------------------------------------------------------------------------
General Mills, Inc. 413,600 26,987,400
--------------------------------------------------------------------------------------------------------------------------
H.J. Heinz Co. 1,155,000 48,076,875
--------------------------------------------------------------------------------------------------------------------------
Nabisco Holdings Corp., Cl. A 928,000 38,164,000
--------------------------------------------------------------------------------------------------------------------------
Quaker Oats Co. 559,300 20,064,887
--------------------------------------------------------------------------------------------------------------------------
Ralston-Ralston Purina Group 500,200 41,078,925
--------------------------------------------------------------------------------------------------------------------------
Sysco Corp. 744,600 25,874,850
--------------------------------------------------------------------------------------------------------------------------
Unilever NV, NY Shares 450,000 85,725,000
-------------
375,976,724
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--9.0%
American Home Products Corp. 1,100,000 70,400,000
--------------------------------------------------------------------------------------------------------------------------
Amgen, Inc.(3) 1,280,000 78,240,000
--------------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 700,000 91,350,000
--------------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 2,200,000 126,775,000
--------------------------------------------------------------------------------------------------------------------------
Lilly (Eli) & Co. 466,000 40,716,750
--------------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 1,105,000 101,660,000
--------------------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 972,400 74,510,150
--------------------------------------------------------------------------------------------------------------------------
Warner-Lambert Co. 900,000 75,600,000
-------------
659,251,900
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--2.6%
Becton, Dickinson & Co. 619,200 30,495,600
--------------------------------------------------------------------------------------------------------------------------
Boston Scientific Corp.(3) 603,050 39,952,062
--------------------------------------------------------------------------------------------------------------------------
Cardinal Health, Inc. 270,000 16,605,000
--------------------------------------------------------------------------------------------------------------------------
Guidant Corp. 200,000 13,400,000
--------------------------------------------------------------------------------------------------------------------------
Health Management Association, Inc., Cl. A(3) 358,800 9,508,200
--------------------------------------------------------------------------------------------------------------------------
HealthCare COMPARE Corp.(3) 200,000 8,537,500
--------------------------------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp.(3) 1,050,000 42,262,500
--------------------------------------------------------------------------------------------------------------------------
MedPartners, Inc.(3) 505,000 11,110,000
--------------------------------------------------------------------------------------------------------------------------
St. Jude Medical, Inc.(3) 500,000 19,750,000
-------------
191,620,862
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--3.1%
Avon Products, Inc. 763,400 44,468,050
--------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Co. 431,900 44,701,650
--------------------------------------------------------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 747,000 34,642,125
--------------------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 600,000 63,600,000
--------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 350,000 42,043,750
-------------
229,455,575
</TABLE>
8 Oppenheimer Main Street Income & Growth Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOBACCO--2.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 1,225,000 $165,528,125
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY--5.4%
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--1.2%
Apache Corp. 750,000 24,281,250
--------------------------------------------------------------------------------------------------------------------------
Schlumberger Ltd. 410,000 41,256,250
--------------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc.(3) 394,200 23,996,925
------------
89,534,425
- ---------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--4.2%
Ashland, Inc. 193,600 8,107,000
--------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 525,000 65,625,000
--------------------------------------------------------------------------------------------------------------------------
Chevron Corp. 220,000 14,190,000
--------------------------------------------------------------------------------------------------------------------------
Exxon Corp. 800,000 79,900,000
--------------------------------------------------------------------------------------------------------------------------
Mobil Corp. 220,000 27,005,000
--------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 185,000 32,005,000
--------------------------------------------------------------------------------------------------------------------------
Texaco, Inc. 525,000 51,909,375
--------------------------------------------------------------------------------------------------------------------------
Unocal Corp. 825,000 31,865,625
------------
310,607,000
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--14.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS--5.9%
BankAmerica Corp. 500,000 56,875,000
--------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 900,000 90,112,500
--------------------------------------------------------------------------------------------------------------------------
Commercial Federal Corp. 562,500 20,179,687
--------------------------------------------------------------------------------------------------------------------------
First America Bank Corp. 273,300 17,115,412
--------------------------------------------------------------------------------------------------------------------------
First Bank System, Inc. 200,700 15,754,950
--------------------------------------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 200,000 21,025,000
--------------------------------------------------------------------------------------------------------------------------
KeyCorp 600,000 32,100,000
--------------------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 215,000 9,137,500
--------------------------------------------------------------------------------------------------------------------------
Societe Generale 500,000 57,922,458
--------------------------------------------------------------------------------------------------------------------------
Summit Bancorp 645,000 30,798,750
--------------------------------------------------------------------------------------------------------------------------
Union Planters Corp. 300,000 13,425,000
--------------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 233,333 70,991,565
------------
435,437,822
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--7.6%
American Express Co. 2,208,400 144,374,150
--------------------------------------------------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 1,127,200 54,387,400
--------------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 1,796,200 68,929,175
--------------------------------------------------------------------------------------------------------------------------
Fannie Mae 1,106,000 44,240,000
--------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 400,000 11,900,000
--------------------------------------------------------------------------------------------------------------------------
MBNA Corp. 1,170,000 37,440,000
--------------------------------------------------------------------------------------------------------------------------
Student Loan Marketing Assn. 400,000 42,350,000
--------------------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 2,902,934 155,669,836
------------
559,290,561
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.2%
Allstate Corp. 930,500 58,970,437
--------------------------------------------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 900,000 28,350,000
--------------------------------------------------------------------------------------------------------------------------
Western National Corp. 115,000 2,645,000
------------
89,965,437
</TABLE>
9 Oppenheimer Main Street Income & Growth Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--6.6%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--3.4%
AMP, Inc. 400,000 $ 15,550,000
--------------------------------------------------------------------------------------------------------------------------
Emerson Electric Co. 350,000 34,650,000
--------------------------------------------------------------------------------------------------------------------------
General Electric Co. 400,000 41,150,000
--------------------------------------------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 495,000 39,228,750
--------------------------------------------------------------------------------------------------------------------------
Honeywell, Inc. 900,000 64,012,500
--------------------------------------------------------------------------------------------------------------------------
Hubbell, Inc., Cl. B 441,700 18,717,038
--------------------------------------------------------------------------------------------------------------------------
Raychem Corp.(3) 433,100 36,867,638
-------------
250,175,926
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.3%
Avery-Dennison Corp. 1,229,000 49,620,875
--------------------------------------------------------------------------------------------------------------------------
Bemis Co., Inc. 415,600 17,195,450
--------------------------------------------------------------------------------------------------------------------------
Crown Cork & Seal Co., Inc. 572,000 31,746,000
-------------
98,562,325
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.4%
Cognizant Corp. 900,000 31,387,500
--------------------------------------------------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 1,017,900 51,022,238
--------------------------------------------------------------------------------------------------------------------------
Millipore Corp. 550,000 23,718,750
-------------
106,128,488
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.5%
American Standard Cos., Inc.(3) 370,000 16,650,000
--------------------------------------------------------------------------------------------------------------------------
Sealed Air Corp.(3) 390,900 16,075,763
-------------
32,725,763
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--12.7%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.4%
Boeing Co. 300,000 30,525,000
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--4.1%
Adaptec, Inc.(3) 1,240,000 47,197,500
--------------------------------------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(3) 500,000 15,000,000
--------------------------------------------------------------------------------------------------------------------------
Cascade Communications Corp.(3) 225,000 6,946,875
--------------------------------------------------------------------------------------------------------------------------
Ingram Micro, Inc., Cl. A(3) 382,800 8,708,700
--------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 505,000 72,593,750
--------------------------------------------------------------------------------------------------------------------------
Seagate Technology(3) 1,424,600 67,312,350
--------------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc.(3) 1,800,000 55,575,000
--------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 400,000 25,000,000
-------------
298,334,175
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--2.9%
BMC Software, Inc.(3) 710,000 30,396,875
--------------------------------------------------------------------------------------------------------------------------
First Data Corp. 1,853,600 67,888,100
--------------------------------------------------------------------------------------------------------------------------
HBO & Co. 500,000 28,812,500
--------------------------------------------------------------------------------------------------------------------------
Microsoft Corp.(3) 630,000 61,425,000
--------------------------------------------------------------------------------------------------------------------------
Sungard Data Systems, Inc.(3) 434,000 22,025,500
-------------
210,547,975
</TABLE>
10 Oppenheimer Main Street Income & Growth Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
ELECTRONICS--2.5%
Hewlett-Packard Co. 500,000 $ 28,000,000
--------------------------------------------------------------------------------------------------------------------------
Intel Corp. 700,000 99,312,500
--------------------------------------------------------------------------------------------------------------------------
Solectron Corp.(3) 500,000 26,437,500
--------------------------------------------------------------------------------------------------------------------------
Thermo Electron Corp.(3) 737,500 25,167,188
--------------------------------------------------------------------------------------------------------------------------
Waters Corp.(3) 219,100 6,600,388
-------------
185,517,576
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--2.8%
ADC Telecommunications, Inc.(3) 400,000 10,800,000
--------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(3) 1,025,000 57,015,625
--------------------------------------------------------------------------------------------------------------------------
LCI International, Inc.(3) 731,394 13,896,486
--------------------------------------------------------------------------------------------------------------------------
Millicom, Inc.(3) 75,000 --
--------------------------------------------------------------------------------------------------------------------------
QUALCOMM, Inc.(3) 450,000 25,059,375
--------------------------------------------------------------------------------------------------------------------------
Tellabs, Inc.(3) 580,000 23,127,500
--------------------------------------------------------------------------------------------------------------------------
WorldCom, Inc. 2,926,048 77,906,028
-------------
207,805,014
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.7%
- ---------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.8%
Consolidated Natural Gas Co. 301,600 15,381,600
--------------------------------------------------------------------------------------------------------------------------
Sonat, Inc. 950,000 43,700,000
-------------
59,081,600
- ---------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.9%
GTE Corp. 1,000,000 46,750,000
--------------------------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc., Cl. A(3) 645,000 19,350,000
-------------
66,100,000
-------------
Total Common Stocks (Cost $4,766,383,878) 5,961,456,044
=================================================================================================================================
PREFERRED STOCKS--0.4%
- ---------------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv., Series I 439,000 10,042,125
--------------------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Depositary Shares
each representing 0.05 Shares of Step-Up Cv. Preferred Stock 534,400 15,698,000
-------------
Total Preferred Stocks (Cost $23,003,303) 25,740,125
=================================================================================================================================
OTHER SECURITIES--0.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co., 9% Exchangeable Nts. for
Common Stock of Lyondell Petrochemical Co., 9/15/97 365,000 8,349,375
--------------------------------------------------------------------------------------------------------------------------
Cia de Inversiones en Telecomunicaciones SA,
7% Provisionally Redeemable Income Debt Exchangeable for Stock, 3/3/98(2) 225,000 13,696,875
</TABLE>
11 Oppenheimer Main Street Income & Growth Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
OTHER SECURITIES
(CONTINUED)
Continental Airlines Finance Trust,
8.50% Cv. Trust Originated Preferred Securities(2) 125,000 $ 8,250,000
--------------------------------------------------------------------------------------------------------------------------
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 15,312,500
--------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 6% Cv. Structured Yield Product
Exchangeable for Common Stock of Cox Communications, Inc., 6/1/99 235,000 4,817,500
--------------------------------------------------------------------------------------------------------------------------
Westinghouse Electric Corp., $1.30 Cv.
Participating Equity Preferred Stock, Series C(2) 1,200,000 18,900,000
--------------
Total Other Securities (Cost $62,895,010) 69,326,250
UNITS
=================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 18,750 --
FACE
AMOUNT
=================================================================================================================================
REPURCHASE AGREEMENT--2.6%
- ---------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 5.36%, dated
2/28/97, to be repurchased at $188,083,973 on 3/3/97, collateralized
by U.S. Treasury Nts., 6.125%--7.875%, 5/15/99--11/15/04, with a value
of $192,381,141 (Cost $188,000,000) $188,000,000 188,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $6,038,910,234) 98.5% 7,241,921,169
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5 108,201,682
------------ --------------
NET ASSETS 100.0% $7,350,122,851
============ ==============
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid under guidelines established
by the Board of Directors. These securities amount to $67,115,625, or
0.91% of the Fund's net assets, at February 28, 1997.
3. Non-income producing security.
See accompanying Notes to Financial Statements.
12 Oppenheimer Main Street Income & Growth Fund
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES February 28, 1997 (Unaudited)
<TABLE>
<S> <C>
=================================================================================================================================
ASSETS
Investments, at value (cost $6,038,910,234)--see accompanying statement $7,241,921,169
--------------------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 137,783,142
Shares of capital stock sold 25,017,214
Interest and dividends 15,748,858
--------------------------------------------------------------------------------------------------------------------------
Other 38,218
--------------
Total assets 7,420,508,601
=================================================================================================================================
LIABILITIES
Bank overdraft 5,714,460
Payables and other liabilities:
Investments purchased 42,374,531
Shares of capital stock redeemed 17,045,259
Distribution and service plan fees 2,871,899
Transfer and shareholder servicing agent fees 844,437
Daily variation on futures contracts--Note 5 268,250
Directors' fees 3,402
Other 1,263,512
--------------
Total liabilities 70,385,750
=================================================================================================================================
NET ASSETS $7,350,122,851
==============
=================================================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of capital stock $ 2,431,923
--------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 6,000,739,999
--------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 18,099,530
--------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 127,177,964
--------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 1,201,673,435
--------------
Net assets $7,350,122,851
==============
=================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $3,831,048,909 and 126,394,572 shares of capital stock outstanding) $30.31
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $32.16
--------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $2,619,572,199 and 86,932,961 shares of capital stock outstanding) $30.13
--------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $899,500,710 and 29,864,703 shares of capital stock outstanding) $30.12
--------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $1,033 and 34 shares of capital stock outstanding) $30.37
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Main Street Income & Growth Fund
<PAGE> 14
STATEMENT OF OPERATIONS For the Six Months Ended February 28, 1997 (Unaudited)
<TABLE>
<S> <C>
=================================================================================================================================
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $70,218) $ 41,680,056
--------------------------------------------------------------------------------------------------------------------------
Interest 34,575,522
------------
Total income 76,255,578
=================================================================================================================================
EXPENSES
Distribution and service plan fees--Note 4:
Class A 4,253,553
Class B 11,394,543
Class C 4,148,154
--------------------------------------------------------------------------------------------------------------------------
Management fees--Note 4 15,313,572
--------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 6,100,916
--------------------------------------------------------------------------------------------------------------------------
Shareholder reports 1,375,365
--------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 240,941
Class B 229,571
Class C 52,870
--------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 244,316
--------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 48,838
--------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 41,249
--------------------------------------------------------------------------------------------------------------------------
Insurance expenses 19,298
--------------------------------------------------------------------------------------------------------------------------
Other 154,925
------------
Total expenses 43,618,111
=================================================================================================================================
NET INVESTMENT INCOME 32,637,467
=================================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) on:
Investments 154,210,851
Closing of futures contracts 18,421,844
Foreign currency transactions (8,163,873)
------------
Net realized gain 164,468,822
--------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 783,887,144
Translation of assets and liabilities denominated in foreign currencies 5,333,037
------------
Net change 789,220,181
------------
Net realized and unrealized gain 953,689,003
=================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $986,326,470
============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Main Street Income & Growth Fund
<PAGE> 15
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, 1997 PERIOD ENDED YEAR ENDED
(UNAUDITED) AUGUST 31, 1996(1) JUNE 30, 1996
=====================================================================================================================
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 32,637,467 $ 11,737,246 $ 52,326,689
--------------------------------------------------------------------------------------------------------------
Net realized gain 164,468,822 38,637,876 384,233,192
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 789,220,181 (240,283,299) 352,369,554
-------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations 986,326,470 (189,908,177) 788,929,435
=====================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (23,056,230) -- (40,531,298)
Class B (6,303,976) -- (11,334,670)
Class C (2,275,423) -- (5,305,754)
Class Y (3) -- --
--------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (230,410,408) -- (7,115,385)
Class B (151,243,106) -- (3,165,821)
Class C (54,897,548) -- (1,650,409)
Class Y (67) -- --
=====================================================================================================================
CAPITAL
TRANSACTIONS
Net increase in net assets resulting from capital stock
transactions--Note 2:
Class A 409,321,829 98,647,005 790,272,185
Class B 537,482,012 169,401,905 986,624,829
Class C 89,809,829 27,973,044 178,504,196
Class Y 1,000 -- --
=====================================================================================================================
Net Assets
Total increase 1,554,754,379 106,113,777 2,675,227,308
--------------------------------------------------------------------------------------------------------------
Beginning of period 5,795,368,472 5,689,254,695 3,014,027,387
-------------- -------------- --------------
End of period (including undistributed net investment
income of $18,099,530, $17,097,695 and $1,372,571,
respectively) $7,350,122,851 $5,795,368,472 $5,689,254,695
============== ============== ==============
</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> 16
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
CLASS A
------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD ENDED
FEB. 28, 1997 AUGUST 31, YEAR ENDED JUNE 30,
(UNAUDITED) 1996(3) 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $27.95 $28.89 $24.07 $20.40 $19.88
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .19 .07 .40 .47 .37
Net realized and unrealized gain (loss) 4.35 (1.01) 4.93 3.66 2.50
---------- ---------- ---------- ---------- --------
Total income (loss) from investment operations 4.54 (.94) 5.33 4.13 2.87
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.20) -- (.43) (.46) (.36)
Distributions from net realized gain (1.98) -- (.08) -- --
Distributions in excess of gains -- -- -- -- (1.99)
---------- ---------- ---------- ---------- --------
Total dividends and distributions to shareholders (2.18) -- (.51) (.46) (2.35)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $30.31 $27.95 $28.89 $24.07 $20.40
========== ========== ========== ========== ========
================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 16.58% (3.25)% 22.26% 20.52% 14.34%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,831,049 $3,142,825 $3,147,463 $1,923,951 $739,552
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,561,093 $3,089,833 $2,515,880 $1,319,271 $270,417
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.33%(6) 1.57%(6) 1.55% 2.31% 2.46%
Expenses 0.96%(6) 0.98%(6) 0.99% 1.07% 1.28%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 36.1% 17.5% 92.6% 101.3% 199.4%
Average brokerage commission rate(8) $0.0614 $0.0590 $0.0571 -- --
</TABLE>
1. For the period from November 1, 1996 (inception of offering) to
February 28, 1997.
2. For the period from December 1, 1993 (inception of offering) to June
30, 1994.
3. The Fund changed its fiscal year end from June 30 to August 31.
4. For the period from October 1, 1994 (inception of offering) to June
30, 1995.
5.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.
16 Oppenheimer Main Street Income & Growth Fund
<PAGE> 17
<TABLE>
<CAPTION>
CLASS B
- ----------------- ------------------------------------------------------
SIX MONTHS
ENDED PERIOD ENDED
FEB. 28, 1997 AUGUST 31, YEAR ENDED JUNE 30,
1993 1992 (UNAUDITED) 1996(3) 1996 1995(4)
===========================================================================
<C> <C> <C> <C> <C> <C>
$15.46 $13.22 $27.79 $28.77 $24.00 $21.49
- ---------------------------------------------------------------------------
.16 .25 .09 .04 .23 .25
6.65 4.72 4.31 (1.02) 4.87 2.54
- ------- ------- ---------- ---------- ---------- --------
6.81 4.97 4.40 (.98) 5.10 2.79
- ---------------------------------------------------------------------------
(.19) (.22) (.08) -- (.25) (.28)
(2.20) (2.51) (1.98) -- (.08) --
-- -- -- -- -- --
- ------- ------- ---------- ---------- ---------- --------
(2.39) (2.73) (2.06) -- (.33) (.28)
- ---------------------------------------------------------------------------
$19.88 $15.46 $30.13 $27.79 $28.77 $24.00
======= ======= ========== ========== =========- ========
===========================================================================
46.38% 39.48% 16.14%% (3.41)% 21.34% 13.15%
===========================================================================
$58,230 $26,926 $2,619,572 $1,908,542 $1,800,429 $628,499
- ---------------------------------------------------------------------------
$38,974 $23,018 $2,307,889 $1,818,318 $1,155,253 $248,775
- ---------------------------------------------------------------------------
1.02% 1.63% 0.58%(6) 0.82%(6) 0.74% 1.25%(6)
1.46% 1.66% 1.71%(6) 1.74%(6) 1.76% 1.89%(6)
- ---------------------------------------------------------------------------
283.0% 290.1% 36.1% 17.5% 92.6% 101.3%
-- -- $0.0614 $0.0590 $0.0571 --
<CAPTION>
CLASS C CLASS Y
- ----------------------------------------------------------- ------------
SIX MONTHS PERIOD ENDED
ENDED PERIOD ENDED FEBRUARY 28,
FEB.28,1997 AUGUST 31, YEAR ENDED JUNE 30, 1997
(UNAUDITED) 1996(3) 1996 1995 1994(2) (UNAUDITED)(1)
===========================================================================
<C> <C> <C> <C> <C> <C>
$27.78 $28.75 $23.97 $20.33 $20.76 $29.55
- ---------------------------------------------------------------------------
.08 .04 .21 .33 .13 .18
4.32 (1.01) 4.88 3.62 (.42) 2.71
-------- -------- -------- -------- -------- -------
4.40 (.97) 5.09 3.95 (.29) 2.89
- ---------------------------------------------------------------------------
(.08) -- (.23) (.31) (.14) (.09)
(1.98) -- (.08) -- -- (1.98)
-- -- -- -- -- --
-------- -------- -------- -------- -------- -------
(2.06) -- (.31) (.31) (.14) (2.07)
- ---------------------------------------------------------------------------
$30.12 $27.78 $28.75 $23.97 $20.33 $30.37
======== ======== ======== ======= ======== =======
===========================================================================
16.14% (3.37)% 21.35% 19.63% (0.97)% 10.07%
===========================================================================
$899,501 $744,002 $741,363 $461,578 $170,316 $1
- ---------------------------------------------------------------------------
$842,003 $730,260 $588,109 $325,025 $71,924 $1
- ---------------------------------------------------------------------------
0.59%(6) 0.82%(6) 0.80% 1.57% 1.86%(6) 1.79%(6)
1.71%(6) 1.73%(6) 1.74% 1.82% 2.11%(6) 0.60%(6)
- ---------------------------------------------------------------------------
36.1% 17.5% 92.6% 101.3% 199.4% 36.1%
$0.0614 $0.0590 $0.0571 -- -- $0.0614
</TABLE>
6. Annualized.
7. 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
February 28, 1997 were $2,958,266,250 and $2,054,936,311, respectively.
8.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.
17 Oppenheimer Main Street Income & Growth Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Income & Growth Fund (the Fund)
is a separate series of Oppenheimer Main Street Funds,
Inc., an open-end management investment company
registered under the Investment Company Act of 1940, as
amended. 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
OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a front-end sales charge. Class B
and Class C shares may be subject to a contingent
deferred sales charge. All classes of shares have
identical rights to earnings, assets and voting
privileges, except that each class has its own expenses
directly attributable to a particular class and exclusive
voting rights with respect to matters affecting a single
class. Class A, B and C have separate distribution and/or
service plans. No such plan has been adopted for Class Y
shares. 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
the spread, the closing bid 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.
----------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to
take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as
collateral for repurchase agreements. The market value of
the underlying securities is required to be at least 102%
of the resale price at the time of purchase. If the
seller of the agreement defaults and the value of the
collateral declines, or if the seller enters an
insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
----------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES.
Income, expenses (other than those attributable to a
specific class) and gains and losses are allocated daily
to each class of shares based upon the relative
proportion of net assets represented by such class.
Operating expenses directly attributable to a specific
class are charged against the operations of that class.
----------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply
with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute all
of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or excise tax
provision is required.
18 Oppenheimer Main Street Income & Growth Fund
<PAGE> 19
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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 primarily
because of the recognition of certain foreign currency
gains (losses) as ordinary income (loss) for tax
purposes. The character of the distributions made during
the year from net investment income or net realized gains
may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income
or realized gain (loss) was recorded by the Fund.
----------------------------------------------------------
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.
================================================================================
2. CAPITAL STOCK
The Fund has authorized 420 million shares of $.01 par
value capital stock (200 million for Class A, 150 million
for Class B, 50 million for Class C and 20 million for
Class Y). Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED FEBUARY 28, 1997(2) PERIOD ENDED AUGUST 31, 1996(1) YEAR ENDED JUNE 30, 1996
----------------------------------- ------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Class A:
<S> <C> <C> <C> <C> <C> <C>
Sold 17,056,680 $ 507,085,973 7,371,957 $ 205,620,158 45,286,889 $1,228,619,819
Dividends and distributions
reinvested 8,317,014 242,339,612 -- -- 1,659,231 45,287,552
Redeemed (11,422,647) (340,103,756) (3,858,492) (106,973,153) (17,949,894) (483,635,186)
------------ ------------- ----------- ------------- ------------ --------------
Net increase 13,951,047 $ 409,321,829 3,513,465 $ 98,647,005 28,996,226 $ 790,272,185
============ ============= =========== ============= ============ ==============
- ------------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 17,731,740 $ 524,774,492 7,450,147 $ 206,982,201 40,869,800 $1,108,078,820
Dividends and distributions
reinvested 5,151,589 149,575,432 -- -- 503,255 13,692,209
Redeemed (4,618,718) (136,867,912) (1,363,728) (37,580,296) (4,980,225) (135,146,200)
------------ ------------- ----------- ------------- ------------ --------------
Net increase 18,264,611 $ 537,482,012 6,086,419 $ 169,401,905 36,392,830 $ 986,624,829
============ ============= =========== ============= ============ ==============
- ------------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 4,066,803 $ 120,313,621 1,781,668 $ 49,599,528 10,384,545 $ 281,240,862
Dividends and distributions
reinvested 1,855,154 53,824,614 -- -- 238,379 6,449,836
Redeemed (2,843,345) (84,328,406) (783,587) (21,626,484) (4,094,549) (109,186,502)
------------ ------------- ----------- ------------- ------------ --------------
Net increase 3,078,612 $ 89,809,829 998,081 $ 27,973,044 6,528,375 $ 178,504,196
============ ============= =========== ============= ============ ==============
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y:
Sold 34 $ 1,000 -- $ -- -- $ --
Dividends and distributions
reinvested -- -- -- -- -- --
Redeemed -- -- -- -- -- --
------------ ------------- ----------- ------------- ------------ --------------
Net increase 34 $ 1,000 -- $ -- -- $ --
============ ============= =========== ============= ============ ==============
</TABLE>
1. The Fund changed its fiscal year end from June 30 to August 31.
2. For the six months ended February 28, 1997 for Class A, Class B and
Class C shares and for the period from November 1, 1996 (inception of
offering) to February 28, 1997 for Class Y shares.
19 Oppenheimer Main Street Income & Growth Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At February 28, 1997, net unrealized appreciation on investments and
options written of $1,203,010,935 was composed of gross appreciation of
$1,259,993,494, and gross depreciation of $56,982,559.
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of
0.65% 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 six months ended February 28, 1997, commissions (sales
charges paid by investors) on sales of Class A shares totaled
$12,888,582, of which $3,564,153 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 $19,305,252 and $1,126,605, respectively, of which
$574,099 and $23,332 was paid to an affiliated broker/dealer. During the
six months ended February 28, 1997, OFDI received contingent deferred
sales charges of $2,260,645 and $110,287 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.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made 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 six months ended February 28, 1997, OFDI paid $190,771 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 and Class C shares, as
reimbursement for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a
service fee of 0.25% per year as 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 six months ended
February 28, 1997, OFDI paid $26,941 and $60,217, respectively, to an
affiliated broker/dealer as reimbursement for Class B and Class C
personal service and maintenance expenses and retained $10,016,982 and
$1,466,302, respectively, as reimbursement for Class B and Class C sales
commissions and service fee advances, as well as financing costs. If the
Plans are terminated by the Fund, the Board of 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. At
February 28, 1997, OFDI had incurred unreimbursed expenses of
$81,442,119 for Class B and $7,273,491 for Class C.
20 Oppenheimer Main Street Income & Growth Fund
<PAGE> 21
================================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures 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 February 28, 1997, the Fund had outstanding futures contracts as
follows:
<TABLE>
<CAPTION>
NUMBER OF VALUATION AS OF UNREALIZED
CONTRACTS TO BUY EXPIRATION DATE CONTRACTS FEBRUARY 28, 1997 DEPRECIATION
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 Future 3/20/97 250 $98,800,000 $1,337,500
</TABLE>
21 Oppenheimer Main Street Income & Growth Fund
<PAGE> 22
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 C. Doll, Jr., 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.
The financial statements included herein have been taken from the
records of the Fund without examination by the independent auditors.
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, are not insured by the FDIC or
any other agency, and involve investment risks, including possible loss
of the principal amount invested.
22 Oppenheimer Main Street Income & Growth Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your
children's education or tax-free income, we have the funds to help you
seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable
knowing that you are investing with a respected financial institution
with over 35 years of experience in helping people just like you reach
their financial goals. And you're investing with a leader in global,
growth stock and flexible fixed-income investments--with over 3 million
shareholder accounts and more than $60 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares. And
you can exchange shares easily by mail or by telephone.(1) For more
information on Oppenheimer funds, please contact your financial adviser
or call us at 1-800-525-7048 for a prospectus. You may also write us at
the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
<TABLE>
<S> <C>
===================================================================================================================================
STOCK FUNDS
Developing Markets Fund Quest Capital Value Fund
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
Capital Appreciation Fund(3) Quest Value Fund
===================================================================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
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(5) Insured Municipal Fund
Florida Municipal Fund(5) Intermediate Municipal Fund
New Jersey Municipal Fund(5)
New York Municipal Fund(5) Rochester Division
Pennsylvania Municipal Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
===================================================================================================================================
MONEY MARKET FUNDS(6)
Money Market Fund Cash Reserves
===================================================================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. On 3/6/97, the Fund's name was changed from "Asset Allocation
Fund."
5. Available only to investors in certain states.
6. An investment in money market funds is neither insured nor guaranteed
by the U.S. government and there can be no assurance that a money market
fund will be able to maintain a stable net asset value of $1.00 per
share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
23 Oppenheimer Main Street Income & Growth Fund
<PAGE> 24
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
RS0700.001.0297 April 30, 1997
[PHOTO]
CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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