[photo of tree-lined road]
Annual Report August 31, 1999
Oppenheimer
Main Street(R)
Growth & Income Fund
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
The stock market came full circle during the reporting period, beginning with
last fall's correction and ending in August with new record highs.
Although the performance of large-cap growth stocks led the markets through
March, smaller stocks and value-oriented companies generally outperformed large
growth companies between April and August 1999.
We recently increased our holdings of energy and capital goods stocks we believe
were attractively valued and reduced our holdings of pharmaceutical and consumer
staples companies we believe were overvalued.
Contents
3 President's Letter
5 An Interview
with Your Fund's
Managers
9 Fund Performance
14 Financial
Statements
45 Independent
Auditors' Report
46 Federal
Income Tax
Information
47 Officers and Trustees
48 Information and
Services
- -----------------------------------
Average Annual
Total Returns
For the 1-Year Period
Ended 8/31/99*
<TABLE>
<CAPTION>
Class A
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
38.62% 30.65%
<CAPTION>
Class B
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
37.62% 32.62%
<CAPTION>
Class C
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
37.59% 36.59%
<CAPTION>
Class Y
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
38.84% 38.84%
</TABLE>
- -----------------------------------
- ----------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- ----------------------
* See page 12 for further details.
2 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
[photo]
James C. Swain
Chairman
Oppenheimer
Main Street Growth &
Income Fund
Bridget A. Macaskill
President
Oppenheimer
Main Street Growth &
Income Fund
Dear shareholder,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
3 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against inflation.
In our view, history has repeatedly demonstrated that most financial assets do
best in a low-inflation environment. What's more, we believe that the move to
higher interest rates should be temporary.
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue, we
are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
September 22, 1999
4 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[photo]
Portfolio Management
Team (l to r)
Charles Albers
Nikolaos Monoyios
Q How did Oppenheimer Main Street Growth & Income Fund perform during the
one-year period that ended August 31, 1999?
A. We are pleased with the Fund's performance over the past year, which we
attribute to our disciplined investment approach. We combine state-of-the-art
quantitative analysis with fundamental research and professional judgment to
help us identify stocks that we believe will outperform the overall stock market
over long periods of time.
Can you describe the investment environment over the past year?
When the reporting period began, stocks were in the midst of a sharp correction
created by economic concerns in overseas markets. The currency and credit crisis
that punished emerging Asian markets in 1997 had spread to Russia and was
threatening Latin America. Investors in the United States appeared to be
concerned that recessionary conditions in these markets might derail the U.S.
economy, potentially causing corporate profits to erode. In response to these
concerns, the Federal Reserve Board and other central banks worldwide reduced
key short-term interest rates in an attempt to stimulate global economic growth
and provide liquidity to the world's financial markets.
This strategy apparently was effective. Evidence began to emerge early in
1999 that the worst of the global financial crisis might be over. Despite
investor concerns about a potential slowdown, the U.S. economy continued to grow
strongly throughout the first eight months of 1999, driven in part by domestic
consumer spending. In effect, the U.S. consumer helped offset weakness that may
have developed in the export and industrial sectors of the economy. By the end
of August, major stock indices were once again setting new records.
5 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
In response to persistently strong economic conditions, the Federal Reserve
Board reversed course and increased short-term interest rates modestly in June
and August, effectively offsetting most of last fall's rate cuts.
What areas of the U.S. stock market provided the best returns?
Until April 1999, large-capitalization growth stocks generally led the market's
performance. In an uncertain economic environment with low interest rates,
investors appeared to be willing to pay high prices for the predictable earnings
that these growth companies typically provide. In addition, they generally
focused on large, well-established growth companies instead of less recognizable
mid-cap and small-cap companies.
In April, however, the strength of the U.S. economy caused this situation
to reverse. With interest rates rising, growth stocks generally appeared to be
quite expensive after their long rally. At the same time, the stocks of many
smaller companies and economically sensitive businesses were regarded as
inexpensively priced relative to their potential. In addition, many
value-oriented stocks that did not participate in the growth-stock rally became
attractive to investors seeking the stocks of sound businesses selling at
attractive prices. As a result, smaller companies, value stocks and economically
sensitive businesses generally led the markets between April and August 1999.
How was the Fund managed in this environment?
From September 1 through the end of March, we focused primarily on large-cap
growth stocks. That's because our quantitative models--which evaluate
characteristics of individual stocks--generally ranked large-cap growth stocks
higher than smaller stocks and value stocks in the prevailing market
environment. Accordingly, the Fund was focused on growth sectors such as
healthcare, technology and telecommunications.
[callout]
"We believe that a stock's potential can be more accurately assessed through a
disciplined decision-making process that includes both quantitative and
qualitative components."
6 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Beginning in April, our quantitative models began to signal a shift in market
leadership to smaller stocks, cyclical stocks and value stocks. Fundamental
analysis and our qualitative judgment confirmed this shift. Accordingly, we
began to increase our holdings of stocks in the energy and capital goods
sectors, which benefited from rising commodities prices in a strong economy.
Within the energy sector, we invested in smaller oil services companies as well
as large, integrated, international oil companies. In the capital goods sector,
we focused on large manufacturers.
At the same time, we reduced our exposure to those growth areas that we
believed to be most overvalued. These areas included the healthcare industry,
where we sold some of our holdings in large pharmaceutical companies, and
consumer staples companies, including some of the larger consumer goods
manufacturers.
The technology sector represented one growth area that we did not reduce
significantly. We have consistently focused on some of the larger, better
established companies in this area, including Microsoft Corp., IBM Corp., Intel
Corp. and Hewlett-Packard Co. We did not invest heavily in smaller, "pure"
Internet companies, enabling us to avoid much of the high levels of volatility
they produced over the past year.
What are your quantitative models, fundamental research and professional
judgment telling you about the coming months?
In our judgment, value stocks are likely to continue to outperform growth stocks
as long as global and domestic economic conditions remain strong. In addition,
although the Fund currently focuses primarily on large-capitalization stocks, we
are beginning to find attractive values among smaller stocks, and we have also
established positions in a carefully selected group of mid-cap companies.
- ----------------------------------
Average Annual
Total Returns
For the Periods Ended 9/30/99(1)
<TABLE>
<CAPTION>
Class A
1-Year 5-Year 10-Year
...........................
<S> <C> <C>
20.52% 18.43% 20.49%
<CAPTION>
Class B Since
1-Year 5-Year Inception
...........................
<S> <C> <C>
21.91% N/A 18.80%
<CAPTION>
Class C Since
1-Year 5-Year Inception
...........................
<S> <C> <C>
25.88% 18.94% 16.84%
<CAPTION>
Class Y Since
1-Year 5-Year Inception
...........................
<S> <C> <C>
28.02% N/A 20.97%
</TABLE>
- ----------------------------------
1. See page 12 for further details.
7 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Regardless of prevailing market conditions, however, we intend to continue to
refine our quantitative models to improve their power as analytical tools. We
have also enhanced our fundamental research resources and trading capabilities
in ways that should enhance our ability to outperform the market averages. In
our view, this commitment to investment excellence is an important part of what
makes OppenheimerFunds The Right Way to Invest.
- -------------------------
Portfolio Allocation(2)
[pie chart]
Stocks 93.0%
Cash Equivalents 6.2
Bonds 0.8
- -------------------------
Top Five Industries(2)
- ----------------------------------------------------------
Healthcare/Drugs 9.7%
- ----------------------------------------------------------
Computer Hardware 7.1
- ----------------------------------------------------------
Oil: International 6.3
- ----------------------------------------------------------
Electronics 5.7
- ----------------------------------------------------------
Telephone Utilities 5.3
Top 10 Stock Holdings(2)
- ----------------------------------------------------------
Intel Corp. 4.2%
- ----------------------------------------------------------
Wal-Mart Stores, Inc. 3.6
- ----------------------------------------------------------
IBM Corp. 3.3
- ----------------------------------------------------------
Microsoft Corp. 3.1
- ----------------------------------------------------------
Merck & Co., Inc. 2.3
- ----------------------------------------------------------
Johnson & Johnson 2.3
- ----------------------------------------------------------
General Electric Co. 2.3
- ----------------------------------------------------------
Bristol-Myers Squibb Co. 2.1
- ----------------------------------------------------------
Hewlett-Packard Co. 1.9
- ----------------------------------------------------------
BellSouth Corp. 1.9
2. Portfolio is subject to change. Percentages are as of August 31, 1999, and
are based on total market value of investments.
8 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FUND PERFORMANCE
How has the Fund performed? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended August 31, 1999, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's discussion of performance. During the Fund's fiscal year that ended
August 31, 1999, Oppenheimer Main Street Growth & Income Fund provided good
performance. The Fund was heavily invested in large growth stocks when they led
the market between September 1998 and April 1999. In the May through August
period, the Manager began to shift the emphasis to value-oriented stocks and
economically sensitive stocks that were benefiting from strong economic
conditions in the United States. In addition, throughout the reporting period,
the Fund's technology holdings contributed positively to performance. The Fund's
portfolio holdings, allocations and strategies are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 1999. In the case of Class A shares, performance is
measured over a ten-year period; in the case of Class B shares, from the
inception of the class on October 3, 1994; in the case of Class C shares, from
the inception of the class on December 1, 1993; and in the case of Class Y
shares, from the inception of the class on November 1, 1996. The graphs reflect
the deduction of the maximum initial sales charge on Class A shares and the
applicable contingent deferred sales charge for Class B and Class C shares, and
reinvestment of all dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index. The S&P 500 Index is a broad-based index of equity
securities widely regarded as a general measurement of the performance of the
U.S. equity securities market. Index performance reflects the reinvestment of
dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs shows the effect of taxes. The Fund's
performance reflects the effects of Fund business and operating expenses. While
index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to the
securities in the S&P 500 index, which tend to be securities of larger,
well-capitalized companies.
9 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FUND PERFORMANCE
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Growth & Income Fund (Class A)
and S&P 500
[line chart]
Oppenheimer Main Street Growth & Income Fund Class A S&P 500
6.30.89 9425 10000
6.30.90 10280 11646
6.30.91 11369 12503
6.30.92 15858 14177
6.30.93 23213 16107
6.30.94 26540 16334
6.30.95 31986 20584
6.30.96 39106 25928
8.31.96 37834 25305
8.31.97 49595 35581
8.31.98 51419 38446
8.31.99 71277 53774
Average Annual Total Return of Class A Shares of the Fund at 8/31/99(2)
1-Year 30.65% 5-Year 18.72% 10-Year 20.89%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Growth & Income Fund (Class B)
and S&P 500
[line chart]
Oppenheimer Main Street Growth & Income Fund Class B S&P 500
10.3.94 10000 10000
6.30.95 11341 12015
6.30.96 13762 15134
8.31.96 13293 14771
8.31.97 17298 20769
8.31.98 17792 22453
8.31.99 24285 31389
Average Annual Total Return of Class B Shares of the Fund at 8/31/99(2)
1-Year 32.62% Life 19.80%
The performance information in the graphs for S&P 500 Index begins on 6/30/89
for Class A, 9/30/94 for Class B, 11/30/93 for Class C and 10/31/96 for Class Y.
1. The Fund changed its fiscal year end from 6/30 to 8/31.
10 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Growth & Income Fund (Class C)
and S&P 500
[line chart]
Oppenheimer Main Street Growth & Income Fund Class C S&P 500
12.1.93 10000 10000
6.30.94 9856 9778
6.30.95 11789 12323
6.30.96 14308 15521
8.31.96 13825 15148
8.31.97 17981 21300
8.31.98 18505 23028
8.31.99 25460 32191
Average Annual Total Return of Class C Shares of the Fund at 8/31/99(2)
1-Year 36.59% 5-Year 19.24% Life 17.65%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Growth & Income Fund (Class Y)
and S&P 500
[line chart]
Oppenheimer Main Street Growth & Income Fund Class Y S&P 500
11.1.96 10000 10000
8.31.97 12398 12955
8.31.98 12879 14006
8.31.99 17882 19579
Average Annual Total Return of Class Y Shares of the Fund at 8/31/99(2)
1-Year 38.84% Life 22.77%
2. See page 12 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES
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 of ongoing
market volatility, 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.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
Class A. The inception date of the Fund was 2/3/88. Class A returns include the
current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 10/3/94. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (since inception). Class B shares are subject to an annual 0.75%
asset-based sales charge. The ending account value shown in the graph is net of
the applicable 2% contingent deferred sales charge.
Class C shares of the Fund were first publicly offered on 12/1/93. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 11/1/96. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
12 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Financials
13 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS August 31, 1999
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
===================================================================================
<S> <C> <C>
Common Stocks--91.2%
- -----------------------------------------------------------------------------------
Basic Materials--1.8%
- -----------------------------------------------------------------------------------
Chemicals--1.4%
Dexter Corp. 300,000 $ 10,931,250
- -----------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 700,000 44,362,500
- -----------------------------------------------------------------------------------
Ecolab, Inc. 300,000 11,268,750
- -----------------------------------------------------------------------------------
Goodrich (B.F.) Co. 850,000 31,396,875
- -----------------------------------------------------------------------------------
Great Lakes Chemical Corp. 50,000 2,059,375
- -----------------------------------------------------------------------------------
Lone Star Industries, Inc. 440,000 15,125,000
- -----------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 300,000 11,737,500
- -----------------------------------------------------------------------------------
PPG Industries, Inc. 90,000 5,405,625
- -----------------------------------------------------------------------------------
Rohm & Haas Co. 372,000 13,903,500
- -----------------------------------------------------------------------------------
Schulman (A.), Inc. 300,000 5,381,250
- -----------------------------------------------------------------------------------
Solutia, Inc. 1,450,000 29,000,000
- -----------------------------------------------------------------------------------
Union Carbide Corp. 842,300 47,905,812
- -----------------------------------------------------------------------------------
Universal Corp. 100,000 2,837,500
------------
231,314,937
- -----------------------------------------------------------------------------------
Metals--0.2%
Armco, Inc.(1) 1,500,000 10,312,500
- -----------------------------------------------------------------------------------
Inco Ltd. 390,800 8,011,400
- -----------------------------------------------------------------------------------
Reliance Steel & Aluminum Co. 120,000 3,975,000
- -----------------------------------------------------------------------------------
Ryerson Tull, Inc. 505,300 9,569,119
------------
31,868,019
- -----------------------------------------------------------------------------------
Paper--0.2%
Louisiana-Pacific Corp. 1,300,000 24,050,000
- -----------------------------------------------------------------------------------
Rayonier, Inc. 196,000 8,134,000
------------
32,184,000
- -----------------------------------------------------------------------------------
Capital Goods--7.3%
- -----------------------------------------------------------------------------------
Aerospace/Defense--0.5%
Boeing Co. 615,800 27,903,437
- -----------------------------------------------------------------------------------
General Dynamics Corp. 990,000 62,370,000
------------
90,273,437
14 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Electrical Equipment--3.4%
Conexant Systems, Inc.(1) 203,300 $ 14,612,187
- -----------------------------------------------------------------------------------
Emerson Electric Co. 1,260,000 78,907,500
- -----------------------------------------------------------------------------------
General Electric Co. 3,405,100 382,435,294
- -----------------------------------------------------------------------------------
Honeywell, Inc. 360,000 40,860,000
- -----------------------------------------------------------------------------------
Rockwell International Corp. 700,000 41,387,500
- -----------------------------------------------------------------------------------
SPX Corp.(1) 96,000 8,136,000
- -----------------------------------------------------------------------------------
Symbol Technologies, Inc. 375,000 13,054,687
------------
579,393,168
- -----------------------------------------------------------------------------------
Industrial Services--0.2%
McDermott International, Inc. 335,800 7,576,487
- -----------------------------------------------------------------------------------
Nielsen Media Research, Inc.(1) 166,666 6,114,559
- -----------------------------------------------------------------------------------
Payches, Inc. 150,000 4,415,625
- -----------------------------------------------------------------------------------
SEI Investments Co. 28,000 2,574,250
- -----------------------------------------------------------------------------------
Valassis Communications, Inc.(1) 150,000 6,562,500
------------
27,243,421
- -----------------------------------------------------------------------------------
Manufacturing--3.2%
Albany International Corp., Cl. A(1) 100,000 1,656,250
- -----------------------------------------------------------------------------------
AlliedSignal, Inc. 1,500,000 91,875,000
- -----------------------------------------------------------------------------------
American Standard Cos., Inc.(1) 780,000 31,980,000
- -----------------------------------------------------------------------------------
Avery-Dennison Corp. 1,263,500 69,334,562
- -----------------------------------------------------------------------------------
Ball Corp. 140,000 6,291,250
- -----------------------------------------------------------------------------------
Berkshire Hathaway, Inc., Cl. A(1) 546 35,053,200
- -----------------------------------------------------------------------------------
Briggs & Stratton Corp. 170,000 10,348,750
- -----------------------------------------------------------------------------------
Cooper Industries, Inc. 97,600 5,063,000
- -----------------------------------------------------------------------------------
Dover Corp. 390,000 15,088,125
- -----------------------------------------------------------------------------------
Eaton Corp. 364,700 35,740,600
- -----------------------------------------------------------------------------------
Mark IV Industries, Inc. 650,000 12,878,125
- -----------------------------------------------------------------------------------
Mettler-Toledo International, Inc.(1) 264,000 7,029,000
- -----------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 1,241,700 117,340,650
- -----------------------------------------------------------------------------------
United Technologies Corp. 1,581,800 104,596,525
------------
544,275,037
15 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Communication Services--7.5%
- -----------------------------------------------------------------------------------
Telecommunications: Long Distance--2.2%
ALLTELL Corp. 542,000 $ 36,652,750
- -----------------------------------------------------------------------------------
AT&T Corp. 5,366,304 241,483,680
- -----------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 2,200,000 97,625,000
------------
375,761,430
- -----------------------------------------------------------------------------------
Telephone Utilities--5.3%
Ameritech Corp. 3,780,100 238,618,812
- -----------------------------------------------------------------------------------
Bell Atlantic Corp. 2,257,200 138,253,500
- -----------------------------------------------------------------------------------
BellSouth Corp. 6,800,000 307,700,000
- -----------------------------------------------------------------------------------
CenturyTel, Inc. 135,000 5,307,187
- -----------------------------------------------------------------------------------
GTE Corp. 1,612,700 110,671,537
- -----------------------------------------------------------------------------------
SBC Communications, Inc. 1,000,000 48,000,000
- -----------------------------------------------------------------------------------
U S West, Inc. 680,000 35,530,000
------------
884,081,036
- -----------------------------------------------------------------------------------
Consumer Cyclicals--14.8%
- -----------------------------------------------------------------------------------
Autos & Housing--1.3%
Arvin Industries, Inc. 90,000 3,217,500
- -----------------------------------------------------------------------------------
Bandag, Inc. 100,000 3,325,000
- -----------------------------------------------------------------------------------
Centex Construction Products, Inc. 232,000 8,917,500
- -----------------------------------------------------------------------------------
Champion Enterprises, Inc.(1) 500,000 4,250,000
- -----------------------------------------------------------------------------------
Cooper Tire & Rubber Co. 200,000 3,800,000
- -----------------------------------------------------------------------------------
Ford Motor Co. 601,900 31,374,037
- -----------------------------------------------------------------------------------
Fortune Brands, Inc. 640,000 24,000,000
- -----------------------------------------------------------------------------------
Furniture Brands International, Inc.(1) 200,000 4,012,500
- -----------------------------------------------------------------------------------
Hughes Supply, Inc. 76,000 1,767,000
- -----------------------------------------------------------------------------------
Johnson Controls, Inc. 140,000 9,572,500
- -----------------------------------------------------------------------------------
Lafarge Corp. 469,000 12,897,500
- -----------------------------------------------------------------------------------
Lear Corp.(1) 750,000 30,140,625
- -----------------------------------------------------------------------------------
Leggett & Platt, Inc. 170,000 3,761,250
- -----------------------------------------------------------------------------------
Maytag Corp. 400,000 25,050,000
- -----------------------------------------------------------------------------------
Meritor Automotive, Inc. 480,000 10,470,000
- -----------------------------------------------------------------------------------
NVR, Inc.(1) 110,000 6,352,500
- -----------------------------------------------------------------------------------
Ryland Group, Inc. (The) 178,000 4,283,125
- -----------------------------------------------------------------------------------
Southdown, Inc. 200,000 10,100,000
- -----------------------------------------------------------------------------------
Standard Products Co. 100,000 3,462,500
- -----------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 240,000 4,860,000
- -----------------------------------------------------------------------------------
Tower Automotive, Inc.(1) 244,500 4,890,000
16 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Autos & Housing Continued
Vulcan Materials Co. 300,000 $ 12,787,500
- -----------------------------------------------------------------------------------
Webb (Del E.) Corp.(1) 117,100 2,546,925
------------
225,837,962
- -----------------------------------------------------------------------------------
Consumer Services--0.8%
Advo, Inc.(1) 120,000 2,355,000
- -----------------------------------------------------------------------------------
Avis Rent A Car, Inc.(1) 750,000 16,500,000
- -----------------------------------------------------------------------------------
Budget Group, Inc., Cl. A(1) 250,000 2,203,125
- -----------------------------------------------------------------------------------
CDI Corp.(1) 130,000 3,916,250
- -----------------------------------------------------------------------------------
Central Garden & Pet Co.(1) 250,000 1,937,500
- -----------------------------------------------------------------------------------
Dun & Bradstreet Corp. 500,000 13,093,750
- -----------------------------------------------------------------------------------
H&R Block, Inc. 380,000 21,137,500
- -----------------------------------------------------------------------------------
Harte-Hanks, Inc. 250,000 5,609,375
- -----------------------------------------------------------------------------------
Hertz Corp., Cl. A 175,000 7,054,687
- -----------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 1,259,300 49,899,762
- -----------------------------------------------------------------------------------
Young & Rubicam, Inc. 280,000 12,495,000
------------
136,201,949
- -----------------------------------------------------------------------------------
Leisure & Entertainment--1.1%
Brunswick Corp. 1,016,100 25,974,056
- -----------------------------------------------------------------------------------
Harley-Davidson, Inc. 500,000 27,250,000
- -----------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 2,840,600 97,290,550
- -----------------------------------------------------------------------------------
MGM Grand, Inc.(1) 120,811 5,934,840
- -----------------------------------------------------------------------------------
Park Place Entertainment Corp.(1) 2,200,000 24,887,500
- -----------------------------------------------------------------------------------
Prime Hospitality Corp.(1) 705,000 6,565,312
------------
187,902,258
- -----------------------------------------------------------------------------------
Media--1.5%
Deluxe Corp. 129,000 4,394,062
- -----------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co. 465,000 14,589,375
- -----------------------------------------------------------------------------------
Gannett Co., Inc. 1,230,000 83,563,125
- -----------------------------------------------------------------------------------
Harland (John H.) Co. 200,000 3,975,000
- -----------------------------------------------------------------------------------
Knight-Ridder, Inc. 260,000 14,023,750
- -----------------------------------------------------------------------------------
McClatchy Co., Cl. A 100,000 3,456,250
- -----------------------------------------------------------------------------------
New York Times Co., Cl. A 800,000 31,250,000
- -----------------------------------------------------------------------------------
R.H. Donnelley Corp. 190,000 3,289,375
- -----------------------------------------------------------------------------------
Readers Digest Assn., Inc. 340,000 10,625,000
- -----------------------------------------------------------------------------------
Times Mirror Co. (The), Cl. A 97,600 5,636,400
- -----------------------------------------------------------------------------------
Tribune Co. 450,000 41,990,625
- -----------------------------------------------------------------------------------
USA Networks, Inc.(1) 780,000 35,002,500
------------
251,795,462
17 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Retail: General--4.4%
Costco Wholesale Corp.(1) 320,000 $ 23,920,000
- -----------------------------------------------------------------------------------
Dollar General Corp. 200,000 5,200,000
- -----------------------------------------------------------------------------------
Family Dollar Stores, Inc. 254,000 5,000,625
- -----------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 1,380,000 63,480,000
- -----------------------------------------------------------------------------------
K Mart Corp.(1) 563,000 7,072,687
- -----------------------------------------------------------------------------------
May Department Stores Co. 1,047,500 40,917,969
- -----------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 13,377,000 592,768,312
------------
738,359,593
- -----------------------------------------------------------------------------------
Retail: Specialty--4.9%
Abercrombie & Fitch Co., Cl. A(1) 1,153,000 40,210,875
- -----------------------------------------------------------------------------------
American Eagle Outfitters, Inc.(1) 450,000 17,662,500
- -----------------------------------------------------------------------------------
Ann Taylor Stores Corp.(1) 230,000 7,618,750
- -----------------------------------------------------------------------------------
Bed Bath & Beyond, Inc.(1) 254,000 6,985,000
- -----------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 700,000 49,175,000
- -----------------------------------------------------------------------------------
BJ's Wholesale Club, Inc.(1) 292,000 8,249,000
- -----------------------------------------------------------------------------------
Gap, Inc. 3,018,750 118,108,594
- -----------------------------------------------------------------------------------
Home Depot, Inc. 4,859,400 297,030,825
- -----------------------------------------------------------------------------------
Limited, Inc. 900,000 34,087,500
- -----------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 6,850,000
- -----------------------------------------------------------------------------------
Lowe's Cos., Inc. 1,120,000 50,680,000
- -----------------------------------------------------------------------------------
OfficeMax, Inc.(1) 2,100,000 15,881,250
- -----------------------------------------------------------------------------------
Payless ShoeSource, Inc.(1) 411,800 20,538,525
- -----------------------------------------------------------------------------------
Ross Stores, Inc. 633,700 26,377,762
- -----------------------------------------------------------------------------------
Sherwin-Williams Co. 160,000 3,900,000
- -----------------------------------------------------------------------------------
Shopko Stores, Inc.(1) 210,000 6,011,250
- -----------------------------------------------------------------------------------
Tandy Corp. 860,000 40,635,000
- -----------------------------------------------------------------------------------
Tiffany & Co. 300,000 15,862,500
- -----------------------------------------------------------------------------------
TJX Cos., Inc. 1,370,000 39,558,750
- -----------------------------------------------------------------------------------
Zale Corp.(1) 500,000 17,343,750
------------
822,766,831
18 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.8%
Burlington Industries, Inc.(1) 580,000 $ 3,298,750
- -----------------------------------------------------------------------------------
Jones Apparel Group, Inc.(1) 1,986,059 51,513,405
- -----------------------------------------------------------------------------------
Kellwood Co. 50,000 1,193,750
- -----------------------------------------------------------------------------------
Mohawk Industries, Inc.(1) 300,000 6,787,500
- -----------------------------------------------------------------------------------
Polo Ralph Lauren Corp.(1) 150,000 2,906,250
- -----------------------------------------------------------------------------------
Shaw Industries, Inc. 1,353,000 27,060,000
- -----------------------------------------------------------------------------------
Too, Inc.(1) 128,574 2,258,081
- -----------------------------------------------------------------------------------
Unifi, Inc.(1) 750,000 10,125,000
- -----------------------------------------------------------------------------------
VF Corp. 336,100 12,099,600
- -----------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 450,000 9,900,000
- -----------------------------------------------------------------------------------
WestPoint Stevens, Inc. 300,000 7,200,000
------------
134,342,336
- -----------------------------------------------------------------------------------
Consumer Staples--6.7%
- -----------------------------------------------------------------------------------
Beverages--0.8%
Adolph Coors Co., Cl. B 64,000 3,652,000
- -----------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 1,533,500 118,079,500
- -----------------------------------------------------------------------------------
Brown-Forman Corp., Cl. B 30,000 1,762,500
- -----------------------------------------------------------------------------------
Canandaigua Brands, Inc., Cl. A(1) 60,000 3,472,500
------------
126,966,500
- -----------------------------------------------------------------------------------
Broadcasting--0.9%
CBS Corp.(1) 1,055,000 49,585,000
- -----------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 2,500,000 81,562,500
- -----------------------------------------------------------------------------------
Cox Communications, Inc., Cl. A(1) 440,000 16,362,500
------------
147,510,000
- -----------------------------------------------------------------------------------
Entertainment--1.6%
Brinker International, Inc.(1) 400,000 9,600,000
- -----------------------------------------------------------------------------------
Darden Restaurants, Inc. 540,000 8,437,500
- -----------------------------------------------------------------------------------
King World Productions, Inc.(1) 711,000 27,106,875
- -----------------------------------------------------------------------------------
McDonald's Corp. 1,199,200 49,616,900
- -----------------------------------------------------------------------------------
Ruby Tuesday, Inc. 294,000 5,328,750
- -----------------------------------------------------------------------------------
Ryan's Family Steak Houses, Inc.(1) 100,000 968,750
- -----------------------------------------------------------------------------------
Time Warner, Inc. 2,500,000 148,281,250
- -----------------------------------------------------------------------------------
Tricon Global Restaurants, Inc.(1) 230,000 9,343,750
- -----------------------------------------------------------------------------------
Wendy's International, Inc. 490,000 13,720,000
------------
272,403,775
19 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Food--0.2%
Agribrands International, Inc.(1) 171,960 $ 8,361,555
- -----------------------------------------------------------------------------------
ConAgra, Inc. 230,000 5,635,000
- -----------------------------------------------------------------------------------
Corn Products International, Inc. 202,400 6,590,650
- -----------------------------------------------------------------------------------
Earthgrains Co. 200,000 4,825,000
- -----------------------------------------------------------------------------------
Kellogg Co. 110,000 3,911,875
------------
29,324,080
- -----------------------------------------------------------------------------------
Food & Drug Retailers--0.9%
Albertson's, Inc. 1,364,450 65,408,322
- -----------------------------------------------------------------------------------
CVS Corp. 1,396,000 58,195,750
- -----------------------------------------------------------------------------------
Walgreen Co. 900,000 20,868,750
------------
144,472,822
- -----------------------------------------------------------------------------------
Household Goods--0.8%
Kimberly-Clark Corp. 2,300,000 130,956,250
- -----------------------------------------------------------------------------------
Tobacco--1.5%
Philip Morris Cos., Inc. 5,875,000 219,945,313
- -----------------------------------------------------------------------------------
R.J. Reynolds Tobacco Holdings, Inc.(1) 1,200,000 32,925,000
------------
252,870,313
- -----------------------------------------------------------------------------------
Energy--11.4%
- -----------------------------------------------------------------------------------
Energy Services--3.1%
Diamond Offshore Drilling, Inc. 800,000 30,600,000
- -----------------------------------------------------------------------------------
ENSCO International, Inc. 3,860,000 82,266,250
- -----------------------------------------------------------------------------------
Global Marine, Inc.(1) 3,500,000 62,125,000
- -----------------------------------------------------------------------------------
Nabors Industries, Inc.(1) 1,500,000 40,500,000
- -----------------------------------------------------------------------------------
Noble Drilling Corp.(1) 2,600,000 64,025,000
- -----------------------------------------------------------------------------------
Santa Fe International Corp. 2,001,400 52,786,925
- -----------------------------------------------------------------------------------
Seacor Holdings, Inc.(1) 200,000 10,387,500
- -----------------------------------------------------------------------------------
Stone Energy Corp.(1) 395,800 21,076,350
- -----------------------------------------------------------------------------------
Tidewater, Inc. 1,500,000 48,750,000
- -----------------------------------------------------------------------------------
Transocean Offshore, Inc. 3,020,700 102,703,800
------------
515,220,825
20 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Oil: Domestic--2.0%
Ashland, Inc. 200,000 $ 7,712,500
- -----------------------------------------------------------------------------------
Chieftain International, Inc.(1,2) 1,283,100 25,812,070
- -----------------------------------------------------------------------------------
Conoco, Inc., Cl. B 900,000 24,187,500
- -----------------------------------------------------------------------------------
Devon Energy Corp.(1) 1,037,700 40,081,163
- -----------------------------------------------------------------------------------
Enron Oil & Gas Co. 1,557,300 37,180,538
- -----------------------------------------------------------------------------------
Frontier Oil Corp.(1,2) 2,396,500 19,172,000
- -----------------------------------------------------------------------------------
Murphy Oil Corp. 455,600 23,121,700
- -----------------------------------------------------------------------------------
Newfield Exploration Co.(1) 622,700 18,914,513
- -----------------------------------------------------------------------------------
Noble Affiliates, Inc. 300,000 9,300,000
- -----------------------------------------------------------------------------------
Tesoro Petroleum Corp.(1) 450,000 8,128,125
- -----------------------------------------------------------------------------------
Vastar Resources, Inc. 1,839,400 122,550,025
--------------
336,160,134
- -----------------------------------------------------------------------------------
Oil: International--6.3%
Anderson Exploration Ltd.(1) 1,510,800 21,768,519
- -----------------------------------------------------------------------------------
Berkley Petroleum Corp.(1) 2,116,800 21,562,885
- -----------------------------------------------------------------------------------
Canadian 88 Energy Corp.(1,2) 9,943,300 21,257,132
- -----------------------------------------------------------------------------------
Canadian Natural Resources Ltd.(1) 2,325,000 57,651,170
- -----------------------------------------------------------------------------------
Chevron Corp. 1,063,000 98,061,750
- -----------------------------------------------------------------------------------
Encal Energy Ltd.(1) 1,128,200 6,048,665
- -----------------------------------------------------------------------------------
Exxon Corp. 3,700,000 291,837,500
- -----------------------------------------------------------------------------------
Mobil Corp. 2,320,000 237,510,000
- -----------------------------------------------------------------------------------
Newport Petroleum Corp.(1) 3,095,800 11,825,818
- -----------------------------------------------------------------------------------
Northrock Resources Ltd.(1) 118,207 1,362,558
- -----------------------------------------------------------------------------------
Paramount Resources Ltd.(1) 598,600 9,226,734
- -----------------------------------------------------------------------------------
Poco Petroleums Ltd.(1) 3,000,000 29,755,442
- -----------------------------------------------------------------------------------
Ranger Oil Ltd.(1) 3,881,100 17,686,715
- -----------------------------------------------------------------------------------
Rio Alto Exploration Ltd.(1) 1,260,150 20,606,086
- -----------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 1,784,700 110,428,313
- -----------------------------------------------------------------------------------
Talisman Energy, Inc.(1) 813,800 23,887,750
- -----------------------------------------------------------------------------------
Texaco, Inc. 1,092,900 69,399,150
- -----------------------------------------------------------------------------------
Tri Link Resources Ltd.(1) 791,000 5,433,552
--------------
1,055,309,739
21 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Financial--8.5%
- -----------------------------------------------------------------------------------
Banks--3.2%
Bank One Corp. 885,702 $ 35,538,793
- -----------------------------------------------------------------------------------
BB&T Corp. 790,000 26,465,000
- -----------------------------------------------------------------------------------
Chase Manhattan Corp. 1,720,000 143,942,500
- -----------------------------------------------------------------------------------
Fleet Financial Group, Inc. 1,368,400 54,479,425
- -----------------------------------------------------------------------------------
M&T Bank Corp. 4,000 1,856,000
- -----------------------------------------------------------------------------------
National City Corp. 1,800,000 49,725,000
- -----------------------------------------------------------------------------------
Northern Trust Corp. 540,000 45,798,750
- -----------------------------------------------------------------------------------
Old Kent Financial Corp. 501,500 19,809,250
- -----------------------------------------------------------------------------------
Peoples Heritage Financial Group, Inc. 30,000 504,375
- -----------------------------------------------------------------------------------
Regions Financial Corp. 270,000 9,534,375
- -----------------------------------------------------------------------------------
Wachovia Corp. 672,100 52,675,838
- -----------------------------------------------------------------------------------
Wells Fargo Co. 2,400,000 95,550,000
- -----------------------------------------------------------------------------------
Zions Bancorp 100,000 4,975,000
------------
540,854,306
- -----------------------------------------------------------------------------------
Diversified Financial--2.3%
AMBAC Financial Group, Inc. 320,000 16,900,000
- -----------------------------------------------------------------------------------
Fannie Mae 1,154,200 71,704,675
- -----------------------------------------------------------------------------------
Financial Security Assurance Holdings Ltd. 294,300 14,733,394
- -----------------------------------------------------------------------------------
Freddie Mac 2,142,500 110,338,750
- -----------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 203,000 12,141,938
- -----------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 900,000 77,231,250
- -----------------------------------------------------------------------------------
PaineWebber Group, Inc. 954,900 37,479,825
- -----------------------------------------------------------------------------------
PMI Group, Inc. (The) 900,000 38,250,000
- -----------------------------------------------------------------------------------
Radian Group, Inc. 53,330 2,469,846
------------
381,249,678
- -----------------------------------------------------------------------------------
Insurance--2.5%
Aetna, Inc. 200,000 15,550,000
- -----------------------------------------------------------------------------------
AFLAC, Inc. 555,100 24,944,806
- -----------------------------------------------------------------------------------
Allmerica Financial Corp. 702,200 39,674,300
- -----------------------------------------------------------------------------------
Allstate Corp. 701,200 23,008,125
- -----------------------------------------------------------------------------------
American General Corp. 578,100 41,045,100
- -----------------------------------------------------------------------------------
Chicago Title Corp. 230,000 10,421,875
- -----------------------------------------------------------------------------------
Cigna Corp. 800,000 71,850,000
22 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Insurance Continued
Cincinnati Financial Corp. 214,000 $ 8,479,750
- -----------------------------------------------------------------------------------
Equitable Cos., Inc. 980,000 60,515,000
- -----------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 380,700 17,298,056
- -----------------------------------------------------------------------------------
Hartford Life, Inc., Cl. A 470,000 20,415,625
- -----------------------------------------------------------------------------------
Jefferson-Pilot Corp. 437,800 29,223,150
- -----------------------------------------------------------------------------------
Lincoln National Corp. 879,400 41,221,875
- -----------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc. 200,000 14,562,500
- -----------------------------------------------------------------------------------
Stewart Information Services Corp. 142,400 2,963,700
--------------
421,173,862
- -----------------------------------------------------------------------------------
Savings & Loans--0.5%
Dime Bancorp, Inc. 1,580,000 29,032,500
- -----------------------------------------------------------------------------------
Golden State Bancorp, Inc.(1) 1,431,000 28,709,438
- -----------------------------------------------------------------------------------
Greenpoint Financial Corp. 350,000 9,056,250
- -----------------------------------------------------------------------------------
Washington Federal, Inc. 330,000 7,878,750
- -----------------------------------------------------------------------------------
Webster Financial Corp. 150,000 4,040,625
--------------
78,717,563
- -----------------------------------------------------------------------------------
Healthcare--10.4%
- -----------------------------------------------------------------------------------
Healthcare/Drugs--9.7%
Abbott Laboratories 2,700,000 117,112,500
- -----------------------------------------------------------------------------------
Alpharma, Inc. 88,900 3,011,488
- -----------------------------------------------------------------------------------
Amgen, Inc.(1) 1,650,000 137,259,375
- -----------------------------------------------------------------------------------
Andrx Corp.(1) 48,000 3,450,000
- -----------------------------------------------------------------------------------
Biogen, Inc.(1) 260,000 19,955,000
- -----------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 4,988,400 351,058,650
- -----------------------------------------------------------------------------------
Immunex Corp.(1) 488,000 32,848,500
- -----------------------------------------------------------------------------------
Johnson & Johnson 3,780,200 386,525,450
- -----------------------------------------------------------------------------------
Medimmune, Inc.(1) 240,000 24,765,000
- -----------------------------------------------------------------------------------
Merck & Co., Inc. 5,760,000 387,000,000
- -----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 250,000 14,734,375
- -----------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 1,159,800 60,599,550
- -----------------------------------------------------------------------------------
Schering-Plough Corp. 1,600,000 84,100,000
- -----------------------------------------------------------------------------------
Trigon Healthcare, Inc.(1) 60,000 2,178,750
--------------
1,624,598,638
23 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.7%
Allergan, Inc. 200,000 $ 19,975,000
- -----------------------------------------------------------------------------------
Biomet, Inc. 300,000 10,725,000
- -----------------------------------------------------------------------------------
Guidant Corp. 195,600 11,479,275
- -----------------------------------------------------------------------------------
Lincare Holdings, Inc.(1) 300,000 7,912,500
- -----------------------------------------------------------------------------------
Quorum Health Group, Inc.(1) 1,317,700 11,612,231
- -----------------------------------------------------------------------------------
United Healthcare Corp. 572,000 34,784,750
- -----------------------------------------------------------------------------------
VISX, Inc.(1) 320,000 28,960,000
--------------
125,448,756
- -----------------------------------------------------------------------------------
Technology--19.2%
- -----------------------------------------------------------------------------------
Computer Hardware--7.1%
Adaptec, Inc.(1) 520,000 20,280,000
- -----------------------------------------------------------------------------------
Apple Computer, Inc.(1) 800,000 52,200,000
- -----------------------------------------------------------------------------------
Hewlett-Packard Co. 3,000,000 316,125,000
- -----------------------------------------------------------------------------------
International Business Machines Corp. 4,400,000 548,075,000
- -----------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 1,600,000 126,000,000
- -----------------------------------------------------------------------------------
NCR Corp.(1) 400,000 17,500,000
- -----------------------------------------------------------------------------------
Pitney Bowes, Inc. 809,500 47,760,500
- -----------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 710,000 56,445,000
- -----------------------------------------------------------------------------------
Xircom, Inc.(1) 200,000 7,962,500
--------------
1,192,348,000
- -----------------------------------------------------------------------------------
Computer Services--0.6%
Automatic Data Processing, Inc. 1,920,800 75,511,450
- -----------------------------------------------------------------------------------
DST Systems, Inc.(1) 100,000 6,650,000
- -----------------------------------------------------------------------------------
Sungard Data Systems, Inc.(1) 562,000 14,050,000
--------------
96,211,450
- -----------------------------------------------------------------------------------
Computer Software--4.0%
Adobe Systems, Inc. 160,000 15,940,000
- -----------------------------------------------------------------------------------
BMC Software, Inc.(1) 837,100 45,046,444
- -----------------------------------------------------------------------------------
Compuware Corp.(1) 2,000,000 60,375,000
- -----------------------------------------------------------------------------------
International Network Services(1) 120,000 6,382,500
- -----------------------------------------------------------------------------------
Legato Systems, Inc.(1) 360,600 15,528,338
- -----------------------------------------------------------------------------------
Microsoft Corp.(1) 5,500,000 509,093,750
- -----------------------------------------------------------------------------------
Sabre Holdings Corp.(1) 300,000 16,800,000
--------------
669,166,032
24 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Communications Equipment--1.7%
Cisco Systems, Inc.(1) 4,000,000 $271,250,000
- -----------------------------------------------------------------------------------
General Instrument Corp.(1) 480,000 23,610,000
------------
294,860,000
- -----------------------------------------------------------------------------------
Electronics--5.7%
Analog Devices, Inc.(1) 850,000 43,775,000
- -----------------------------------------------------------------------------------
Grainger (W.W.), Inc. 885,000 38,552,813
- -----------------------------------------------------------------------------------
Intel Corp. 8,400,000 690,375,000
- -----------------------------------------------------------------------------------
Lam Research Corp.(1) 290,000 16,366,875
- -----------------------------------------------------------------------------------
Lattice Semiconductor Corp.(1) 200,000 12,325,000
- -----------------------------------------------------------------------------------
LSI Logic Corp.(1) 1,450,000 82,287,500
- -----------------------------------------------------------------------------------
QLogic Corp.(1) 200,000 17,412,500
- -----------------------------------------------------------------------------------
Waters Corp.(1) 241,200 15,904,125
- -----------------------------------------------------------------------------------
Xilinx, Inc.(1) 488,000 34,129,500
------------
951,128,313
- -----------------------------------------------------------------------------------
Photography--0.1%
Eastman Kodak Co. 240,000 17,625,000
- -----------------------------------------------------------------------------------
Transportation--1.3%
- -----------------------------------------------------------------------------------
Air Transportation--0.8%
Alaska Air Group, Inc.(1) 650,000 28,112,500
- -----------------------------------------------------------------------------------
Comair Holdings, Inc. 225,000 4,753,125
- -----------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B(1) 1,358,478 55,442,883
- -----------------------------------------------------------------------------------
Delta Air Lines, Inc. 718,000 36,483,375
- -----------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A(1) 300,000 8,850,000
- -----------------------------------------------------------------------------------
Southwest Airlines Co. 390,000 6,508,125
------------
140,150,008
- -----------------------------------------------------------------------------------
Railroads & Truckers--0.5%
Burlington Northern Santa Fe Corp. 690,000 20,010,000
- -----------------------------------------------------------------------------------
CNF Transportation, Inc. 250,000 9,734,375
- -----------------------------------------------------------------------------------
Rollins Truck Leasing Co. 280,000 2,905,000
- -----------------------------------------------------------------------------------
Union Pacific Corp. 880,000 42,845,000
- -----------------------------------------------------------------------------------
XTRA Corp.(1) 216,000 9,787,500
- -----------------------------------------------------------------------------------
Yellow Corp.(1) 200,000 3,175,000
------------
88,456,875
25 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Utilities--2.3%
- -----------------------------------------------------------------------------------
Electric Utilities--2.3%
Allegheny Energy, Inc. 780,000 $ 26,325,000
- -----------------------------------------------------------------------------------
BEC Energy 150,000 6,478,125
- -----------------------------------------------------------------------------------
Calpine Corp.(1) 140,000 12,687,500
- -----------------------------------------------------------------------------------
Conectiv, Inc. 146,000 3,129,875
- -----------------------------------------------------------------------------------
Consolidated Edison Co. of New York, Inc. 510,000 22,440,000
- -----------------------------------------------------------------------------------
DTE Energy Co. 180,000 7,098,750
- -----------------------------------------------------------------------------------
Energy East Corp. 1,170,000 29,250,000
- -----------------------------------------------------------------------------------
FirstEnergy Corp. 499,800 14,275,538
- -----------------------------------------------------------------------------------
Florida Progress Corp. 700,000 32,812,500
- -----------------------------------------------------------------------------------
FPL Group, Inc. 608,000 32,832,000
- -----------------------------------------------------------------------------------
IPALCO Enterprises, Inc. 408,200 8,546,688
- -----------------------------------------------------------------------------------
New England Electric System 340,000 17,743,750
- -----------------------------------------------------------------------------------
OGE Energy Corp. 400,000 9,400,000
- -----------------------------------------------------------------------------------
Peco Energy Co. 890,400 36,172,500
- -----------------------------------------------------------------------------------
PG&E Corp. 1,600,000 48,500,000
- -----------------------------------------------------------------------------------
Pinnacle West Capital Corp. 120,000 4,560,000
- -----------------------------------------------------------------------------------
PP&L Resources, Inc. 150,000 4,200,000
- -----------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 1,100,000 45,100,000
- -----------------------------------------------------------------------------------
TNP Enterprises, Inc. 90,000 3,363,750
- -----------------------------------------------------------------------------------
Unicom Corp. 700,000 27,037,500
- -----------------------------------------------------------------------------------
UtiliCorp United, Inc. 122,000 2,828,875
---------------
394,782,351
---------------
Total Common Stocks (Cost $11,952,288,416) 15,321,566,146
===================================================================================
Preferred Stocks--0.1%
Tesoro Petroleum Corp., 7.25% Cv., Non-Vtg.
(Cost $17,531,250) 1,100,000 18,837,500
===================================================================================
Other Securities--0.7%
Brown (Tom), Inc., $1.75 Cv., Series A(1,3) 1,000,000 28,650,000
- -----------------------------------------------------------------------------------
Reliant Energy, Inc., 7% Automatic Common Exchange Securities
for Time Warner, Inc. Common Stock 703,000 72,409,000
- -----------------------------------------------------------------------------------
Union Pacific Capital Trust, 6.25% Cum. Term Income Deferrable
Equity Securities, Non-Vtg.(1) 350,300 16,113,800
--------------
Total Other Securities (Cost $78,519,063) 117,172,800
26 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Face Market Value
Amount See Note 1
=====================================================================================
U.S. Government Obligations--0.8%
U.S. Treasury Bonds, 6.50%, 11/15/26 $ 57,950,000 $ 58,728,732
- -------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.625%, 2/15/27 64,300,000 66,289,313
---------------
Total U.S. Government Obligations (Cost $118,572,628) 125,018,045
=====================================================================================
Short-Term Notes--4.4%(4)
American General Corp., 5.20%, 9/22/99 50,000,000 49,848,333
- -------------------------------------------------------------------------------------
CIESCO LP, 5.12%, 9/8/99 40,000,000 39,960,178
- -------------------------------------------------------------------------------------
CIESCO LP, 5.25%, 10/4/99 35,000,000 34,831,563
- -------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.30%, 10/12/99 50,000,000 49,698,195
- -------------------------------------------------------------------------------------
Equilon Enterprises LLC, 5.27%, 10/5/99 50,000,000 49,751,139
- -------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.12%, 9/13/99 50,000,000 49,914,667
- -------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.20%, 9/24/99 50,000,000 49,833,889
- -------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.30%, 10/15/99 50,000,000 49,676,111
- -------------------------------------------------------------------------------------
Homeside Lending, Inc., 5.14%, 9/13/99 30,200,000 30,147,351
- -------------------------------------------------------------------------------------
Homeside Lending, Inc., 5.16%, 9/14/99 50,000,000 49,906,833
- -------------------------------------------------------------------------------------
Household Finance Corp., 5.28%, 10/8/99 50,000,000 49,728,667
- -------------------------------------------------------------------------------------
Household Finance Corp., 5.30%, 10/13/99 50,000,000 49,690,833
- -------------------------------------------------------------------------------------
Motiva Enterprises LLC, 5.28%, 10/6/99 30,000,000 29,846,000
- -------------------------------------------------------------------------------------
Prudential Funding Corp., 5.09%, 9/3/99 50,000,000 49,985,861
- -------------------------------------------------------------------------------------
Prudential Funding Corp., 5.14%, 9/2/99 50,000,000 49,992,861
- -------------------------------------------------------------------------------------
Salomon Smith Barney Holdings Inc., 5.11%, 9/1/99 50,000,000 50,000,000
---------------
Total Short-Term Notes (Cost $732,812,481) 732,812,481
=====================================================================================
Repurchase Agreements--1.7%
Repurchase agreement with Deutsche Bank
Securities Inc., 5.40%, dated 8/31/99, to be
repurchased at $291,243,680 on 9/1/99,
collateralized by U.S. Treasury Bonds,
6.375%-9.125%, 2/15/17-8/15/27, with a value of
$297,312,218 (Cost $291,200,000) 291,200,000 291,200,000
- -------------------------------------------------------------------------------------
Total Investments, at Value (Cost $13,190,923,838) 98.9% 16,606,606,972
- -------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.1 188,900,650
----------------------------
Net Assets 100.0% $16,795,507,622
============================
</TABLE>
27 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS
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 August 31, 1999.
The aggregate fair value of securities of affiliated companies held by the Fund
as of August 31, 1999 amounts to $66,241,202. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Shares
August 31, Gross Gross August 31,
1998 Additions Reductions 1999
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canadian 88 Energy Corp. 2,421,900 7,521,400 -- 9,943,300
Chieftain International, Inc. 190,200 1,092,900 -- 1,283,100
Frontier Oil Corp. 850,900 1,545,600 -- 2,396,500
</TABLE>
3. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
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.
28 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES August 31, 1999
<TABLE>
====================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $13,122,245,863) $16,540,365,770
Affiliated companies (cost $68,677,975) 66,241,202
- ------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 348,471,445
Shares of capital stock sold 35,404,158
Interest and dividends 17,841,133
Other 233,950
----------------
Total assets 17,008,557,658
====================================================================================
Liabilities
Bank overdraft 123,855
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 173,733,602
Shares of capital stock redeemed 27,168,164
Distribution and service plan fees 7,063,322
Transfer and shareholder servicing agent fees 2,538,234
Shareholder reports 1,270,725
Custodian fees 63,575
Directors' compensation 9,160
Dividends 1,378
Other 1,078,021
----------------
Total liabilities 213,050,036
====================================================================================
Net Assets $16,795,507,622
================
====================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 3,940,657
- ------------------------------------------------------------------------------------
Additional paid-in capital 11,569,737,802
- ------------------------------------------------------------------------------------
Overdistributed net investment income (3)
- ------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 1,806,189,385
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 3,415,639,781
----------------
Net assets $16,795,507,622
================
</TABLE>
29 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Continued
<TABLE>
======================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$7,723,606,539 and 180,068,518 shares of capital stock outstanding) $42.89
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $45.51
- --------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$7,072,717,665 and 166,728,971 shares of capital stock outstanding) $42.42
- --------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$1,850,786,677 and 43,635,677 shares of capital stock outstanding) $42.41
- --------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $148,396,741 and 3,451,401 shares of capital stock outstanding) $43.00
</TABLE>
See accompanying Notes to Financial Statements.
30 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended August 31, 1999
<TABLE>
====================================================================================
<S> <C>
Investment Income
Dividends (net of foreign withholding taxes of $36,334) $ 152,565,279
- ------------------------------------------------------------------------------------
Interest 48,617,905
---------------
Total income 201,183,184
====================================================================================
Expenses
Distribution and service plan fees--Note 4:
Class A 16,464,901
Class B 59,200,865
Class C 15,749,040
- ------------------------------------------------------------------------------------
Management fees--Note 4 65,199,139
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 10,809,998
Class B 9,540,631
Class C 2,545,935
Class Y 245,372
- ------------------------------------------------------------------------------------
Shareholder reports 4,286,088
- ------------------------------------------------------------------------------------
Registration and filing fees:
Class A 416,923
Class B 556,233
Class C 122,705
Class Y 27,954
- ------------------------------------------------------------------------------------
Custodian fees and expenses 404,696
- ------------------------------------------------------------------------------------
Legal, auditing and other professional fees 149,281
- ------------------------------------------------------------------------------------
Directors' compensation 104,965
- ------------------------------------------------------------------------------------
Insurance expenses 33,079
- ------------------------------------------------------------------------------------
Other 845,288
---------------
Total expenses 186,703,093
Less expenses paid indirectly--Note 1 (87,634)
---------------
Net expenses 186,615,459
====================================================================================
Net Investment Income 14,567,725
====================================================================================
Realized and Unrealized Gain
Net realized gain on:
Investments $1,814,246,602
Foreign currency transactions 3,108,048
---------------
Net realized gain 1,817,354,650
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 2,241,081,282
Translation of assets and liabilities denominated in
foreign currencies 2,637,299
---------------
Net change 2,243,718,581
---------------
Net realized and unrealized gain 4,061,073,231
====================================================================================
Net Increase in Net Assets Resulting from Operations $4,075,640,956
===============
</TABLE>
See accompanying Notes to Financial Statements.
31 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended August 31, 1999 1998
====================================================================================
<S> <C> <C>
Operations
Net investment income $ 14,567,725 $ 46,924,022
- ------------------------------------------------------------------------------------
Net realized gain 1,817,354,650 764,056,008
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation 2,243,718,581 (651,255,521)
-------------------------------
Net increase in net assets resulting
from operations 4,075,640,956 159,724,509
====================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (24,187,140) (45,226,904)
Class B -- (8,782,796)
Class C -- (2,469,141)
Class Y (366,378) (333,013)
- ------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (234,009,868) (337,281,891)
Class B (203,350,853) (260,785,205)
Class C (54,987,485) (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 1,090,840,369 728,868,147
Class B 1,460,515,643 1,112,912,778
Class C 315,914,172 178,104,386
Class Y 73,447,756 41,849,349
====================================================================================
Net Assets
Total increase 6,496,437,711 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
$(3) and $7,487,787, respectively] $16,795,507,622 $10,299,069,911
===============================
</TABLE>
See accompanying Notes to Financial Statements.
32 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class A 1999 1998 1997 1996(1) 1996 1995
================================================================================================================================
<S> <C> <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 $20.40
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .19 .29 .39 .07 .40 .47
Net realized and unrealized gain (loss) 12.03 .99 7.91 (1.01) 4.93 3.66
-----------------------------------------------------------------------------
Total income (loss) from
investment operations 12.22 1.28 8.30 (.94) 5.33 4.13
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.33) (.40) -- (.43) (.46)
Distributions from net realized gain (1.50) (2.50) (1.98) -- (.08) --
-----------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.65) (2.83) (2.38) -- (.51) (.46)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $42.89 $32.32 $33.87 $27.95 $28.89 $24.07
=============================================================================
================================================================================================================================
Total Return, at Net Asset Value(2) 38.62% 3.68% 31.09% (3.25)% 22.26% 20.52%
================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $7,724 $4,933 $4,457 $3,143 $3,147 $1,924
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $6,722 $5,184 $3,857 $3,090 $2,516 $1,319
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.50% 0.83% 1.29% 1.57% 1.55% 2.31%
Expenses 0.91% 0.90%(4) 0.94%(4) 0.98%(4) 0.99%(4) 1.07%(4)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 72% 81% 62% 18% 93% 101%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. 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 additonal 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended August 31, 1999 were $11,414,728,877 and $9,643,247,427, respectively.
See accompanying Notes to Financial Statements.
33 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class B 1999 1998 1997 1996(1) 1996 1995(6)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $32.07 $33.66 $27.79 $28.77 $24.00 $21.49
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) .04 .17 .04 .23 .25
Net realized and unrealized gain (loss) 11.93 .96 7.86 (1.02) 4.87 2.54
---------------------------------------------------------------------------
Total income (loss) from
investment operations 11.85 1.00 8.03 (.98) 5.10 2.79
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.09) (.18) -- (.25) (.28)
Distributions from net realized gain (1.50) (2.50) (1.98) -- (.08) --
---------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.50) (2.59) (2.16) -- (.33) (.28)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $42.42 $32.07 $33.66 $27.79 $28.77 $24.00
===========================================================================
=================================================================================================================================
Total Return, at Net Asset Value(2) 37.62% 2.86% 30.12% (3.41)% 21.34 13.41%
=================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $7,073 $4,168 $3,308 $1,909 $1,800 $628
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $5,930 $4,123 $2,642 $1,818 $1,155 $249
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.26)% 0.06% 0.53% 0.82% 0.74% 1.25%
Expenses 1.66% 1.66%(4) 1.69%(4) 1.74%(4) 1.76%(4) 1.89%(4)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 72% 81% 62% 18% 93% 101%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. 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 additonal 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended August 31, 1999 were $11,414,728,877 and $9,643,247,427, respectively.
6. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
See accompanying Notes to Financial Statements.
34 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class C 1999 1998 1997 1996(1) 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $32.07 $33.64 $27.78 $28.75 $23.97 $20.33
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.09) .03 .16 .04 .21 .33
Net realized and unrealized gain (loss) 11.93 .98 7.85 (1.01) 4.88 3.62
-----------------------------------------------------------------------
Total income (loss) from
investment operations 11.84 1.01 8.01 (.97) 5.09 3.95
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.08) (.17) -- (.23) (.31)
Distributions from net realized gain (1.50) (2.50) (1.98) -- (.08) --
-----------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.50) (2.58) (2.15) -- (.31) (.31)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $42.41 $32.07 $33.64 $27.78 $28.75 $23.97
=======================================================================
===========================================================================================================================
Total Return, at Net Asset Value(2) 37.59% 2.91% 30.07% (3.37)% 21.3% 19.63%
===========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,851 $1,145 $1,030 $744 $741 $462
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,583 $1,184 $904 $730 $588 $325
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.25)% 0.07% 0.54% 0.82% 0.80% 1.57%
Expenses 1.66% 1.65%(4) 1.69%(4) 1.73%(4) 1.74%(4) 1.82%(4)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 72% 81% 62% 18% 93% 101%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. 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 additonal 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended August 31, 1999 were $11,414,728,877 and $9,643,247,427, respectively.
See accompanying Notes to Financial Statements.
35 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class Y Year Ended August 31, 1999 1998 1997(7)
=======================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $32.38 $33.94 $29.55
- ---------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .24 .38 .41
Net realized and unrealized gain (loss) 12.07 .97 6.30
---------------------------
Total income (loss) from
investment operations 12.31 1.35 6.71
- ---------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.19) (.41) (.34)
Distributions from net realized gain (1.50) (2.50) (1.98)
---------------------------
Total dividends and distributions
to shareholders (1.69) (2.91) (2.32)
- ---------------------------------------------------------------------------------------
Net asset value, end of period $43.00 $32.38 $33.94
===========================
=======================================================================================
Total Return, at Net Asset Value(2) 38.84% 3.88% 23.98%
=======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $148 $53 $16
- ---------------------------------------------------------------------------------------
Average net assets (in millions) $ 99 $37 $ 5
- ---------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.63% 1.02% 1.58%
Expenses 0.77% 0.67%(4) 0.65%(4)
- ---------------------------------------------------------------------------------------
Portfolio turnover rate(5) 72% 81% 62%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. 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 additonal 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended August 31, 1999 were $11,414,728,877 and $9,643,247,427, respectively.
6. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
7. For the period from November 1, 1996 (inception of offering) to August 31,
1997.
See accompanying Notes to Financial Statements.
36 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Significant Accounting Policies
Oppenheimer Main Street(R) Growth & Income Fund (the Fund) is a separate series
of Oppenheimer Main Street(R) Funds, Inc., an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to seek a high total return, which includes
current income and capital appreciation in the value of its shares, from equity
and debt securities. The Fund's investment 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 on investments up to $1
million. Class B and Class C shares may be subject to a contingent deferred
sales charge (CDSC). Class Y shares are sold to certain institutional investors
without either a front-end sales charge or a CDSC. 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.
- --------------------------------------------------------------------------------
Securities 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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
37 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
1. Significant Accounting Policies Continued
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.
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.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
38 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of 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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 1999, amounts have been reclassified to reflect a decrease
in overdistributed net investment income of $2,498,003. Accumulated net realized
gain on investments was decreased by the same amount.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
39 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
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>
Year Ended August 31, 1999 Year Ended August 31, 1998
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 52,580,490 $2,113,305,491 36,063,568 $1,301,502,710
Dividends and/or
distributions reinvested 6,595,444 245,649,292 11,155,518 367,256,659
Redeemed (31,752,422) (1,268,114,414) (26,184,202) (939,891,222)
----------------------------------------------------------------------
Net increase 27,423,512 $1,090,840,369 21,034,884 $ 728,868,147
======================================================================
- -----------------------------------------------------------------------------------------------------
Class B
Sold 52,000,058 $2,077,494,632 37,520,500 $1,345,971,561
Dividends and/or
distributions reinvested 5,185,756 192,649,282 7,843,422 255,472,251
Redeemed (20,423,510) (809,628,271) (13,683,243) (488,531,034)
----------------------------------------------------------------------
Net increase 36,762,304 $1,460,515,643 31,680,679 $1,112,912,778
======================================================================
- -----------------------------------------------------------------------------------------------------
Class C
Sold 13,350,165 $ 533,257,647 8,806,101 $ 317,722,662
Dividends and/or
distributions reinvested 1,399,474 51,976,501 2,313,726 75,333,277
Redeemed (6,809,689) (269,319,976) (6,042,849) (214,951,553)
----------------------------------------------------------------------
Net increase 7,939,950 $ 315,914,172 5,076,978 $ 178,104,386
======================================================================
- -----------------------------------------------------------------------------------------------------
Class Y
Sold 2,655,008 $ 108,147,707 1,573,594 $ 56,981,398
Dividends and/or
distributions reinvested 90,768 3,385,839 61,592 2,041,207
Redeemed (933,166) (38,085,790) (475,241) (17,173,256)
----------------------------------------------------------------------
Net increase 1,812,610 $ 73,447,756 1,159,945 $ 41,849,349
======================================================================
</TABLE>
40 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of August 31, 1999, net unrealized appreciation on securities of
$3,415,683,134 was composed of gross appreciation of $3,732,974,462, and gross
depreciation of $317,291,328.
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.65% of
the first $200 million of net assets of the Fund, 0.60% of the next $150
million, 0.55% of the next $150 million and 0.45% of average annual net assets
in excess of $500 million. The Fund's management fee for the year ended August
31, 1999 was 0.45% of average annual net assets for each class of shares.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 1999 $34,161,161 $9,358,713 $1,611,359 $59,655,100 $4,146,601
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 1999 $39,906 $10,392,066 $315,594
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
41 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
4. Management Fees and Other Transactions with Affiliates Continued
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.25% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended August 31, 1999, payments under
the Class A Plan totaled $16,464,901, all of which was paid by the Distributor
to recipients. That included $875,133 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans allow the
Distributor to be reimbursed for its services and costs in distributing Class B
and Class C and servicing accounts.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Directors
may allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended August 31, 1999,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $59,200,865 $47,950,253 $135,743,024 1.92%
Class C Plan 15,749,040 7,274,608 15,392,878 0.83
</TABLE>
42 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
================================================================================
5. Foreign Currency Contracts
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency exchange contracts for operational purposes and to seek to
protect against adverse exchange rate fluctuations. Risks to the Fund include
the potential inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
================================================================================
6. Illiquid or Restricted Securities
As of August 31, 1999, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may also be
considered illiquid if it lacks a readily available market or if its valuation
has not changed for a certain period of time. The Fund intends to invest no more
than 10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of August 31, 1999 was $28,650,000,
which represents 0.17% of the Fund's net assets, of which $28,650,000 is
considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit August 31, 1999
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Stocks
Brown (Tom), Inc., $1.75 Cv., Series A 8/31/99 $28.71 $28.65
</TABLE>
43 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
7. 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 year ended August 31,
1999.
44 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Directors and Shareholders of
Oppenheimer Main Street Growth & Income Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Main Street(R) Growth & Income Fund
as of August 31, 1999, the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended August 31,
1999 and 1998 and the financial highlights for the period July 1, 1994, to
August 31, 1999. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1999, by correspondence with the custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Oppenheimer Main
Street Growth & Income Fund as of August 31, 1999, the results of its
operations, the changes in its net assets, and the financial highlights for the
respective stated periods, in conformity with generally accepted accounting
principles.
Deloitte & Touche LLP
Denver, Colorado
September 22, 1999
45 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.5583, $1.5014, $1.5014 and $1.5662 per share were paid
to Class A, Class B, Class C and Class Y shareholders, respectively, on December
11, 1998, of which $1.5014 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or in cash, the capital
gain distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended August 31, 1999
which are not designated as capital gain distributions should be multiplied by
72.99% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
46 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
A Series of Oppenheimer Main Street Funds, Inc.
================================================================================
Officers and Directors James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
William A. Baker, Director
George C. Bowen, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Charles Albers, Vice President
Nikolaos D. Monoyios, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of
Oppenheimer Main Street 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.
47 OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
- --------------------------------------------------------------------------------
Internet
24-hr access to account information and transactions
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------------------------
Telephone 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
- --------------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
- --------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- --------------------------------------------------------------------------------
[logo] OppenheimerFunds(R)
RA0700.001.0899 October 29, 1999 Distributor, Inc.
