<PAGE>
OPPENHEIMER STRATEGIC INCOME & GROWTH FUND
Annual Report September 30, 1995
[PHOTO]
"We want our money to WORK hard, but we're concerned about risk."
(LOGO) OPPENHEIMERFUNDS-c-
<PAGE>
This Fund is for people who want HIGH INCOME with the potential for growth from
an investment that's strategically designed to lower risk.
NEWS
- -------------------
STANDARDIZED YIELDS
- -------------------
For the 30 Days Ended 9/30/95:(3)
Class A
- -------------------
5.45%
- -------------------
Class B
- -------------------
4.96%
- -------------------
BEAT THE AVERAGE
- ----------------
Cumulative Total Return for the 1-year Period Ended 9/30/95:
Oppenheimer Strategic Income & Growth Fund
Class A (at NAV)(1)
- ------------------
16.09%
- ------------------
Lipper General Bond Funds
Average(4)
- ------------------
11.65%
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Strategic Income & Growth Fund seeks its objectives by strategically
allocating assets among four sectors: U.S. government issues, foreign fixed
income securities, higher-yielding, lower-rated corporate bonds, and domestic
stocks. Strategic investing gives the Fund's managers the flexibility to shift
assets among three fixed income sectors to capitalize on world wide investment
opportunities to seek high income. Investing in stocks can help the Fund seek
its growth objective. Combining strategically managed fixed income investments
with stock investments may reduce the risk of concentrating investments in any
one sector, such as high yield bonds, which are subject to greater risk that the
issuer will default in principal or interest payments. And the ability to move
assets quickly and decisively among a wide variety of investments and global
financial markets is crucial to good performance and reduced risk.
- -----------
PERFORMANCE
- -----------
Total returns at net asset value for the 12 months ended 9/30/95 for Class A and
B shares were 16.09% and 15.26%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-year periods ended 9/30/95 and since inception of the
Class on 6/1/92 were 10.58% and 6.21%, respectively. For Class B shares,
average annual total returns for the 1-year period ended 9/30/95 and since
inception of the Class on 11/30/92 were 10.25% and 5.89%, respectively.(2)
- -------
OUTLOOK
- -------
"In this environment, where we don't see any particular market as being
extremely undervalued, we'll remain focused on our goals of capturing growth and
income while remaining diversified for reduced risk."
Bob Doll, David Negri, and Art Steinmetz
Portfolio Managers
September 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment return and
principal value on 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.
1. Based on the change in net asset value per share from 9/30/94 to 9/30/95,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 9/30/94, 6/1/92
(inception of class), after deducting the current maximum initial sales charge
of 4.75%. Class B returns show results of hypothetical investments on 9/30/94
and 11/30/92 (inception of class), and the deduction of the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception).
Certain Class C performance is not yet available because Class C shares were
first publicly offered on 10/1/95. An explanation of the different total returns
is in the Fund's prospectus.
3. Standardized yield is not investment income calculated on a yield-to-maturity
basis for the 30-day period ended 9/30/95, divided by the maximum offering price
for Class A shares at the end of the period, compounded semiannually and then
annualized. Falling net asset values will tend to artificially raise yields.
4. Source: Lipper Analytical Services, 9/30/95, an independent mutual fund
monitoring service. The Lipper total return average for the 1-year period was
for 60 general bond funds. The average is shown for comparative purposes only.
Oppenheimer Strategic Income & Growth Fund is characterized by Lipper as a
general bond fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Strategic Income & Growth Fund
<PAGE>
[PHOTO]
James C. Swain
Chairman
Oppenheimer Strategic
Income & Growth Fund
[PHOTO]
Jon S. Fossel
President
Oppenheimer Strategic
Income & Growth Fund
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
Although the U.S. stock market has received much of the media attention this
year, the bond market has also turned in an excellent performance thus far in
1995. The driving force: steadily falling long-term interest rates along with an
expectation that inflation would remain low.
As you may know, inflation erodes the purchasing power of future income
because bonds pay a fixed rate of income over a fixed time period. Therefore,
as a result of low inflation expectations and slower, more stable economic
growth, investors had a greater demand for bonds and, as such, prices rose and
yields fell.
Unlike short-term interest rates, which are affected primarily by the
actions of the Federal Reserve Board, long-term interest rates are driven by
investor expectations. So even though long-term interest rates were falling,
short-term interest rates were not generally declining until July 6, when the
Fed cut short-term rates for the first time in three years in an attempt to
stimulate the weakening U.S. economy in the second quarter. Back in 1994, the
surging economy caused the Fed to increase interest rates seven times prior to
its July 6 rate cut--and those rate hikes were primarily responsible for the
poor performance of the U.S. bond market last year. But investors who remained
patient and stayed the course have been rewarded in 1995.
And, although the economy has shown a variety of mixed signals recently, we
believe the Federal Reserve will not return to a tightening policy any time in
the near future. Indeed, the Fed appears to have successfully engineered a "soft
landing" for the U.S. economy, one in which growth is moderate and inflation
almost nonexistent.
This two-year period is an excellent example of why investors need to
maintain their objectivity and perspective. Like all markets, there will be
volatility in bonds from year to year but, over time, the fixed income markets
should tend to provide strong current income relative to inflation, and capital
appreciation and depreciation typically offset each other. As a result of the
Fed's change in policy, we believe we're now in a period in which capital gains
and losses will again take a back seat to income as the main driver behind bond
investing.
At the same time, U.S. dollar has strengthened against major overseas
currencies as both Japan and Germany continue to reduce interest rates to
stimulate their economies--actions which make the U.S. bond market relatively
more attractive to foreign investors. So as a result of international market
forces, a moderate U.S. economic environment, and the Fed's anti-inflationary
goal, we expect interest rates to remain relatively stable.
Your portfolio manager discusses the outlook for your Fund on the following
pages. Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you reach your investment goals in the future.
/S/James C. Swain /S/Jon S. Fossel
James C. Swain Jon S. Fossel
October 23, 1995
3 Oppenheimer Strategic Income & Growth Fund
<PAGE>
BOB DOLL, DAVID NEGRI,
AND ART STEINMETZ
Portfolio Managers
Q & A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS STRATEGIC INCOME & GROWTH FUND PERFORMED?
The Fund has performed well over the last 12 months, producing a total return of
16.09% for Class A shares, based on net asset value per share on September 30,
1995. As we've stated before, one of the key benefits of the strategic investing
concept is that it can lower overall risk through diversifying among three
typically- uncorrelated fixed income markets--U.S. government issues, foreign
fixed income securities and higher-yielding, lower-rated corporated bonds. And
though high yield bonds are subject to greater risk that the issuer will default
in its principal or interest payments, diversification helps to lower that risk.
WHY DID YOU SHIFT AWAY FROM THE U.S. INTO FOREIGN BONDS?
In the first half of the year, we did very will with a focus on the
U.S. bond market.
Once the Federal Reserve stopped raising interest rates, the U.S. market
rallied substantially, growing into one of the strongest bull markets in years.
And, while it took the world markets with it, these markets have lagged
somewhat. So the move to foreign bonds was based on the better relative
performance of the domestic market in the first half and our feeling that
currently there are better opportunities abroad. Of course, foreign investments
are always subject to adverse market changes as a result of currency fluctua-
tions. But over time, the long-term returns should more than compensate for
temporary risk, especially when these investments are part of a diversified
portfolio.
WHICH FOREIGN MARKETS SEEM PARTICULARLY ATTRACTIVE?
We've ben adding to Australia, Canada and some emerging markets. The strengthen-
ing dollar should benefit these markets, because a strong dollar provides the
perception of stability necessary for attracting foreign investment. Securities
in these markets and in Europe, where we've also been adding, look like better
values in terms of price and yield that U.S. government bonds is the current
market.
WHAT CHANGES HAVE YOU MADE RECENTLY WITHIN THE DOMESTIC PORTION OF THE FUND?
Within U.S. government securities, as debate materialized over the likelihood of
another interest-rate cut and budget deficit reforms, we began to shorten
maturities. Beyond that, we've increased our mortgage bond allocation.
Mortgage-backed obligations became cheap over fears of increased prepayments in
the unusually volatile markets of '94 and early '95, allowing us to buy low.
Finally, we've reduced our allocation to corporate bonds somewhat. They've
done extremely well for us, so we've taken profits and trimmed our position
there.
WHAT CHANGES HAVE YOU MAKE IN THE STOCK PORTION OF THE PORTFOLIO?
Recently, we've reduced our allocation to stocks somewhat, believing that bonds
continue to offer better relative value in this market. We've taken profits in
some of our holdings of large-cap exporters and technology stocks, the types of
companies that led the past year's rally. When buying, we have focused on large,
multinational companies with recognizable brands and worldwide earnings
growth.(1)
WHAT'S YOUR OUTLOOK?
Basically, coming off of an extremely volatile period, we're expecting calmer
markets going forward.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Strategic Income & Growth Fund
<PAGE>
---------------------------------------------
STATEMENT OF INVESTMENTS September 30, 1995
---------------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
===================================================================================================================================
CERTIFICATES OF DEPOSIT--2.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Citibank CD, 29.50%, 12/22/95(2)HUF $ 20,233,500 $ 155,624
---------------------------------------------------------------------------------------------------------------
First Boston Corp. CD:
10.40%, 10/12/95(2)(3)CZK 7,806,300 296,030
12.50%, 12/21/95(2)(3)ARA 300,000 300,038
---------------------------------------------------------------------------------------------------------------
Indonesia (Republic of) Bank Negara CD, Zero Coupon, 6/17/96(2)IDR 500,000,000 194,506
---------------------------------------------------------------------------------------------------------------
Thai Military Bank Ltd. CD, 11%, 11/30/95(2)THB 7,500,000 299,042
-----------
Total Certificates of Deposit (Cost $1,254,896) 1,245,240
===================================================================================================================================
MORTGAGE-BACKED OBLIGATIONS--6.9%
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--4.8%
- -----------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/ Federal Home Loan Mortgage Corp., Series 176, Cl. F, 8.95%, 3/15/20 192,888 194,395
SPONSORED--2.4% ---------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates, 10.50%, 11/25/20 315,000 372,783
Interest-Only Stripped Mtg.-Backed Security, Trust 257, Cl. 2, 10.26%, 2/25/24(4) 1,850,932 587,816
Collateralized Mtg. Obligations, Series 1994--83, Cl. Z, 7.50%, 6/25/24 351,348 333,999
-----------
1,488,993
- -----------------------------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED Government National Mortgage Assn., 6%, 11/15/25 1,470,000 1,472,756
- --2.4%
- -----------------------------------------------------------------------------------------------------------------------------------
PRIVATE--2.1%
- -----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL--1.0% Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1991--M6, Cl. B4, 7.477%, 6/25/21(5) 79,623 78,554
Series 1992--CHF, Cl. D, 8.25%, 12/25/20 274,124 277,294
Series 1993--C1, Cl. D, 9.45%, 5/25/24 252,980 265,629
-----------
621,477
- -----------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY--1.1% Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1994--C2, Cl. E, 8%, 4/25/25 480,461 436,619
Series 1994--C2, Cl. G, 8%, 4/25/25 234,299 192,748
-----------
629,367
-----------
Total Mortgage-Backed Obligations (Cost $4,055,233) 4,212,593
===================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--19.8%
- -----------------------------------------------------------------------------------------------------------------------------------
TREASURY--19.8% U.S. Treasury Bonds:
11.50%, 11/15/95 900,000 906,750
11.625%, 11/15/02 7,600,000 9,991,620
8.125%, 8/15/19 292,000 342,826
---------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.125%, 11/15/95 230,000 229,928
9.375%, 4/15/96 568,000 579,182
-----------
Total U.S. Government Obligations (Cost $11,459,107) 12,050,306
</TABLE>
5 Oppenheimer Strategic Income & Growth Fund
<PAGE>
--------------------------------------
STATEMENT OF INVESTMENTS (Continued)
--------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
===================================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--11.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos del Tesoro, Series II, 5.906%, 9/1/97(5) $ 23,000 $ 21,934
Medium-Term Nts., 8%, 8/9/97NLG 300,000 184,332
---------------------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC:
International Finance BV Gtd. Bonds, 10.875%, 6/23/97(3)(5) 120,000 121,500
Zero Coupon, 12/5/95(3) 150,000 147,000
---------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon, 8/15/96MXP 1,655,940 196,555
---------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds, 7.25%, 4/15/06(5) 500,000 333,100
---------------------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Disc. Bonds, Tranche A, 6.75%, 7/28/24(5) 750,000 381,525
---------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds, Series H9, 12%, 3/1/05CAD 750,000 712,226
---------------------------------------------------------------------------------------------------------------
Central Bank of Costa Rica Principal Bonds, Series A, 6.25%, 5/21/10 300,000 168,000
---------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06DKK 1,900,000 341,293
---------------------------------------------------------------------------------------------------------------
Ecuador (Republic of) Par Bonds, 3%, 2/28/25(5) 1,000,000 326,200
---------------------------------------------------------------------------------------------------------------
Islamic (Republic of Pakistan) Debs., 11.50%, 12/22/99 300,000 308,625
---------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali,
12%, 5/1/02ITL 500,000,000 315,700
---------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 6.688%, 1/1/09(5) 850,000 532,313
---------------------------------------------------------------------------------------------------------------
New South Wales Treasury Corp. Gtd. Exch. Bonds, 12%, 12/1/01AUD 410,000 361,923
---------------------------------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds:
10%, 7/15/97NZD 390,000 263,673
8%, 11/15/95NZD 400,000 262,921
---------------------------------------------------------------------------------------------------------------
Norwegian Government Bonds, 5.75%, 11/30/04NOK 720,000 104,595
---------------------------------------------------------------------------------------------------------------
Panama (Republic of) Debs., 7.25%, 5/10/02(5) 250,000 198,750
---------------------------------------------------------------------------------------------------------------
Poland (Republic of) Disc. Bonds, 7.125%, 10/27/24(5) 500,000 386,250
---------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Gtd. Nts., 8%, 8/14/01AUD 480,000 356,126
---------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado,
10.25%, 11/30/98ESP 54,000,000 435,805
---------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 13%, 7/14/00GBP 182,000 348,450
---------------------------------------------------------------------------------------------------------------
United Mexican States, Combined Facility 3,
Loan Participation Agreement, Tranche A, 6.75%, 9/20/97(5)(6) 142,880 103,588
----------
Total Foreign Government Obligations (Cost $6,744,272) 6,912,384
===================================================================================================================================
CORPORATE BONDS AND NOTES--26.8%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--3.1%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.3% NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 200,000 212,000
- -----------------------------------------------------------------------------------------------------------------------------------
METALS/MINING--0.4% Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 100,000 108,750
---------------------------------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 100,000 114,000
----------
222,750
</TABLE>
6 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
PAPER--1.5% Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 $ 300,000 $ 313,500
---------------------------------------------------------------------------------------------------------------
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 75,000 70,875
---------------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 9.617% First Priority Sr. Sec. Nts., 7/15/00(5) 200,000 200,500
---------------------------------------------------------------------------------------------------------------
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 125,000 131,875
---------------------------------------------------------------------------------------------------------------
Stone Container Corp., 10.75% First Mtg. Nts., 10/1/02 200,000 208,500
----------
925,250
- -----------------------------------------------------------------------------------------------------------------------------------
STEEL--0.9% Republic Engineered Steels, Inc., 9.875% First Mtg. Nts., 12/15/01 300,000 280,500
---------------------------------------------------------------------------------------------------------------
Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03 250,000 230,625
----------
511,125
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--4.6%
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE--2.0% AmeriSource Health Corp., 11.25% Sr. Debs., 7/15/05(7) 293,419 318,360
---------------------------------------------------------------------------------------------------------------
Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 500,000 579,375
---------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 300,000 318,000
----------
1,215,735
- -----------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING--0.2% Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05(3) 100,000 97,375
- -----------------------------------------------------------------------------------------------------------------------------------
LEISURE--0.5% Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 300,000 316,875
- -----------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS--0.4% Foodmaker, Inc., 9.75% Sr. Sub. Nts., 6/1/02 300,000 256,500
- -----------------------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL Polymer Group, Inc., 12.75% Sr. Nts., 7/15/02(3) 300,000 310,500
- --1.5% ---------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts., 10/23/96IDR 1,200,000,000 415,075
---------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 200,000 198,000
----------
923,575
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY--0.6% Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts., 11/1/97 400,000 342,500
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS Banco Ganadero SA, Zero Coupon Nts., 7/1/96(3) 100,000 93,081
- --0.2% ----------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, 14.25% Indian Rupee Indexed Nts., 6/26/96INR 1,570,500 46,293
----------
139,374
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 300,000 264,000
FINANCIAL--0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.6% Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02 300,000 334,500
- -----------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED--1.3%
- -----------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL Blue Bell Funding, Inc., 11.85% Extd. Sec. Nts., 5/1/99 398,000 419,890
ESTATE--1.3% ---------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(3) 500,000 385,000
----------
804,890
</TABLE>
7 Oppenheimer Strategic Income & Growth Fund
<PAGE>
--------------------------------------
STATEMENT OF INVESTMENTS (Continued)
--------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--0.4% Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 $300,000 $ 262,500
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--0.4% Terex Corp., Units (each unit consists of $1,000 principal amount
of 13.75% sr. sec. nts., 5/15/02 and four common stock appreciation rights)(3)(8) 300,000 247,500
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIA--6.1%
- -----------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--0.3% New City Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 200,000 194,000
- -----------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION Adelphia Communications Corp., 12.50% Sr. Nts., 5/15/02 300,000 302,250
- --4.0% ---------------------------------------------------------------------------------------------------------------
American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04(9) 430,316 248,507
---------------------------------------------------------------------------------------------------------------
Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04(9) 500,000 337,500
---------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 9.875% Sr. Sub. Debs., 2/15/13 250,000 261,250
---------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 400,000 417,000
---------------------------------------------------------------------------------------------------------------
Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04(9) 200,000 93,000
---------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 400,000 428,882
---------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 300,000 338,682
----------
2,427,071
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(9) 750,000 583,125
- --1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM Imax Corp., 7% Sr. Nts., 3/1/01(10) 320,000 305,600
- --0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
PUBLISHING/ Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05(9) 250,000 156,250
PRINTING--0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER--0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL--0.3% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 200,000 180,000
- -----------------------------------------------------------------------------------------------------------------------------------
SERVICES--0.2% Grupo Mexicano de Desarrollo SA, 8.25% Gtd. Nts., 2/17/01(3) 300,000 136,125
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL--2.2%
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 400,000 390,000
- --0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS--1.5% Grand Union Co., 12% Sr. Nts., 9/1/04 398,000 384,070
---------------------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03(7) 533,800 529,797
----------
913,867
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.2%
- -----------------------------------------------------------------------------------------------------------------------------------
RAILROADS--0.5% Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc. Nts.,
Series B, 12/15/03(9) 500,000 317,500
- -----------------------------------------------------------------------------------------------------------------------------------
SHIPPING--0.7% Sea Containers Ltd., 12.50% Sr. Sub. Debs., Series A, 12/1/04 400,000 442,000
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--5.2%
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04(9) 450,000 403,815
- --2.4% ---------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 10.375% Lease Obligation Bonds, Series 1986A, 1/2/11(11) 400,000 255,445
---------------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 300,000 311,791
---------------------------------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 465,500 435,824
9.50% Sr. Sec. Nts., 12/28/08(3) 93,103 81,116
----------
1,487,991
</TABLE>
8 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04(9) $200,000 $ 129,750
- --2.8% ---------------------------------------------------------------------------------------------------------------
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04(3)(9) 400,000 290,132
---------------------------------------------------------------------------------------------------------------
Comcast Cellular Corp., Zero Coupon Nts., Series B, 3/5/00 250,000 191,250
---------------------------------------------------------------------------------------------------------------
In Flight Phone Corp., Units (each unit consists of $1,000 principal
amount of 0%/14% sr. disc. nts., series A, 5/15/02 and one warrant
to purchase one share of common stock)(3)(8)(9) 300,000 120,000
---------------------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04(9) 700,000 532,000
---------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01(9) 500,000 415,000
-----------
1,678,132
-----------
Total Corporate Bonds and Notes (Cost $16,182,750) 16,288,110
SHARES
===================================================================================================================================
COMMON STOCKS--30.7%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--2.3%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--2.3% Morton International, Inc. 20,000 620,000
---------------------------------------------------------------------------------------------------------------
Union Carbide Corp. 20,000 795,000
-----------
1,415,000
- -----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS--0.0% Equitable Bag, Inc.(12) 1,861 4,653
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--0.2% Stryker Corp. 3,000 139,875
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--11.4%
- -----------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/ Coca-Cola Co. (The) 16,000 1,104,000
TOBACCO--5.6% ---------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 13,000 663,000
---------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 8,000 668,000
---------------------------------------------------------------------------------------------------------------
UST, Inc. 33,000 944,625
-----------
3,379,625
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE--4.5% Medtronic, Inc. 16,000 860,000
---------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 18,000 960,750
---------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 18,000 927,000
-----------
2,747,750
- -----------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS--1.3% McDonald's Corp. 20,000 765,000
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--3.8%
- -----------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS NationsBank Corp. 12,000 807,000
- --2.6% ---------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 12,000 793,500
-----------
1,600,500
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED
FINANCIAL--1.2% Federal National Mortgage Assn. 7,000 724,500
- -----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--4.6%
- -----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ Automatic Data Processing, Inc. 11,000 749,375
ELECTRONICS/ ---------------------------------------------------------------------------------------------------------------
COMPUTERS--4.6% Microsoft Corp.(12) 12,000 1,086,000
---------------------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 12,000 958,500
-----------
2,793,875
</TABLE>
9 Oppenheimer Strategic Income & Growth Fund
<PAGE>
--------------------------------------
STATEMENT OF INVESTMENTS (Continued)
--------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIA--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT
/FILM--1.1% Walt Disney Co. 12,000 $ 688,500
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS
- --1.1% Goodyear Tire & Rubber Co. 17,000 669,375
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--6.1%
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE
- --1.6% Compaq Computer Corp.(12) 20,000 967,500
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE
- --1.5% Oracle Corp.(12) 24,000 921,000
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--3.0% Hewlett-Packard Co. 14,000 1,167,250
---------------------------------------------------------------------------------------------------------------
Intel Corp. 11,000 661,375
-----------
1,828,625
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS
- --0.1% Celcaribe SA(3)(12) 65,040 61,868
- -----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $13,157,676) 18,707,646
===================================================================================================================================
PREFERRED STOCKS--1.4%
- -----------------------------------------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 2,500 277,500
---------------------------------------------------------------------------------------------------------------
Kaiser Aluminum Corp., 8.255% Provisionally
Redeemable Income Debt Exchangeable for Stock 4,400 59,950
---------------------------------------------------------------------------------------------------------------
Prime Retail, Inc., $19.00 Cv., Series B 12,000 222,000
---------------------------------------------------------------------------------------------------------------
Unisys Corp., $3.75 Cv., Series A 7,000 262,500
-----------
Total Preferred Stocks (Cost $840,289) 821,950
UNITS
===================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 2,000 5,500
---------------------------------------------------------------------------------------------------------------
Echostar Communications Corp. Wts., Exp. 6/04 1,200 13,200
-----------
Total Rights, Warrants and Certificates (Cost $0) 18,700
FACE
AMOUNT(1)
===================================================================================================================================
STRUCTURED INSTRUMENTS--0.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank, N.Y. Branch, 10% CD Linked Nts.,
10/30/95 (indexed to the mid-market yield of the Japanese Government
Bond, Series 174, 4.60%, 9/20/04, multiplied by 14)(6) $210,000 187,005
---------------------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked Nts.,
12/14/95 (indexed to the Nota Do Tesouro Nacional, Zero Coupon, 12/13/95) 150,000 146,109
-----------
Total Structured Instruments (Cost $356,110) 333,114
</TABLE>
10 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C> <C>
===================================================================================================================================
REPURCHASE AGREEMENTS--2.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 6.35%, dated
9/29/95, to be repurchased at $1,400,741 on 10/2/95, collateralized by U.S.
Treasury Nts., 4.25%--8.75%, 11/30/95--8/15/00, with a value of $954,496,
U.S. Treasury Bills maturing 12/28/95--3/28/96, with a value of $216,699,
and U.S. Treasury Bonds, 8.50%--13.25%, 5/15/14--2/15/20, with a value of
$259,470 (Cost $1,400,000) $1,400,000 $1,400,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (Cost $55,450,333) 101.9% 61,990,043
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.9) (1,127,545)
------ -----------
NET ASSETS 100.0% $60,862,498
------ -----------
------ -----------
<FN>
1. Face amount is reported in local currency. Foreign currency abbreviations are as follows:
ARA -- Argentine Austral IDR -- Indonesian Rupiah
AUD -- Australian Dollar INR -- Indian Rupee
CAD -- Canadian Dollar ITL -- Italian Lira
CZK -- Czech Koruna MXP -- Mexican Peso
DKK -- Danish Krone NLG -- Netherlands Guilder
ESP -- Spanish Peseta NOK -- Norwegian Krone
GBP -- British Pound Sterling NZD -- New Zealand Dollar
HUF -- Hungarian Forints THB -- Thai Baht
2. Indexed instrument for which the principal amount and/or interest due at maturity is affected by the relative value of a foreign
currency.
3. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to
$2,687,265 or 4.42% of the Fund's net assets, at September 30, 1995.
4. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These
securities typically decline in price as interest rates decline. Most other fixed-income securities increase in price when interest
rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated.
The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities
(for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and
estimated timing and amount of future cash flows.
5. Represents the current interest rate for a variable rate security.
6. Identifies issues considered to be illiquid--See Note 7 of Notes to Financial Statements.
7. Interest or dividend is paid in kind.
8. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the
future.
9. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date.
10. Represents the current interest rate for an increasing rate security.
11. Partial interest payment received.
12. Non-income producing security.
See accompanying Notes to Financial Statements.
</FN>
</TABLE>
11 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- --------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES September 30, 1995
- --------------------------------------------------------
<TABLE>
<S> <C> <C>
===================================================================================================================================
ASSETS Investments, at value (cost $55,450,333)--see accompanying statement $61,990,043
---------------------------------------------------------------------------------------------------------------
Cash 227,630
---------------------------------------------------------------------------------------------------------------
Receivables:
Interest and principal paydowns 1,072,390
Shares of beneficial interest sold 86,725
---------------------------------------------------------------------------------------------------------------
Deferred organization costs 6,098
---------------------------------------------------------------------------------------------------------------
Other 3,446
-----------
Total assets 63,386,332
===================================================================================================================================
LIABILITIES Unrealized depreciation on forward foreign currency exchange contracts--Note 5 2,860
---------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,997,268
Dividends 252,465
Shares of beneficial interest redeemed 166,362
Distribution and service plan fees--Note 6 37,928
Transfer and shareholder servicing agent fees 7,206
Other 59,745
-----------
Total liabilities 2,523,834
===================================================================================================================================
NET ASSETS $60,862,498
-----------
-----------
===================================================================================================================================
COMPOSITION OF Paid-in capital $57,121,591
NET ASSETS ---------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (129,448)
---------------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investments, written options and foreign
currency transactions (2,667,616)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 6,537,971
-----------
Net assets $60,862,498
-----------
-----------
===================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of $40,977,136
and 7,643,377 shares of beneficial interest outstanding) $5.36
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $5.63
---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $19,885,362 and 3,714,937 shares of beneficial interest outstanding) $5.35
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<S> <C> <C>
---------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended September 30, 1995
---------------------------------------------------------------
===================================================================================================================================
INVESTMENT INCOME Interest (net of foreign withholding taxes of $2,000) $4,037,373
---------------------------------------------------------------------------------------------------------------
Dividends 447,310
----------
Total income 4,484,683
===================================================================================================================================
EXPENSES Management fees--Note 6 435,819
---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 6:
Class A 99,809
Class B 172,898
---------------------------------------------------------------------------------------------------------------
Shareholder reports 69,618
---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 6 59,846
---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 31,455
---------------------------------------------------------------------------------------------------------------
Legal and auditing fees 12,105
---------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 2,138
---------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 684
---------------------------------------------------------------------------------------------------------------
Other 29,962
----------
Total expenses 914,334
===================================================================================================================================
NET INVESTMENT INCOME 3,570,349
===================================================================================================================================
REALIZED AND Net realized gain (loss) from:
UNREALIZED Investments and options written (including premiums on options exercised) (761,902)
GAIN (LOSS) ON Closing and expiration of options written--Note 4 (55,532)
INVESTMENTS, Foreign currency transactions (834,452)
OPTIONS WRITTEN Closing of futures contracts 9,624
AND FOREIGN ----------
CURRENCY Net realized loss (1,642,262)
TRANSACTIONS ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments and options written 6,678,431
Translation of assets and liabilities denominated in foreign currencies (12,037)
----------
Net change 6,666,394
----------
Net realized and unrealized gain on investments, options written and
foreign currency transactions 5,024,132
===================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,594,481
----------
----------
See accompanying Notes to Financial Statements.
</TABLE>
13 Oppenheimer Strategic Income & Growth Fund
<PAGE>
-----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1995 1994
<S> <C> <C> <C>
===================================================================================================================================
OPERATIONS Net investment income $ 3,570,349 $ 2,781,748
---------------------------------------------------------------------------------------------------------------
Net realized loss on investments, options written and foreign
currency transactions (1,642,262) (891,333)
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments,
options written and translation of assets and liabilities denominated in
foreign currencies 6,666,394 (2,128,001)
----------- -----------
Net increase (decrease) in net assets resulting from operations 8,594,481 (237,586)
===================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.3198 and $.209 per share, respectively) (2,612,318) (1,931,946)
SHAREHOLDERS Class B ($.2821 and $.185 per share, respectively) (977,840) (722,244)
---------------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.011 per share) -- (98,470)
Class B ($.011 per share) -- (36,812)
---------------------------------------------------------------------------------------------------------------
Distributions in excess of gain on investments, options written and
foreign currency transactions:
Class A ($.097 per share) -- (885,559)
Class B ($.097 per share) -- (331,059)
===================================================================================================================================
BENEFICIAL INTEREST Net decrease in net assets resulting from Class A beneficial
TRANSACTIONS interest transactions--Note 2 (5,203,387) (9,347,360)
---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class B beneficial interest
transactions--Note 2 2,275,946 4,699,403
===================================================================================================================================
NET ASSETS Total increase (decrease) 2,076,882 (8,891,633)
---------------------------------------------------------------------------------------------------------------
Beginning of period 58,785,616 67,677,249
----------- -----------
End of period (including overdistributed net investment income
of $129,448 and $119,994, respectively) $60,862,498 $58,785,616
----------- -----------
----------- -----------
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Strategic Income & Growth Fund
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1995 1994 1993 1992(2) 1995 1994 1993(1)
<S> <C> <C> <C> <C> <C> <C> <C>
=================================================================================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $4.92 $5.26 $5.03 $5.00 $4.91 $5.26 $5.10
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .32 .21 .22 .07(3) .28 .19 .14
Net realized and unrealized gain
(loss) on investments, options written
and foreign currency transactions .44 (.23) .22 .02 .44 (.25) .16
------- ------ ------- ------- ------- ------- -------
Total income (loss) from
investment operations .76 (.02) .44 .09 .72 (.06) .30
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.32) (.21) (.20) (.06) (.28) (.18) (.13)
Dividends in excess of
net investment income -- (.01) -- -- -- (.01) --
Distributions from net realized
gain on investments, options written
and foreign currency transactions -- -- (.01) -- -- -- (.01)
Distributions in excess of net
realized gain on investments,
options written, and foreign
currency transactions -- (.10) -- -- -- (.10) --
------- ------- ------- ------- ------- ------- -------
Total dividends and
distributions to shareholders (.32) (.32) (.21) (.06) (.28) (.29) (.14)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $5.36 $4.92 $5.26 $5.03 $5.35 $4.91 $5.26
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
=================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 16.09% (.23)% 8.84% 1.74% 15.26% (1.17)% 5.86%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $40,977 $42,733 $55,291 $48,397 $19,885 $16,053 $12,386
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $40,799 $48,360 $59,209 $30,264 $17,316 $14,986 $ 7,541
- ---------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 7,643 8,683 10,513 9,628 3,715 3,267 2,357
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 6.37% 4.56% 4.33% 4.59%(5) 5.61% 3.86% 3.32%(5)
Expenses 1.35% 1.43% 1.36% 1.46%(3)(5) 2.10% 2.17% 2.21%(5)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 114.0% 80.0% 122.4% 25.8% 114.0% 80.0% 122.4%
<FN>
1. For the period from November 30, 1992 (inception of offering) to September 30, 1993.
2. For the period from June 1, 1992 (commencement of operations) to September 30, 1992.
3. Net investment income would have been $.07 per share absent the voluntary expense reimbursement, resulting in an expense
ratio of 1.74%.
4. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends
and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year
or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the
period ended September 30, 1995 were $63,565,976 and $66,250,712, respectively.
See accompanying Notes to Financial Statements.
</FN>
</TABLE>
15 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- -----------------------------
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Strategic Income & Growth Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment advisor is Oppenheimer
Management Corporation (the Manager). The Fund offers both Class A and Class B
shares. Class A shares are sold with a front-end sales charge. Class B shares
may be subject to a contingent deferred sales charge. Both classes of shares
have identical rights to earnings, assets and voting privileges, except that
each class has its own distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights with respect to
matters affecting a single class. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a
summary of significant accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on
the closing bid or asked price or the last sale price on the prior trading day.
Long-term and short-term ``non-money market'' debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Such securities
which cannot be valued by the approved portfolio pricing service are valued
using dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term ``money
market type'' debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount. Forward contracts are valued based on the
closing prices of the forward currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day,
the value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid or asked price closest to the last
reported sale price is used.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high yield securities, which may be
subject to a greater degree of credit risk, greater market fluctuations and risk
of loss of income and principal, and may be more sensitive to economic
conditions than lower yielding, higher rated fixed income securities. The Fund
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. At September 30, 1995, securities with an
aggregate market value of $255,445, representing .42% of the Fund's net assets,
were in default.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of securities and investment income are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments
is separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At September 30, 1995, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $1,388,000 expiring in 2002 and 2003.
- --------------------------------------------------------------------------------
ORGANIZATION COSTS. The Manager advanced $20,590 for organization and start-up
costs of the Fund. Such expenses are being amortized over a five-year period
from the date operations commenced. In the event that all or part of the
Manager's initial investment in shares of the Fund is withdrawn during the
amortization period, the redemption proceeds will be reduced to reimburse the
Fund for any unamortized expenses, in the same ratio as the number of shares
redeemed bears to the number of initial shares outstanding at the time of such
redemption.
16 Oppenheimer Strategic Income & Growth Fund
<PAGE>
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately
for Class A and Class B shares from net investment income each day the New York
Stock Exchange is open for business and pay such dividends monthly.
Distributions from net realized gains on investments, if any, will be declared
at least once each year.
- --------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of paydown gains and losses and the recognition of certain
foreign currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for
federal income tax purposes. Also, due to timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund.
During the year ended September 30, 1995, the Fund changed the
classification of distributions to shareholders to better disclose the
differences between financial statement amounts and distributions determined in
accordance with income tax regulations. Accordingly, during the year ended
September 30, 1995, amounts have been reclassified to reflect a decrease in
overdistributed net investment income of $10,355. Accumulated net realized loss
on investments was increased by the same amount.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and options written and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1995 YEAR ENDED SEPTEMBER 30, 1994
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Class A:
Sold 1,075,489 $ 5,403,694 1,797,523 $ 9,177,865
Dividends and distributions reinvested 452,310 2,248,812 535,980 2,757,772
Redeemed (2,567,818) (12,855,893) (4,163,212) (21,282,997)
---------- ------------ ---------- ------------
Net decrease (1,040,019) $ (5,203,387) (1,829,709) $ (9,347,360)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,180,146 $ 5,932,623 1,752,588 $ 8,784,884
Dividends and distributions reinvested 162,515 808,194 100,839 724,590
Redeemed (894,830) (4,464,871) (943,022) (4,810,071)
---------- ------------ ---------- ------------
Net increase 447,831 $ 2,275,946 910,405 $ 4,699,403
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
AND OPTIONS WRITTEN
At September 30, 1995, net unrealized appreciation on investments and options
written of $6,539,710 was composed of gross appreciation of $7,598,780 and gross
depreciation of $1,059,070.
================================================================================
4. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write covered put and call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options
to hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
17 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- -------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
- -------------------------------------------
================================================================================
4. OPTION ACTIVITY
(CONTINUED)
In this report, securities designated to cover outstanding call options are
noted in the Statement of Investments where applicable. Shares subject to call,
expiration date, exercise price, premium received and market value are detailed
in a footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market
does not exist.
Written option activity for the year ended September 30, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
------------ -----------
<S> <C> <C> <C> <C>
NUMBER AMOUNT NUMBER AMOUNT
OF OPTIONS OF PREMIUMS OF OPTIONS OF PREMIUMS
- ----------------------------------------------------------------------------------------------------------------
Options outstanding at September 30, 1994 2,621,646 $33,236 -- $ --
- ----------------------------------------------------------------------------------------------------------------
Options written 3,064 25,062 136,986 1,416
- ----------------------------------------------------------------------------------------------------------------
Options canceled in closing transactions (2,623,829) (53,257) -- --
- ----------------------------------------------------------------------------------------------------------------
Options expired prior to exercise (287) (1,152) (136,986) (1,416)
- ----------------------------------------------------------------------------------------------------------------
Options exercised (594) (3,889) -- --
---------- ------- -------- -------
Options outstanding at September 30, 1995 -- $ -- -- $ --
---------- ------- -------- -------
---------- ------- -------- -------
</TABLE>
================================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Fund generally enters into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on existing portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
In this report, securities held in segregated accounts to cover net
exposure on outstanding forward contracts are noted in the Statement of
Investments where applicable. Gains and losses on outstanding contracts
(unrealized appreciation or depreciation on forward contracts) are reported in
the Statement of Assets and Liabilities. Realized gains and losses are reported
with all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At September 30, 1995 outstanding forward contracts to purchase and sell
currencies were as follows:
<TABLE>
<CAPTION>
CONTRACT
AMOUNT VALUATION AS OF UNREALIZED
CONTRACTS TO PURCHASE EXPIRATION DATE (000S) SEPTEMBER 30, 1995 DEPRECIATION
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
New Zealand Dollar (NZD) 10/10/95 133 NZD $87,736 $(1,064)
Contracts to Sell
- ----------------------------------------------------------------------------------------------------------
Australian Dollar (AUD) 10/10/95 120 AUD $90,596 $(1,796)
-------
$(2,860)
-------
-------
</TABLE>
================================================================================
6. MANAGEMENT FEES AND
OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of .75% on the first
$200 million of average annual net assets, with a reduction of .03% on each $200
million thereafter to $800 million, .60% on the next $200 million and .50% on
net assets in excess of $1 billion. The Manager has agreed to reimburse the Fund
if aggregate expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
18 Oppenheimer Strategic Income & Growth Fund
<PAGE>
================================================================================
6. MANAGEMENT FEES AND
OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
For the year ended September 30, 1995, commissions (sales charges paid by
investors) on sales of Class A shares totaled $126,096, of which $39,054 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B
shares totaled $216,239, of which $15,007 was paid to an affiliated broker/
dealer. During the year ended September 30, 1995, OFDI received contingent
deferred sales charges of $79,615 upon redemption of Class B shares, as
reimbursement for sales commissions advanced by OFDI at the time of sale of such
shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OSS's total costs of providing such services
are allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its
net assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other financial
institutions. In addition, Class B shares are subject to an asset-based sales
charge of .75% of net assets annually, to reimburse OFDI for sales commissions
paid from its own resources at the time of sale and associated financing costs.
In the event of termination or discontinuance of the Class B plan, the Board of
Trustees may allow the Fund to continue payment of the asset-based sales charge
to OFDI for distribution expenses incurred on Class B shares sold prior to
termination or discontinuance of the plan. At September 30, 1995, OFDI had
incurred unreimbursed expenses of $1,001,578. During the year ended September
30, 1995, OFDI paid $11,588 and $2,326, respectively, to an affiliated broker/
dealer as reimbursement for Class A and Class B personal service and maintenance
expenses and retained $142,447 as reimbursement for Class B sales commissions
and service fee advances, as well as financing costs.
================================================================================
7. ILLIQUID AND RESTRICTED
SECURITIES
At September 30, 1995, investments in securities included issues that are
illiquid or restricted. The securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. The Fund intends to invest no more
than 10% of its net assets (determined at the time of purchase) in illiquid and
restricted securities. The aggregate value of these securities subject to this
limitation at September 30, 1995 was $290,593, which represents .48% of the
Fund's net assets. Information concerning these securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT SEPT. 30, 1995
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank, N.Y. Branch, 10% CD Linked Nts.,
10/30/95 (indexed to the mid-market yield of the Japanese
Government Bond, Series 174, 4.60%, 9/20/04, multiplied by 14) 4/14/95 $100.00 $89.05
- -------------------------------------------------------------------------------------------------------------------
United Mexican States, Combined Facility 3, Loan Participation
Agreement, Tranche A, 6.75%, 9/20/97 10/25/94 $ 89.00 $72.50
</TABLE>
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
================================================================================
8. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures.
The Fund generally sells futures contracts to hedge against increases
in interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the fund is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
19 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- ----------------------------
INDEPENDENT AUDITORS' REPORT
- ----------------------------
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Strategic Income & Growth
Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Strategic Income & Growth Fund as
of September 30, 1995, the related statement of operations for the year then
ended, the statements of changes in net assets for the year ended September 30,
1995 and 1994 and the financial highlights for the period June 1, 1992
(commencement of operations) to September 30, 1995. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at September 30, 1995 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
present fairly, in all material respects, the financial position of Oppenheimer
Strategic Income & Growth Fund at September 30, 1995, the results of its
operations, the changes in its net assets, and the financial highlights for the
respective stated periods, in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
October 20, 1995
20 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- --------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
- --------------------------------------------
================================================================================
In early 1996, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1995. Regulations
of the U.S. Treasury Department require the Fund to report this information to
the Internal Revenue Service.
Dividends paid by the Fund during the fiscal year ended September 30,
1995 which are not designated as capital gain distributions should be multiplied
by 12.98% 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.
21 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- ------------------------------------------
OPPENHEIMER STRATEGIC INCOME & GROWTH FUND
- ------------------------------------------
================================================================================
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Robert C. Doll, Jr., Senior Vice President
Andrew J. Donohue, Vice President
David P. Negri, Vice President
Arthur P. Steinmetz, Vice President
George C. Bowen, Vice President, Secretary
and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT Oppenheimer Shareholder Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES The Bank of New York
================================================================================
INDEPENDENT AUDITORS Deloitte & Touche LLP
================================================================================
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of Oppen-
heimer Strategic Income & Growth Fund. This report must
be preceded or accompanied by a Prospectus of Oppen-
heimer Strategic Income & Growth Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer Funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
22 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- -----------------------
OPPENHEIMERFUNDS FAMILY
- -----------------------
================================================================================
OppenheimerFunds offers over 30 funds designed to fit virtually
every investment goal. Whether you're investing for retirement,
your children's education or tax-free income, we have the funds
to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfor-
table knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people
just like you reach their financial goals. And you're investing
with a leader in global, growth stock and flexible fixed income
investments--with over 2.8 million shareholder accounts and more
than $38 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by tele-
phone.(1) For more information on Oppenheimer funds, please con-
tact your financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on the
back cover. As always, please read the prospectus carefully
before you invest.
================================================================================
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund Gold & Special Minerals Fund
================================================================================
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Total Return Fund Asset Allocation Fund
Global Growth & Income Fund Strategic Income & Growth Fund
================================================================================
BOND FUNDS High Yield Fund Bond Fund
Champion Income Fund U.S. Government Trust
Strategic Income Fund Limited-Term Government Fund
International Bond Fund
================================================================================
TAX-EXEMPT New York Tax-Exempt Fund(2) New Jersey Tax-Exempt Fund(2)
FUNDS California Tax-Exempt Fund(2) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(2) Insured Tax-Exempt Fund
Florida Tax-Exempt Fund(2) Intermediate Tax-Exempt Fund
================================================================================
MONEY MARKET Money Market Fund Cash Reserves
FUNDS
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only to the same class of eligible funds.
2. Available only to investors in certain states.
Oppenheimer funds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c-Copyright 1995 Oppenheimer Management Corporation. All
rights reserved.
23 Oppenheimer Strategic Incme & Growth Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
- --------------
1-800-525-7048
- --------------
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-852-8457
- --------------
PHONELINK
24 hours a day, automated
information and transactions
- --------------
1-800-533-3310
- --------------
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-843-4461
- --------------
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
- --------------
1-800-835-3104
- --------------
RA0275.001.0995 November 30, 1995
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
As an Oppenheimer funds shareholder, you have some privileges. Whether it's
automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer fund's transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-C- --------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
--------------
