[photo of tree-lined road]
Annual Report August 31, 2000
Oppenheimer
Main Street(R)
Growth & Income Fund
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
The Fund avoided much of the market's high levels of volatility, and surpassed
the S&P 500's total rate of return for the reporting period ended August 31,
2000.
We reduced our technology holdings in late 1999, limiting the impact of the
downturn in technology that occurred in March, April and May of 2000.
We emphasized holdings in the energy sector, which benefited from rising prices
for oil and gas during most of 2000.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Managers
8 Fund Performance
14 Financial
Statements
42 Independent
Auditors' Report
43 Federal
Income Tax
Information
44 Officers and
Directors
Average Annual
Total Returns*
For the 1-Year Period
Ended 8/31/00
Class A
Without With
Sales Chg. Sales Chg.
------------------------
17.74% 10.98%
Class B
Without With
Sales Chg. Sales Chg.
------------------------
16.84% 11.84%
Class C
Without With
Sales Chg. Sales Chg.
------------------------
16.87% 15.87%
Class Y
------------------------
18.00%
* See Notes on page 12 for further details.
<PAGE>
PRESIDENT'S LETTER
[photos]
James C. Swain
Chairman
Oppenheimer
Main Street Growth &
Income Fund
Bridget A. Macaskill
President
Oppenheimer
Main Street Growth &
Income Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace of
global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has prompted
the Treasury to buy back many of its long-term securities. The resulting supply
shortage boosted these securities' returns, causing an inversion of the yield
curve--an unusual situation in which shorter term Treasuries yield more than
their longer term counterparts. Other bond sectors are offering many
opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in the
stock market. Formerly high-flying Internet stocks have generally come down to
earth, and investors have
1 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
begun to refocus on companies with strong business fundamentals and justifiable
valuations. Investors have also returned to long-neglected, value-oriented
companies.
What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, healthcare and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
September 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[photo]
Portfolio Management
Team (l to r)
Charles Albers
Nikolaos Monoylos
Q How would you characterize the Fund's performance during the one-year period
that ended August 31, 2000?
A. We are pleased with Oppenheimer Main Street(R) Growth & Income Fund's
performance during the recent fiscal year. The Fund avoide much of the
volatility that characterized equity markets during the period. The Fund's Class
A shares generated a 17.74% average annual total return, without sales charge,
for the period that ended August 31, 2000, outperforming its benchmark for the
same one-year time period. The S&P 500 produced a 16.32% return.(1)
We attribute these results to our disciplined investment approach, which uses
state-of-the-art quantitative analysis to help identify stocks that we believe
are well positioned to outperform the overall market over the long term. We made
several improvements to our stock-selection process and portfolio-management
techniques during the period, which we believe contributed to the Fund's
positive performance.
What made this such a volatile period?
Throughout the period, investors struggled to weigh the positive impact of
encouraging economic trends against the negative impact of rising interest
rates. In late 1999, 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. However, concerned that
the U.S. economy's rate of growth could give rise to inflation, the Federal
Reserve Board (the Fed) began to raise interest rates. Rate hikes generally tend
to hurt the valuation of stocks, because they raise the cost of borrowed capital
and reduce the present value of earnings.
1. The Standard & Poor's (S&P) 500 Index is a broad-based index of equity
securities widely regarded as a general measurement of the performance of the
U.S. equity securities market. It cannot be purchased directly by
investors.
3 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Accordingly, as the Fed continued to raise interest rates in 2000, many
segments of the equity market sagged. Yet, despite interest-rate concerns,
investors seemed willing to pay increasingly higher prices for the high-growth
potential of many technology-related stocks. Market strength became increasingly
concentrated in a relatively small number of technology stocks, driving the
valuations of these companies to extremely high levels by March 2000.
During the second quarter of 2000, interest rate concerns finally took their
toll on technology stocks, causing many of the highest flying stocks in the
sector to fall as rapidly as they had risen. Investors showed renewed concern
about company fundamentals and profitability, shifting the focus of market
strength from growth- to value-oriented stocks in April and May. In June, July
and August, however, better-than-expected corporate earnings reports--along with
preliminary signs that U.S. economic growth might be slowing in response to the
Fed's measures--helped bolster investor confidence and gave new impetus to the
broad equity markets. A number of sectors participated in this rally, including
technology, energy and healthcare.
How did you manage the Fund in light of these conditions?
Our quantitative cap-size model generally ranked large-cap stocks higher than
smaller stocks in the prevailing market environment. As a result, we raised the
cap size of our holdings from slightly smaller than the average of the S&P 500
Index at the beginning of the period to slightly larger at the end of the
period. This shift generally benefited the Fund's performance for the period as
a whole.
Our analytical models also helped us limit the impact of technology stock
volatility on the Fund's performance. In late 1999, our models indicated that
technology stock valuations might be unsustainably high. We responded by
reducing our
[callout]
"Improvements to our stock selection process and portfolio management techniques
contributed to the Fund's positive performance."
4 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
technology holdings to a significantly lower proportion of the portfolio,
compared with the S&P 500. While we missed some of technology's upside
performance in early 2000, we also avoided some of the downturn that occurred
when the technology bubble deflated in March, April and May. As technology
prices fell, we took advantage of the opportunity to increase our holdings among
the sector's larger, better established companies.
We achieved strong performance from investments in other sectors of the
economy as well. Our analytical models led us to allocate a considerably higher
percentage of the Fund's assets to energy than did the S&P 500 Index. We
achieved strong returns from these holdings, which benefited from steadily
rising prices for oil and gas, and consolidations among several of the
industry's key players.
Did any of the Fund's investments fail to meet your expectations?
Our financial industry holdings were pressured by the rising interest rate
environment. Rising rates tend to be detrimental to the profitability and asset
quality of banks and insurance companies, and thus have a disproportionately
negative impact on financial services stocks. However, the Fund's performance,
compared to the S&P 500, benefited from our decision to allocate a relatively
small portion of the portfolio to the financial sector.
Of course, not all of our investment decisions proved equally effective. We
held relatively large positions in consumer cyclicals, a sector that generally
performed poorly. We also held relatively small positions in healthcare, which
showed surprising strength. In general, however, our investment decisions helped
enable the Fund to produce returns superior to our benchmark, while avoiding
some of the market's volatility. This helped the Fund's investors enjoy a
relatively smooth ride during the last fiscal year as a result.
Average Annual
Total Returns
For the Periods Ended 9/30/00(2)
Class A
1-Year 5-Year 10-Year
------------------------
7.35% 16.47% 23.19%
Class B Since
1-Year 5-Year Inception
------------------------
8.05% 16.75% 17.91%
Class C Since
1-Year 5-Year Inception
------------------------
12.05% 16.98% 16.28%
Class Y Since
1-Year 5-Year Inception
------------------------
14.21% N/A 19.21%
2. See page 12 for further details.
5 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
What kinds of improvements did you make to the Fund's stock selection process
and portfolio management techniques?
We continually refine our investment process, emphasizing analytical factors we
believe are most likely to predict relative stock performance in the prevailing
environment. We implemented several such refinements during the recent fiscal
year. For example, successful companies often start as fast-growing enterprises
and later mature into slower growing, larger firms with more pronounced value
characteristics. As companies make this transition, investors' attitudes toward
the company change, causing changes in the behavior of the stock. We have
incorporated new predictive factors in our models that helped focus on the
pattern of these changes so that we can seek to better manage the Fund's
holdings in light of evolving investor psychology.
What is your outlook for the coming months?
The outlook for interest rates and economic growth remains cloudy. Until
conditions become clearer, we believe that market volatility is likely to remain
high. Our quantitative cap-size model now suggests that large-cap and mid-cap
stocks are generally likely to outperform mega-caps in the period ahead.
Additional models suggest maintaining a balance of growth and value factors in
identifying the stocks best able to weather market volatility and participate in
market strength. Of course, we seek to constantly evolve our models in response
not only to changing stock data, but also to changing market dynamics. Combining
our models with our many years of portfolio management experience helps provide
us with powerful tools for running a successful fund.
6 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Whatever the coming year brings, we remain committed to our balanced,
disciplined investment approach. We continue to sharpen the strategies that have
worked well for us in the past, and that, we believe, continue to make
Oppenheimer Main Street Growth & Income Fund a core part of The Right Way to
Invest.
Portfolio Allocation(3)
[pie chart]
Stocks 93.4%
Bonds 0.6
Cash
Equivalents 6.0
Top Five Common Stock Industries(4)
-----------------------------------------------------------
Electronics 12.9%
-----------------------------------------------------------
Oil: Domestic 7.9
-----------------------------------------------------------
Healthcare/Drugs 7.2
-----------------------------------------------------------
Computer Hardware 6.8
-----------------------------------------------------------
Electrical Equipment 5.7
Top Ten Common Stock Holdings(4)
-----------------------------------------------------------
Intel Corp. 6.5%
-----------------------------------------------------------
General Electric Co. 4.6
-----------------------------------------------------------
Cisco Systems, Inc. 3.4
-----------------------------------------------------------
Citigroup, Inc. 3.2
-----------------------------------------------------------
Exxon Mobil Corp. 2.8
-----------------------------------------------------------
Wal-Mart Stores, Inc. 2.5
-----------------------------------------------------------
Oracle Corp. 2.3
-----------------------------------------------------------
Sun Microsystems, Inc. 2.0
-----------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 1.8
-----------------------------------------------------------
Pfizer, Inc. 1.6
3. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on net assets.
7 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FUND PERFORMANCE
How Has the Fund Performed?
Below is a discussion, by the Manager, of the Fund's performance during its
fiscal year ended August 31, 2000, followed by a graphical comparison of the
Fund's performance to an appropriate broad-based market index.
Management's discussion of performance. During the fiscal year that ended August
31, 2000, the U.S. economy enjoyed strong growth. Market strength was
concentrated in technology stocks in late 1999 and early 2000. Guided by our
quantitative investment models, we reduced the Fund's technology holdings as
valuations rose to extreme levels. We emphasized large-cap stocks and
energy-related holdings, and maintained a balance between value- and
growth-oriented stocks. In mid-March 2000, concerns over rising interest rates
caused technology stocks to fall sharply, and shifted the market's direction in
favor of value-oriented stocks until late May. Energy stocks performed well in
response to rising oil and gas prices. Broad markets rallied in June, July and
August in the face of strong earnings reports and mounting evidence that
economic growth was slowing to a sustainable rate. We achieved our strongest
returns from technology and energy, while consumer cyclicals detracted from our
overall performance. The Fund's portfolio holdings, allocations and strategies
are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 2000. In the case of Class A shares, performance is
measured over a ten-year period; in the case of Class B shares, from the
inception of the class on October 3, 1994; in the case of Class C shares, from
the inception of the class on December 1, 1993; and in the case of Class Y
shares, from the
8 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
inception of the class on November 1, 1996. The graphs reflect the deduction of
the maximum initial sales charge on Class A shares and the applicable contingent
deferred sales charge for Class B and Class C shares, and reinvestment of all
dividends and capital distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index. The S&P 500 Index is a broad-based index of equity
securities widely regarded as a general measurement of the performance of the
U.S. equity securities market. Index performance reflects the reinvestment of
dividends but does not consider the effect of capital gains or transaction cost,
and none of the data in the graphs shows the effect of taxes. The Fund's
performance reflects the effects of Fund business and operating expenses. While
index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to the
securities in the S&P 500 Index, which tend to be securities of larger,
well-capitalized companies.
9 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FUND PERFORMANCE
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Main Street Growth & Income Fund (Class A) S&P 500 Index
<S> <C> <C>
6/30/90 9425 10000
9/30/90 8488 8627
12/31/90 8717 9400
3/31/91 10377 10763
6/30/91 10424 10737
9/30/91 12544 11310
12/31/91 14504 12257
3/31/92 15531 11948
6/30/92 14539 12175
9/30/92 14962 12559
12/31/92 19010 13190
3/31/93 20566 13765
6/30/93 21282 13831
9/30/93 24324 14188
12/31/93 25737 14516
3/31/94 25673 13967
6/30/94 24333 14025
9/30/94 25754 14709
12/31/94 25342 14707
3/31/95 27348 16137
6/30/95 29327 17676
9/30/95 31885 19079
12/31/95 33140 20227
3/31/96 35001 21312
6/30/96 35855 22268
8/31/96(1) 34689 21734
11/30/96 39082 25371
2/28/97 40438 26628
5/31/97 42697 28714
8/31/97 45473 30564
11/30/97 47573 32602
2/28/98 51388 35945
5/31/98 54227 37516
8/31/98 47145 33046
11/30/98 56420 40324
2/28/99 59928 43048
5/31/99 63370 45406
8/31/99 65352 46200
11/30/99 66997 48748
2/29/00 67340 48096
5/31/00 70950 50160
8/31/00 76949 53733
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 8/31/00(2)
1-Year 10.98% 5-Year 18.52% 10-Year 23.54%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Main Street Growth & Income Fund (Class B) S&P 500 Index
<S> <C> <C>
10/03/94 10000 10000
12/31/94 9846 9754
03/31/95 10599 10703
6/30/95 11341 11723
09/30/95 12306 12654
12/31/95 12765 13415
03/31/96 13458 14135
06/30/96 13762 14769
08/31/96(1) 13293 14415
11/30/96 14952 16826
02/28/97 15438 17661
05/31/97 16274 19044
08/31/97 17298 20271
11/30/97 18064 21623
02/28/98 19473 23840
05/31/98 20504 24882
08/31/98 17792 21917
11/30/98 21259 26744
02/28/99 22540 28550
05/31/99 23787 30115
08/31/99 24484 30641
11/30/99 25056 32331
02/29/00 25129 31898
05/31/00 26427 33267
08/31/00 28507 35637
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 8/31/00(2)
1-Year 11.84% 5-Year 18.83% Life 19.39%
1. The Fund changed its fiscal year end from 6/30 to 8/31.
2. See page 12 for further details.
10 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Main Street Growth & Income Fund (Class C) S&P 500 Index
<S> <C> <C>
12/1/93 10000 10000
12/31/93 10467 10024
3/31/94 10414 9645
6/30/94 9856 9685
10412 10158
10225 10156
11011 11144
6/30/95 11790 12206
12791 13176
13268 13968
13993 14718
6/30/96 14308 15377
8/31/96(1) 13826 15009
15544 17520
16057 18389
16917 19829
8/31/97 17982 21106
18783 22514
20254 24822
21325 25907
8/31/98 18504 22820
22106 27846
23437 29727
24741 31356
8/31/99 25460 31904
26055 33664
26136 33213
27481 34639
8/31/00 29754 37106
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 8/31/00(2)
1-Year 15.87% 5-Year 19.04% Life 17.53%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Main Street Growth & Income Fund (Class Y) S&P 500 Index
<S> <C> <C>
11/1/96 10000 10000
11/30/96 10623 11052
2/28/97 11006 11600
5/31/97 11632 12508
8/31/97 12398 13314
12976 14202
14025 15658
14804 16342
8/31/98 12879 14395
15419 17565
16375 18752
17333 19780
8/31/99 17883 20125
18339 21235
18442 20951
19432 21850
8/31/00 21101 23407
</TABLE>
Average Annual Total Return of Class Y Shares of the Fund at 8/31/00(2)
1-Year 18.00% Life 21.51%
The performance information in the graphs for the S&P 500 Index begins on
6/30/90 for Class A, 9/30/94 for Class B, 11/30/93 for Class C and 10/31/96 for
Class Y.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes. For quarterly 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 and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. 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), 2% (5-year) and 1% (since inception). Class B shares are subject to an
annual 0.75% asset-based sales charge. The ending account value shown in the
graph is net of the applicable 1% contingent deferred sales charge. Class C
shares of the Fund were first publicly offered on 12/1/93.
Class C returns include the contingent deferred sales charge of 1% for the
1-year period. Class C shares are subject to an annual 0.75% asset-based sales
charge.
Class Y shares of the Fund were first publicly offered on 11/1/96. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Financials
13 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS August 31, 2000
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
==================================================================================
<S> <C> <C>
Common Stocks--94.0%
----------------------------------------------------------------------------------
Basic Materials--1.6%
----------------------------------------------------------------------------------
Chemicals--0.8%
Dexter Corp. 262,000 $ 15,490,750
----------------------------------------------------------------------------------
Dow Chemical Co. 1,283,900 33,622,131
----------------------------------------------------------------------------------
Du Pont (E.I.) de Nemours & Co. 1,424,482 63,923,630
----------------------------------------------------------------------------------
Ecolab, Inc. 225,000 8,760,937
----------------------------------------------------------------------------------
Engelhard Corp. 206,700 3,875,625
----------------------------------------------------------------------------------
Lafarge Corp. 100,000 2,437,500
----------------------------------------------------------------------------------
Union Carbide Corp. 842,300 33,744,644
----------------------------------------------------------------------------------
Universal Corp. 71,400 1,847,475
------------
163,702,692
----------------------------------------------------------------------------------
Metals--0.5%
AK Steel Holding Corp. 283,350 3,081,431
----------------------------------------------------------------------------------
Alcan Aluminium Ltd. 440,000 14,437,500
----------------------------------------------------------------------------------
Alcoa, Inc. 2,124,800 70,649,600
----------------------------------------------------------------------------------
Inco Ltd.(1) 783,800 14,010,425
----------------------------------------------------------------------------------
Reliance Steel & Aluminum Co. 180,000 3,712,500
------------
105,891,456
----------------------------------------------------------------------------------
Paper--0.3%
Pactiv Corp.(1) 416,900 4,585,900
----------------------------------------------------------------------------------
Rayonier, Inc. 196,000 8,146,250
----------------------------------------------------------------------------------
Westvaco Corp. 131,800 3,608,025
----------------------------------------------------------------------------------
Weyerhaeuser Co. 825,100 38,212,444
------------
54,552,619
----------------------------------------------------------------------------------
Capital Goods--9.2%
----------------------------------------------------------------------------------
Aerospace/Defense--0.7%
Boeing Co. 2,267,300 121,583,962
----------------------------------------------------------------------------------
General Dynamics Corp. 109,600 6,897,950
----------------------------------------------------------------------------------
L-3 Communications Holdings, Inc.(1) 32,700 1,933,387
------------
130,415,299
----------------------------------------------------------------------------------
Electrical Equipment--5.7%
AVX Corp. 813,000 24,339,187
----------------------------------------------------------------------------------
Conexant Systems, Inc.(1) 546,500 20,322,969
----------------------------------------------------------------------------------
Emerson Electric Co. 292,100 19,333,369
----------------------------------------------------------------------------------
General Electric Co. 15,753,000 924,504,187
----------------------------------------------------------------------------------
Integrated Device Technology, Inc.(1) 619,300 54,343,575
----------------------------------------------------------------------------------
Molex, Inc., Cl. A 598,300 24,006,787
----------------------------------------------------------------------------------
Rockwell International Corp. 790,500 31,965,844
14 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Electrical Equipment Continued
SPX Corp.(1) 202,000 $ 33,128,000
----------------------------------------------------------------------------------
Symbol Technologies, Inc. 294,000 12,164,250
----------------------------------------------------------------------------------
Vishay Intertechnology, Inc.(1) 250,000 10,078,125
--------------
1,154,186,293
----------------------------------------------------------------------------------
Industrial Services--0.1%
Paychex, Inc. 658,550 29,387,794
----------------------------------------------------------------------------------
Manufacturing--2.7%
American Standard Cos., Inc.(1) 780,000 36,123,750
----------------------------------------------------------------------------------
Avery-Dennison Corp. 958,000 51,791,875
----------------------------------------------------------------------------------
Ball Corp. 30,300 1,049,137
----------------------------------------------------------------------------------
Bemis Co., Inc. 168,700 5,651,450
----------------------------------------------------------------------------------
Cooper Industries, Inc. 377,800 13,341,062
----------------------------------------------------------------------------------
Corning, Inc. 150,500 49,354,594
----------------------------------------------------------------------------------
Dover Corp. 984,200 48,102,775
----------------------------------------------------------------------------------
Energizer Holdings, Inc.(1) 85,266 1,684,003
----------------------------------------------------------------------------------
Honeywell International, Inc. 1,144,500 44,134,781
----------------------------------------------------------------------------------
Illinois Tool Works, Inc. 401,100 22,486,669
----------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc.(1) 55,200 1,003,950
----------------------------------------------------------------------------------
Mark IV Industries, Inc. 650,000 14,543,750
----------------------------------------------------------------------------------
Mettler-Toledo International, Inc.(1) 264,000 12,490,500
----------------------------------------------------------------------------------
Microchip Technology, Inc.(1) 145,500 9,903,094
----------------------------------------------------------------------------------
Miller (Herman), Inc. 254,400 8,124,900
----------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 1,732,200 161,094,600
----------------------------------------------------------------------------------
Parker-Hannifin Corp. 183,000 6,370,687
----------------------------------------------------------------------------------
PE Corp.-PE Biosystems Group 249,000 24,495,375
----------------------------------------------------------------------------------
United Technologies Corp. 400,300 24,993,731
--------------
536,740,683
----------------------------------------------------------------------------------
Communication Services--3.5%
----------------------------------------------------------------------------------
Telecommunications: Long Distance--1.8%
ALLTEL Corp. 356,000 18,000,250
----------------------------------------------------------------------------------
Broadcom Corp., Cl. A(1) 96,900 24,225,000
----------------------------------------------------------------------------------
Brocade Communications Systems, Inc.(1) 149,400 33,736,387
----------------------------------------------------------------------------------
Comverse Technology, Inc.(1) 192,000 17,652,000
----------------------------------------------------------------------------------
Exodus Communications, Inc.(1) 150,000 10,265,625
----------------------------------------------------------------------------------
Qwest Communications International, Inc.(1) 1,016,400 52,471,650
----------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 642,500 21,523,750
----------------------------------------------------------------------------------
Time Warner Telecom, Inc., Cl. A(1) 44,000 2,857,250
----------------------------------------------------------------------------------
Verizon Communications 4,046,710 176,537,724
--------------
357,269,636
15 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Telephone Utilities--1.4%
BellSouth Corp. 5,674,000 $211,711,125
----------------------------------------------------------------------------------
BroadWing, Inc.(1) 159,000 4,442,062
----------------------------------------------------------------------------------
SBC Communications, Inc. 1,481,900 61,869,325
------------
278,022,512
----------------------------------------------------------------------------------
Telecommunications: Wireless--0.3%
Amdocs Ltd.(1) 295,900 21,138,356
----------------------------------------------------------------------------------
AT&T Wireless Group(1) 557,200 14,591,675
----------------------------------------------------------------------------------
Sprint Corp. (PCS Group)(1) 292,300 14,669,806
------------
50,399,837
----------------------------------------------------------------------------------
Consumer Cyclicals--9.4%
----------------------------------------------------------------------------------
Autos & Housing--0.9%
ArvinMeritor, Inc. 130,000 2,145,000
----------------------------------------------------------------------------------
Bandag, Inc. 51,000 1,660,687
----------------------------------------------------------------------------------
Centex Construction Products, Inc. 64,000 1,652,000
----------------------------------------------------------------------------------
Delphi Automotive Systems Corp. 1,008,100 16,570,644
----------------------------------------------------------------------------------
Ford Motor Co. 1,988,626 48,099,891
----------------------------------------------------------------------------------
Fortune Brands, Inc. 246,100 6,275,550
----------------------------------------------------------------------------------
General Motors Corp. 511,354 36,913,367
----------------------------------------------------------------------------------
Johnson Controls, Inc. 176,500 9,431,719
----------------------------------------------------------------------------------
Lear Corp.(1) 650,000 14,015,625
----------------------------------------------------------------------------------
NVR, Inc.(1) 110,000 8,085,000
----------------------------------------------------------------------------------
Ryland Group, Inc. (The) 178,000 4,372,125
----------------------------------------------------------------------------------
Southdown, Inc. 238,000 14,934,500
----------------------------------------------------------------------------------
Toll Brothers, Inc.(1) 240,000 7,830,000
----------------------------------------------------------------------------------
Vulcan Materials Co. 174,000 7,710,375
----------------------------------------------------------------------------------
Webb (Del E.) Corp.(1) 79,100 1,769,862
------------
181,466,345
----------------------------------------------------------------------------------
Consumer Services--0.4%
Advo, Inc.(1) 80,000 3,275,000
----------------------------------------------------------------------------------
Avis Group Holdings, Inc., Cl. A(1) 750,000 23,062,500
----------------------------------------------------------------------------------
Dun & Bradstreet Corp. 63,000 2,079,000
----------------------------------------------------------------------------------
Harte-Hanks, Inc. 304,000 7,638,000
----------------------------------------------------------------------------------
Interpublic Group of Cos., Inc. 373,700 14,294,025
----------------------------------------------------------------------------------
Omnicom Group, Inc. 261,300 21,802,219
----------------------------------------------------------------------------------
Young & Rubicam, Inc. 92,700 5,422,950
------------
77,573,694
16 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Leisure & Entertainment--0.5%
Brunswick Corp. 780,200 $ 14,628,750
----------------------------------------------------------------------------------
Harley-Davidson, Inc. 494,000 24,607,375
----------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 95,000 3,752,500
----------------------------------------------------------------------------------
MGM Mirage, Inc. 630,622 21,677,631
----------------------------------------------------------------------------------
Park Place Entertainment Corp.(1) 2,340,000 34,368,750
------------
99,035,006
----------------------------------------------------------------------------------
Media--2.1%
Deluxe Corp. 34,700 763,400
----------------------------------------------------------------------------------
Dow Jones & Co., Inc. 279,200 17,467,450
----------------------------------------------------------------------------------
Gannett Co., Inc. 1,195,900 67,717,837
----------------------------------------------------------------------------------
Harland (John H.) Co. 200,000 2,925,000
----------------------------------------------------------------------------------
Knight-Ridder, Inc. 367,600 20,080,150
----------------------------------------------------------------------------------
McClatchy Co., Cl. A 24,100 863,081
----------------------------------------------------------------------------------
McGraw-Hill, Inc. 333,300 20,643,769
----------------------------------------------------------------------------------
New York Times Co., Cl. A 790,000 30,958,125
----------------------------------------------------------------------------------
R.H. Donnelley Corp.(1) 190,000 3,990,000
----------------------------------------------------------------------------------
Readers Digest Assn., Inc. (The), Cl. A 893,000 34,380,500
----------------------------------------------------------------------------------
Snyder Communications, Inc.(1) 105,000 2,874,375
----------------------------------------------------------------------------------
Time Warner, Inc. 2,095,718 179,183,889
----------------------------------------------------------------------------------
Tribune Co. 526,800 18,800,175
----------------------------------------------------------------------------------
USA Networks, Inc.(1) 1,260,000 30,318,750
------------
430,966,501
----------------------------------------------------------------------------------
Retail: General--2.7%
Kohl's Corp.(1) 136,500 7,644,000
----------------------------------------------------------------------------------
May Department Stores Co. 656,800 15,065,350
----------------------------------------------------------------------------------
Sears Roebuck & Co. 570,700 17,798,706
----------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 10,606,300 503,136,356
------------
543,644,412
----------------------------------------------------------------------------------
Retail: Specialty--2.4%
Ann Taylor Stores Corp.(1) 217,200 7,819,200
----------------------------------------------------------------------------------
Best Buy Co., Inc.(1) 790,000 48,782,500
----------------------------------------------------------------------------------
BJ's Wholesale Club, Inc.(1) 217,000 7,350,875
----------------------------------------------------------------------------------
Home Depot, Inc. 6,165,400 296,324,537
----------------------------------------------------------------------------------
Limited, Inc. 1,800,000 36,000,000
----------------------------------------------------------------------------------
Payless ShoeSource, Inc.(1) 10,315 550,563
----------------------------------------------------------------------------------
Ross Stores, Inc. 728,000 11,011,000
----------------------------------------------------------------------------------
Target Corp. 725,700 16,872,525
----------------------------------------------------------------------------------
Tiffany & Co. 696,000 28,971,000
----------------------------------------------------------------------------------
Zale Corp.(1) 500,000 18,468,750
------------
472,150,950
17 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.4%
Jones Apparel Group, Inc.(1) 1,975,059 $ 48,388,945
----------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 200,000 5,400,000
----------------------------------------------------------------------------------
Liz Claiborne, Inc. 282,200 12,399,162
----------------------------------------------------------------------------------
Mohawk Industries, Inc.(1) 133,100 3,161,125
----------------------------------------------------------------------------------
Too, Inc.(1) 128,574 3,166,135
----------------------------------------------------------------------------------
VF Corp. 64,000 1,464,000
------------
73,979,367
----------------------------------------------------------------------------------
Consumer Staples--4.0%
----------------------------------------------------------------------------------
Beverages--0.8%
Adolph Coors Co., Cl. B 104,000 6,194,500
----------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 1,601,300 126,202,456
----------------------------------------------------------------------------------
Brown-Forman Corp., Cl. B 30,000 1,590,000
----------------------------------------------------------------------------------
Canandaigua Brands, Inc., Cl. A(1) 72,000 3,879,000
----------------------------------------------------------------------------------
PepsiCo, Inc. 573,100 24,428,387
----------------------------------------------------------------------------------
Seagram Co. Ltd. (The) 104,800 6,307,650
------------
168,601,993
----------------------------------------------------------------------------------
Broadcasting--0.4%
AT&T Corp.-Liberty Media Corp., Cl. A(1) 2,808,800 60,038,100
----------------------------------------------------------------------------------
Comcast Corp., Cl. A Special(1) 264,800 9,863,800
----------------------------------------------------------------------------------
Univision Communications, Inc., Cl. A(1) 262,500 11,582,812
----------------------------------------------------------------------------------
ValueVision International, Inc., Cl. A(1) 87,800 2,573,637
------------
84,058,349
----------------------------------------------------------------------------------
Entertainment--0.9%
Brinker International, Inc.(1) 350,000 11,112,500
----------------------------------------------------------------------------------
Darden Restaurants, Inc. 488,300 8,636,806
----------------------------------------------------------------------------------
Disney (Walt) Co. 1,768,200 68,849,287
----------------------------------------------------------------------------------
Ruby Tuesday, Inc. 588,000 7,350,000
----------------------------------------------------------------------------------
Ryan's Family Steak Houses, Inc.(1) 100,000 812,500
----------------------------------------------------------------------------------
Viacom, Inc., Cl. B1 1,301,848 87,630,643
----------------------------------------------------------------------------------
Wendy's International, Inc. 320,400 6,047,550
------------
190,439,286
----------------------------------------------------------------------------------
Food--0.4%
Agribrands International, Inc.(1) 137,960 5,483,910
----------------------------------------------------------------------------------
ConAgra, Inc. 546,800 10,013,275
----------------------------------------------------------------------------------
Heinz (H.J.) Co. 280,000 10,675,000
----------------------------------------------------------------------------------
Quaker Oats Co. 114,000 7,744,875
----------------------------------------------------------------------------------
Ralston Purina Co. 255,800 5,787,475
----------------------------------------------------------------------------------
Sysco Corp. 1,032,900 43,704,581
------------
83,409,116
18 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Food & Drug Retailers--0.2%
CVS Corp. 233,000 $ 8,650,125
----------------------------------------------------------------------------------
Walgreen Co. 830,900 27,315,837
------------
35,965,962
----------------------------------------------------------------------------------
Household Goods--1.0%
Clorox Co. (The) 110,400 3,995,100
----------------------------------------------------------------------------------
Colgate-Palmolive Co. 1,150,000 58,578,125
----------------------------------------------------------------------------------
Kimberly-Clark Corp. 2,448,700 143,248,950
------------
205,822,175
----------------------------------------------------------------------------------
Tobacco--0.3%
R.J. Reynolds Tobacco Holdings, Inc. 1,400,000 50,225,000
----------------------------------------------------------------------------------
Energy--14.9%
----------------------------------------------------------------------------------
Energy Services--3.1%
Anadarko Petroleum Corp. 66,885 4,399,026
----------------------------------------------------------------------------------
BJ Services Co.(1) 97,000 6,499,000
----------------------------------------------------------------------------------
Cabot Oil & Gas Corp., Cl. A 300,000 6,000,000
----------------------------------------------------------------------------------
Coastal Corp. 209,700 14,443,087
----------------------------------------------------------------------------------
Constellation Energy Group, Inc. 121,900 4,662,675
----------------------------------------------------------------------------------
Cooper Cameron Corp.(1) 69,500 5,407,969
----------------------------------------------------------------------------------
ENSCO International, Inc. 3,860,000 153,917,500
----------------------------------------------------------------------------------
Global Marine, Inc.(1) 3,500,000 113,093,750
----------------------------------------------------------------------------------
Nabors Industries, Inc.(1) 1,685,000 80,142,812
----------------------------------------------------------------------------------
Noble Drilling Corp.(1) 2,600,000 126,100,000
----------------------------------------------------------------------------------
Santa Fe International Corp. 1,926,400 75,731,600
----------------------------------------------------------------------------------
Schlumberger Ltd. 340,300 29,031,844
----------------------------------------------------------------------------------
Seacor Holdings, Inc.(1) 270,000 12,301,875
------------
631,731,138
----------------------------------------------------------------------------------
Oil: Domestic--7.9%
Amerada Hess Corp. 396,700 27,149,156
----------------------------------------------------------------------------------
Apache Corp. 754,400 47,527,200
----------------------------------------------------------------------------------
Brown (Tom), Inc.(1) 1,666,000 36,235,500
----------------------------------------------------------------------------------
Chevron Corp. 2,091,300 176,714,850
----------------------------------------------------------------------------------
Chieftain International, Inc.(1,2) 1,455,100 31,284,650
----------------------------------------------------------------------------------
Conoco, Inc., Cl. A 415,000 10,452,812
----------------------------------------------------------------------------------
Conoco, Inc., Cl. B 608,300 15,891,837
----------------------------------------------------------------------------------
Devon Energy Corp. 1,037,700 60,770,306
----------------------------------------------------------------------------------
EOG Resources, Inc. 1,741,300 66,604,725
----------------------------------------------------------------------------------
Exxon Mobil Corp. 7,012,948 572,431,880
----------------------------------------------------------------------------------
Frontier Oil Corp.(1,2) 2,554,000 18,197,250
----------------------------------------------------------------------------------
Kerr-McGee Corp. 692,000 43,725,750
----------------------------------------------------------------------------------
Murphy Oil Corp. 1,125,000 75,093,750
19 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Oil: Domestic Continued
Newfield Exploration Co.(1) 622,700 $ 26,931,775
----------------------------------------------------------------------------------
Noble Affiliates, Inc. 380,000 14,725,000
----------------------------------------------------------------------------------
Occidental Petroleum Corp. 852,700 18,439,637
----------------------------------------------------------------------------------
Phillips Petroleum Co. 800,200 49,512,375
----------------------------------------------------------------------------------
Stone Energy Corp.(1) 395,800 23,673,788
----------------------------------------------------------------------------------
Texaco, Inc. 1,711,100 88,121,650
----------------------------------------------------------------------------------
Tosco Corp. 638,800 19,483,400
----------------------------------------------------------------------------------
Unocal Corp. 124,600 4,158,525
----------------------------------------------------------------------------------
USX-Marathon Group 109,500 3,004,406
----------------------------------------------------------------------------------
Vastar Resources, Inc. 1,839,400 152,210,350
--------------
1,582,340,572
----------------------------------------------------------------------------------
Oil: International--3.9%
Anderson Exploration Ltd.(1) 3,706,725 77,542,867
----------------------------------------------------------------------------------
Beau Canada Exploration Ltd.(1) 3,917,900 4,224,223
----------------------------------------------------------------------------------
Berkley Petroleum Corp.(1) 4,040,100 23,834,590
----------------------------------------------------------------------------------
Canadian 88 Energy Corp.(2) 9,943,300 22,789,960
----------------------------------------------------------------------------------
Canadian Hunter Exploration Ltd.(1) 844,200 20,894,623
----------------------------------------------------------------------------------
Canadian Hunter Exploration Ltd.(1) 2,062,100 51,038,618
----------------------------------------------------------------------------------
Canadian Natural Resources Ltd.(1) 2,542,690 81,899,895
----------------------------------------------------------------------------------
Encal Energy Ltd.(1) 2,511,200 15,836,550
----------------------------------------------------------------------------------
Genoil, Inc.(1) 2,611,933 265,674
----------------------------------------------------------------------------------
Paramount Resources Ltd. 1,636,200 14,146,301
----------------------------------------------------------------------------------
Renaissance Energy Ltd.(1) 1,226,211 11,349,956
----------------------------------------------------------------------------------
Rio Alto Exploration Ltd.(1) 1,500,150 29,805,652
----------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 6,012,400 367,883,725
----------------------------------------------------------------------------------
Talisman Energy, Inc.(1) 1,989,800 66,722,459
--------------
788,235,093
----------------------------------------------------------------------------------
Financial--8.8%
----------------------------------------------------------------------------------
Banks--0.8%
Bank of New York Co., Inc. (The) 158,000 8,285,125
----------------------------------------------------------------------------------
BB&T Corp. 226,500 6,129,656
----------------------------------------------------------------------------------
Firstar Corp. 175,000 4,178,125
----------------------------------------------------------------------------------
FleetBoston Financial Corp. 369,800 15,785,838
----------------------------------------------------------------------------------
Mellon Financial Corp. 193,500 8,755,875
----------------------------------------------------------------------------------
Northern Trust Corp. 56,900 4,797,381
----------------------------------------------------------------------------------
Old Kent Financial Corp. 352,170 10,322,983
----------------------------------------------------------------------------------
State Street Corp. 138,800 16,343,700
----------------------------------------------------------------------------------
Wachovia Corp. 133,800 7,668,413
----------------------------------------------------------------------------------
Wells Fargo Co. 1,924,300 83,105,706
--------------
165,372,802
20 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Diversified Financial--5.5%
Bear Stearns Cos., Inc. 98,000 $ 6,572,125
----------------------------------------------------------------------------------
Citigroup, Inc. 10,900,800 636,334,200
----------------------------------------------------------------------------------
Convergys Corp.(1) 61,000 2,386,625
----------------------------------------------------------------------------------
Fannie Mae 812,400 43,666,500
----------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 413,100 52,902,619
----------------------------------------------------------------------------------
Household International, Inc. 300,000 14,400,000
----------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 412,400 59,798,000
----------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 140,000 20,300,000
----------------------------------------------------------------------------------
MGIC Investment Corp. 454,200 26,712,638
----------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 1,631,200 175,455,950
----------------------------------------------------------------------------------
PaineWebber Group, Inc. 154,300 11,032,450
----------------------------------------------------------------------------------
PMI Group, Inc. (The) 957,000 59,334,000
----------------------------------------------------------------------------------
SEI Investments Co. 84,000 5,334,000
--------------
1,114,229,107
----------------------------------------------------------------------------------
Insurance--2.3%
AFLAC, Inc. 422,500 22,815,000
----------------------------------------------------------------------------------
Allmerica Financial Corp. 582,400 35,453,600
----------------------------------------------------------------------------------
American International Group, Inc. 2,012,550 179,368,519
----------------------------------------------------------------------------------
AXA Financial, Inc. 1,893,400 97,983,450
----------------------------------------------------------------------------------
Chubb Corp. 82,000 6,278,125
----------------------------------------------------------------------------------
Cigna Corp. 675,400 65,682,650
----------------------------------------------------------------------------------
Cincinnati Financial Corp. 264,000 10,263,000
----------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. 42,100 2,804,913
----------------------------------------------------------------------------------
Jefferson-Pilot Corp. 510,500 33,788,719
----------------------------------------------------------------------------------
Radian Group, Inc. 47,530 2,952,801
----------------------------------------------------------------------------------
St. Paul Cos., Inc. 228,200 10,868,025
--------------
468,258,802
----------------------------------------------------------------------------------
Savings & Loans--0.2%
Dime Bancorp, Inc. 500,000 9,187,500
----------------------------------------------------------------------------------
Golden State Bancorp, Inc. 1,000,000 20,125,000
----------------------------------------------------------------------------------
Golden West Financial Corp. 245,900 11,710,988
--------------
41,023,488
21 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Healthcare--7.6%
----------------------------------------------------------------------------------
Healthcare/Drugs--7.2%
Alpharma, Inc., Cl. A 88,900 $ 5,033,963
----------------------------------------------------------------------------------
American Home Products Corp. 1,015,600 55,032,825
----------------------------------------------------------------------------------
Amgen, Inc.(1) 2,939,300 222,835,681
----------------------------------------------------------------------------------
Andrx Corp.(1) 540,000 46,980,000
----------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,348,500 71,470,500
----------------------------------------------------------------------------------
Chiron Corp.(1) 271,600 14,683,375
----------------------------------------------------------------------------------
Forest Laboratories, Inc.(1) 64,300 6,293,363
----------------------------------------------------------------------------------
Genentech, Inc.(1) 92,500 17,621,250
----------------------------------------------------------------------------------
HCA-Healthcare Corp. (The) 696,100 24,015,450
----------------------------------------------------------------------------------
Immunex Corp.(1) 131,000 6,582,750
----------------------------------------------------------------------------------
IVAX Corp.(1) 205,200 7,105,050
----------------------------------------------------------------------------------
Johnson & Johnson 1,176,400 108,155,275
----------------------------------------------------------------------------------
Lilly (Eli) & Co. 353,700 25,820,100
----------------------------------------------------------------------------------
Mallinckrodt, Inc. 30,800 1,387,925
----------------------------------------------------------------------------------
Merck & Co., Inc. 4,568,600 319,230,925
----------------------------------------------------------------------------------
Pfizer, Inc. 7,615,225 329,358,481
----------------------------------------------------------------------------------
Pharmacia Corp. 1,515,900 88,774,894
----------------------------------------------------------------------------------
Schering-Plough Corp. 1,371,100 55,015,388
----------------------------------------------------------------------------------
Sepracor, Inc.(1) 37,700 4,147,000
----------------------------------------------------------------------------------
Trigon Healthcare, Inc.(1) 300,000 15,487,500
----------------------------------------------------------------------------------
UnitedHealth Group, Inc. 221,200 20,903,400
--------------
1,445,935,095
----------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.4%
Alberto-Culver Co., Cl. B 74,900 2,120,606
----------------------------------------------------------------------------------
Allergan, Inc. 130,500 9,542,813
----------------------------------------------------------------------------------
Biomet, Inc. 118,000 3,989,875
----------------------------------------------------------------------------------
Lincare Holdings, Inc.(1) 160,000 4,080,000
----------------------------------------------------------------------------------
Medtronic, Inc. 771,600 39,544,500
----------------------------------------------------------------------------------
PacifiCare Health Systems, Inc.(1) 57,000 3,074,438
----------------------------------------------------------------------------------
PerkinElmer, Inc. 154,000 13,850,375
----------------------------------------------------------------------------------
Tenet Healthcare Corp.(1) 402,400 12,474,400
--------------
88,677,007
----------------------------------------------------------------------------------
Technology--31.8%
----------------------------------------------------------------------------------
Computer Hardware--6.8%
3Com Corp.(1) 67,400 1,120,525
----------------------------------------------------------------------------------
Agilent Technologies, Inc.(1) 209,597 12,641,319
----------------------------------------------------------------------------------
Apple Computer, Inc.(1) 1,324,800 80,730,000
----------------------------------------------------------------------------------
Compaq Computer Corp. 1,826,400 62,211,750
----------------------------------------------------------------------------------
Dell Computer Corp.(1) 2,744,200 119,715,725
----------------------------------------------------------------------------------
EMC Corp.(1) 380,400 37,279,200
22 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Computer Hardware Continued
Gateway, Inc.(1) 393,100 $ 26,770,110
----------------------------------------------------------------------------------
Hewlett-Packard Co. 1,848,500 223,206,375
----------------------------------------------------------------------------------
International Business Machines Corp. 1,257,600 166,003,200
----------------------------------------------------------------------------------
Juniper Networks, Inc.(1) 154,700 33,067,125
----------------------------------------------------------------------------------
KLA Instruments Corp.(1) 663,600 43,548,750
----------------------------------------------------------------------------------
Lexmark International, Inc., Cl. A(1) 85,800 5,818,313
----------------------------------------------------------------------------------
NCR Corp.(1) 120,900 4,881,338
----------------------------------------------------------------------------------
Network Appliance, Inc.(1) 677,700 79,290,900
----------------------------------------------------------------------------------
Redback Networks, Inc.(1) 86,200 12,876,125
----------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 903,300 53,633,438
----------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 3,218,900 408,599,119
--------------
1,371,393,312
----------------------------------------------------------------------------------
Computer Services--1.0%
Applied Micro Circuits Corp.(1) 58,200 11,810,963
----------------------------------------------------------------------------------
Ariba, Inc.(1) 142,100 22,362,988
----------------------------------------------------------------------------------
Automatic Data Processing, Inc. 1,358,300 80,988,638
----------------------------------------------------------------------------------
DST Systems, Inc.(1) 100,000 9,400,000
----------------------------------------------------------------------------------
First Data Corp. 1,167,000 55,651,313
----------------------------------------------------------------------------------
Vignette Corp.(1) 380,300 14,498,938
--------------
194,712,840
----------------------------------------------------------------------------------
Computer Software--5.3%
Adobe Systems, Inc. 509,300 66,209,000
----------------------------------------------------------------------------------
BEA Systems, Inc.(1) 513,900 34,977,319
----------------------------------------------------------------------------------
BroadVision, Inc.(1) 159,500 5,502,750
----------------------------------------------------------------------------------
Computer Associates International, Inc. 539,300 17,122,775
----------------------------------------------------------------------------------
Computer Sciences Corp.(1) 208,400 16,476,625
----------------------------------------------------------------------------------
eBay, Inc.(1) 125,000 7,750,000
----------------------------------------------------------------------------------
i2 Technologies, Inc.(1) 221,200 37,424,275
----------------------------------------------------------------------------------
Oracle Corp.(1) 5,089,200 462,799,125
----------------------------------------------------------------------------------
Peoplesoft, Inc.(1) 408,300 13,167,675
----------------------------------------------------------------------------------
Portal Software, Inc.(1) 137,800 7,613,450
----------------------------------------------------------------------------------
Rational Software Corp.(1) 168,700 21,709,581
----------------------------------------------------------------------------------
Siebel Systems, Inc.(1) 322,900 63,873,656
----------------------------------------------------------------------------------
Software.com, Inc.(1) 44,000 6,404,750
----------------------------------------------------------------------------------
Symantec Corp.(1) 75,000 3,660,938
----------------------------------------------------------------------------------
TIBCO Software, Inc.(1) 215,100 21,926,756
----------------------------------------------------------------------------------
VeriSign, Inc.(1) 424,000 84,323,000
----------------------------------------------------------------------------------
Veritas Software Corp.(1) 873,000 105,251,063
----------------------------------------------------------------------------------
Yahoo!, Inc.(1) 667,300 81,076,950
--------------
1,057,269,688
23 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Communications Equipment--5.6%
ADC Telecommunications, Inc.(1) 1,327,600 $ 54,348,625
----------------------------------------------------------------------------------
CIENA Corp.(1) 325,700 72,203,619
----------------------------------------------------------------------------------
Cisco Systems, Inc.(1) 10,000,000 686,250,000
----------------------------------------------------------------------------------
Nortel Networks Corp. 3,212,000 261,978,750
----------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 331,400 25,828,488
----------------------------------------------------------------------------------
Tellabs, Inc.(1) 275,000 15,451,563
--------------
1,116,061,045
----------------------------------------------------------------------------------
Electronics--12.9%
Advanced Micro Devices, Inc.(1) 763,400 28,722,925
----------------------------------------------------------------------------------
Altera Corp.(1) 918,600 59,536,763
----------------------------------------------------------------------------------
Analog Devices, Inc.(1) 1,100,000 110,550,000
----------------------------------------------------------------------------------
Applied Materials, Inc.(1) 2,014,300 173,859,269
----------------------------------------------------------------------------------
Atmel Corp.(1) 1,060,600 21,212,000
----------------------------------------------------------------------------------
Cypress Semiconductor Corp.(1) 896,400 44,315,775
----------------------------------------------------------------------------------
General Motors Corp., Cl. H(1) 787,082 26,072,091
----------------------------------------------------------------------------------
GlobeSpan, Inc.(1) 108,300 13,043,381
----------------------------------------------------------------------------------
Intel Corp. 17,578,600 1,316,197,675
----------------------------------------------------------------------------------
Lam Research Corp.(1) 695,000 20,936,875
----------------------------------------------------------------------------------
Lattice Semiconductor Corp.(1) 400,000 31,150,000
----------------------------------------------------------------------------------
Linear Technology Corp. 672,700 48,392,356
----------------------------------------------------------------------------------
LSI Logic Corp.(1) 723,100 25,986,406
----------------------------------------------------------------------------------
Maxim Integrated Products, Inc.(1) 386,400 33,882,450
----------------------------------------------------------------------------------
Micron Technology, Inc.(1) 600,500 49,090,875
----------------------------------------------------------------------------------
Motorola, Inc. 1,624,900 58,597,956
----------------------------------------------------------------------------------
National Semiconductor Corp.(1) 702,900 31,279,050
----------------------------------------------------------------------------------
Novellus Systems, Inc.(1) 157,000 9,665,313
----------------------------------------------------------------------------------
PMC-Sierra, Inc.(1) 192,900 45,524,400
----------------------------------------------------------------------------------
QLogic Corp.(1) 400,000 45,400,000
----------------------------------------------------------------------------------
RF Micro Devices, Inc.(1) 190,000 8,478,750
----------------------------------------------------------------------------------
SDL, Inc.(1) 239,000 94,957,688
----------------------------------------------------------------------------------
Teradyne, Inc.(1) 457,600 29,658,200
----------------------------------------------------------------------------------
Texas Instruments, Inc. 2,314,300 154,913,456
----------------------------------------------------------------------------------
Waters Corp.(1) 402,400 32,015,950
----------------------------------------------------------------------------------
Xilinx, Inc.(1) 1,000,000 88,875,000
--------------
2,602,314,604
----------------------------------------------------------------------------------
Photography--0.2%
Eastman Kodak Co. 682,700 42,498,075
24 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Transportation--0.6%
----------------------------------------------------------------------------------
Air Transportation--0.4%
Continental Airlines, Inc., Cl. B(1) 1,358,478 $ 65,376,754
----------------------------------------------------------------------------------
Delta Air Lines, Inc. 154,800 7,662,600
----------------------------------------------------------------------------------
Southwest Airlines Co. 127,500 2,884,688
----------------------------------------------------------------------------------
UAL Corp. 97,000 4,631,750
------------
80,555,792
----------------------------------------------------------------------------------
Railroads & Truckers--0.2%
Union Pacific Corp. 719,600 28,604,100
----------------------------------------------------------------------------------
XTRA Corp.(1) 254,800 11,306,750
----------------------------------------------------------------------------------
Yellow Corp.(1) 125,000 1,906,250
------------
41,817,100
----------------------------------------------------------------------------------
Shipping--0.0%
United Parcel Service, Inc., Cl. B 99,400 5,510,488
----------------------------------------------------------------------------------
Utilities--2.6%
----------------------------------------------------------------------------------
Electric Utilities--1.9%
AES Corp. (The)1 230,000 14,662,500
----------------------------------------------------------------------------------
Allegheny Energy, Inc. 67,300 2,414,388
----------------------------------------------------------------------------------
Ameren Corp. 337,100 13,631,481
----------------------------------------------------------------------------------
American Electric Power Co., Inc. 162,000 5,710,500
----------------------------------------------------------------------------------
Calpine Corp.(1) 327,000 32,373,000
----------------------------------------------------------------------------------
Conectiv, Inc. 146,000 2,591,500
----------------------------------------------------------------------------------
Dominion Resources, Inc. 313,300 16,604,900
----------------------------------------------------------------------------------
DTE Energy Co. 352,000 12,232,000
----------------------------------------------------------------------------------
Duke Energy Corp. 88,900 6,650,831
----------------------------------------------------------------------------------
Energy East Corp. 290,000 6,579,375
----------------------------------------------------------------------------------
Entergy Corp. 317,800 9,673,038
----------------------------------------------------------------------------------
FirstEnergy Corp. 169,200 4,187,700
----------------------------------------------------------------------------------
Florida Progress Corp. 700,000 36,312,500
----------------------------------------------------------------------------------
IPALCO Enterprises, Inc. 408,200 9,516,163
----------------------------------------------------------------------------------
Northeast Utilities Co. 264,000 6,006,000
----------------------------------------------------------------------------------
NSTAR 110,742 4,658,085
----------------------------------------------------------------------------------
Peco Energy Co. 890,400 42,906,150
----------------------------------------------------------------------------------
PG&E Corp. 681,700 19,726,694
----------------------------------------------------------------------------------
PPL Corp. 547,800 18,351,300
----------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 1,160,000 42,050,000
----------------------------------------------------------------------------------
Reliant Energy, Inc. 55,000 2,041,875
----------------------------------------------------------------------------------
Southern Co. 540,000 16,166,250
----------------------------------------------------------------------------------
TXU Corp. 177,700 6,208,394
----------------------------------------------------------------------------------
Unicom Corp. 1,017,000 46,464,188
------------
377,718,812
25 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
----------------------------------------------------------------------------------
Gas Utilities--0.7%
Dynegy, Inc. 760,400 $ 34,218,000
----------------------------------------------------------------------------------
Enron Corp. 1,100,700 93,421,913
----------------------------------------------------------------------------------
NICOR, Inc. 45,500 1,677,813
----------------------------------------------------------------------------------
Sempra Energy 137,124 2,673,918
---------------
131,991,644
---------------
Total Common Stocks (Cost $13,362,116,054) 18,905,553,481
==================================================================================
Preferred Stocks--0.1%
Tesoro Petroleum Corp., 7.25% Cv., Non-Vtg.
(Cost $17,531,250) 1,100,000 11,825,000
Principal
Amount
==================================================================================
U.S. Government Obligations--0.6%
U.S. Treasury Nts., 5.875%, 10/31/01
(Cost $118,825,301) $119,600,000 119,002,000
==================================================================================
Short-Term Notes--4.4%
CIESCO LP, 6.51%, 9/5/00 30,000,000 29,978,300
----------------------------------------------------------------------------------
CIESCO LP, 6.51%, 9/19/00 50,000,000 49,837,250
----------------------------------------------------------------------------------
CIT Group, Inc., 6.49%, 10/17/00 50,000,000 49,585,361
----------------------------------------------------------------------------------
CIT Group, Inc., 6.50%, 10/19/00 50,000,000 49,566,667
----------------------------------------------------------------------------------
CIT Group, Inc., 6.51%, 9/13/00 50,000,000 49,891,500
----------------------------------------------------------------------------------
Coca-Cola Enterprises, Inc., 6.60%, 9/14/00 50,000,000 49,882,820
----------------------------------------------------------------------------------
Corporate Receivables Corp., 6.49%, 9/28/00 50,000,000 49,756,625
----------------------------------------------------------------------------------
Corporate Receivables Corp., 6.50%, 9/22/00 50,000,000 49,810,417
----------------------------------------------------------------------------------
GE Capital International Funding, Inc.,
6.51%, 9/8/00 50,000,000 49,936,708
----------------------------------------------------------------------------------
Heller Financial, Inc., 6.58%, 9/27/00 50,000,000 49,762,389
----------------------------------------------------------------------------------
Heller Financial, Inc., 6.59%, 10/10/00 25,000,000 24,821,521
----------------------------------------------------------------------------------
Heller Financial, Inc., 6.61%, 9/15/00 50,000,000 49,871,472
----------------------------------------------------------------------------------
Hertz Corp., 6.57%, 9/13/00 50,000,000 49,891,667
----------------------------------------------------------------------------------
Household Finance Corp., 6.48%, 10/10/00 50,000,000 49,649,000
----------------------------------------------------------------------------------
Household Finance Corp., 6.51%, 9/14/00 50,000,000 49,882,458
----------------------------------------------------------------------------------
Household Finance Corp., 6.51%, 9/20/00 50,000,000 49,828,208
----------------------------------------------------------------------------------
Lucent Technologies, Inc., 6.51%, 9/11/00 50,000,000 49,909,583
----------------------------------------------------------------------------------
Lucent Technologies, Inc., 6.51%, 9/19/00 42,000,000 41,863,290
----------------------------------------------------------------------------------
SBC Communications, Inc., 6.50%, 9/18/00 50,000,000 49,846,528
------------
Total Short-Term Notes (Cost $893,571,764) 893,571,764
26 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
Principal Market Value
Amount See Note 1
==================================================================================
Repurchase Agreements--1.6%
Repurchase agreement with PaineWebber, Inc., 6.57%,
dated 8/31/00, to be repurchased at $320,942,561 on
9/1/00, collateralized by U.S. Treasury Bonds,
5.25%-6.75%, 8/15/26-11/15/28, with a value of
$134,478,929, U.S. Treasury Nts., 6.125%-6.625%,
3/31/01-8/15/07, with a value of $163,244,059 and
U.S. Treasury Bills, 8/31/01, with a value of
$30,181,075 (Cost $320,884,000) $320,884,000 $ 320,884,000
----------------------------------------------------------------------------------
Total Investments, at Value (Cost $14,712,928,369) 100.7% 20,250,836,245
----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.7) (144,996,403)
-------------------------------
Net Assets 100.0% $20,105,839,842
===============================
</TABLE>
Footnotes to Statement of Investments
1. Non-income-producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended August 31, 2000.
The aggregate fair value of securities of affiliated companies held by the Fund
as of August 31, 2000, amounts to $72,271,860. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Shares
August 31, Gross Gross August 31, 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. 1,283,100 307,000 135,000 1,455,100 --
Frontier Oil Corp. 2,396,500 157,500 -- 2,554,000 --
--------
$419,871
========
</TABLE>
See accompanying Notes to Financial Statements.
27 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES August 31, 2000
<TABLE>
==================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $14,640,155,228) $20,178,564,385
Affiliated companies (cost $72,773,141) 72,271,860
---------------
20,250,836,245
----------------------------------------------------------------------------------
Cash 407,995
----------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 206,848,520
Shares of capital stock sold 27,225,537
Interest and dividends 25,289,281
Other 2,049,491
---------------
Total assets 20,512,657,069
==================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 355,542,096
Shares of capital stock redeemed 30,659,592
Distribution and service plan fees 8,043,438
Transfer and shareholder servicing agent fees 7,920,171
Directors' compensation 38,269
Other 4,613,661
---------------
Total liabilities 406,817,227
==================================================================================
Net Assets $20,105,839,842
===============
==================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 4,474,933
----------------------------------------------------------------------------------
Additional paid-in capital 13,823,383,572
----------------------------------------------------------------------------------
Undistributed net investment income 24,930,155
----------------------------------------------------------------------------------
Accumulated net realized gain on investments
and foreign currency transactions 715,020,163
----------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 5,538,031,019
---------------
Net Assets $20,105,839,842
===============
</TABLE>
28 | 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
$9,264,942,969 and 204,036,278 shares of capital stock outstanding) $45.41
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $48.18
---------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$8,367,040,254 and 188,006,060 shares of capital stock outstanding) $44.50
---------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$2,213,567,755 and 49,747,607 shares of capital stock outstanding) $44.50
---------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $260,288,864 and 5,703,332 shares of capital stock outstanding) $45.64
</TABLE>
See accompanying Notes to Financial Statements.
29 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000
<TABLE>
==================================================================================
<S> <C>
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes
of $1,326,573) $ 193,671,235
Affiliated companies 419,871
----------------------------------------------------------------------------------
Interest 69,042,120
--------------
Total income 263,133,226
==================================================================================
Expenses
Management fees 83,004,765
----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 20,566,486
Class B 76,558,354
Class C 20,041,200
----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 12,703,266
Class B 11,481,425
Class C 3,190,454
Class Y 289,375
----------------------------------------------------------------------------------
Registration and filing fees:
Class A 572,199
Class B 652,020
Class C 160,828
Class Y 46,377
----------------------------------------------------------------------------------
Custodian fees and expenses 541,059
----------------------------------------------------------------------------------
Directors' compensation 83,898
----------------------------------------------------------------------------------
Other 7,628,007
--------------
Total expenses 237,519,713
Less expenses paid indirectly (102,608)
--------------
Net expenses 237,417,105
==================================================================================
Net Investment Income 25,716,121
==================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 815,926,228
Foreign currency transactions (289,107)
--------------
Net realized gain 815,637,121
----------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 2,122,083,927
Translation of assets and liabilities denominated
in foreign currencies 307,311
--------------
Net change 2,122,391,238
--------------
Net realized and unrealized gain 2,938,028,359
==================================================================================
Net Increase in Net Assets Resulting from Operations $2,963,744,480
==============
</TABLE>
See accompanying Notes to Financial Statements.
30 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended August 31, 2000 1999
====================================================================================
<S> <C> <C>
Operations
Net investment income $ 25,716,121 $ 14,567,725
------------------------------------------------------------------------------------
Net realized gain 815,637,121 1,817,354,650
------------------------------------------------------------------------------------
Net change in unrealized appreciation 2,122,391,238 2,243,718,581
--------------------------------
Net increase in net assets resulting from
operations 2,963,744,480 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 (836,365,157) (234,009,868)
Class B (767,512,693) (203,350,853)
Class C (200,352,973) (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 974,471,411 1,090,840,369
Class B 854,371,197 1,460,515,643
Class C 245,292,728 315,914,172
Class Y 95,078,344 73,447,756
====================================================================================
Net Assets
Total increase 3,310,332,220 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
$24,930,155 and $(3), respectively] $20,105,839,842 $16,795,507,622
================================
</TABLE>
See accompanying Notes to Financial Statements.
31 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class A 2000 1999 1998 1997 1996(1) 1996
===============================================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .21 .19 .29 .39 .07 .40
Net realized and unrealized gain (loss) 6.79 12.03 .99 7.91 (1.01) 4.93
----------------------------------------------------------------------------
Total income (loss) from investment
operations 7.00 12.22 1.28 8.30 (.94) 5.33
-------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.15) (.33) (.40) -- (.43)
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)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $45.41 $42.89 $32.32 $33.87 $27.95 $28.89
============================================================================
===============================================================================================================================
Total Return, at Net Asset Value(2) 17.74% 38.62% 3.68% 31.09% (3.25)% 22.26%
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $9,265 $7,724 $4,933 $4,457 $3,143 $3,147
-------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $8,428 $6,722 $5,184 $3,857 $3,090 $2,516
-------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 0.54% 0.50% 0.83% 1.29% 1.57% 1.55%
Expenses 0.90% 0.91% 0.90%(4) 0.94%(4) 0.98%(4) 0.99%(4)
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 73% 72% 81% 62% 18% 93%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additonal shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
32 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class B 2000 1999 1998 1997 1996(1) 1996
===============================================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) (.08) .04 .17 .04 .23
Net realized and unrealized gain (loss) 6.64 11.93 .96 7.86 (1.02) 4.87
----------------------------------------------------------------------------
Total income (loss) from investment
operations 6.56 11.85 1.00 8.03 (.98) 5.10
-------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.09) (.18) -- (.25)
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)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $44.50 $42.42 $32.07 $33.66 $27.79 $28.77
============================================================================
===============================================================================================================================
Total Return, at Net Asset Value(2) 16.84% 37.62% 2.86% 30.12% (3.41)% 21.34%
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $8,367 $7,073 $4,168 $3,308 $1,909 $1,800
-------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $7,628 $5,930 $4,123 $2,642 $1,818 $1,155
-------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.22)% (0.26)% 0.06% 0.53% 0.82% 0.74%
Expenses 1.66% 1.66% 1.66%(4) 1.69%(4) 1.74%(4) 1.76%(4)
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 73% 72% 81% 62% 18% 93%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additonal shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
33 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
Aug. 31, June 30,
Class C 2000 1999 1998 1997 1996(1) 1996
===============================================================================================================================
<S> <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
-------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) (.09) .03 .16 .04 .21
Net realized and unrealized gain (loss) 6.65 11.93 .98 7.85 (1.01) 4.88
----------------------------------------------------------------------------
Total income (loss) from investment
operations 6.57 11.84 1.01 8.01 (.97) 5.09
-------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.08) (.17) -- (.23)
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)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $44.50 $42.41 $32.07 $33.64 $27.78 $28.75
===============================================================================================================================
Total Return, at Net Asset Value(2) 16.87% 37.59% 2.91% 30.07% (3.37)% 21.35%
============================================================================
===============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $2,214 $1,851 $1,145 $1,030 $744 $741
-------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $2,004 $1,583 $1,184 $904 $730 $588
-------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.23)% (0.25)% 0.07% 0.54% 0.82% 0.80%
Expenses 1.67% 1.66% 1.65%(4) 1.69%(4) 1.73%(4) 1.74%(4)
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 73% 72% 81% 62% 18% 93%
</TABLE>
1. For the two months ended August 31, 1996. The Fund changed its fiscal year
end from June 30 to August 31.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additonal shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
34 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Class Y Year Ended August 31, 2000 1999 1998 1997(1)
=======================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $43.00 $32.38 $33.94 $29.55
---------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .24 .24 .38 .41
Net realized and unrealized gain 6.88 12.07 .97 6.30
--------------------------------------
Total income from investment
operations 7.12 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 $45.64 $43.00 $32.38 $33.94
======================================
=======================================================================================
Total Return, at Net Asset Value(2) 18.00% 38.84% 3.88% 23.98%
=======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $260 $148 $53 $16
---------------------------------------------------------------------------------------
Average net assets (in millions) $206 $ 99 $37 $ 5
---------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 0.77% 0.63% 1.02% 1.58%
Expenses 0.66% 0.77% 0.67%(4) 0.65%(4)
---------------------------------------------------------------------------------------
Portfolio turnover rate 73% 72% 81% 62%
</TABLE>
1. For the period from November 1, 1996 (inception of offering) to August 31,
1997.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additonal shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
35 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Significant Accounting Policies
Oppenheimer Main Street(R) Growth & Income Fund (the Fund) is a separate series
of Oppenheimer Main Street Funds, Inc., an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to seek a high total return, which includes
current income and capital appreciation in the value of its shares, from equity
and debt securities. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C shares are sold without a
front-end 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 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 listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued 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. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
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.
36 | 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 Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 2000, amounts have been reclassified to reflect an
increase in paid-in capital of $84,966,366, a decrease in undistributed net
investment income of $785,963, and a decrease in accumulated net realized gain
on investments of $84,180,403. This reclassification includes $84,966,366
distributed in connection with Fund share redemptions which increased paid-in
capital and reduced accumulated net realized gain. Net assets of the Fund were
unaffected by the reclassifications.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
37 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
1. Significant Accounting Policies Continued
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.
================================================================================
2. Capital Stock
The Fund has authorized 840 million shares of $.01 par value capital stock (400
million for Class A, 300 million for Class B, 100 million for Class C and 40
million for Class Y). Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended August 31, 2000 Year Ended August 31, 1999
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 52,078,604 $ 2,188,227,198 52,580,490 $ 2,113,305,491
Dividends and/or
distributions reinvested 18,965,173 757,847,403 6,595,444 245,649,292
Redeemed (47,076,017) (1,971,603,190) (31,752,422) (1,268,114,414)
---------------------------------------------------------------------
Net increase 23,967,760 $ 974,471,411 27,423,512 $ 1,090,840,369
=====================================================================
-----------------------------------------------------------------------------------------------------
Class B
Sold 39,952,471 $ 1,655,606,879 52,000,058 $ 2,077,494,632
Dividends and/or
distributions reinvested 18,413,884 725,319,656 5,185,756 192,649,282
Redeemed (37,089,266) (1,526,555,338) (20,423,510) (809,628,271)
---------------------------------------------------------------------
Net increase 21,277,089 $ 854,371,197 36,762,304 $ 1,460,515,643
=====================================================================
-----------------------------------------------------------------------------------------------------
Class C
Sold 12,329,312 $ 509,154,643 13,350,165 $ 533,257,647
Dividends and/or
distributions reinvested 4,785,416 188,449,754 1,399,474 51,976,501
Redeemed (11,002,798) (452,311,669) (6,809,689) (269,319,976)
---------------------------------------------------------------------
Net increase 6,111,930 $ 245,292,728 7,939,950 $ 315,914,172
=====================================================================
-----------------------------------------------------------------------------------------------------
Class Y
Sold 4,234,165 $ 179,097,253 2,655,008 $ 108,147,707
Dividends and/or
distributions reinvested 458,846 18,395,117 90,768 3,385,839
Redeemed (2,441,080) (102,414,026) (933,166) (38,085,790)
---------------------------------------------------------------------
Net increase 2,251,931 $ 95,078,344 1,812,610 $ 73,447,756
=====================================================================
</TABLE>
38 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended August 31, 2000, were
$13,249,348,613 and $12,545,796,876, respectively.
As of August 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $14,737,935,202 was:
Gross unrealized appreciation $5,845,654,299
Gross unrealized depreciation (332,753,256)
--------------
Net unrealized appreciation $5,512,901,043
==============
================================================================================
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 year
ended August 31, 2000, was an annualized rate of 0.45%, before any waiver by the
Manager if applicable.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer funds.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 2000 $27,942,876 $7,652,953 $2,076,756 $48,918,066 $4,083,097
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 2000 $171,277 $16,333,931 $414,152
</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.
39 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS 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 year ended August 31, 2000, payments
under the Class A plan totaled $20,566,486 prior to Manager waivers if
applicable, all of which were paid by the Distributor to recipients, and
included $1,142,760 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 year ended August 31, 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 $76,558,354 $62,624,462 $123,993,134 1.48%
Class C Plan 20,041,200 5,748,527 18,621,731 0.84
</TABLE>
40 | 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.
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. 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 year ended August 31,
2000.
================================================================================
7. Other Matters
On April 13, 2000, the Board of Directors approved the reorganization of
Oppenheimer Disciplined Value Fund with and into Oppenheimer Main Street Growth
& Income Fund. Shareholders of the Oppenheimer Disciplined Value Fund will be
asked to approve a reorganization whereby shareholders would receive shares of
Oppenheimer Main Street Growth & Income Fund. If shareholder approval is
received, it is expected that the reorganization will occur during the fourth
quarter of calendar 2000.
41 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
To the Board of Directors and Shareholders of
Oppenheimer Main Street Growth & Income Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Growth & Income Fund, including the statement of
investments, as of August 31, 2000, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
four years in the period then ended, the two-month period ended August 31, 1996,
and the one-year ended June 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 2000, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Main Street Growth & Income Fund as of August 31, 2000, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended, the two-month period ended
August 31, 1996, and the one-year ended June 30, 1996, in conformity with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
September 22, 2000
42 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends and distributions of $4.4805 per share were paid to Class A,
Class B, Class C and Class Y shareholders, on December 3, 1999, of which $4.0105
was designated as a "capital gain distribution" for federal income tax purposes.
Whether received in stock or in cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets held for more
than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended August 31, 2000,
which are not designated as capital gain distributions should be multiplied by
100% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
43 | OPPENHEIMER MAIN STREET GROWTH & INCOME FUND
<PAGE>
OPPENHEIMER MAIN STREET(R) GROWTH & INCOME FUND
<TABLE>
A Series of Oppenheimer Main Street Funds, Inc.
==================================================================================
<S> <C>
Officers and Directors James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, Director and President
Robert G. Avis, Director
George C. Bowen, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, 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 Shareholder OppenheimerFunds Services
Servicing Agent
==================================================================================
Custodian of The Bank of New York
Portfolio Securities
==================================================================================
Independent Auditors Deloitte & Touche LLP
==================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
For more complete information about Oppenheimer Main
Street Growth & Income Fund, please refer to the
Prospectus. To obtain a copy, call your financial
advisor, or call OppenheimerFunds Distributor, Inc. at
1.800.525.7048, or visit the OppenheimerFunds Internet
website, at www.oppenheimerfunds.com.
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.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York,
NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
</TABLE>
44 | 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(1)
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PhoneLink
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1.800.533.3310
--------------------------------------------------------------------------------
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Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market 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
--------------------------------------------------------------------------------
Ticker Symbols Class A: MSIGX Class B: OMSBX Class C: MIGCX Class Y: MIGYX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[logo]OppenheimerFunds(R)
RA0700.001.0800 October 30, 2000 Distributor, Inc.
