<PAGE> 1
SEMIANNUAL REPORT FEBRUARY 28, 1999
OPPENHEIMER
MAIN STREET GROWTH & INCOME FUND
[PHOTO]
[OPPENHEIMER LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 An Interview with Your Fund's Managers
11 Financial Statements
38 Officers and Directors
40 Information and Services
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - STOCKS PERFORMED WELL over the past six months amid heightened volatility
caused primarily by economic weakness overseas.
- - THE FUND'S FOCUS ON HIGH-QUALITY, LARGE-CAP STOCKS positioned the portfolio
to avoid the brunt of last year's correction.
- - THE FUND BENEFITED from its security selection strategy, which emphasized
stocks in the telecommunications, retailing and healthcare industries.
CUMULATIVE TOTAL RETURNS
For the 6-Month Period
Ended 2/28/99
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
- -----------------------------
27.12% 19.81%
- -----------------------------
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
- -----------------------------
26.69% 21.69%
- -----------------------------
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
- -----------------------------
26.66% 25.66%
- -----------------------------
CLASS Y
Without With
Sales Chg.(1) Sales Chg.(2)
- -----------------------------
27.15% 27.15%
- -----------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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. BECAUSE THE STOCK MARKET CAN BE VOLATILE, THE
FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES. FOR
UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL
US AT 1-800-525-7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor. Class B and C shares are subject to an annual
0.75% asset-based sales charge. An explanation of the different performance
calculations is in the Fund's prospectus.
2 Oppenheimer Main Street Growth & Income Fund
<PAGE> 3
[PHOTO]
JAMES C. SWAIN
Chairman
Oppenheimer Main Street
Growth & Income Fund
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer Main Street
Growth & Income Fund
DEAR SHAREHOLDER,
- -------------------------------------------------------------------------------
Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest
that the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger-than-expected economic growth
has triggered concerns that the Federal Reserve may raise key interest rates to
forestall an acceleration of inflation. As a result, yields of longer term
taxable bonds have risen from their October 1998 lows, when investors had bid
up prices during the global "flight to quality." At the same time, tax-exempt
bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view, actively
managed portfolios that are closely monitored by expert money managers are
likely to provide better returns than passive index investing in 1999. That's
because selectivity is expected to be more critical to performance than it has
been over the past few years. In a potentially overvalued stock market and
rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds.
That way, if one market experiences setbacks, one or more of the others may
help cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally
managed investments and other resources you need to achieve your financial
goals is an important part of our enduring commitment to you as The Right Way
to Invest.
/s/ JAMES C. SWAIN /s/ BRIDGET A. MACASKILL
James C. Swain Bridget A. Macaskill
March 19, 1999
3 Oppenheimer Main Street Growth & Income Fund
<PAGE> 4
"THE STOCK MARKET'S FOURTH-QUARTER REBOUND PROVED PARTICULARLY REWARDING FOR THE
LARGE HIGH-QUALITY COMPANIES THAT WE FOCUSED ON."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
HOW DID OPPENHEIMER MAIN STREET GROWTH & INCOME FUND PERFORM DURING THE
SIX-MONTH PERIOD THAT ENDED FEBRUARY 28, 1999?
We are very pleased with the Fund's performance over the past six months. We
attribute our positive results to two primary factors. First, the
large-capitalization, growth-oriented stocks in which the Fund currently
focuses its investments continued to lead the market, as they have for the past
several years. Second, many of the Fund's largest holdings have ranked among
the market's top performers over the past six months.
WHY DID THE FUND'S NAME CHANGE?
As of December 22, 1998, Oppenheimer Main Street Income & Growth Fund became
Oppenheimer Main Street Growth & Income Fund. This subtle change better
reflects the Fund's current composition and strategic focus, which emphasizes
growth. The Fund's investment objective of seeking high total return, which
includes capital appreciation in the value of its shares as well as current
income did not change.
THE PAST SIX MONTHS INCLUDED BOTH A SHARP MARKET DECLINE AND A REMARKABLE
REBOUND. WHAT HAPPENED?
It's true: Major stock market averages were extremely volatile. As we observed
in our report to shareholders six months ago, investors reacted negatively last
summer to expectations that a potential economic slow-down might adversely
affect large companies' earnings growth, so they sold stocks and fled to the
relative safety of government bonds.
4 Oppenheimer Main Street Growth & Income Fund
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (l to r)
Charles Albers
Nikolaos Monoyios
In October, however, investors' concerns eased when the U.S. Federal Reserve
Board and the central banks of several other nations reduced key short-term
interest rates in an attempt to stimulate global economic growth. Investors
were further encouraged when the International Monetary Fund announced a
financial aid package for Brazil and the Japanese government proposed
long-awaited reforms for its banking system. With their economic concerns
addressed, investors felt more comfortable investing in stocks, so they shifted
assets back into the stock market. Several large-cap indexes set new record
highs, and technology stocks rallied particularly strongly.
WHY DID THE FUND FARE SO WELL DURING THE THIRD-QUARTER CORRECTION AND
FOURTH-QUARTER REBOUND?
After assuming management of the Fund last spring, we made several changes to
the portfolio. First, we increased the quality of our holdings by raising the
portfolio's average market capitalization and focusing on domestic oriented
companies with strong track records.
5 Oppenheimer Main Street Growth & Income Fund
<PAGE> 6
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 3/31/99(1)
CLASS A
1 year 5 year 10 year
- -------------------------------
10.19% 18.04% 22.10%
- -------------------------------
CLASS B
Since
1 year 5 year Inception
- ---------------------------------
11.03% N/A 20.66%
- ---------------------------------
CLASS C
Since
1 year 5 year Inception
- ---------------------------------
15.03% 18.56% 18.20%
- ---------------------------------
CLASS Y
Since
1 year 5 year Inception
- ---------------------------------
17.13% N/A 24.77%
- ---------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Second, we significantly reduced our holdings of foreign companies, as well as
our holdings of companies that we believed might be vulnerable to slower
economic growth. These changes positioned us well for the correction, which
primarily punished the types of stocks we avoided. Subsequently, the
fourth-quarter rebound proved particularly rewarding for the large,
high-quality companies that we focused on.
We made these moves partially because our quantitative models gave us strong
signals that large-capitalization stocks were likely to generate higher returns
than smaller stocks. These computer-generated signals were consistent with our
qualitative judgment as portfolio managers. Fundamental analysis convinced us
that the market would become more selective as earnings growth slowed, and that
investors would favor large, high-quality stocks.
WHAT CHANGES HAVE YOU MADE TO THE PORTFOLIO OVER THE PAST SIX MONTHS?
We have built on the modifications that we began to implement when we came
aboard as portfolio managers.
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 2/3/88. The Fund's maximum
sales charge for Class A shares was lower prior to 10/29/93, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception on
10/3/94). Class C returns include the contingent deferred sales charge of 1%
since inception on 12/1/93. Class Y shares were first publicly offered on
11/1/96 and are offered only to certain institutional investors under special
agreement with the Distributor. Class B and C shares are subject to a 0.75%
annual asset-based sales charge. An explanation of the different performance
calculations is in the Fund's prospectus.
6 Oppenheimer Main Street Growth & Income Fund
<PAGE> 7
For example, we continued to increase the quality of the stocks in the
portfolio by raising our average market capitalization, which was $45 billion
in April, $62 billion in August and about $91 billion as of February 28, 1999.
In addition, we substantially reduced exposure to financial services companies,
which represented just 13% of total assets as of February 28. Within the
financial sector, we shifted assets from banks and brokerage firms, which we
regarded as vulnerable to economic weakness overseas, to insurance companies
and mortgage-related companies that have a domestic orientation.
We also reduced our holdings of consumer staples stocks, such as food and
beverage companies, to approximately 10% of assets. We considered these
companies highly valued relative to other sectors, and many of these companies
have significant exposure to overseas markets. It was our perception that they
might be susceptible to earnings disappointments because of economic
difficulties overseas.
On the other hand, we added substantially to other sectors, including
communications services. The telephone industry has become much less regulated,
and executives are managing their businesses more assertively.
7 Oppenheimer Main Street Growth & Income Fund
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
Meanwhile, demand for telecommunications services has grown as consumers and
businesses add lines for voice, image and data transmission. We've put greater
emphasis on retailers because of their domestic orientation and the benefits of
favorable influences in the U.S. economy, including low inflation, lower prices
for goods and strong consumer confidence. Finally, we've added to our health
care holdings, particularly large pharmaceutical companies that have
successfully developed new products.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We are cautiously optimistic. On one hand, we believe that the economic
fundamentals in the U.S. economy remain strong, which should help support stock
prices. On the other hand, we are concerned that the disparity in valuations
between large companies and smaller ones has become very wide by historical
norm. We're beginning to see evidence that a change in market leadership from
large-cap stocks to smaller companies may occur. Accordingly, we are evaluating
the forces that are likely to affect both types of stocks.
8 Oppenheimer Main Street Growth & Income Fund
<PAGE> 9
ASSET ALLOCATION(2)
[PIE CHART]
<TABLE>
<S> <C>
- - Stocks 98.8%
- - Cash Equivalents 4.5
- - Bonds 0
- - Other Securities 0.7
</TABLE>
With that said, however, we are not currently shifting to a smaller average
weighted capitalization. Oppenheimer Main Street Growth & Income Fund is
designed to be a core equity holding within investors' portfolios, and we
believe that large-capitalization stocks are best suited to that role. In our
view, quality should be the foundation of virtually every investor's long-term
investment portfolio. It's a perspective that helps make OppenheimerFunds The
Right Way to Invest.
<TABLE>
<CAPTION>
TOP 5 INDUSTRIES(2)
- ------------------------------------------
<S> <C>
Healthcare/Drugs 11.0%
- ------------------------------------------
Computer Software/Services 6.8
- ------------------------------------------
Computer Hardware 5.9
- ------------------------------------------
Telephone Utilities 5.8
- ------------------------------------------
Retail--General 5.7
- ------------------------------------------
<CAPTION>
TOP TEN STOCK HOLDINGS(2)
- ------------------------------------------
<S> <C>
Microsoft Corp. 5.4%
- ------------------------------------------
Wal-Mart Stores, Inc. 3.8
- ------------------------------------------
IBM Corp. 2.7
- ------------------------------------------
Merck & Co., Inc. 2.7
- ------------------------------------------
Bristol-Myers Squibb Co. 2.5
- ------------------------------------------
American Express Co. 2.5
- ------------------------------------------
AT&T Corp. 2.4
- ------------------------------------------
Time Warner, Inc. 2.1
- ------------------------------------------
BellSouth Corp. 1.8
- ------------------------------------------
Intel Corp. 1.8
- ------------------------------------------
</TABLE>
2. Portfolio is subject to change. Percentages are as of February 28, 1999,
and are based on total market value of investments.
9 Oppenheimer Main Street Growth & Income Fund
<PAGE> 10
FINANCIALS
- -------------------------------------------------------------------------------
10 Oppenheimer Main Street Growth & Income Fund
<PAGE> 11
STATEMENT OF INVESTMENTS February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
COMMON STOCKS--92.0%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--2.3%
- ------------------------------------------------------------------------------------
CHEMICALS--1.2%
Dexter Corp. 300,000 $ 8,325,000
- ------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 1,550,000 52,893,750
- ------------------------------------------------------------------------------------
IMC Global, Inc. 800,000 15,950,000
- ------------------------------------------------------------------------------------
Lafarge Corp. 469,000 14,949,375
- ------------------------------------------------------------------------------------
Lone Star Industries, Inc. 400,000 13,200,000
- ------------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 320,000 7,500,000
- ------------------------------------------------------------------------------------
Rohm & Haas Co. 372,000 11,625,000
- ------------------------------------------------------------------------------------
Schulman (A.), Inc. 300,000 4,950,000
- ------------------------------------------------------------------------------------
Solutia, Inc. 1,450,000 25,828,125
- ------------------------------------------------------------------------------------
Universal Corp. 100,000 2,718,750
- ------------------------------------------------------------------------------------
Vulcan Materials Co. 100,000 13,475,000
------------
171,415,000
- ------------------------------------------------------------------------------------
METALS--0.9%
Armco, Inc.(1) 1,500,000 7,500,000
- ------------------------------------------------------------------------------------
Bethlehem Steel Corp.(1) 2,500,000 22,031,250
- ------------------------------------------------------------------------------------
Cleveland-Cliffs, Inc. 70,000 2,594,375
- ------------------------------------------------------------------------------------
Cyprus Amax Minerals Co. 900,000 10,125,000
- ------------------------------------------------------------------------------------
Inco Ltd. 430,000 5,428,750
- ------------------------------------------------------------------------------------
Reliance Steel & Aluminum Co. 120,000 3,067,500
- ------------------------------------------------------------------------------------
Reynolds Metals Co. 600,000 25,650,000
- ------------------------------------------------------------------------------------
Ryerson Tull, Inc. 505,300 9,221,725
- ------------------------------------------------------------------------------------
Titanium Metal Corp. 300,000 2,118,750
- ------------------------------------------------------------------------------------
USX-U.S. Steel Group, Inc. 1,630,000 41,259,375
- ------------------------------------------------------------------------------------
Worthington Industries, Inc. 250,000 3,171,875
----------
132,168,600
- ------------------------------------------------------------------------------------
PAPER--0.2%
Louisiana-Pacific Corp. 1,300,000 23,887,500
- ------------------------------------------------------------------------------------
CAPITAL GOODS--5.2%
- ------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.1%
Lockheed Martin Corp. 500,000 18,843,750
- ------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.7%
Emerson Electric Co. 300,000 17,231,250
- ------------------------------------------------------------------------------------
General Electric Co. 1,834,500 184,023,281
- ------------------------------------------------------------------------------------
Honeywell, Inc. 360,000 25,177,500
- ------------------------------------------------------------------------------------
Symbol Technologies, Inc. 250,000 13,250,000
-----------
239,682,031
</TABLE>
11 Oppenheimer Main Street Growth & Income Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
INDUSTRIAL SERVICES--0.3%
CDI Corp.(1) 130,000 $ 2,941,250
- ------------------------------------------------------------------------------------
Fluor Corp. 600,000 21,112,500
- ------------------------------------------------------------------------------------
McDermott International, Inc. 750,000 14,953,125
- ------------------------------------------------------------------------------------
Nielsen Media Research, Inc.(1) 66,666 1,308,320
- ------------------------------------------------------------------------------------
Olsten Corp. 300,000 1,856,250
- ------------------------------------------------------------------------------------
Republic Services, Inc., Cl. A(1) 428,200 7,466,737
- ------------------------------------------------------------------------------------
United Stationers, Inc.(1) 100,000 1,831,250
------------
51,469,432
- ------------------------------------------------------------------------------------
MANUFACTURING--3.1%
Aeroquip-Vickers, Inc. 213,500 12,089,437
- ------------------------------------------------------------------------------------
Albany International Corp., Cl. A 180,000 3,532,500
- ------------------------------------------------------------------------------------
AlliedSignal, Inc. 800,000 33,100,000
- ------------------------------------------------------------------------------------
American Standard Cos., Inc. (1) 780,000 26,178,750
- ------------------------------------------------------------------------------------
Avery-Dennison Corp. 1,263,500 67,834,156
- ------------------------------------------------------------------------------------
Berkshire Hathaway, Inc., Cl. A(1) 546 38,820,600
- ------------------------------------------------------------------------------------
Case Corp. 1,100,000 21,450,000
- ------------------------------------------------------------------------------------
CNF Transportation, Inc. 250,000 10,562,500
- ------------------------------------------------------------------------------------
Crown Cork & Seal Co., Inc. 1,000,000 27,750,000
- ------------------------------------------------------------------------------------
Cummins Engine Co., Inc. 401,500 16,461,500
- ------------------------------------------------------------------------------------
Flowserve Corp. 400,000 6,625,000
- ------------------------------------------------------------------------------------
Herman Miller, Inc. 300,000 5,100,000
- ------------------------------------------------------------------------------------
Hexcel Corp. (New)(1) 300,000 2,531,250
- ------------------------------------------------------------------------------------
Mark IV Industries, Inc. 600,000 9,037,500
- ------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 500,000 37,031,250
- ------------------------------------------------------------------------------------
Rollins Truck Leasing Co. 280,000 2,975,000
- ------------------------------------------------------------------------------------
Tenneco, Inc. (New) 700,000 20,956,250
- ------------------------------------------------------------------------------------
Timken Co. 539,800 9,547,712
- ------------------------------------------------------------------------------------
United Technologies Corp. 560,900 69,481,487
- ------------------------------------------------------------------------------------
XTRA Corp.(1) 200,000 7,975,000
- ------------------------------------------------------------------------------------
Yellow Corp.(1) 200,000 3,575,000
------------
432,614,892
- ------------------------------------------------------------------------------------
CONSUMER CYCLICALS--15.0%
- ------------------------------------------------------------------------------------
AUTOS & HOUSING--1.9%
Arvin Industries, Inc. 90,000 3,262,500
- ------------------------------------------------------------------------------------
Bandag, Inc. 100,000 3,168,750
- ------------------------------------------------------------------------------------
Centex Construction Products, Inc. 220,000 7,851,250
- ------------------------------------------------------------------------------------
Champion Enterprises, Inc.(1) 600,000 11,812,500
- ------------------------------------------------------------------------------------
Fleetwood Enterprises, Inc. 300,000 9,731,250
- ------------------------------------------------------------------------------------
Ford Motor Co. 2,230,000 132,266,875
- ------------------------------------------------------------------------------------
Fortune Brands, Inc. 320,000 9,640,000
</TABLE>
12 Oppenheimer Main Street Growth & Income Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
AUTOS & HOUSING (CONTINUED)
Furniture Brands International, Inc.(1) 200,000 $ 4,275,000
- ------------------------------------------------------------------------------------
Hughes Supply, Inc. 50,000 1,009,375
- ------------------------------------------------------------------------------------
Lear Corp.(1) 750,000 26,484,375
- ------------------------------------------------------------------------------------
Maytag Corp. 220,000 12,333,750
- ------------------------------------------------------------------------------------
Meritor Automotive, Inc. 400,000 6,350,000
- ------------------------------------------------------------------------------------
NVR, Inc.(1) 100,000 4,300,000
- ------------------------------------------------------------------------------------
Oakwood Homes Corp. 500,000 8,062,500
- ------------------------------------------------------------------------------------
Owens Corning 250,000 7,953,125
- ------------------------------------------------------------------------------------
Ryland Group, Inc. (The) 150,000 3,825,000
- ------------------------------------------------------------------------------------
Standard Products Co. 100,000 1,500,000
- ------------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 200,000 3,925,000
- ------------------------------------------------------------------------------------
Tower Automotive, Inc.(1) 244,500 4,553,812
- ------------------------------------------------------------------------------------
Webb (Del E.) Corp. 117,100 2,634,750
-----------
264,939,812
- ------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.5%
Brunswick Corp. 1,016,100 21,655,631
- ------------------------------------------------------------------------------------
Harley-Davidson, Inc. 200,000 11,562,500
- ------------------------------------------------------------------------------------
Harrah's Entertainment, Inc.(1) 550,000 9,178,125
- ------------------------------------------------------------------------------------
Hilton Hotels Corp. 1,100,000 17,393,750
- ------------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 2,911,100 104,799,600
- ------------------------------------------------------------------------------------
Mirage Resorts, Inc.(1) 1,200,000 23,400,000
- ------------------------------------------------------------------------------------
Park Place Entertainment Corp.(1) 1,100,000 8,250,000
- ------------------------------------------------------------------------------------
Prime Hospitality Corp.(1) 1,200,000 12,300,000
----------
208,539,606
- ------------------------------------------------------------------------------------
MEDIA--1.5%
CBS Corp.(1) 1,400,000 51,625,000
- ------------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co. 825,000 28,256,250
- ------------------------------------------------------------------------------------
Gannett Co., Inc. 780,000 49,530,000
- ------------------------------------------------------------------------------------
Harland (John H.) Co. 200,000 2,687,500
- ------------------------------------------------------------------------------------
McClatchy Co., Cl. A 100,000 3,200,000
- ------------------------------------------------------------------------------------
New York Times Co., Cl. A 800,000 24,800,000
- ------------------------------------------------------------------------------------
R.H. Donnelley Corp. 130,000 1,950,000
- ------------------------------------------------------------------------------------
Tribune Co. 450,000 29,840,625
- ------------------------------------------------------------------------------------
USA Networks, Inc.(1) 600,000 23,850,000
-----------
215,739,375
- ------------------------------------------------------------------------------------
RETAIL: GENERAL--5.7%
Burlington Industries, Inc.(1) 800,000 4,950,000
- ------------------------------------------------------------------------------------
Costco Cos., Inc.(1) 320,000 25,700,000
- ------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 1,380,000 52,526,250
</TABLE>
13 Oppenheimer Main Street Growth & Income Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
RETAIL: GENERAL (CONTINUED)
Fruit of the Loom, Inc., Cl. A(1) 1,000,000 $ 12,687,500
- ------------------------------------------------------------------------------------
Guilford Mills, Inc. 100,000 1,237,500
- ------------------------------------------------------------------------------------
Jones Apparel Group, Inc.(1) 1,640,000 45,817,500
- ------------------------------------------------------------------------------------
Kellwood Co. 50,000 1,278,125
- ------------------------------------------------------------------------------------
May Department Stores Co. 525,000 31,106,250
- ------------------------------------------------------------------------------------
Mohawk Industries, Inc.(1) 300,000 9,750,000
- ------------------------------------------------------------------------------------
Nautica Enterprises, Inc.(1) 838,000 12,570,000
- ------------------------------------------------------------------------------------
Polo Ralph Lauren Corp.(1) 300,000 5,981,250
- ------------------------------------------------------------------------------------
Saks, Inc.(1) 200,000 7,187,500
- ------------------------------------------------------------------------------------
Shaw Industries, Inc.(1) 1,353,000 29,681,437
- ------------------------------------------------------------------------------------
Springs Industries, Inc. 80,000 2,660,000
- ------------------------------------------------------------------------------------
Unifi, Inc. 750,000 9,046,875
- ------------------------------------------------------------------------------------
VF Corp. 160,100 7,704,812
- ------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 6,100,000 526,887,500
- ------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 1,150,000 25,875,000
-----------
812,647,499
- ------------------------------------------------------------------------------------
RETAIL: SPECIALTY--4.4%
Abercrombie & Fitch Co., Cl. A(1) 576,500 43,814,000
- ------------------------------------------------------------------------------------
American Eagle Outfitters, Inc.(1) 120,000 8,257,500
- ------------------------------------------------------------------------------------
American Greetings Corp., Cl. A 102,000 2,416,125
- ------------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 350,000 32,462,500
- ------------------------------------------------------------------------------------
Footstar, Inc.(1) 183,900 4,689,450
- ------------------------------------------------------------------------------------
Corporate Express, Inc.(1) 850,000 4,568,750
- ------------------------------------------------------------------------------------
Gap, Inc. 2,012,500 130,183,594
- ------------------------------------------------------------------------------------
Home Depot, Inc. 2,900,000 173,093,750
- ------------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 7,200,000
- ------------------------------------------------------------------------------------
Lowe's Cos., Inc. 520,000 30,842,500
- ------------------------------------------------------------------------------------
Michaels Stores, Inc.(1) 200,000 3,425,000
- ------------------------------------------------------------------------------------
Nine West Group, Inc.(1) 690,600 15,495,337
- ------------------------------------------------------------------------------------
OfficeMax, Inc.(1) 4,000,000 31,000,000
- ------------------------------------------------------------------------------------
Payless ShoeSource, Inc.(1) 411,800 22,597,525
- ------------------------------------------------------------------------------------
Pier 1 Imports, Inc. 1,000,000 8,625,000
- ------------------------------------------------------------------------------------
Reebok International Ltd.(1) 714,500 11,521,313
- ------------------------------------------------------------------------------------
Republic Industries, Inc.(1) 1,600,000 19,600,000
- ------------------------------------------------------------------------------------
Ross Stores, Inc. 523,700 23,959,275
- ------------------------------------------------------------------------------------
Shopko Stores, Inc. 210,000 6,615,000
- ------------------------------------------------------------------------------------
Tandy Corp. 250,000 13,906,250
- ------------------------------------------------------------------------------------
Venator Group, Inc.(1) 1,500,000 7,406,250
- ------------------------------------------------------------------------------------
Zale Corp.(1) 500,000 16,562,500
-----------
618,241,619
</TABLE>
14 Oppenheimer Main Street Growth & Income Fund
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
CONSUMER STAPLES--9.4%
- ------------------------------------------------------------------------------------
BEVERAGES--0.7%
Anheuser-Busch Cos., Inc. 1,233,500 $ 94,594,031
- ------------------------------------------------------------------------------------
CONSUMER SERVICES--1.1%
Advo, Inc.(1) 120,000 2,400,000
- ------------------------------------------------------------------------------------
Avis Rent A Car, Inc.(1) 750,000 17,203,125
- ------------------------------------------------------------------------------------
Budget Group, Inc., Cl. A(1) 1,000,000 11,687,500
- ------------------------------------------------------------------------------------
Central Garden & Pet Co(1) 840,000 14,280,000
- ------------------------------------------------------------------------------------
Dun & Bradstreet Corp. (New) 500,000 17,125,000
- ------------------------------------------------------------------------------------
H&R Block, Inc. 260,000 11,797,500
- ------------------------------------------------------------------------------------
Harte-Hanks, Inc. 250,000 6,468,750
- ------------------------------------------------------------------------------------
Hertz Corp., Cl. A 150,000 5,971,875
- ------------------------------------------------------------------------------------
IMS Health, Inc. 630,000 22,365,000
- ------------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 629,650 47,105,691
-----------
156,404,441
- ------------------------------------------------------------------------------------
ENTERTAINMENT--3.1%
King World Productions, Inc.(1) 110,000 2,908,125
- ------------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon, Inc.(1) 200,000 1,812,500
- ------------------------------------------------------------------------------------
McDonald's Corp. 899,600 76,466,000
- ------------------------------------------------------------------------------------
Ryan's Family Steak Houses, Inc.(1) 100,000 1,137,500
- ------------------------------------------------------------------------------------
Time Warner, Inc. 4,510,360 290,918,220
- ------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(1) 750,000 66,281,250
-----------
439,523,595
- ------------------------------------------------------------------------------------
FOOD--0.4%
Agribrands International, Inc.(1) 171,960 5,330,760
- ------------------------------------------------------------------------------------
Corn Products International, Inc. 202,400 4,756,400
- ------------------------------------------------------------------------------------
Earthgrains Co. 200,000 4,912,500
- ------------------------------------------------------------------------------------
H.J. Heinz Co. 425,000 23,135,938
- ------------------------------------------------------------------------------------
Sara Lee Corp. 900,000 24,468,750
----------
62,604,348
- ------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--1.9%
Albertson's, Inc. 640,000 36,480,000
- ------------------------------------------------------------------------------------
CVS Corp. 1,796,000 95,188,000
- ------------------------------------------------------------------------------------
Kroger Co.(1) 340,000 21,993,750
- ------------------------------------------------------------------------------------
Safeway, Inc.(1) 860,100 49,670,775
- ------------------------------------------------------------------------------------
Walgreen Co. 1,840,000 58,880,000
-----------
262,212,525
</TABLE>
15 Oppenheimer Main Street Growth & Income Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
HOUSEHOLD GOODS--1.3%
Clorox Co. (The) 120,000 $ 14,197,500
- ------------------------------------------------------------------------------------
Kimberly-Clark Corp. 680,000 32,130,000
- ------------------------------------------------------------------------------------
Procter & Gamble Co. 1,600,000 143,200,000
-----------
189,527,500
- ------------------------------------------------------------------------------------
TOBACCO--0.9%
Philip Morris Cos., Inc. 3,375,000 132,046,875
- ------------------------------------------------------------------------------------
ENERGY--5.4%
- ------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--3.2%
Apache Corp. 1,700,000 33,893,750
- ------------------------------------------------------------------------------------
Baker Hughes, Inc. 600,000 10,800,000
- ------------------------------------------------------------------------------------
BJ Services Co.(1) 1,000,000 14,062,500
- ------------------------------------------------------------------------------------
Cooper Cameron Corp.(1) 800,000 18,500,000
- ------------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc. 1,550,000 32,065,625
- ------------------------------------------------------------------------------------
ENSCO International, Inc. 3,860,000 34,257,500
- ------------------------------------------------------------------------------------
Global Marine, Inc.(1) 6,000,000 46,500,000
- ------------------------------------------------------------------------------------
Input/Output, Inc.(1) 1,000,000 5,625,000
- ------------------------------------------------------------------------------------
Nabors Industries, Inc.(1) 2,400,000 27,600,000
- ------------------------------------------------------------------------------------
National-Oilwell, Inc.(1) 500,000 4,437,500
- ------------------------------------------------------------------------------------
Newfield Exploration Co.(1) 622,700 10,118,875
- ------------------------------------------------------------------------------------
Noble Drilling Corp.(1) 2,600,000 32,175,000
- ------------------------------------------------------------------------------------
Paramount Resources Ltd. 663,600 5,648,875
- ------------------------------------------------------------------------------------
Santa Fe International Corp. 2,001,400 26,768,725
- ------------------------------------------------------------------------------------
Seacor Holdings, Inc.(1) 300,000 11,812,500
- ------------------------------------------------------------------------------------
Smith International, Inc.(1) 600,000 14,587,500
- ------------------------------------------------------------------------------------
Tidewater, Inc. 1,500,000 28,218,750
- ------------------------------------------------------------------------------------
Transocean Offshore, Inc. 4,020,700 82,926,938
- ------------------------------------------------------------------------------------
Varco International, Inc.(1) 1,000,000 7,750,000
-----------
447,749,038
- ------------------------------------------------------------------------------------
OIL: DOMESTIC--1.4%
Ashland, Inc. 300,000 13,350,000
- ------------------------------------------------------------------------------------
Devon Energy Corp. 600,000 14,062,500
- ------------------------------------------------------------------------------------
Frontier Oil Corp.(1) 1,086,900 5,706,225
- ------------------------------------------------------------------------------------
Kerr-McGee Corp. 400,000 11,425,000
- ------------------------------------------------------------------------------------
Murphy Oil Corp. 100,000 3,418,750
- ------------------------------------------------------------------------------------
Noble Affiliates, Inc. 1,000,000 22,625,000
- ------------------------------------------------------------------------------------
Sunoco, Inc. 360,000 10,957,500
</TABLE>
16 Oppenheimer Main Street Growth & Income Fund
<PAGE> 17
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
OIL: DOMESTIC(CONTINUED)
Tesoro Petroleum Corp.(1) 450,000 $ 3,600,000
- ------------------------------------------------------------------------------------
Union Pacific Resources Group, Inc. 2,000,000 17,875,000
- ------------------------------------------------------------------------------------
Valero Energy Corp. 999,700 17,557,231
- ------------------------------------------------------------------------------------
Vastar Resources, Inc. 1,839,400 70,816,900
----------
191,394,106
- ------------------------------------------------------------------------------------
OIL: INTERNATIONAL--0.8%
Anderson Exploration Ltd.(1) 133,500 1,078,931
- ------------------------------------------------------------------------------------
Berkley Petroleum Corp.(1) 3,116,800 16,930,714
- ------------------------------------------------------------------------------------
Canadian 88 Energy Corp.(1)(2) 9,243,300 25,717,505
- ------------------------------------------------------------------------------------
Canadian Natural Resources Ltd.(1) 1,250,000 17,265,079
- ------------------------------------------------------------------------------------
Chieftain International, Inc.(1)(2) 986,600 9,981,150
- ------------------------------------------------------------------------------------
Newport Petroleum Corp.(1) 2,645,800 6,485,019
- ------------------------------------------------------------------------------------
Poco Petroleums Ltd.(1) 3,000,000 18,581,697
- ------------------------------------------------------------------------------------
Rio Alto Exploration Ltd.(1) 245,000 2,166,705
- ------------------------------------------------------------------------------------
Talisman Energy, Inc.(1) 903,800 14,189,699
- ------------------------------------------------------------------------------------
Tri Link Resources Ltd.(1) 791,000 3,929,979
-----------
116,326,478
- ------------------------------------------------------------------------------------
FINANCIAL--13.0%
- ------------------------------------------------------------------------------------
BANKS--3.7%
AmSouth Bancorp 320,000 15,040,000
- ------------------------------------------------------------------------------------
Bank of New York Co., Inc. (The) 800,000 27,950,000
- ------------------------------------------------------------------------------------
Bank One Corp. 1,485,702 79,856,483
- ------------------------------------------------------------------------------------
BB&T Corp. 690,000 26,133,750
- ------------------------------------------------------------------------------------
Commercial Federal Corp. 742,750 16,201,234
- ------------------------------------------------------------------------------------
First Union Corp. 1,200,000 63,975,000
- ------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 2,000,000 85,875,000
- ------------------------------------------------------------------------------------
Hibernia Corp., Cl. A 350,000 5,665,625
- ------------------------------------------------------------------------------------
National City Corp. 650,000 45,418,750
- ------------------------------------------------------------------------------------
Northern Trust Corp. 540,000 48,262,500
- ------------------------------------------------------------------------------------
Old Kent Financial Corp. 430,000 18,866,250
- ------------------------------------------------------------------------------------
Peoples Heritage Financial Group, Inc. 500,000 8,500,000
- ------------------------------------------------------------------------------------
Regions Financial Corp. 270,000 10,260,000
- ------------------------------------------------------------------------------------
TCF Financial Corp. 630,000 15,159,375
- ------------------------------------------------------------------------------------
Wachovia Corp. 150,000 12,759,375
- ------------------------------------------------------------------------------------
Wells Fargo Co. 1,000,000 36,750,000
----------
516,673,342
</TABLE>
17 Oppenheimer Main Street Growth & Income Fund
<PAGE> 18
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
DIVERSIFIED FINANCIAL--5.0%
AMBAC Financial Group, Inc. 320,000 $ 17,920,000
- ------------------------------------------------------------------------------------
American Express Co. 3,158,400 342,686,400
- ------------------------------------------------------------------------------------
AMRESCO, Inc.(1) 700,000 6,628,125
- ------------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 1,154,400 46,897,500
- ------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 141,750 6,068,672
- ------------------------------------------------------------------------------------
Fannie Mae 1,606,000 112,420,000
- ------------------------------------------------------------------------------------
Financial Security Assurance Holdings Ltd. 294,300 15,542,719
- ------------------------------------------------------------------------------------
Freddie Mac 850,000 50,043,750
- ------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 790,200 41,880,600
- ------------------------------------------------------------------------------------
PaineWebber Group, Inc. 954,900 35,689,388
- ------------------------------------------------------------------------------------
PMI Group, Inc. (The) 600,000 25,875,000
- ------------------------------------------------------------------------------------
Resource Bancshares Mortgage Group, Inc. 300,000 4,200,000
-----------
705,852,154
- ------------------------------------------------------------------------------------
INSURANCE--3.7%
AFLAC, Inc. 200,000 8,825,000
- ------------------------------------------------------------------------------------
Allmerica Financial Corp. 702,200 37,479,925
- ------------------------------------------------------------------------------------
Allstate Corp. 3,155,200 118,320,000
- ------------------------------------------------------------------------------------
American General Corp. 384,000 28,128,000
- ------------------------------------------------------------------------------------
Amerin Corp.(1) 100,000 2,162,500
- ------------------------------------------------------------------------------------
Arm Financial Group, Inc., Cl. A 340,000 5,291,250
- ------------------------------------------------------------------------------------
Chicago Title Corp. 210,000 7,363,125
- ------------------------------------------------------------------------------------
Cigna Corp. 554,000 43,489,000
- ------------------------------------------------------------------------------------
Conseco, Inc. 2,023,600 60,581,525
- ------------------------------------------------------------------------------------
Enhance Financial Services Group, Inc. 290,000 6,869,375
- ------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 570,000 18,916,875
- ------------------------------------------------------------------------------------
Fidelity National Financial, Inc. 530,000 10,600,000
- ------------------------------------------------------------------------------------
Fremont General Corp. 150,000 2,962,500
- ------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 308,000 16,651,250
- ------------------------------------------------------------------------------------
Hartford Life, Inc., Cl. A 430,000 24,940,000
- ------------------------------------------------------------------------------------
Jefferson-Pilot Corp. 97,800 6,632,063
- ------------------------------------------------------------------------------------
LandAmerica Financial Group, Inc. 90,000 3,234,375
- ------------------------------------------------------------------------------------
Lincoln National Corp. 260,000 24,618,750
- ------------------------------------------------------------------------------------
Ohio Casualty Corp. 75,000 3,028,125
- ------------------------------------------------------------------------------------
Old Republic International Corp. 1,000,000 18,812,500
- ------------------------------------------------------------------------------------
Orion Capital Corp. 290,000 9,588,125
- ------------------------------------------------------------------------------------
Reliance Group Holdings, Inc. 200,000 2,062,500
- ------------------------------------------------------------------------------------
Safeco Corp. 1,000,000 40,187,500
- ------------------------------------------------------------------------------------
Stewart Information Services Corp. 85,200 2,838,225
- ------------------------------------------------------------------------------------
Transamerica Corp. 200,000 14,512,500
-----------
518,094,988
</TABLE>
18 Oppenheimer Main Street Growth & Income Fund
<PAGE> 19
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
SAVINGS & LOANS--0.6%
Dime Bancorp, Inc. 1,580,000 $ 39,105,000
- ------------------------------------------------------------------------------------
Golden State Bancorp, Inc.(1) 1,180,000 21,018,750
- ------------------------------------------------------------------------------------
Greenpoint Financial Corp. 350,000 10,740,625
- ------------------------------------------------------------------------------------
Sovereign Bancorp, Inc. 400,000 4,900,000
- ------------------------------------------------------------------------------------
Washington Federal, Inc. 330,000 7,425,000
- ------------------------------------------------------------------------------------
Webster Financial Corp. 150,000 4,584,375
----------
87,773,750
- ------------------------------------------------------------------------------------
HEALTHCARE--12.6%
- ------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--11.0%
Abbott Laboratories 4,100,000 190,393,750
- ------------------------------------------------------------------------------------
American Home Products Corp. 2,100,000 124,950,000
- ------------------------------------------------------------------------------------
Amgen, Inc.(1) 1,000,000 124,875,000
- ------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2,800,000 352,625,000
- ------------------------------------------------------------------------------------
Johnson & Johnson 569,500 48,621,063
- ------------------------------------------------------------------------------------
Merck & Co., Inc. 4,560,000 372,780,000
- ------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 300,000 8,193,750
- ------------------------------------------------------------------------------------
Pfizer, Inc. 300,000 39,581,250
- ------------------------------------------------------------------------------------
Schering-Plough Corp. 3,921,600 219,364,500
- ------------------------------------------------------------------------------------
Warner Lambert Co. 1,001,500 69,166,094
-------------
1,550,550,407
- ------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.6%
Becton, Dickinson & Co. 432,400 14,485,400
- ------------------------------------------------------------------------------------
Beverly Enterprises, Inc.(1) 1,700,000 8,818,750
- ------------------------------------------------------------------------------------
Biomet, Inc.(1) 300,000 11,006,250
- ------------------------------------------------------------------------------------
Cardinal Health, Inc. 1,139,325 82,245,023
- ------------------------------------------------------------------------------------
Foundation Health Systems, Inc.(1) 689,900 5,519,200
- ------------------------------------------------------------------------------------
Genesis Health Ventures, Inc.(1) 1,000,000 5,500,000
- ------------------------------------------------------------------------------------
Integrated Health Services, Inc. 1,134,000 6,733,125
- ------------------------------------------------------------------------------------
Lincare Holdings, Inc.(1) 300,000 10,687,500
- ------------------------------------------------------------------------------------
Medtronic, Inc. 767,260 54,187,738
- ------------------------------------------------------------------------------------
PhyCor, Inc.(1) 1,000,000 5,437,500
- ------------------------------------------------------------------------------------
Quorum Health Group, Inc.(1) 1,617,700 14,963,725
- ------------------------------------------------------------------------------------
Sun Healthcare Group, Inc.(1) 2,000,000 2,750,000
- ------------------------------------------------------------------------------------
VISX, Inc.(1) 160,000 9,880,000
-----------
232,214,211
</TABLE>
19 Oppenheimer Main Street Growth & Income Fund
<PAGE> 20
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
TECHNOLOGY--16.2%
- ------------------------------------------------------------------------------------
COMPUTER HARDWARE--5.9%
CHS Electronics, Inc.(1) 1,200,000 $ 8,400,000
- ------------------------------------------------------------------------------------
Cisco Systems, Inc.(1) 2,000,000 195,625,000
- ------------------------------------------------------------------------------------
International Business Machines Corp. 2,210,000 375,700,000
- ------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 800,000 82,550,000
- ------------------------------------------------------------------------------------
NCR Corp.(1) 400,000 16,375,000
- ------------------------------------------------------------------------------------
Network Appliance, Inc.(1) 160,000 6,720,000
- ------------------------------------------------------------------------------------
Storage Technology Corp. (New)(1) 1,970,000 68,580,625
- ------------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 980,000 95,366,250
-----------
849,316,875
- ------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES--6.8%
Automatic Data Processing, Inc. 1,555,800 61,843,050
- ------------------------------------------------------------------------------------
BMC Software, Inc.(1) 2,120,000 86,655,000
- ------------------------------------------------------------------------------------
Compuware Corp.(1) 440,000 24,612,500
- ------------------------------------------------------------------------------------
International Network Services(1) 80,000 4,090,000
- ------------------------------------------------------------------------------------
J.D. Edwards & Co.(1) 150,000 2,371,875
- ------------------------------------------------------------------------------------
Legato Systems, Inc.(1) 100,000 4,925,000
- ------------------------------------------------------------------------------------
Microsoft Corp.(1) 5,000,000 750,625,000
- ------------------------------------------------------------------------------------
Sabre Group Holdings, Inc.(1) 300,000 11,775,000
- ------------------------------------------------------------------------------------
Sungard Data Systems, Inc.(1) 562,000 22,269,250
-----------
969,166,675
- ------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.5%
Cable Design Technologies Corp.(1) 300,000 3,881,250
- ------------------------------------------------------------------------------------
General Instrument Corp.(1) 480,000 14,040,000
- ------------------------------------------------------------------------------------
Lucent Technologies, Inc. 500,000 50,781,250
----------
68,702,500
- ------------------------------------------------------------------------------------
ELECTRONICS--3.0%
Advanced Micro Devices, Inc.(1) 1,750,000 31,281,250
- ------------------------------------------------------------------------------------
Arrow Electronics, Inc.(1) 1,300,000 18,443,750
- ------------------------------------------------------------------------------------
Avnet, Inc. 230,300 9,140,031
- ------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 885,000 39,382,500
- ------------------------------------------------------------------------------------
Intel Corp. 2,050,000 245,871,875
- ------------------------------------------------------------------------------------
Linear Technology Corp. 300,000 13,143,750
- ------------------------------------------------------------------------------------
LSI Logic Corp.(1) 1,450,000 37,609,375
- ------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,700,000 17,850,000
- ------------------------------------------------------------------------------------
Tektronix, Inc. 200,000 3,900,000
-----------
416,622,531
</TABLE>
20 Oppenheimer Main Street Growth & Income Fund
<PAGE> 21
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
PHOTOGRAPHY--0.0%
Ikon Office Solutions, Inc. 300,000 $ 4,237,500
- ------------------------------------------------------------------------------------
TELECOMMUNICATIONS--8.8%
- ------------------------------------------------------------------------------------
TELEPHONE UTILITIES--5.8%
Ameritech Corp. 3,080,100 201,361,538
- ------------------------------------------------------------------------------------
Bell Atlantic Corp. 2,440,000 140,147,500
- ------------------------------------------------------------------------------------
BellSouth Corp. 5,400,000 249,750,000
- ------------------------------------------------------------------------------------
Century Telephone Enterprises, Inc. 460,000 28,405,000
- ------------------------------------------------------------------------------------
GTE Corp. 2,500,000 162,187,500
- ------------------------------------------------------------------------------------
US West, Inc. 680,000 36,252,500
-----------
818,104,038
- ------------------------------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY--3.0%
AT&T Corp. 3,969,582 326,001,922
- ------------------------------------------------------------------------------------
Sprint Corp. 1,100,000 94,393,750
-----------
420,395,672
- ------------------------------------------------------------------------------------
TRANSPORTATION--2.0%
- ------------------------------------------------------------------------------------
AIR TRANSPORTATION--1.6%
Airborne Freight Corp. 1,000,000 39,000,000
- ------------------------------------------------------------------------------------
Alaska Air Group, Inc.(1) 650,000 32,946,875
- ------------------------------------------------------------------------------------
AMR Corp.(1) 472,000 26,166,500
- ------------------------------------------------------------------------------------
ASA Holdings, Inc. 100,000 3,356,250
- ------------------------------------------------------------------------------------
Comair Holdings, Inc. 150,000 5,643,750
- ------------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B(1) 1,358,478 47,037,301
- ------------------------------------------------------------------------------------
Delta Air Lines, Inc. 700,000 42,568,750
- ------------------------------------------------------------------------------------
UAL Corp.(1) 200,000 11,950,000
- ------------------------------------------------------------------------------------
US Airways Group, Inc.(1) 512,000 24,256,000
-----------
232,925,426
- ------------------------------------------------------------------------------------
RAILROADS & TRUCKERS--0.4%
Burlington Northern Santa Fe Corp. 690,000 22,856,250
- ------------------------------------------------------------------------------------
Union Pacific Corp. 600,000 28,125,000
----------
50,981,250
- ------------------------------------------------------------------------------------
UTILITIES--2.1%
- ------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.1%
Allegheny Energy, Inc. 600,000 17,812,500
- ------------------------------------------------------------------------------------
BEC Energy 150,000 5,465,625
- ------------------------------------------------------------------------------------
Calpine Corp.(1) 50,000 1,637,500
- ------------------------------------------------------------------------------------
Conectiv, Inc. 150,000 3,178,125
- ------------------------------------------------------------------------------------
Consolidated Edison Co. of New York, Inc. 300,000 14,025,000
- ------------------------------------------------------------------------------------
DTE Energy Co. 180,000 7,110,000
</TABLE>
21 Oppenheimer Main Street Growth & Income Fund
<PAGE> 22
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES(CONTINUED)
Energy East Corp. 500,000 $ 26,812,500
- ------------------------------------------------------------------------------------
Florida Progress Corp. 700,000 28,087,500
- ------------------------------------------------------------------------------------
FPL Group, Inc. 608,000 31,274,000
- ------------------------------------------------------------------------------------
IPALCO Enterprises, Inc. 204,100 9,784,044
- ------------------------------------------------------------------------------------
New England Electric System 340,000 16,553,750
- ------------------------------------------------------------------------------------
Northeast Utilities Co.(1) 200,000 2,987,500
- ------------------------------------------------------------------------------------
OGE Energy Corp. 400,000 9,550,000
- ------------------------------------------------------------------------------------
Peco Energy Co. 515,000 18,250,313
- ------------------------------------------------------------------------------------
PG&E Corp. 1,600,000 50,400,000
- ------------------------------------------------------------------------------------
Pinnacle West Capital Corp. 120,000 4,335,000
- ------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 900,000 34,200,000
- ------------------------------------------------------------------------------------
SCANA Corp. 400,000 9,400,000
- ------------------------------------------------------------------------------------
TNP Enterprises, Inc. 90,000 2,632,500
-----------
293,495,857
--------------
Total Common Stocks (Cost $9,848,933,137) 13,017,679,229
</TABLE>
<TABLE>
<CAPTION>
=========================================================================================
OTHER SECURITIES--0.7%
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Houston Industries, Inc., 7% Automatic Common Exchange
Securities for Time Warner, Inc. Common Stock 703,000 76,978,500
- -----------------------------------------------------------------------------------------
Tesoro Petroleum Corp., 7.25% Cum. Cv. Premium Income
Equity Securities, Non-Vtg. 1,100,000 10,862,500
- -----------------------------------------------------------------------------------------
Union Pacific Capital Trust, 6.25% Cum. Term Income
Deferrable Equity Securities, Non-Vtg. 350,300 16,551,675
-----------
Total Other Securities (Cost $67,340,313) 104,392,675
<CAPTION>
UNITS
=========================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- -----------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 18,750 --
- -----------------------------------------------------------------------------------------
Iwerks Entertainment, Inc. Wts., Exp. 7/99 16,400 --
---------
Total Rights, Warrants and Certificates (Cost $0) --
<CAPTION>
FACE
AMOUNT
=========================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--1.0%
- -----------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.50%, 11/15/26 $57,950,000 63,600,125
- -----------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.625%, 2/15/27 64,300,000 71,714,626
-----------
Total U.S. Government Obligations (Cost $118,504,609) 135,314,751
</TABLE>
22 Oppenheimer Main Street Growth & Income Fund
<PAGE> 23
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--3.5%(4)
- ----------------------------------------------------------------------------------------------------------------
CIESCO, LP, 4.82%, 3/11/99 $ 25,000,000 $ 24,966,528
- ----------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 4.81%, 3/1/99 50,000,000 50,000,000
- ----------------------------------------------------------------------------------------------------------------
Equilon Enterprises LLC, 4.82%, 3/18/99 50,000,000 49,886,194
- ----------------------------------------------------------------------------------------------------------------
Equilon Enterprises LLC, 4.86%, 4/6/99 40,000,000 39,805,600
- ----------------------------------------------------------------------------------------------------------------
General Electric Capital Services, 4.81%, 3/2/99 50,000,000 49,993,319
- ----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 4.84%, 3/8/99 50,000,000 49,952,944
- ----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 4.87%, 3/1/99 100,000,000 100,000,000
- ----------------------------------------------------------------------------------------------------------------
Homeside Lending, Inc., 4.84%, 3/22/99 14,000,000 13,960,473
- ----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 4.85%, 4/1/99 50,000,000 49,791,181
- ----------------------------------------------------------------------------------------------------------------
Motiva Enterprises LLC, 4.82%, 3/25/99 19,500,000 19,437,340
- ----------------------------------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc., 4.88%, 4/9/99 50,000,000 49,735,667
--------------
Total Short-Term Notes (Cost $497,529,246) 497,529,246
================================================================================================================
REPURCHASE AGREEMENTS--0.9%
- ----------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 4.73%,
dated 2/26/99, to be repurchased at $125,149,310 on 3/1/99,
collateralized by U.S. Treasury Nts., 5.375%-7.875%, 6/30/99-2/15/07,
with a value of $128,415,607 (Cost $125,100,000) 125,100,000 125,100,000
- ----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $10,657,407,305) 98.1% 13,880,015,901
- ----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.9 265,413,676
----------- ---------------
NET ASSETS 100.0% $14,145,429,577
=========== ===============
</TABLE>
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended February 28, 1999.
The aggregate fair value of securities of affiliated companies held by the Fund
as of February 28, 1999, amounts to $35,698,655. Transactions during the period
in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
SHARES GROSS GROSS SHARES
AUGUST 31, 1998 ADDITIONS REDUCTIONS FEBRUARY 28, 1999
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canadian 88 Energy Corp.(3) 2,421,900 6,821,400 -- 9,243,300
- ----------------------------------------------------------------------------------------------------------------
Chieftain International, Inc.(3) 190,200 796,400 -- 986,600
</TABLE>
3. Not an affiliate as of August 31, 1998.
4. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
23 Oppenheimer Main Street Growth & Income Fund
<PAGE> 24
STATEMENT OF ASSETS AND LIABILITIES February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $10,657,407,305)--see accompanying statement $13,880,015,901
- ----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 232,036,392
Shares of capital stock sold 51,094,201
Interest and dividends 12,987,468
Other 207,461
---------------
Total assets 14,176,341,423
================================================================================================================
LIABILITIES
Bank overdraft 1,457,556
- ----------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 17,526
- ----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 15,320,126
Investments purchased 7,011,064
Distribution and service plan fees 5,658,722
Shareholder reports 770,593
Custodian fees 109,162
Directors' compensation 18,789
Other 548,308
---------------
Total liabilities 30,911,846
================================================================================================================
NET ASSETS $14,145,429,577
===============
================================================================================================================
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 3,609,104
- ----------------------------------------------------------------------------------------------------------------
Additional paid-in capital 10,183,920,884
- ----------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (1,624,329)
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 736,910,921
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 3,222,612,997
---------------
Net assets $14,145,429,577
===============
</TABLE>
24 Oppenheimer Main Street Growth & Income Fund
<PAGE> 25
<TABLE>
================================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$6,648,522,327 and 168,921,844 shares of capital stock outstanding) $39.36
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $41.76
- ----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets
of $5,839,784,859 and 149,563,440 shares of capital stock outstanding) $39.05
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets
of $1,561,878,688 and 40,008,621 shares of capital stock outstanding) $39.04
- ----------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $95,243,703 and 2,416,473 shares of capital stock outstanding) $39.41
</TABLE>
See accompanying Notes to Financial Statements.
25 Oppenheimer Main Street Growth & Income Fund
<PAGE> 26
STATEMENT OF OPERATIONS For the Six Months Ended February 28, 1999 (Unaudited)
<TABLE>
================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $2,776) $ 68,688,581
- ----------------------------------------------------------------------------------------------------------------
Interest 20,378,685
--------------
Total income 89,067,266
================================================================================================================
EXPENSES
Management fees--Note 4 28,385,959
- ----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 7,289,720
Class B 25,397,444
Class C 6,831,146
- ----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 3,850,326
Class B 3,310,636
Class C 894,115
Class Y 71,824
- ----------------------------------------------------------------------------------------------------------------
Shareholder reports 1,457,407
- ----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 236,797
Class B 223,144
Class C 101,334
Class Y 8,851
- ----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 221,093
- ----------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 72,533
- ----------------------------------------------------------------------------------------------------------------
Directors' compensation 62,056
- ----------------------------------------------------------------------------------------------------------------
Insurance expenses 23,658
- ----------------------------------------------------------------------------------------------------------------
Other 408,512
--------------
Total expenses 78,846,555
Less expenses paid indirectly--Note 4 (37,772)
--------------
Net expenses 78,808,783
================================================================================================================
NET INVESTMENT INCOME 10,258,483
================================================================================================================
REALIZED AND UNREALIZED GAIN
Net realized gain on:
Investments 742,679,336
Foreign currency transactions 2,884,725
--------------
Net realized gain 745,564,061
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 2,049,382,576
Translation of assets and liabilities denominated in foreign currencies 1,309,221
--------------
Net change 2,050,691,797
--------------
Net realized and unrealized gain 2,796,255,858
================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,806,514,341
==============
</TABLE>
See accompanying Notes to Financial Statements.
26 Oppenheimer Main Street Growth & Income Fund
<PAGE> 27
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, 1999 YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 10,258,483 $ 46,924,022
- ----------------------------------------------------------------------------------------------------------------
Net realized gain 745,564,061 764,056,008
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 2,050,691,797 (651,255,521)
------------- ------------
Net increase in net assets resulting from operations 2,806,514,341 159,724,509
================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (19,091,370) (45,226,904)
Class B --- (8,782,796)
Class C --- (2,469,141)
Class Y (279,229) (333,013)
- ----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (234,001,458) (337,281,891)
Class B (203,345,437) (260,785,205)
Class C (54,987,189) (77,385,259)
Class Y (3,019,461) (1,708,194)
================================================================================================================
CAPITAL STOCK TRANSACTIONS
Net increase in net assets resulting from capital stock transactions--Note 2:
Class A 620,359,510 728,868,147
Class B 741,044,780 1,112,912,778
Class C 163,929,284 178,104,386
Class Y 29,235,895 41,849,349
================================================================================================================
NET ASSETS
Total increase 3,846,359,666 1,487,486,766
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 10,299,069,911 8,811,583,145
-------------- -------------
End of period [including undistributed (overdistributed) net
investment income of $(1,624,329) and $7,487,787, respectively] $14,145,429,577 $10,299,069,911
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
27 Oppenheimer Main Street Growth & Income Fund
<PAGE> 28
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
SIX MONTHS ENDED YEAR
FEBRUARY 28, ENDED
1999 YEAR ENDED AUGUST 31, JUNE 30,
(UNAUDITED) 1998 1997 1996(3) 1996
=================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $32.32 $33.87 $27.95 $28.89 $24.07
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .10 .29 .39 .07 .40
Net realized and unrealized gain (loss) 8.56 .99 7.91 (1.01) 4.93
------ ------ ------ ------ -------
Total income (loss) from
investment operations 8.66 1.28 8.30 (.94) 5.33
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.12) (.33) (.40) -- (.43)
Distributions from net realized gain (1.50) (2.50) (1.98) -- (.08)
Distributions in excess of gains -- -- -- -- --
------ ------ ------ ------ -------
Total dividends and distributions
to shareholders (1.62) (2.83) (2.38) -- (.51)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.36 $32.32 $33.87 $27.95 $28.89
====== ====== ====== ====== =======
=================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 27.12% 3.68% 31.09% 3.25% 22.26%
=================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $6,649 $4,933 $4,457 $3,143 $3,147
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $5,964 $5,184 $3,857 $3,090 $2,516
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.56%(6) 0.83% 1.29% 1.57%(6) 1.55%
Expenses(7) 0.87%(6) 0.90% 0.94% 0.98%(6) 0.99%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 34% 81% 62% 18% 93%
</TABLE>
1. For the period from November 1, 1996 (inception of offering) to August 31,
1997.
2. For the period from December 1, 1993 (inception of offering) to June 30,
1994.
3. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
4. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
5. Assumes a $1,000 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.
28 Oppenheimer Main Street Growth & Income Fund
<PAGE> 29
<TABLE>
<CAPTION>
CLASS B
- --------------------- ---------------------------------------------------------------------------------
SIX MONTHS
ENDED
FEBRUARY 28,
1999 YEAR ENDED AUGUST 31, YEAR ENDED JUNE 30,
1995 1994 (UNAUDITED) 1998 1997 1996(3) 1996 1995(4)
===============================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$20.40 $19.88 $32.07 $33.66 $27.79 $28.77 $24.00 $21.49
- ---------------------------------------------------------------------------------------------------------------
.47 .37 (.03) .04 .17 .04 .23 .25
3.66 2.50 8.51 .96 7.86 (1.02) 4.87 2.54
- ------ ------ ------ ------ ------ ------ ------ ------
4.13 2.87 8.48 1.00 8.03 (.98) 5.10 2.79
- ---------------------------------------------------------------------------------------------------------------
(.46) (.36) -- (.09) (.18) -- (.25) (.28)
-- -- (1.50) (2.50) (1.98) -- (.08) --
-- (1.99) -- -- -- -- -- --
- ------ ------ ------ ------ ------ ------ ------ ------
(.46) (2.35) (1.50) (2.59) (2.16) -- (.33) (.28)
- ---------------------------------------------------------------------------------------------------------------
$24.07 $20.40 $39.05 $32.07 $33.66 $27.79 $28.77 $24.00
====== ====== ====== ====== ====== ====== ====== ======
===============================================================================================================
20.52% 14.34% 26.69% 2.86% 30.12% (3.41)% 21.34% 13.41%
===============================================================================================================
$1,924 $740 $5,840 $4,168 $3,308 $1,909 $1,800 $628
- ---------------------------------------------------------------------------------------------------------------
$1,319 $270 $5,139 $4,123 $2,642 $1,818 $1,155 $249
- ---------------------------------------------------------------------------------------------------------------
2.31% 2.46% (0.20)%(6) 0.06% 0.53% 0.82%(6) 0.74% 1.25%(6)
1.07% 1.28% 1.63%(6) 1.66% 1.69% 1.74%(6) 1.76% 21.89%(6)
- ---------------------------------------------------------------------------------------------------------------
101% 199% 34% 81% 62% 18% 93% 101%
</TABLE>
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expenses have not been adjusted.
8. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended February 28, 1999, were $4,808,767,094 and $4,098,868,725, respectively.
29 Oppenheimer Main Street Growth & Income Fund
<PAGE> 30
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, YEAR ENDED AUGUST 31,
1999 (UNAUDITED) 1998 1997 1996(3)
================================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $32.07 $33.64 $27.78 $28.75
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (.03) .03 .16 .04
Net realized and unrealized gain (loss) 8.50 .98 7.85 (1.01)
------ ------ ------ ------
Total income (loss) from
investment operations 8.47 1.01 8.01 (.97)
- ----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.08) (.17) --
Distributions from net realized gain (1.50) (2.50) (1.98) --
Distributions in excess of gains -- -- -- --
------ ------ ------ ------
Total dividends and distributions
to shareholders (1.50) (2.58) (2.15) --
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.04 $32.07 $33.64 $27.78
====== ====== ====== ======
================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 26.66% 2.91% 30.07% (3.37)%
================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $1,562 $1,145 $1,030 $744
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,390 $1,184 $ 904 $730
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (0.20)%(6) 0.07% 0.54% 0.82%(6)
Expenses 1.63%(6) 1.65% 1.69% 1.73%(6)
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 34% 81% 62% 18%
</TABLE>
1. For the period from November 1, 1996 (inception of offering) to August 31,
1997.
2. For the period from December 1, 1993 (inception of offering) to June 30,
1994.
3. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
4. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
5. Assumes a $1,000 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.
30 Oppenheimer Main Street Growth & Income Fund
<PAGE> 31
<TABLE>
<CAPTION>
CLASS Y
- ------------------------------------ -----------------------------------------------
SIX MONTHS ENDED
YEAR ENDED JUNE 30, FEBRUARY 28, YEAR ENDED AUGUST 31,
1996 1995 1994(2) 1999 (UNAUDITED) 1998 1997(1)
================================================================================================
<S> <C> <C> <C> <C> <C>
$23.97 $20.33 $20.76 $32.38 $33.94 $29.55
- ------------------------------------------------------------------------------------------------
.21 .33 .13 .12 .38 .41
4.88 3.62 (.42) 8.56 .97 6.30
- ------ ------ ------ ------ ------ ------
5.09 3.95 (.29) 8.68 1.35 6.71
- ------------------------------------------------------------------------------------------------
(.23) (.31) (.14) (.15) (.41) (.34)
(.08) -- -- (1.50) (2.50) (1.98)
-- -- -- -- -- --
- ------- ------ ------ ------ ------ ------
(.31) (.31) (.14) (1.65) (2.91) (2.32)
- ------------------------------------------------------------------------------------------------
$28.75 $23.97 $20.33 $39.41 $32.38 $33.94
====== ====== ====== ====== ====== ======
================================================================================================
21.35% 19.63% (1.44)% 27.15% 3.88% 23.98%
================================================================================================
$741 $462 $170 $95 $53 $16
- ------------------------------------------------------------------------------------------------
$588 $325 $ 72 $76 $37 $ 5
- ------------------------------------------------------------------------------------------------
0.80% 1.57% 1.86%(6) 0.58%(6) 1.02% 1.58%(6)
1.74% 1.82% 2.11%(6) 0.83%(6) 0.67% 0.65%(6)
- ------------------------------------------------------------------------------------------------
93% 101% 199% 34% 81% 62%
</TABLE>
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expenses have not been adjusted.
8. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended February 28, 1999, were $4,808,767,094 and $4,098,868,725, respectively.
See accompanying Notes to Financial Statements.
31 Oppenheimer Main Street Growth & Income Fund
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Growth & Income 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
operated under the name Oppenheimer Main Street Income & Growth Fund through
December 21, 1998. The Fund's investment objective is to seek high total return,
which includes current income and capital appreciation in the value of its
shares. It invests in equity and debt securities. The Fund's investment advisor
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,
except for purchases greater than $1 million. Class A, 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 that class and
exclusive voting rights with respect to matters affecting that class. Classes 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 an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of 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 markets on a daily basis as provided by a reliable bank or dealer.
- --------------------------------------------------------------------------------
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 foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
32 Oppenheimer Main Street Growth & Income Fund
<PAGE> 33
================================================================================
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, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
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 its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
- --------------------------------------------------------------------------------
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.
33 Oppenheimer Main Street Growth & Income Fund
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 840 million shares of $.01 par value capital stock (400
million for Class A, 300 million for Class B, 100 million for Class C and 40
million for Class Y). Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED FEBRUARY 28, 1999 YEAR ENDED AUGUST 31, 1998
---------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 24,821,750 $ 937,564,514 36,063,568 $1,301,502,710
Dividends and
distributions reinvested 6,476,784 240,778,246 11,155,518 367,256,659
Redeemed (15,021,696) (557,983,250) (26,184,202) (939,891,222)
----------- ------------- ----------- --------------
Net increase 16,276,838 $ 620,359,510 21,034,884 $ 728,868,147
=========== ============= =========== ==============
- ----------------------------------------------------------------------------------------------------------------
Class B:
Sold 23,923,647 $ 899,278,208 37,520,500 $1,345,971,561
Dividends and
distributions reinvested 5,185,612 192,644,022 7,843,422 255,472,251
Redeemed (9,512,486) (350,877,450) (13,683,243) (488,531,034)
----------- ------------- ----------- --------------
Net increase 19,596,773 $ 741,044,780 31,680,679 $1,112,912,778
=========== ============= =========== ==============
- ----------------------------------------------------------------------------------------------------------------
Class C:
Sold 6,216,763 $ 233,962,281 8,806,101 $ 317,722,662
Dividends and
distributions reinvested 1,399,471 51,976,362 2,313,726 75,333,277
Redeemed (3,303,340) (122,009,359) (6,042,849) (214,951,553)
----------- ------------- ----------- --------------
Net increase 4,312,894 $ 163,929,284 5,076,978 $ 178,104,386
=========== ============= =========== ==============
- ----------------------------------------------------------------------------------------------------------------
Class Y:
Sold 998,265 $ 37,577,241 1,573,594 $ 56,981,398
Dividends and
distributions reinvested 88,649 3,298,690 61,592 2,041,207
Redeemed (309,232) (11,640,036) (475,241) (17,173,256)
----------- ------------- ----------- --------------
Net increase 777,682 $ 29,235,895 1,159,945 $ 41,849,349
=========== ============= =========== ==============
</TABLE>
34 Oppenheimer Main Street Growth & Income Fund
<PAGE> 35
===============================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of February 28, 1999, net unrealized appreciation on investments of
$3,222,608,596 was composed of gross appreciation of $3,694,945,709, and gross
depreciation of $472,337,113.
===============================================================================
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 average annual net assets of the Fund, 0.60% of the next $150
million, 0.55% of the next $150 million and 0.45% of average annual net assets
in excess of $500 million. The Fund's management fee for the six months ended
February 28, 1999 was 0.46% of average annual net assets for each class of
shares.
For the six months ended February 28, 1999, commissions
(sales charges paid by investors) on sales of Class A shares totaled
$14,680,151, of which $3,822,597 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 A, Class B and Class C shares totaled $715,250,
$24,555,180 and $1,711,263, respectively. Amounts paid to an affiliated
broker/dealer for Class B and Class C shares were $1,300,534 and $39,024,
respectively. During the six months ended February 28, 1999, OFDI received
contingent deferred sales charges of $25,925, $4,812,035 and $156,696,
respectively, upon redemption of Class A, Class B and Class C shares as
reimbursement for sales commissions advanced by OFDI at the time of sale of such
shares.
OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
Expenses paid indirectly represent a reduction of custodian
fees for earnings on cash balances maintained by the Fund.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of shareholder accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not exceed
0.25% of the average annual net assets of Class A shares of the Fund. OFDI uses
the service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance of
accounts of their customers that hold Class A shares. During the six months
ended February 28, 1999, OFDI paid $370,246 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
35 Oppenheimer Main Street Growth & Income Fund
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES(CONTINUED)
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to reimburse OFDI for its costs in distributing Class B and Class C
shares and servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B and Class C shares for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to reimburse dealers for providing personal
services for accounts that hold Class B and Class C shares. Each fee is computed
on the average annual net assets of Class B or Class C shares, determined as of
the close of each regular business day. During the six months ended February 28,
1999, OFDI paid $121,616 and $107,801, respectively, to an affiliated
broker/dealer as reimbursement for Class B and Class C personal service and
maintenance expenses and retained $20,580,797 and $4,035,037, respectively, as
reimbursement for Class B and Class C sales commissions and service fee
advances, as well as financing costs. If either Plan is terminated by the Fund,
the Board of Directors may allow the Fund to continue payments of the
asset-based sales charge to OFDI for distributing shares before the Plan was
terminated. As of February 28, 1999, OFDI had incurred excess distribution and
servicing costs of $119,999,835 for Class B and $12,000,712 for Class C.
================================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign
currency risks. They may also be used to tactically shift portfolio currency
risk. The Fund generally enters into forward contracts as a hedge upon the
purchase or sale of a security denominated in a foreign currency. In addition,
the Fund may enter into such contracts as a hedge against changes in foreign
currency exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of
the forward currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable bank or dealer. The Fund will realize a
gain or loss upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure
on outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the counterparty to
meet the terms of the contract and unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
36 Oppenheimer Main Street Growth & Income Fund
<PAGE> 37
<TABLE>
<CAPTION>
=================================================================================================================
As of February 28, 1999, the Fund had outstanding forward contracts as follows:
CONTRACT VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATES AMOUNT (000S) FEBRUARY 28, 1999 DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
- ---------------------
Canadian Dollar (CAD) 3/1/99 - 3/2/99 5,212 CAD $3,452,444 $17,526
=================================================================================================================
</TABLE>
6. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the six months
ended February 28, 1999.
37 Oppenheimer Main Street Growth & Income Fund
<PAGE> 38
OPPENHEIMER MAIN STREET GROWTH & INCOME 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, Director, Vice President,
Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Charles Albers, Vice President
Nikolaos D. Monoyios, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT 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 of the independent
auditors. This is a copy of a report to
shareholders of Oppenheimer Main Street Growth
& Income Fund. This report must be preceded or
accompanied by a Prospectus of Oppenheimer
Main Street Growth & Income 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 the possible loss
of the principal amount invested.
38 Oppenheimer Main Street Growth & Income Fund
<PAGE> 39
OPPENHEIMERFUNDS FAMILY
<TABLE>
========================================================================================================
<S> <C> <C>
REAL ASSET FUNDS
- --------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
========================================================================================================
GLOBAL STOCK FUNDS
- --------------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
========================================================================================================
STOCK FUNDS
- --------------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
========================================================================================================
STOCK & BOND FUNDS
- --------------------------------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
========================================================================================================
TAXABLE BOND FUNDS
- --------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
========================================================================================================
MUNICIPAL BOND FUNDS
- --------------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
========================================================================================================
MONEY MARKET FUNDS(4)
- --------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. On 4/1/99, the Fund's name was changed from "Equity Income Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
39 Oppenheimer Main Street Growth & Income Fund
<PAGE> 40
INTERNET
24-hr access to account
information. Online
transactions now available
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-6pm ET
1-800-843-4461
OPPENHEIMER FUNDS
INFORMATION HOTLINE
24 hours a day, timely
and insightful messages
on the economy and issues
that affect your investments
1-800-835-3104
INFORMATION and services
- --------------------------------------------------------------------------------
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
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handle administrative requests. You can reach them at our General Information
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When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or saving account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[OPPENHEIMERFUNDS LOGO]
RS0700.001.0299 April 29, 1999
