[photo of tree-lined road]
Semiannual Report February 29, 2000
Oppenheimer
Main Street(R)
Growth & Income Fund
[Logo]OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
We benefited from investments in diverse industries, including energy, consumer
cyclicals, telecommunications, biotechnology and technology.
Our quantitative models suggest improving prospects for mid- and small-cap
stocks in the coming months, as well as a balance of growth and value stocks.
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
9 Financial
Statements
41 Officers and Directors
Cumulative
Total Returns
For the 6-Month Period
Ended 2/29/00*
Class A
Without With
Sales Chg. Sales Chg.
- ----------------------
3.04% -2.88%
Class B
Without With
Sales Chg. Sales Chg.
- ----------------------
2.63% -1.98%
Class C
Without With
Sales Chg. Sales Chg.
- ----------------------
2.66% 1.74%
Class Y
Without With
Sales Chg. Sales Chg.
- ----------------------
3.14% 3.14%
- ----------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- ----------------------
* See page 7 for further details.
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may be assuming too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Alan Greenspan, the Chairman of the Federal Reserve Board, has stated his
view that the recent spectacular returns of some sectors of the market are
partly responsible for pushing our economy to growth rates that could lead to
higher inflation. The dramatic rise in the prices of a narrow segment of the
market has created enormous wealth for some investors. In turn, those investors
are spending at a rate that the Fed believes may threaten the healthy growth of
our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed is attempting to
slow economic growth. It is a precarious balancing act: too much tightening
creates the risk of recession, while too little opens the door to inflation.
The implications are clear: investors must be prepared for near-term market
volatility. In the bond market, higher interest rates usually lead to lower bond
prices. In the stock market, slower economic growth could reduce corporate
earnings and put downward pressure on stock prices. Highly valued stocks may be
particularly vulnerable to a correction. The Securities and Exchange Commission
Chairman, Arthur Levitt, has cautioned investors against the expectation that
the types of returns seen in the recent bull market will last forever. We agree.
[PHOTOS]
James C. Swain
Chairman
Oppenheimer
Main Street(R) Growth &
Income Fund
Bridget A. Macaskill
President
Oppenheimer
Main Street(R) Growth &
Income Fund
1 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While "new economy" stocks have risen since our last report to you, many "old
economy" stocks are selling at unusually low prices. In the bond market, higher
interest rates over the short term may reduce inflation concerns, which should
be beneficial over the long term. By buying out-of-favor investments, you may be
able to profit when and if they return to favor in the future. Of course, there
is no assurance that value investing will return to favor in the market, but it
may be a diversification strategy to consider for part of your portfolio.
What specific investments should you consider today so that you are prepared
for tomorrow? The answer depends on your individual investing goals, risk
tolerance and financial circumstances. We urge you to talk with your financial
advisor about ways to diversify your portfolio. This may include considering
global diversification as part of your strategy. While investing abroad has
special risks, such as the effects of foreign currency fluctuation, it also
offers opportunities to participate in global economic growth and to hedge
against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right Way
to Invest.
Sincerely,
/s/James C. Swain /s/Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
March 21, 2000
2 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q How would you characterize the Fund's performance during the six-month period
that ended February 29, 2000?
A. Much like the S&P 500 Index and many of the Fund's peers, Oppenheimer Main
Street Growth & Income Fund made little progress over the recent six-month
period. Despite generally favorable conditions in the economy, the stock market
was characterized by high volatility and enormous disparity among its different
sectors.
What made this such a volatile period?
Throughout the period, investors struggled to weigh the positive impact of
encouraging economic data against the negative impact of rising interest rates.
During the first few months of the period, equity markets were driven higher by
continued strength in the U.S. economy, low rates of inflation, growing evidence
of global economic recovery and diminishing fears of Y2K-related problems. By
the beginning of the new year, most market indices had risen to new all-time
highs.
However, this favorable investment environment proved short-lived. Concerned
that the U.S. economy's rate of growth could give rise to inflation, the Federal
Reserve Board ("Fed") raised interest rates in February 2000, the fourth such
rate hike in less than a year. Rate hikes tend to hurt the profitability of many
types of corporations by raising the cost of borrowed capital and reducing the
present value of future earnings. Although investors had shrugged off earlier
rate hikes, concerns surrounding the Fed's February action drove many stocks
lower.
[PHOTO]
Portfolio Management
Team (l to r)
Charles Albers
Nikolaos Monoyios
3 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
The only sectors that seemed relatively unaffected by such concerns were
technology and biotechnology, both of which rose sharply in January and
February. Despite interest rate concerns, investors seemed willing to pay
increasingly higher prices for the high growth potential of many
technology-related stocks. In February, at the same time the S&P 500 was
falling, the technology-heavy Nasdaq Composite Index was reaching new highs.
How did you manage the Fund in light of these conditions?
Throughout the period we focused primarily on large-cap stocks that included
both value and growth-like names. Based on prevailing market conditions during
the period, our quantitative cap-size models forecasted the continued superior
performance of the largest-capitalization stocks, while discouraging investment
in "deep value" and speculative growth categories.
We achieved strong performance from investments in broadly diverse sectors of
the economy. Many of our energy holdings benefited from steadily rising prices
for oil and gas, and consolidations among several of the industry's key players.
Our consumer cyclical stocks were aided by strong consumer spending. Our
telecommunications holdings advanced amid growing business demand for voice and
data communications services. Our biotechnology stocks showed strong gains as
established companies profited from a growing roster of new drugs with
blockbuster potential.
The Fund also shared in the powerful growth of the technology sector. We
concentrated our technology holdings among the larger and better established
companies, while limiting exposure to newer, highly speculative companies.
[CALLOUT]
"We continually refine our investment process, emphasizing factors we believe
are most likely to predict market performance."
4 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
As the rally in technology drove the value of some stocks to levels we
considered unsustainable, we trimmed some of our holdings. However, we continued
to hold a sizeable, though slightly reduced, position in the sector.
Did any of the Fund's investments fail to meet your expectations?
In general, value-oriented stocks continued their pattern of underperformance
throughout the period. However, we believe that such holdings will serve the
Fund's shareholders well in the event of a shift in market sentiment in favor of
value.
The Fund's performance also suffered as a result of problems within certain
industry sectors. Our holdings among non-biotech healthcare stocks were hurt by
regulatory challenges and diminishing patent protection for established
pharmaceuticals. Our financial industry holdings were pressured by the rising
interest rate environment, which tends to have a disproportionately negative
impact on financial services stocks.
What is your outlook for the coming months?
Currently, our quantitative cap-size model suggests improving prospects for mid-
and small-cap stocks in the coming months. Additional models favor a balance of
growth and value factors in determining the stocks best able to weather market
conditions and participate in market strength. Of course, our models constantly
evolve in response not only to changing stock data, but also to changing market
dynamics.
Average Annual
Total Returns
For the Periods Ended 3/31/00(1)
Class A
1-Year 5-Year 10-Year
.............................
11.75% 20.60% 22.45%
Class B Since
1-Year 5-Year Inception
.............................
12.67% 20.92% 20.22%
Class C Since
1-Year 5-Year Inception
.............................
16.68% 21.13% 18.12%
Class Y Since
1-Year 5-Year Inception
.............................
18.71% N/A 22.96%
1. See page 7 for further details.
5 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
We continually refine our investment process, emphasizing factors we believe are
most likely to predict market performance in today's environment. This high
degree of flexibility, together with the Fund's broad diversification, makes
Oppenheimer Main Street Growth & Income Fund a core part of The Right Way to
Invest.
Portfolio Allocation(2)
[PIE CHART]
Stocks 95.1%
Bonds 0.7
Cash Equivalents 4.2
Top Five Common Stock Industries(3)
- ----------------------------------------------------------
Electronics 9.7%
- ----------------------------------------------------------
Computer Hardware 6.6
- ----------------------------------------------------------
Healthcare/Drugs 6.5
- ----------------------------------------------------------
Computer Software 6.1
- ----------------------------------------------------------
Oil: Domestic 5.9
Top Ten Common Stock Holdings(3)
- ----------------------------------------------------------
Intel Corp. 4.5%
- ----------------------------------------------------------
Microsoft Corp. 3.9
- ----------------------------------------------------------
Cisco Systems, Inc. 3.0
- ----------------------------------------------------------
International Business Machines Corp. 2.8
- ----------------------------------------------------------
General Electric Co. 2.6
- ----------------------------------------------------------
Wal-Mart Stores, Inc. 2.2
- ----------------------------------------------------------
Citigroup, Inc. 2.1
- ----------------------------------------------------------
AT&T Corp. 2.1
- ----------------------------------------------------------
Home Depot, Inc. 1.8
- ----------------------------------------------------------
Royal Dutch Petroleum Co. 1.7
2. Portfolio is subject to change. Percentages are as of February 29, 2000, and
are based on total market value of investments.
3. Portfolio is subject to change. Percentages are as of February 29, 2000, and
are based on net assets.
6 | 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 at
www.oppenheimerfunds.com.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
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 1% (since inception). Class B shares are subject to an annual 0.75%
asset-based 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.
7 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Financials
8 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS February 29, 2000 / Unaudited
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
===================================================================================
<S> <C> <C>
Common Stocks--94.2%
- -----------------------------------------------------------------------------------
Basic Materials--3.5%
- -----------------------------------------------------------------------------------
Chemicals--2.2%
Dexter Corp. 300,000 $ 13,837,500
- -----------------------------------------------------------------------------------
Dow Chemical Co. 821,700 89,154,450
- -----------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 3,552,682 179,410,441
- -----------------------------------------------------------------------------------
Ecolab, Inc. 225,000 6,356,250
- -----------------------------------------------------------------------------------
Engelhard Corp. 206,700 2,816,287
- -----------------------------------------------------------------------------------
FMC Corp.(1) 36,900 1,782,731
- -----------------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 63,000 1,890,000
- -----------------------------------------------------------------------------------
Lafarge Corp. 300,000 5,906,250
- -----------------------------------------------------------------------------------
PPG Industries, Inc. 99,400 4,907,875
- -----------------------------------------------------------------------------------
Rohm & Haas Co. 577,600 23,320,600
- -----------------------------------------------------------------------------------
Schulman (A.), Inc. 300,000 3,975,000
- -----------------------------------------------------------------------------------
Solutia, Inc. 680,000 9,392,500
- -----------------------------------------------------------------------------------
Union Carbide Corp. 842,300 45,220,981
- -----------------------------------------------------------------------------------
Universal Corp. 139,900 2,290,862
- -----------------------------------------------------------------------------------
W.R. Grace & Co.(1) 96,000 966,000
------------
391,227,727
- -----------------------------------------------------------------------------------
Gold & Precious Minerals--0.0%
Homestake Mining Co. 344,300 2,237,950
- -----------------------------------------------------------------------------------
Metals--0.6%
AK Steel Holding Corp. 283,350 2,355,347
- -----------------------------------------------------------------------------------
Alcoa, Inc. 1,016,800 69,650,800
- -----------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B(1) 95,800 1,317,250
- -----------------------------------------------------------------------------------
Inco Ltd.(1) 671,800 11,756,500
- -----------------------------------------------------------------------------------
Nucor Corp. 161,100 8,004,656
- -----------------------------------------------------------------------------------
Reliance Steel & Aluminum Co. 180,000 3,487,500
- -----------------------------------------------------------------------------------
Ryerson Tull, Inc. 505,300 6,695,225
- -----------------------------------------------------------------------------------
Worthington Industries, Inc. 117,100 1,551,575
------------
104,818,853
9 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Paper--0.7%
Boise Cascade Corp. 55,800 $ 1,663,537
- -----------------------------------------------------------------------------------
Champion International Corp. 65,200 3,374,100
- -----------------------------------------------------------------------------------
Georgia Pacific Group 616,500 21,384,844
- -----------------------------------------------------------------------------------
International Paper Co. 617,800 22,742,762
- -----------------------------------------------------------------------------------
Louisiana-Pacific Corp. 722,600 8,535,712
- -----------------------------------------------------------------------------------
Mead Corp. 60,000 1,796,250
- -----------------------------------------------------------------------------------
Pactiv Corp.(1) 658,400 5,472,950
- -----------------------------------------------------------------------------------
Rayonier, Inc. 196,000 7,791,000
- -----------------------------------------------------------------------------------
Westvaco Corp. 62,900 1,733,681
- -----------------------------------------------------------------------------------
Weyerhaeuser Co. 600,500 30,813,156
- -----------------------------------------------------------------------------------
Willamette Industries, Inc. 308,800 10,479,900
------------
115,787,892
- -----------------------------------------------------------------------------------
Capital Goods--9.1%
- -----------------------------------------------------------------------------------
Aerospace/Defense--1.2%
Boeing Co. 4,360,300 160,786,062
- -----------------------------------------------------------------------------------
General Dynamics Corp. 816,000 35,292,000
- -----------------------------------------------------------------------------------
Northrop Grumman Corp. 245,100 11,136,731
- -----------------------------------------------------------------------------------
TRW, Inc. 198,900 9,547,200
------------
216,761,993
- -----------------------------------------------------------------------------------
Electrical Equipment--3.8%
AVX Corp. 315,000 20,002,500
- -----------------------------------------------------------------------------------
CommScope, Inc.(1) 200,000 7,787,500
- -----------------------------------------------------------------------------------
Conexant Systems, Inc.(1) 406,600 39,948,450
- -----------------------------------------------------------------------------------
Emerson Electric Co. 1,260,000 57,408,750
- -----------------------------------------------------------------------------------
General Electric Co. 3,500,300 462,695,906
- -----------------------------------------------------------------------------------
Integrated Device Technology, Inc.(1) 554,300 20,439,812
- -----------------------------------------------------------------------------------
Molex, Inc., Cl. A 94,000 3,983,250
- -----------------------------------------------------------------------------------
Rockwell International Corp. 790,500 35,770,125
- -----------------------------------------------------------------------------------
SPX Corp.(1) 146,000 12,711,125
- -----------------------------------------------------------------------------------
Symbol Technologies, Inc. 196,000 18,644,500
------------
679,391,918
- -----------------------------------------------------------------------------------
Industrial Services--0.1%
Fluor Corp. 199,900 5,684,656
- -----------------------------------------------------------------------------------
Paychex, Inc. 150,000 7,509,375
- -----------------------------------------------------------------------------------
Valassis Communications, Inc.(1) 253,000 7,004,937
------------
20,198,968
10 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Manufacturing--4.0%
American Standard Cos., Inc.(1) 780,000 $ 27,202,500
- -----------------------------------------------------------------------------------
Avery-Dennison Corp. 958,000 58,138,625
- -----------------------------------------------------------------------------------
Ball Corp. 140,000 3,771,250
- -----------------------------------------------------------------------------------
Bemis Co., Inc. 168,700 5,018,825
- -----------------------------------------------------------------------------------
Berkshire Hathaway, Inc., Cl. A(1) 546 24,024,000
- -----------------------------------------------------------------------------------
Briggs & Stratton Corp. 170,000 5,684,375
- -----------------------------------------------------------------------------------
Caterpillar, Inc. 305,100 10,697,569
- -----------------------------------------------------------------------------------
Cooper Industries, Inc. 416,400 12,596,100
- -----------------------------------------------------------------------------------
Corning, Inc. 175,100 32,918,800
- -----------------------------------------------------------------------------------
Crown Cork & Seal Co., Inc. 86,200 1,206,800
- -----------------------------------------------------------------------------------
Cummins Engine Co., Inc. 79,700 2,655,006
- -----------------------------------------------------------------------------------
Danaher Corp. 181,300 7,399,306
- -----------------------------------------------------------------------------------
Dover Corp. 884,200 34,096,962
- -----------------------------------------------------------------------------------
Eaton Corp. 431,500 32,335,531
- -----------------------------------------------------------------------------------
Honeywell International, Inc. 3,550,200 170,853,375
- -----------------------------------------------------------------------------------
Illinois Tool Works, Inc. 401,100 20,731,856
- -----------------------------------------------------------------------------------
Mark IV Industries, Inc. 650,000 13,000,000
- -----------------------------------------------------------------------------------
Mettler-Toledo International, Inc.(1) 264,000 10,197,000
- -----------------------------------------------------------------------------------
Microchip Technology, Inc.(1) 145,500 9,084,656
- -----------------------------------------------------------------------------------
Miller (Herman), Inc. 254,400 5,215,200
- -----------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 1,516,900 133,676,812
- -----------------------------------------------------------------------------------
PACCAR, Inc. 89,000 3,832,562
- -----------------------------------------------------------------------------------
Parker-Hannifin Corp. 353,700 12,821,625
- -----------------------------------------------------------------------------------
Pentair, Inc. 30,000 1,031,250
- -----------------------------------------------------------------------------------
Temple-Inland, Inc. 108,200 5,531,725
- -----------------------------------------------------------------------------------
Tyco International Ltd. 1,259,000 47,763,312
- -----------------------------------------------------------------------------------
United Technologies Corp. 372,000 18,948,750
------------
710,433,772
- -----------------------------------------------------------------------------------
Communication Services--5.7%
- -----------------------------------------------------------------------------------
Telecommunications: Long Distance--3.2%
ADC Telecommunications, Inc.(1) 432,200 19,394,975
- -----------------------------------------------------------------------------------
ALLTEL Corp. 526,000 30,508,000
- -----------------------------------------------------------------------------------
AT&T Corp. 7,456,004 368,606,198
- -----------------------------------------------------------------------------------
Comverse Technology, Inc.(1) 96,000 18,900,000
- -----------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 2,200,000 134,200,000
------------
571,609,173
11 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Telephone Utilities--2.5%
Bell Atlantic Corp. 1,728,800 $ 84,603,150
- -----------------------------------------------------------------------------------
BellSouth Corp. 5,674,000 231,215,500
- -----------------------------------------------------------------------------------
eGlobe, Inc.(1) 19,486 266,715
- -----------------------------------------------------------------------------------
GTE Corp. 1,210,500 71,419,500
- -----------------------------------------------------------------------------------
U S West, Inc. 680,000 49,385,000
- -----------------------------------------------------------------------------------
Western Wireless Corp.(1) 220,000 10,670,000
------------
447,559,865
- -----------------------------------------------------------------------------------
Telecommunications: Wireless--0.0%
United States Cellular Corp.(1) 40,000 2,677,500
- -----------------------------------------------------------------------------------
Consumer Cyclicals--13.3%
- -----------------------------------------------------------------------------------
Autos & Housing--1.6%
Arvin Industries, Inc. 150,000 2,756,250
- -----------------------------------------------------------------------------------
Bandag, Inc. 51,000 1,198,500
- -----------------------------------------------------------------------------------
Centex Construction Products, Inc. 232,000 5,394,000
- -----------------------------------------------------------------------------------
Cooper Tire & Rubber Co. 256,000 2,768,000
- -----------------------------------------------------------------------------------
Dana Corp. 128,300 2,734,394
- -----------------------------------------------------------------------------------
Delphi Automotive Systems Corp. 2,009,100 33,526,856
- -----------------------------------------------------------------------------------
Fortune Brands, Inc. 640,000 14,000,000
- -----------------------------------------------------------------------------------
Furniture Brands International, Inc.(1) 200,000 3,212,500
- -----------------------------------------------------------------------------------
General Motors Corp. 1,116,500 84,923,781
- -----------------------------------------------------------------------------------
Hughes Supply, Inc. 76,000 1,358,500
- -----------------------------------------------------------------------------------
Johnson Controls, Inc. 256,300 13,680,012
- -----------------------------------------------------------------------------------
Lear Corp.(1) 750,000 15,843,750
- -----------------------------------------------------------------------------------
Leggett & Platt, Inc. 352,000 5,918,000
- -----------------------------------------------------------------------------------
Masco Corp. 227,000 4,057,625
- -----------------------------------------------------------------------------------
Maytag Corp. 218,000 5,763,375
- -----------------------------------------------------------------------------------
Meritor Automotive, Inc. 426,000 5,964,000
- -----------------------------------------------------------------------------------
NVR, Inc.(1) 110,000 4,853,750
- -----------------------------------------------------------------------------------
Ryland Group, Inc. (The) 178,000 3,159,500
- -----------------------------------------------------------------------------------
Snap-On, Inc. 154,000 3,359,125
- -----------------------------------------------------------------------------------
Southdown, Inc. 238,000 11,810,750
- -----------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 240,000 3,990,000
- -----------------------------------------------------------------------------------
Tower Automotive, Inc.(1) 244,500 2,903,437
- -----------------------------------------------------------------------------------
Vulcan Materials Co. 254,000 10,160,000
- -----------------------------------------------------------------------------------
Webb (Del E.) Corp.(1) 117,100 1,756,500
- -----------------------------------------------------------------------------------
Whirlpool Corp. 483,700 26,270,956
- -----------------------------------------------------------------------------------
York International Corp. 193,300 3,503,562
------------
274,867,123
12 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Consumer Services--0.5%
Advo, Inc.(1) 80,000 $ 2,220,000
- -----------------------------------------------------------------------------------
Avis Rent A Car, Inc.(1) 750,000 10,921,875
- -----------------------------------------------------------------------------------
Catalina Marketing Corp.(1) 84,500 7,193,062
- -----------------------------------------------------------------------------------
CDI Corp.(1) 130,000 2,372,500
- -----------------------------------------------------------------------------------
Dun & Bradstreet Corp. 367,000 9,610,812
- -----------------------------------------------------------------------------------
H&R Block, Inc. 450,000 19,743,750
- -----------------------------------------------------------------------------------
Harte-Hanks, Inc. 250,000 5,453,125
- -----------------------------------------------------------------------------------
Hertz Corp., Cl. A 175,000 6,267,187
- -----------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 325,200 13,068,975
- -----------------------------------------------------------------------------------
Young & Rubicam, Inc. 280,000 14,140,000
------------
90,991,286
- -----------------------------------------------------------------------------------
Leisure & Entertainment--0.5%
Brunswick Corp. 1,016,100 17,972,269
- -----------------------------------------------------------------------------------
Harley-Davidson, Inc. 247,000 16,826,875
- -----------------------------------------------------------------------------------
Hasbro, Inc. 295,200 4,649,400
- -----------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 550,600 15,175,912
- -----------------------------------------------------------------------------------
MGM Grand, Inc.(1) 630,622 12,533,612
- -----------------------------------------------------------------------------------
Park Place Entertainment Corp.(1) 2,340,000 26,471,250
------------
93,629,318
- -----------------------------------------------------------------------------------
Media--2.9%
Central Newspapers, Inc., Cl. A 120,000 3,427,500
- -----------------------------------------------------------------------------------
Deluxe Corp. 261,800 6,135,937
- -----------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co. 365,000 6,980,625
- -----------------------------------------------------------------------------------
Dow Jones & Co., Inc. 171,300 10,684,837
- -----------------------------------------------------------------------------------
Gannett Co., Inc. 970,000 63,231,875
- -----------------------------------------------------------------------------------
Harland (John H.) Co. 200,000 3,087,500
- -----------------------------------------------------------------------------------
Knight-Ridder, Inc. 307,600 14,418,750
- -----------------------------------------------------------------------------------
McClatchy Co., Cl. A 100,000 3,456,250
- -----------------------------------------------------------------------------------
McGraw-Hill, Inc. 76,000 3,866,500
- -----------------------------------------------------------------------------------
New York Times Co., Cl. A 700,000 29,575,000
- -----------------------------------------------------------------------------------
R.H. Donnelley Corp.(1) 190,000 3,206,250
- -----------------------------------------------------------------------------------
Readers Digest Assn., Inc., Cl. A, Non-Vtg. 893,000 30,696,875
- -----------------------------------------------------------------------------------
Snyder Communications, Inc.(1) 105,000 2,546,250
- -----------------------------------------------------------------------------------
Time Warner, Inc. 3,066,800 262,211,400
- -----------------------------------------------------------------------------------
Times Mirror Co. (The), Cl. A 176,900 9,021,900
- -----------------------------------------------------------------------------------
Tribune Co. 854,300 33,264,306
- -----------------------------------------------------------------------------------
USA Networks, Inc.(1) 1,560,000 35,002,500
------------
520,814,255
13 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Retail: General--2.9%
Dillard's, Inc. 97,900 $ 1,701,012
- -----------------------------------------------------------------------------------
Dollar General Corp. 504,400 10,560,875
- -----------------------------------------------------------------------------------
Family Dollar Stores, Inc. 254,000 4,413,250
- -----------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 1,380,000 50,628,750
- -----------------------------------------------------------------------------------
K Mart Corp.(1) 1,684,000 14,840,250
- -----------------------------------------------------------------------------------
May Department Stores Co. 1,145,800 30,005,637
- -----------------------------------------------------------------------------------
Nordstrom, Inc. 146,700 3,126,544
- -----------------------------------------------------------------------------------
Sears Roebuck & Co. 602,200 16,598,137
- -----------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 8,007,200 389,850,550
------------
521,725,005
- -----------------------------------------------------------------------------------
Retail: Specialty--4.2%
Abercrombie & Fitch Co., Cl. A(1) 1,638,000 24,058,125
- -----------------------------------------------------------------------------------
American Eagle Outfitters, Inc.(1) 450,000 11,475,000
- -----------------------------------------------------------------------------------
American Greetings Corp., Cl. A 76,800 1,324,800
- -----------------------------------------------------------------------------------
Ann Taylor Stores Corp.(1) 380,000 7,243,750
- -----------------------------------------------------------------------------------
Bed Bath & Beyond, Inc.(1) 102,100 2,897,087
- -----------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 790,000 42,956,250
- -----------------------------------------------------------------------------------
BJ's Wholesale Club, Inc.(1) 292,000 9,052,000
- -----------------------------------------------------------------------------------
Circuit City Stores-Circuit City Group 374,800 15,132,550
- -----------------------------------------------------------------------------------
Gap, Inc. 1,302,250 62,914,953
- -----------------------------------------------------------------------------------
Home Depot, Inc. 5,548,300 320,761,094
- -----------------------------------------------------------------------------------
Lands' End, Inc.(1) 134,000 4,447,125
- -----------------------------------------------------------------------------------
Limited, Inc. 900,000 30,600,000
- -----------------------------------------------------------------------------------
Lowe's Cos., Inc. 414,700 19,750,087
- -----------------------------------------------------------------------------------
Massimo da Milano, Inc.(1,2) 2,859 160
- -----------------------------------------------------------------------------------
Nike, Inc., Cl. B 292,000 8,303,750
- -----------------------------------------------------------------------------------
Office Depot, Inc.(1) 532,100 6,484,969
- -----------------------------------------------------------------------------------
Payless ShoeSource, Inc.(1) 441,800 17,451,100
- -----------------------------------------------------------------------------------
Ross Stores, Inc. 1,454,300 21,087,350
- -----------------------------------------------------------------------------------
Sherwin-Williams Co. 538,000 10,289,250
- -----------------------------------------------------------------------------------
Shopko Stores, Inc.(1) 210,000 3,491,250
- -----------------------------------------------------------------------------------
Tandy Corp. 610,000 23,218,125
- -----------------------------------------------------------------------------------
Target Corp. 608,300 35,889,700
- -----------------------------------------------------------------------------------
Tiffany & Co. 348,000 22,337,250
- -----------------------------------------------------------------------------------
TJX Cos., Inc. 1,370,000 21,834,375
- -----------------------------------------------------------------------------------
Toys 'R' Us, Inc.(1) 660,100 8,168,737
- -----------------------------------------------------------------------------------
Zale Corp.(1) 500,000 18,812,500
------------
749,981,337
14 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.7%
Burlington Industries, Inc.(1) 280,000 $ 787,500
- -----------------------------------------------------------------------------------
Jones Apparel Group, Inc.(1) 2,115,059 47,853,210
- -----------------------------------------------------------------------------------
Kellwood Co. 50,000 843,750
- -----------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 3,937,500
- -----------------------------------------------------------------------------------
Liz Claiborne, Inc. 282,200 10,564,862
- -----------------------------------------------------------------------------------
Mohawk Industries, Inc.(1) 300,000 6,656,250
- -----------------------------------------------------------------------------------
Polo Ralph Lauren Corp.(1) 150,000 2,512,500
- -----------------------------------------------------------------------------------
Shaw Industries, Inc. 1,440,000 18,270,000
- -----------------------------------------------------------------------------------
Too, Inc.(1) 128,574 3,085,776
- -----------------------------------------------------------------------------------
Unifi, Inc.(1) 573,000 5,479,312
- -----------------------------------------------------------------------------------
VF Corp. 417,100 10,297,156
- -----------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 600,000 6,525,000
- -----------------------------------------------------------------------------------
WestPoint Stevens, Inc. 365,000 6,068,125
------------
122,880,941
- -----------------------------------------------------------------------------------
Consumer Staples--4.7%
- -----------------------------------------------------------------------------------
Beverages--0.6%
Adolph Coors Co., Cl. B 104,000 4,563,000
- -----------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 1,439,500 92,307,937
- -----------------------------------------------------------------------------------
Brown-Forman Corp., Cl. B 30,000 1,428,750
- -----------------------------------------------------------------------------------
Canandaigua Brands, Inc., Cl. A(1) 72,000 3,528,000
------------
101,827,687
- -----------------------------------------------------------------------------------
Broadcasting--1.6%
CBS Corp.(1) 1,682,810 100,232,371
- -----------------------------------------------------------------------------------
Charter Communications, Inc., Cl. A(1) 25,000 439,062
- -----------------------------------------------------------------------------------
Comcast Corp., Cl. A Special(1) 3,688,100 156,744,250
- -----------------------------------------------------------------------------------
Cox Communications, Inc., Cl. A(1) 440,000 19,992,500
- -----------------------------------------------------------------------------------
Infinity Broadcasting Corp., Cl. A(1) 161,100 5,145,131
- -----------------------------------------------------------------------------------
ValueVision International, Inc., Cl. A(1) 87,800 4,390,000
------------
286,943,314
- -----------------------------------------------------------------------------------
Entertainment--0.3%
Brinker International, Inc.(1) 400,000 8,700,000
- -----------------------------------------------------------------------------------
Darden Restaurants, Inc. 540,000 7,121,250
- -----------------------------------------------------------------------------------
Ruby Tuesday, Inc. 294,000 4,979,625
- -----------------------------------------------------------------------------------
Ryan's Family Steak Houses, Inc.(1) 100,000 956,250
- -----------------------------------------------------------------------------------
Tricon Global Restaurants, Inc.(1) 801,900 21,350,587
- -----------------------------------------------------------------------------------
Wendy's International, Inc. 794,900 12,519,675
------------
55,627,387
15 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Food--0.4%
Agribrands International, Inc.(1) 171,960 $ 6,287,287
- -----------------------------------------------------------------------------------
ConAgra, Inc. 337,100 5,520,012
- -----------------------------------------------------------------------------------
Corn Products International, Inc. 202,400 4,769,050
- -----------------------------------------------------------------------------------
Earthgrains Co. 200,000 3,000,000
- -----------------------------------------------------------------------------------
Hormel Foods Corp. 192,000 3,204,000
- -----------------------------------------------------------------------------------
IBP, Inc. 450,000 5,625,000
- -----------------------------------------------------------------------------------
Ralston Purina Co. 255,800 7,242,338
- -----------------------------------------------------------------------------------
Sysco Corp. 904,000 29,662,500
------------
65,310,187
- -----------------------------------------------------------------------------------
Food & Drug Retailers--0.1%
Albertson's, Inc. 351,450 8,610,525
- -----------------------------------------------------------------------------------
SUPERVALU, Inc. 202,800 3,485,625
------------
12,096,150
- -----------------------------------------------------------------------------------
Household Goods--0.6%
Kimberly-Clark Corp. 2,185,900 112,983,706
- -----------------------------------------------------------------------------------
Tobacco--1.1%
Philip Morris Cos., Inc. 8,452,500 169,578,281
- -----------------------------------------------------------------------------------
R.J. Reynolds Tobacco Holdings, Inc. 1,400,000 25,200,000
- -----------------------------------------------------------------------------------
UST, Inc. 384,200 7,419,863
------------
202,198,144
- -----------------------------------------------------------------------------------
Energy--11.9%
- -----------------------------------------------------------------------------------
Energy Services--2.8%
Coastal Corp. 183,300 7,710,056
- -----------------------------------------------------------------------------------
Constellation Energy Group 121,900 3,626,525
- -----------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc. 400,000 12,700,000
- -----------------------------------------------------------------------------------
Dominion Resources, Inc. 404,700 14,847,431
- -----------------------------------------------------------------------------------
Dynegy, Inc. 87,700 4,110,938
- -----------------------------------------------------------------------------------
ENSCO International, Inc. 3,860,000 116,765,000
- -----------------------------------------------------------------------------------
Global Marine, Inc.(1) 3,500,000 78,531,250
- -----------------------------------------------------------------------------------
Nabors Industries, Inc.(1) 1,685,000 60,449,375
- -----------------------------------------------------------------------------------
Noble Drilling Corp.(1) 2,600,000 93,600,000
- -----------------------------------------------------------------------------------
Rowan Cos., Inc.(1) 279,500 7,022,438
- -----------------------------------------------------------------------------------
Santa Fe International Corp. 1,926,400 55,263,600
- -----------------------------------------------------------------------------------
Seacor Holdings, Inc.(1) 200,000 9,700,000
- -----------------------------------------------------------------------------------
Tidewater, Inc. 1,001,000 28,340,813
------------
492,667,426
16 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Oil: Domestic--5.9%
Amerada Hess Corp. 396,700 $ 20,058,144
- -----------------------------------------------------------------------------------
Atlantic Richfield Co. 1,214,700 86,243,700
- -----------------------------------------------------------------------------------
Chevron Corp. 2,124,100 158,643,719
- -----------------------------------------------------------------------------------
Chieftain International, Inc.(1,3) 1,590,100 21,945,399
- -----------------------------------------------------------------------------------
Conoco, Inc., Cl. B 1,297,600 25,546,500
- -----------------------------------------------------------------------------------
Devon Energy Corp. 1,037,700 38,654,325
- -----------------------------------------------------------------------------------
EOG Resources, Inc. 1,557,300 23,748,825
- -----------------------------------------------------------------------------------
Exxon Mobil Corp. 3,510,648 264,395,678
- -----------------------------------------------------------------------------------
Frontier Oil Corp.(1,3) 2,554,000 15,962,500
- -----------------------------------------------------------------------------------
Kerr-McGee Corp. 692,000 30,967,000
- -----------------------------------------------------------------------------------
Murphy Oil Corp. 1,125,000 56,953,125
- -----------------------------------------------------------------------------------
Newfield Exploration Co.(1) 622,700 19,303,700
- -----------------------------------------------------------------------------------
Noble Affiliates, Inc. 300,000 6,750,000
- -----------------------------------------------------------------------------------
Occidental Petroleum Corp. 286,200 4,597,088
- -----------------------------------------------------------------------------------
Phillips Petroleum Co. 800,200 30,607,650
- -----------------------------------------------------------------------------------
Stone Energy Corp.(1) 395,800 16,079,375
- -----------------------------------------------------------------------------------
Tesoro Petroleum Corp.(1) 450,000 4,162,500
- -----------------------------------------------------------------------------------
Texaco, Inc. 2,432,800 115,405,950
- -----------------------------------------------------------------------------------
Tosco Corp. 460,800 12,326,400
- -----------------------------------------------------------------------------------
Union Pacific Resources Group, Inc. 147,000 1,313,813
- -----------------------------------------------------------------------------------
USX-Marathon Group 109,500 2,367,938
- -----------------------------------------------------------------------------------
Vastar Resources, Inc. 1,839,400 97,603,163
--------------
1,053,636,492
- -----------------------------------------------------------------------------------
Oil: International--3.2%
Anderson Exploration Ltd.(1) 2,947,800 35,552,378
- -----------------------------------------------------------------------------------
Beau Canada Exploration Ltd.(1) 3,917,900 4,725,241
- -----------------------------------------------------------------------------------
Berkley Petroleum Corp.(1) 3,206,800 21,548,105
- -----------------------------------------------------------------------------------
Canadian 88 Energy Corp.(1,3) 9,943,300 10,964,356
- -----------------------------------------------------------------------------------
Canadian Hunter Exploration Ltd.(1) 582,000 9,185,252
- -----------------------------------------------------------------------------------
Canadian Natural Resources Ltd.(1) 2,325,000 49,672,640
- -----------------------------------------------------------------------------------
Encal Energy Ltd.(1) 2,511,200 10,470,544
- -----------------------------------------------------------------------------------
Newport Petroleum Corp.(1) 4,220,000 11,342,522
- -----------------------------------------------------------------------------------
Northrock Resources Ltd.(1) 330,607 1,526,580
- -----------------------------------------------------------------------------------
Paramount Resources Ltd. 1,636,200 15,166,706
- -----------------------------------------------------------------------------------
Ranger Oil Ltd.(1) 3,881,100 13,775,096
- -----------------------------------------------------------------------------------
Rio Alto Exploration Ltd.(1) 1,500,150 22,745,210
17 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Oil: International Continued
Royal Dutch Petroleum Co., NY Shares 5,771,200 $302,988,000
- -----------------------------------------------------------------------------------
Talisman Energy, Inc.(1) 1,989,800 51,424,879
- -----------------------------------------------------------------------------------
Tri Link Resources Ltd.(1) 791,000 2,971,020
- -----------------------------------------------------------------------------------
Ulster Petroleums Ltd.(1) 520,200 2,437,877
------------
566,496,406
- -----------------------------------------------------------------------------------
Financial--8.5%
- -----------------------------------------------------------------------------------
Banks--1.8%
BB&T Corp. 275,800 6,481,300
- -----------------------------------------------------------------------------------
Chase Manhattan Corp. 1,720,000 136,955,000
- -----------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 230,000 25,530,000
- -----------------------------------------------------------------------------------
M&T Bank Corp. 4,000 1,476,000
- -----------------------------------------------------------------------------------
Mellon Financial Corp. 295,300 8,895,913
- -----------------------------------------------------------------------------------
National City Corp. 214,300 4,125,275
- -----------------------------------------------------------------------------------
Old Kent Financial Corp. 551,500 14,442,406
- -----------------------------------------------------------------------------------
PNC Bank Corp. 1,073,000 41,511,688
- -----------------------------------------------------------------------------------
Regions Financial Corp. 270,000 5,467,500
- -----------------------------------------------------------------------------------
TCF Financial Corp. 50,000 990,625
- -----------------------------------------------------------------------------------
Union Planters Corp. 54,000 1,478,250
- -----------------------------------------------------------------------------------
Wachovia Corp. 194,000 11,094,375
- -----------------------------------------------------------------------------------
Wells Fargo Co. 1,924,300 63,622,169
- -----------------------------------------------------------------------------------
Zions Bancorp 100,000 5,306,250
------------
327,376,751
- -----------------------------------------------------------------------------------
Diversified Financial--4.5%
AMBAC Financial Group, Inc. 320,000 14,060,000
- -----------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 333,600 13,093,800
- -----------------------------------------------------------------------------------
Citigroup, Inc. 7,375,500 381,221,156
- -----------------------------------------------------------------------------------
Financial Security Assurance Holdings Ltd. 294,300 13,243,500
- -----------------------------------------------------------------------------------
Freddie Mac 649,300 27,108,275
- -----------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 689,000 63,732,500
- -----------------------------------------------------------------------------------
Household International, Inc. 530,000 16,926,875
- -----------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 412,400 29,899,000
- -----------------------------------------------------------------------------------
MGIC Investment Corp. 568,000 21,229,000
- -----------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 2,375,100 167,296,106
- -----------------------------------------------------------------------------------
PaineWebber Group, Inc. 223,400 8,545,050
- -----------------------------------------------------------------------------------
PMI Group, Inc. (The) 971,000 35,259,438
- -----------------------------------------------------------------------------------
Providian Financial Corp. 119,600 7,751,575
- -----------------------------------------------------------------------------------
SEI Investments Co. 28,000 2,500,750
------------
801,867,025
18 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Insurance--1.9%
AFLAC, Inc. 543,800 $ 19,882,688
- -----------------------------------------------------------------------------------
Allmerica Financial Corp. 702,200 29,316,850
- -----------------------------------------------------------------------------------
Allstate Corp. 1,336,200 26,055,900
- -----------------------------------------------------------------------------------
American General Corp. 242,000 12,629,375
- -----------------------------------------------------------------------------------
AXA Financial, Inc. 1,960,000 58,677,500
- -----------------------------------------------------------------------------------
Cigna Corp. 993,100 73,303,194
- -----------------------------------------------------------------------------------
Cincinnati Financial Corp. 264,000 7,887,000
- -----------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 92,900 2,903,125
- -----------------------------------------------------------------------------------
Hartford Life, Inc., Cl. A 470,000 16,626,250
- -----------------------------------------------------------------------------------
Jefferson-Pilot Corp. 437,800 22,792,963
- -----------------------------------------------------------------------------------
Lincoln National Corp. 760,400 21,148,625
- -----------------------------------------------------------------------------------
Loews Corp. 373,700 16,629,650
- -----------------------------------------------------------------------------------
Progressive Corp. 180,100 10,715,950
- -----------------------------------------------------------------------------------
Quantum Corp.-DLT & Storage Systems(1) 193,000 2,002,375
- -----------------------------------------------------------------------------------
Radian Group, Inc. 119,330 4,139,259
- -----------------------------------------------------------------------------------
St. Paul Cos., Inc. 139,300 3,116,838
- -----------------------------------------------------------------------------------
UnumProvident Corp. 209,600 2,803,400
------------
330,630,942
- -----------------------------------------------------------------------------------
Savings & Loans--0.3%
Dime Bancorp, Inc. 500,000 6,093,750
- -----------------------------------------------------------------------------------
Golden State Bancorp, Inc.(1) 1,431,000 18,424,125
- -----------------------------------------------------------------------------------
Golden West Financial Corp. 245,900 7,008,150
- -----------------------------------------------------------------------------------
Greenpoint Financial Corp. 445,000 7,092,188
- -----------------------------------------------------------------------------------
Washington Federal, Inc. 330,000 5,053,125
- -----------------------------------------------------------------------------------
Webster Financial Corp. 150,000 3,168,750
------------
46,840,088
- -----------------------------------------------------------------------------------
Healthcare--7.2%
- -----------------------------------------------------------------------------------
Healthcare/Drugs--6.5%
Alpharma, Inc. 88,900 3,078,163
- -----------------------------------------------------------------------------------
Amgen, Inc.(1) 3,145,000 214,449,688
- -----------------------------------------------------------------------------------
Andrx Corp.(1) 270,000 25,936,875
- -----------------------------------------------------------------------------------
Biogen, Inc.(1) 680,000 73,397,500
- -----------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 3,865,000 219,580,313
- -----------------------------------------------------------------------------------
Johnson & Johnson 3,284,200 235,641,350
- -----------------------------------------------------------------------------------
Mallinckrodt, Inc. 66,000 1,625,250
- -----------------------------------------------------------------------------------
Medimmune, Inc.(1) 240,000 47,640,000
19 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Healthcare/Drugs Continued
Merck & Co., Inc. 3,242,700 $ 199,628,719
- -----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 250,000 65,031,250
- -----------------------------------------------------------------------------------
Schering-Plough Corp. 1,398,200 48,762,225
- -----------------------------------------------------------------------------------
Trigon Healthcare, Inc.(1) 300,000 9,581,250
--------------
1,144,352,583
- -----------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.7%
Alberto-Culver Co., Cl. B 74,900 1,600,988
- -----------------------------------------------------------------------------------
Allergan, Inc. 580,600 29,211,438
- -----------------------------------------------------------------------------------
Biomet, Inc.(1) 300,000 9,900,000
- -----------------------------------------------------------------------------------
Cardinal Health, Inc. 328,500 13,550,625
- -----------------------------------------------------------------------------------
Lincare Holdings, Inc.(1) 300,000 7,031,250
- -----------------------------------------------------------------------------------
PacifiCare Health Systems, Inc.(1) 57,000 2,589,938
- -----------------------------------------------------------------------------------
PerkinElmer, Inc. 126,000 8,142,750
- -----------------------------------------------------------------------------------
Shared Medical Systems Corp. 34,500 1,343,344
- -----------------------------------------------------------------------------------
United Healthcare Corp.(1) 947,500 48,440,938
- -----------------------------------------------------------------------------------
VISX, Inc.(1) 320,000 5,420,000
--------------
127,231,271
- -----------------------------------------------------------------------------------
Technology--26.8%
- -----------------------------------------------------------------------------------
Computer Hardware--6.6%
Adaptec, Inc.(1) 320,000 13,120,000
- -----------------------------------------------------------------------------------
Apple Computer, Inc.(1) 550,000 63,043,750
- -----------------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 1,181,700 57,903,300
- -----------------------------------------------------------------------------------
Electronics for Imaging, Inc.(1) 525,000 31,171,875
- -----------------------------------------------------------------------------------
Gateway, Inc.(1) 431,500 29,665,625
- -----------------------------------------------------------------------------------
Hewlett-Packard Co. 1,192,000 160,324,000
- -----------------------------------------------------------------------------------
International Business Machines Corp. 4,869,600 496,699,200
- -----------------------------------------------------------------------------------
KLA Instruments Corp.(1) 663,600 51,719,325
- -----------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 500,000 59,625,000
- -----------------------------------------------------------------------------------
NCR Corp.(1) 200,000 7,587,500
- -----------------------------------------------------------------------------------
Pitney Bowes, Inc. 111,000 5,494,500
- -----------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 903,300 45,052,088
- -----------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 1,420,000 135,255,000
- -----------------------------------------------------------------------------------
Xircom, Inc.(1) 200,000 8,306,250
--------------
1,164,967,413
20 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Computer Services--0.6%
Automatic Data Processing, Inc. 1,070,000 $ 46,611,875
- -----------------------------------------------------------------------------------
DST Systems, Inc.(1) 100,000 5,612,500
- -----------------------------------------------------------------------------------
First Data Corp. 1,096,000 49,320,000
- -----------------------------------------------------------------------------------
Keane, Inc.(1) 193,300 4,639,200
--------------
106,183,575
- -----------------------------------------------------------------------------------
Computer Software--6.1%
Adobe Systems, Inc. 509,300 51,948,600
- -----------------------------------------------------------------------------------
Cadence Design Systems, Inc.(1) 290,000 5,781,875
- -----------------------------------------------------------------------------------
Electronic Arts, Inc.(1) 96,000 9,600,000
- -----------------------------------------------------------------------------------
Electronic Data Systems Corp. 685,000 44,353,750
- -----------------------------------------------------------------------------------
Legato Systems, Inc.(1) 400,000 14,250,000
- -----------------------------------------------------------------------------------
Microsoft Corp.(1) 7,747,600 692,441,750
- -----------------------------------------------------------------------------------
Oracle Corp.(1) 763,800 56,712,150
- -----------------------------------------------------------------------------------
Peoplesoft, Inc.(1) 1,074,000 22,218,375
- -----------------------------------------------------------------------------------
Sabre Holdings Corp.(1) 300,000 12,037,500
- -----------------------------------------------------------------------------------
Siebel Systems, Inc.(1) 290,000 40,219,375
- -----------------------------------------------------------------------------------
Synopsys, Inc.(1) 290,000 11,581,875
- -----------------------------------------------------------------------------------
Veritas Software Corp.(1) 582,000 115,163,250
--------------
1,076,308,500
- -----------------------------------------------------------------------------------
Communications Equipment--3.3%
Cisco Systems, Inc.(1) 4,000,000 528,750,000
- -----------------------------------------------------------------------------------
Harmonic, Inc.(1) 120,000 16,432,500
- -----------------------------------------------------------------------------------
Tellabs, Inc.(1) 675,600 32,428,800
--------------
577,611,300
- -----------------------------------------------------------------------------------
Electronics--9.7%
Advanced Micro Devices, Inc.(1) 524,700 20,528,888
- -----------------------------------------------------------------------------------
Analog Devices, Inc.(1) 550,000 86,350,000
- -----------------------------------------------------------------------------------
Atmel Corp.(1) 530,300 26,249,850
- -----------------------------------------------------------------------------------
Cypress Semiconductor Corp.(1) 1,200,000 54,750,000
- -----------------------------------------------------------------------------------
Grainger (W.W.), Inc. 463,000 19,822,188
- -----------------------------------------------------------------------------------
Intel Corp. 6,993,300 790,242,900
21 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Electronics Continued
Lam Research Corp.(1) 290,000 $ 45,276,250
- -----------------------------------------------------------------------------------
Lattice Semiconductor Corp.(1) 400,000 28,100,000
- -----------------------------------------------------------------------------------
LSI Logic Corp.(1) 1,500,000 96,093,750
- -----------------------------------------------------------------------------------
Micron Technology, Inc.(1) 1,054,700 103,426,519
- -----------------------------------------------------------------------------------
Motorola, Inc. 990,500 168,880,250
- -----------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,020,400 76,657,550
- -----------------------------------------------------------------------------------
QLogic Corp.(1) 400,000 62,400,000
- -----------------------------------------------------------------------------------
RF Micro Devices, Inc.(1) 193,000 26,694,313
- -----------------------------------------------------------------------------------
Teradyne, Inc.(1) 252,100 21,932,700
- -----------------------------------------------------------------------------------
Waters Corp.(1) 201,200 19,730,175
- -----------------------------------------------------------------------------------
Xilinx, Inc.(1) 1,000,000 79,750,000
--------------
1,726,885,333
- -----------------------------------------------------------------------------------
Photography--0.5%
Eastman Kodak Co. 1,411,000 80,867,938
- -----------------------------------------------------------------------------------
Transportation--1.1%
- -----------------------------------------------------------------------------------
Air Transportation--0.5%
Alaska Air Group, Inc.(1) 650,000 17,225,000
- -----------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B(1) 1,358,478 42,961,867
- -----------------------------------------------------------------------------------
Delta Air Lines, Inc. 608,000 27,740,000
- -----------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A(1) 96,600 1,666,350
- -----------------------------------------------------------------------------------
UAL Corp.(1) 97,000 4,728,750
--------------
94,321,967
- -----------------------------------------------------------------------------------
Railroads & Truckers--0.6%
Burlington Northern Santa Fe Corp. 932,800 18,364,500
- -----------------------------------------------------------------------------------
CNF Transportation, Inc. 250,000 8,015,625
- -----------------------------------------------------------------------------------
Navistar International Corp.(1) 170,300 5,577,325
- -----------------------------------------------------------------------------------
Rollins Truck Leasing Co. 280,000 2,345,000
- -----------------------------------------------------------------------------------
Union Pacific Corp. 1,330,500 50,559,000
- -----------------------------------------------------------------------------------
USFreightways Corp. 53,600 1,782,200
- -----------------------------------------------------------------------------------
XTRA Corp.(1) 216,000 8,599,500
- -----------------------------------------------------------------------------------
Yellow Corp.(1) 200,000 3,200,000
--------------
98,443,150
22 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Utilities--2.4%
- -----------------------------------------------------------------------------------
Electric Utilities--2.4%
Allegheny Energy, Inc. 780,000 $ 20,231,250
- -----------------------------------------------------------------------------------
Ameren Corp. 337,100 10,113,000
- -----------------------------------------------------------------------------------
Calpine Corp.(1) 280,000 25,620,000
- -----------------------------------------------------------------------------------
Conectiv, Inc. 146,000 2,080,500
- -----------------------------------------------------------------------------------
Consolidated Edison Co. of New York, Inc. 258,000 7,111,125
- -----------------------------------------------------------------------------------
DTE Energy Co. 482,300 14,559,431
- -----------------------------------------------------------------------------------
Duke Energy Corp. 294,200 14,268,700
- -----------------------------------------------------------------------------------
Edison International 144,200 3,794,263
- -----------------------------------------------------------------------------------
Energy East Corp. 1,170,000 24,570,000
- -----------------------------------------------------------------------------------
Entergy Corp. 646,800 13,097,700
- -----------------------------------------------------------------------------------
FirstEnergy Corp. 879,700 16,439,394
- -----------------------------------------------------------------------------------
Florida Progress Corp. 700,000 29,837,500
- -----------------------------------------------------------------------------------
FPL Group, Inc. 389,200 15,032,850
- -----------------------------------------------------------------------------------
GPU, Inc. 373,700 9,295,788
- -----------------------------------------------------------------------------------
IPALCO Enterprises, Inc. 408,200 6,913,888
- -----------------------------------------------------------------------------------
New England Electric System 340,000 18,360,000
- -----------------------------------------------------------------------------------
Northeast Utilities Co. 264,000 4,966,500
- -----------------------------------------------------------------------------------
NSTAR 110,742 4,533,501
- -----------------------------------------------------------------------------------
OGE Energy Corp. 400,000 6,875,000
- -----------------------------------------------------------------------------------
Peco Energy Co. 890,400 33,223,050
- -----------------------------------------------------------------------------------
PG&E Corp. 681,700 14,060,063
- -----------------------------------------------------------------------------------
Pinnacle West Capital Corp. 120,000 3,315,000
- -----------------------------------------------------------------------------------
PPL Corp. 683,000 13,745,375
- -----------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 1,100,000 31,900,000
- -----------------------------------------------------------------------------------
Reliant Energy, Inc. 80,600 1,657,338
- -----------------------------------------------------------------------------------
Southern Co. 854,000 18,948,125
- -----------------------------------------------------------------------------------
Texas Utilities Co. 486,000 15,855,750
- -----------------------------------------------------------------------------------
TNP Enterprises, Inc. 90,000 3,886,875
- -----------------------------------------------------------------------------------
Unicom Corp. 1,017,000 38,455,313
- -----------------------------------------------------------------------------------
UtiliCorp United, Inc. 122,000 1,997,750
------------
424,745,029
23 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
Gas Utilities--0.0%
NICOR, Inc. 45,500 $ 1,382,063
- -----------------------------------------------------------------------------------
Sempra Energy 32,779 590,022
---------------
1,972,085
- -----------------------------------------------------------------------------------
Total Common Stocks (Cost $13,451,943,956) 16,717,986,725
===================================================================================
Preferred Stocks--0.8%
Brown (Tom), Inc., $1.75 Cv., Series A(2) 1,000,000 22,970,000
- -----------------------------------------------------------------------------------
Reliant Energy, Inc., 7% Automatic Common Exchange
Securities for Time Warner, Inc. Common Stock 703,000 99,782,063
- -----------------------------------------------------------------------------------
Tesoro Petroleum Corp., 7.25% Cv., Non-Vtg. 1,100,000 11,343,750
---------------
Total Preferred Stocks (Cost $78,545,313) 134,095,813
Principal
Amount
===================================================================================
U.S. Government Obligations--0.7%
U.S. Treasury Nts., 5.875%, 10/31/01
(Cost $118,489,902) $119,600,000 118,404,000
===================================================================================
Short-Term Notes--4.0%
American Express Credit Corp.:
5.70%, 3/15/00 50,000,000 49,889,167
5.75%, 3/20/00 50,000,000 49,848,264
- -----------------------------------------------------------------------------------
Banc One Financial Corp.:
5.67%, 3/3/00 25,000,000 24,992,125
5.70%, 3/14/00 25,000,000 24,948,542
5.78%, 3/8/00 50,000,000 49,943,805
- -----------------------------------------------------------------------------------
Caterpillar Financial Services Corp., 5.67%, 3/3/00 40,000,000 39,987,400
- -----------------------------------------------------------------------------------
CIT Group, Inc., 5.73%, 3/17/00 50,000,000 49,872,667
- -----------------------------------------------------------------------------------
Coca Cola Enterprises, Inc.:
5.37%, 3/10/00 25,000,000 24,964,562
5.61%, 3/2/00 50,000,000 49,992,208
- -----------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.86%, 4/4/00 50,000,000 49,723,278
5.87%, 3/21/00 25,000,000 24,918,472
5.87%, 4/12/00 40,000,000 39,726,067
- -----------------------------------------------------------------------------------
IBM Credit Corp., 5.64%, 3/14/00 50,000,000 49,898,167
- -----------------------------------------------------------------------------------
Koch Industries, Inc., 5.83%, 3/1/00 50,000,000 50,000,000
- -----------------------------------------------------------------------------------
Monsato Co., 5.73%, 3/10/00 25,000,000 24,964,187
- -----------------------------------------------------------------------------------
SBC Communications, Inc.:
5.76%, 3/6/00 50,000,000 49,960,000
5.76%, 3/16/00 50,000,000 49,880,417
---------------
Total Short-Term Notes (Cost $703,509,328) 703,509,328
24 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Principal Market Value
Amount See Note 1
===================================================================================
Repurchase Agreements--0.2%
Repurchase agreement with PaineWebber, Inc., 5.74%,
dated 2/29/00, to be repurchased at $41,006,537 on
3/1/00, collateralized by U.S. Treasury Nts.,
4.75%-5.375%, 6/30/03-11/15/08, with a value of
$22,701,871 and U.S. Treasury Bonds, 7.50%-10.375%,
5/15/09-11/15/16, with a value of $19,185,412
(Cost $41,000,000) $41,000,000 $ 41,000,000
- -----------------------------------------------------------------------------------
Total Investments, at Value (Cost $14,393,488,499) 99.9% 17,714,995,866
- -----------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.1 22,871,967
----------------------------
Net Assets 100.0% $17,737,867,833
============================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
3. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended February 29, 2000.
The aggregate fair value of securities of affiliated companies held by the Fund
as of February 29, 2000, amounts to $48,872,255. Transactions during the period
in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Shares
Aug. 31, Gross Gross Feb. 29, Dividend
1999 Additions Reductions 2000 Income
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Canadian 88 Energy Corp. 9,943,300 -- -- 9,943,300 $419,871
- -------------------------------------------------------------------------------------
Chieftain International, Inc. 1,283,100 307,000 -- 1,590,100 --
- -------------------------------------------------------------------------------------
Frontier Oil Corp. 2,396,500 157,500 -- 2,554,000 --
--------
$419,871
========
</TABLE>
See accompanying Notes to Financial Statements.
25 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
February 29, 2000
<TABLE>
<S> <C>
===================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $14,318,801,404) $17,666,123,611
Affiliated companies (cost $74,687,095) 48,872,255
- -----------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 124,895,545
Shares of capital stock sold 42,229,099
Interest and dividends 23,844,538
Other 410,598
---------------
Total assets 17,906,375,646
===================================================================================
Liabilities
Bank overdraft 5,744,778
- -----------------------------------------------------------------------------------
Unrealized depreciation on foreign currency
exchange contracts 987
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 91,099,634
Shares of capital stock redeemed 58,625,260
Distribution and service plan fees 7,313,719
Transfer and shareholder servicing agent fees 2,057,285
Trustees' compensation 5,824
Other 3,660,326
---------------
Total liabilities 168,507,813
===================================================================================
Net Assets $17,737,867,833
===============
===================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 4,502,384
- -----------------------------------------------------------------------------------
Additional paid-in capital 13,846,479,231
- -----------------------------------------------------------------------------------
Accumulated net investment income 18,626,575
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency
transactions 546,753,686
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities denominated in
foreign currencies 3,321,505,957
---------------
Net assets $17,737,867,833
===============
</TABLE>
26 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
==============================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$8,175,090,035 and 205,727,051 shares of capital stock outstanding) $39.74
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $42.16
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$7,407,047,153 and 189,463,765 shares of capital stock outstanding) $39.09
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$1,956,688,531 and 50,057,748 shares of capital stock outstanding) $39.09
- ----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $199,042,114 and 4,989,875 shares of capital stock outstanding) $39.89
</TABLE>
See accompanying Notes to Financial Statements.
27 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended February 29, 2000
<TABLE>
===================================================================================
<S> <C>
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $6,766) $ 95,023,390
Affiliated companies 419,871
- -----------------------------------------------------------------------------------
Interest 36,828,336
------------
Total income 132,271,597
===================================================================================
Expenses
Management fees 40,025,408
- -----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 9,826,268
Class B 36,988,879
Class C 9,691,206
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 5,361,351
Class B 4,860,403
Class C 1,271,450
Class Y 119,875
- -----------------------------------------------------------------------------------
Registration and filing fees:
Class A 613,195
Class B 666,416
Class C 160,560
Class Y 38,708
- -----------------------------------------------------------------------------------
Custodian fees and expenses 254,355
- -----------------------------------------------------------------------------------
Trustees' compensation 36,451
- -----------------------------------------------------------------------------------
Other 3,792,352
------------
Total expenses 113,706,877
Less expenses paid indirectly (61,858)
------------
Net expenses 113,645,019
===================================================================================
Net Investment Income 18,626,578
===================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 563,434,665
Foreign currency transactions (217,496)
------------
Net realized gain 563,217,169
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (99,895,070)
Translation of assets and liabilities denominated in
foreign currencies 5,761,246
------------
Net change (94,133,824)
------------
Net realized and unrealized gain 469,083,345
===================================================================================
Net Increase in Net Assets Resulting from Operations $487,709,923
============
</TABLE>
See accompanying Notes to Financial Statements.
28 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
February 29, 2000 August 31,
(Unaudited) 1999
===================================================================================
<S> <C> <C>
Operations
Net investment income $ 18,626,578 $ 14,567,725
- -----------------------------------------------------------------------------------
Net realized gain 563,217,169 1,817,354,650
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation (94,133,824) 2,243,718,581
--------------------------------
Net increase in net assets resulting from
operations 487,709,923 4,075,640,956
===================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A -- (24,187,140)
Class Y -- (366,378)
- -----------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (836,376,868) (234,009,868)
Class B (767,525,149) (203,350,853)
Class C (200,355,734) (54,987,485)
Class Y (18,395,117) (3,019,461)
===================================================================================
Capital Stock Transactions
Net increase in net assets resulting from
capital stock transactions:
Class A 1,044,417,140 1,090,840,369
Class B 911,505,794 1,460,515,643
Class C 257,045,445 315,914,172
Class Y 64,334,777 73,447,756
===================================================================================
Net Assets
Total increase 942,360,211 6,496,437,711
- -----------------------------------------------------------------------------------
Beginning of period 16,795,507,622 10,299,069,911
--------------------------------
End of period [including undistributed
(overdistributed) net investment
income of $18,626,575 and $(3), respectively] $17,737,867,833 $16,795,507,622
================================
</TABLE>
See accompanying Notes to Financial Statements.
29 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended
Feb. 29, 2000 Aug. 31, June 30,
Class A (Unaudited) 1999 1998 1997 1996(1) 1996 1995
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $42.89 $32.32 $33.87 $27.95 $28.89 $24.07 $20.40
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .11 .19 .29 .39 .07 .40 .47
Net realized and unrealized gain (loss) 1.22 12.03 .99 7.91 (1.01) 4.93 3.66
------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.33 12.22 1.28 8.30 (.94) 5.33 4.13
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- (.15) (.33) (.40) -- (.43) (.46)
Distributions from net realized gain (4.48) (1.50) (2.50) (1.98) -- (.08) --
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.48) (1.65) (2.83) (2.38) -- (.51) (.46)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.74 $42.89 $32.32 $33.87 $27.95 $28.89 $24.07
==============================================================================
===========================================================================================================================
Total Return, at Net Asset Value(2) 3.04% 38.62% 3.68% 31.09% (3.25)% 22.26% 20.52%
===========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $8,175 $7,724 $4,933 $4,457 $3,143 $3,147 $1,924
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $8,157 $6,722 $5,184 $3,857 $3,090 $2,516 $1,319
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.61% 0.50% 0.83% 1.29% 1.57% 1.55% 2.31%
Expenses 0.89% 0.91% 0.90%(4) 0.94%(4) 0.98%(4) 0.99%(4) 1.07%(4)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 36% 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 additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
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 February 29, 2000, were $6,789,169,521 and $5,866,150,645, respectively.
See accompanying Notes to Financial Statements.
30 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended
Feb. 29, 2000 Aug. 31, June 30,
Class B (Unaudited) 1999 1998 1997 1996(1) 1996 1995(6)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $42.42 $32.07 $33.66 $27.79 $28.77 $24.00 $21.49
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.02) (.08) .04 .17 .04 .23 .25
Net realized and unrealized gain (loss) 1.17 11.93 .96 7.86 (1.02) 4.87 2.54
----------------------------------------------------------------------------
Total income (loss) from investment
operations 1.15 11.85 1.00 8.03 (.98) 5.10 2.79
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- (.09) (.18) -- (.25) (.28)
Distributions from net realized gain (4.48) (1.50) (2.50) (1.98) -- (.08) --
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.48) (1.50) (2.59) (2.16) -- (.33) (.28)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.09 $42.42 $32.07 $33.66 $27.79 $28.77 $24.00
============================================================================
=========================================================================================================================
Total Return, at Net Asset Value(2) 2.63% 37.62% 2.86% 30.12% (3.41)% 21.34% 13.41%
=========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $7,407 $7,073 $4,168 $3,308 $1,909 $1,800 $628
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $7,413 $5,930 $4,123 $2,642 $1,818 $1,155 $249
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.15)% (0.26)% 0.06% 0.53% 0.82% 0.74% 1.25%
Expenses 1.65% 1.66% 1.66%(4) 1.69%(4) 1.74%(4) 1.76%(4) 1.89%(4)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 36% 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 additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
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 February 29, 2000, were $6,789,169,521 and $5,866,150,645, respectively.
6. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
See accompanying Notes to Financial Statements.
31 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended
Feb. 29, 2000 Aug. 31, June 30,
Class C (Unaudited) 1999 1998 1997 1996(1) 1996 1995
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $42.41 $32.07 $33.64 $27.78 $28.75 $23.97 $20.33
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.02) (.09) .03 .16 .04 .21 .33
Net realized and unrealized gain (loss) 1.18 11.93 .98 7.85 (1.01) 4.88 3.62
----------------------------------------------------------------------------
Total income (loss) from investment
operations 1.16 11.84 1.01 8.01 (.97) 5.09 3.95
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- (.08) (.17) -- (.23) (.31)
Distributions from net realized gain (4.48) (1.50) (2.50) (1.98) -- (.08) --
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.48) (1.50) (2.58) (2.15) -- (.31) (.31)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $39.09 $42.41 $32.07 $33.64 $27.78 $28.75 $23.97
=========================================================================================================================
Total Return, at Net Asset Value(2) 2.66% 37.59% 2.91% 30.07% (3.37)% 21.35% 19.63%
============================================================================
=========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,957 $1,851 $1,145 $1,030 $744 $741 $462
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,938 $1,583 $1,184 $ 904 $730 $588 $325
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.15)% (0.25)% 0.07% 0.54% 0.82% 0.80% 1.57%
Expenses 1.66% 1.66% 1.65%(4) 1.69%(4) 1.73%(4) 1.74%(4) 1.82%(4)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 36% 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 additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
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 February 29, 2000, were $6,789,169,521 and $5,866,150,645, respectively.
6. For the period from October 3, 1994 (inception of offering) to June 30, 1995.
See accompanying Notes to Financial Statements.
32 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Feb. 29, 2000 Aug. 31,
Class Y (Unaudited) 1999 1998 1997(7)
======================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $43.00 $32.38 $33.94 $29.55
- --------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .12 .24 .38 .41
Net realized and unrealized gain (loss) 1.25 12.07 .97 6.30
------------------------------------
Total income (loss) from investment
operations 1.37 12.31 1.35 6.71
- --------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.19) (.41) (.34)
Distributions from net realized gain (4.48) (1.50) (2.50) (1.98)
------------------------------------
Total dividends and/or distributions
to shareholders (4.48) (1.69) (2.91) (2.32)
- --------------------------------------------------------------------------------------
Net asset value, end of period $39.89 $43.00 $32.38 $33.94
====================================
======================================================================================
Total Return, at Net Asset Value(2) 3.14% 38.84% 3.88% 23.98%
======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $199 $148 $53 $16
- --------------------------------------------------------------------------------------
Average net assets (in millions) $179 $ 99 $37 $ 5
- --------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) 0.82% 0.63% 1.02% 1.58%
Expenses 0.68% 0.77% 0.67%(4) 0.65%(4)
- --------------------------------------------------------------------------------------
Portfolio turnover rate(5) 36% 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 additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
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 February 29, 2000, were $6,789,169,521 and $5,866,150,645, 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.
33 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
================================================================================
1. Significant Accounting Policies
Oppenheimer Main Street Growth & Income Fund (the Fund) is a separate series of
Oppenheimer Main Street Funds, Inc., an open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Fund's
invest-ment 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 at their offering price, which is normally net asset value plus an
initial sales charge. Class B and Class C shares are sold without an initial
sales charge but 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 shares 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. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are
valued primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the
London foreign exchange markets on a daily basis as provided by a reliable
bank, dealer or pricing service. Short-term "money market type" debt securities
with remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
- --------------------------------------------------------------------------------
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.
34 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend 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.
35 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / 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>
Six Months Ended February 29, 2000 Year Ended August 31, 1999
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 29,642,564 $1,236,661,144 52,580,490 $ 2,113,305,491
Dividends and/or
distributions reinvested 18,965,353 757,854,502 6,595,444 245,649,292
Redeemed (22,949,384) (950,098,506) (31,752,422) (1,268,114,414)
-------------------------------------------------------------------
Net increase 25,658,533 $1,044,417,140 27,423,512 $ 1,090,840,369
===================================================================
- --------------------------------------------------------------------------------------------------
Class B
Sold 22,930,404 $ 945,701,539 52,000,058 $ 2,077,494,632
Dividends and/or
distributions reinvested 18,413,769 725,315,256 5,185,756 192,649,282
Redeemed (18,609,379) (759,511,001) (20,423,510) (809,628,271)
-------------------------------------------------------------------
Net increase 22,734,794 $ 911,505,794 36,762,304 $ 1,460,515,643
===================================================================
- --------------------------------------------------------------------------------------------------
Class C
Sold 7,108,442 $ 291,464,525 13,350,165 $ 533,257,647
Dividends and/or
distributions reinvested 4,785,266 188,443,799 1,399,474 51,976,501
Redeemed (5,471,637) (222,862,879) (6,809,689) (269,319,976)
-------------------------------------------------------------------
Net increase 6,422,071 $ 257,045,445 7,939,950 $ 315,914,172
===================================================================
- --------------------------------------------------------------------------------------------------
Class Y
Sold 2,222,094 $ 93,140,210 2,655,008 $ 108,147,707
Dividends and/or
distributions reinvested 458,845 18,395,117 90,768 3,385,839
Redeemed (1,142,465) (47,200,550) (933,166) (38,085,790)
-------------------------------------------------------------------
Net increase 1,538,474 $ 64,334,777 1,812,610 $ 73,447,756
===================================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of February 29, 2000, net unrealized appreciation on securities of
$3,321,507,367 was composed of gross appreciation of $4,586,983,468, and gross
depreciation of $1,265,476,101.
36 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
================================================================================
4. 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 average annual net assets of the Fund, 0.60%
of the next $150 million, 0.55% of the next $150 million and 0.45% of average
annual net assets in excess of $500 million. The Fund's management fee for the
six months ended February 29, 2000 was 0.45% of average annual net assets for
each class of shares, annualized for periods of less than one full year.
- --------------------------------------------------------------------------------
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
Six Months Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
February 29, 2000 $14,835,678 $3,954,007 $1,097,791 $26,908,676 $2,240,542
</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
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
February 29, 2000 $72,693 $7,843,903 $192,256
</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.
37 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
4. 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 purchased. 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 six months ended
February 29, 2000, payments under the Class A plan totaled $9,826,268, all of
which was paid by the Distributor to recipients. That included $539,244 paid to
an affiliate of the Manager. 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 provide
for the Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
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 asset-based sales charges from the
Fund under the plans. If any 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 carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended February 29,
2000, 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 $36,988,879 $30,433,181 $133,766,416 1.81%
Class C Plan 9,691,206 2,369,213 15,716,959 0.80
</TABLE>
38 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
================================================================================
5. Foreign Currency Contracts
A foreign currency 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 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.
As of February 29, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized
Contract Description Expiration Date Amount (000s) Feb. 29, 2000 Depreciation
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase
Canadian Dollar (CAD) 3/2/00 CAD 2,968 $2,045,624 $987
</TABLE>
================================================================================
6. Illiquid or Restricted Securities
As of February 29, 2000, 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 Directors 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 February 29, 2000,
was $22,970,160, which represents 0.13% of the Fund's net assets all of which
is considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
Valuation
Per Unit as of
Security Acquisition Date Cost Per Unit Feb. 29, 2000
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Stocks and Warrants
Brown (Tom), Inc., $1.75 Cv., Series A 8/31/99 $28.71 $22.97
Massimo da Milano, Inc. 11/12/99 -- 0.06
</TABLE>
39 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / 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 0.45%. 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
0.08% per annum.
The Fund had no borrowings outstanding during the six months ended February
29, 2000.
40 | 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 J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
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.
The financial statements included herein have been
taken from the records of the Fund without examination
of those records by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Main Street Growth & Income Fund. This
report must be preceded or accompanied by a Prospectus
of Oppenheimer Main Street Growth & Income Fund. For
material information concerning the Fund, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
41 | 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)
Distributor, Inc.
RS0700.001.0200 April 28, 2000
