<PAGE>
OPPENHEIMER STRATEGIC INCOME & GROWTH FUND
Semiannual Report March 31, 1997
[PHOTO]
"We want
our money to
WORK hard,
but we're
concerned
about risk."
[LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE>
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 3/31/97:(3)
Class A
5.53%
Class B
5.01%
Class C
5.02%
BEAT THE AVERAGE
Total Return for the 1-Year Period Ended 3/31/97:
Oppenheimer Strategic Income
& Growth Fund
Class A Shares (at net asset
value)(1)
13.42%
Lipper Flexible Portfolio Average
for 196 Funds for the 1-Year
Period Ended
3/31/97(4)
10.13%
This Fund is for people who want HIGH INCOME with the potential for growth, from
an investment that's strategically designed to lower risk.
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 worldwide 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. 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 for the six months ended 3/31/97 were 5.91% for Class A shares,
5.52% for Class B shares and 5.52% for Class C shares, without deducting sales
charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-year
period ended 3/31/97 and since inception on 6/1/92 were 8.04% and 8.88%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 11/30/92 were 7.59% and 8.99%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 10/2/95 were 11.34% and 13.91%,
respectively.(2)
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 4.75%.
Class B returns include the applicable contingent deferred sales charge of 5% (1
year) and 2% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
total returns is in the Fund's prospectus. Class B and Class C shares are
subject to an annual 0.75% asset-based sales charge.
3. Standardized yield is based on net investment income for the 30-day period
ended 3/31/97. Falling net asset values will tend to artificially raise yields.
4. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Strategic Income &
Growth Fund is characterized by Lipper as a flexible portfolio fund. Lipper
performance is based on total return and 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]
Bridget A. Macaskill
President
Oppenheimer
Strategic Income &
Growth Fund
Dear Shareholder,
As we enter the second quarter, we are optimistic regarding the prospects for
fixed income investors who maintain a long-term perspective. While U.S. economic
policy makers face a considerable challenge in 1997, maintaining the delicate
balance between moderate growth and low inflation, we believe current political
and economic stability creates a favorable environment for long-term
investments. In fact, the current economic trend appears to follow the pattern
that emerged in early 1996.
The similarities between the first few months of 1996 and those of 1997 are
striking. In both cases, economic growth was slightly more robust than expected,
and many experts were concerned that an overheating economy would generate
inflation. On March 18th, as a preemptive move against inflation, Federal
Reserve Board Chairman Alan Greenspan raised short-term interest rates by a
modest amount. This was the first change in monetary policy since January 1996,
and the first increase in short-term interest rates in over two years. Today, it
appears this initial interest-rate increase may not be the last, and investors
remain concerned about high stock market valuations and the potential
re-emergence of inflation.
At OppenheimerFunds, we are optimistic regarding the long-term expectations
for fixed income markets. We maintain that economic growth will not accelerate
substantially but should continue at a modest rate. In addition, as investors in
general become more realistic about stock market returns, we foresee fixed
income investments becoming attractive relative to potentially more volatile
investments in equities.
In the near term, select yield-oriented securities, such as mortgage-backed
and foreign securities--particularly those in emerging markets--are
well-positioned for producing higher returns and current income. That's because
mortgage-backed securities perform well in a rising interest-rate environment,
and emerging market securities tend to be less sensitive to U.S. interest-rate
and currency movements. Our long-term outlook is that we may see an increase in
the demand for U.S. fixed income products which could drive yields lower and
make it difficult to maintain today's income stream. However, this increased
demand could provide the fixed income investor with enhanced long-term
investment opportunities.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, THE RIGHT WAY TO INVEST. We look forward to helping you reach
your investment goals in the future.
/s/ James C. Swain
James C. Swain
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 21, 1997
3 Oppenheimer Strategic Income & Growth Fund
<PAGE>
ROBERT DOLL
DAVID NEGRI
ART STEINMETZ
Portfolio Managers
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED?
Continued U.S. economic growth and low inflation meant modest to strong returns
across Oppenheimer Strategic Income & Growth Fund's four investment
sectors--high yield, U.S. government and foreign bonds and domestic stocks.
Because the yield on U.S. government bonds fell during the period, we reduced
the duration of our U.S. Treasury holdings in order to protect the Fund from
excessive interest-rate exposure. We also increased the Fund's holdings of
foreign government bonds. The diversification worked well and the Fund's Class A
shares returned performance of 5.91%, before sales charges, for the six-month
period ending March 31, 1997.(1)
WHAT INVESTMENTS OR MARKET CONDITIONS MADE POSITIVE CONTRIBUTIONS TO
PERFORMANCE?
The continued growth of the U.S. equity market, led by large-capitalization
stocks, contributed to the Fund's performance. Our technology and
financial-services holdings were the Fund's best performing sectors. However, in
anticipation of slower growth in 1997, we decreased our equity exposure
slightly.
In addition, we were heavily exposed to high-yield corporate bonds in the
telecommunications sector. The break-up of government monopolies, both in the
United States and abroad, has been beneficial for new companies in the sector.
Our investments in dollar-denominated emerging market bonds, particularly
in Latin America, returned exceptional performance. Although yields remain
attractive, we are beginning to see high valuations and are looking to diversify
into other foreign debt instruments, such as those found in the developing
economies of Eastern Europe. Of course, any foreign investment entails greater
expenses and risks, such as adverse market changes due to currency fluctuations.
But, by diversifying the portfolio by country and industry, we aim to reduce
those risks.(2)
WHAT INVESTMENTS DID NOT PERFORM AS EXPECTED?
Oversupply and regulatory changes hurt the performance of our gaming sector
holdings. Returns for these holdings were respectable but disappointing when
compared with some of the Fund's best performers. Also, weaker growth
in Asia and Europe dampened demand for our holdings in the metal/mining and
paper product industries. Although our investments in these three industries
underperformed our expectations, the Fund's low exposure minimized the impact on
performance.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Because of the recent interest-rate hike by the Federal Reserve, we will
continue to keep an eye on the Fund's U.S. Treasury durations. As long
as there continues to be a possibility of another Fed increase we will keep our
interest-rate exposure to a minimum.
We will also continue to diversify outside of the traditional
dollar-denominated emerging market bonds that are sensitive to interest-rate
increases. We are looking into money market instruments denominated in the local
currencies of Eastern Europe and Southeast Asia.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
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<S> <C> <C> <C>
MORTGAGE-BACKED
OBLIGATIONS--15.7%
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GOVERNMENT AGENCY--13.5%
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FHLMC/FNMA/SPONSORED--7.3% Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates, Series 151, Cl. F, 9%, 5/15/21 $1,000,000 $ 1,060,625
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates, Series 176, Cl. F, 8.95%, 3/15/20 17,297 17,254
Interest-Only Stripped Mtg.-Backed Security, Trust 177, Cl. B,
13.573%, 7/1/26(2) 1,560,767 581,874
------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 7.50%, 4/25/27(3) 5,000,000 4,906,250
-----------
6,566,003
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GNMA/GUARANTEED--6.2% Government National Mortgage Assn.:
6%, 3/20/26 1,367,677 1,396,741
7%, 4/15/26 4,322,185 4,125,526
-----------
5,522,267
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PRIVATE--2.2%
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COMMERCIAL--1.4% Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. F, 7.51%, 2/15/28(4)(5) 97,137 65,264
------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates:
Series 1992-CHF, Cl. D, 8.25%, 12/25/20 264,881 265,999
Series 1993-C1, Cl. D, 9.45%, 5/25/24 252,980 258,336
Series 1994-C2, Cl. E, 8%, 4/25/25 436,316 430,453
Series 1994-C2, Cl. G, 8%, 4/25/25 198,826 180,746
------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.723%, 6/25/26(4)(5) 27,688 25,949
-----------
1,226,747
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MULTI-FAMILY--0.6% Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(5) 400,000 342,625
------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1991-M6, Cl. B4, 6.757%, 6/25/21(4) 58,529 57,413
------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII,
Series 1996-CL, Cl. F, 9.185%, 1/20/28(4) 250,000 184,063
-----------
584,101
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RESIDENTIAL--0.2% Salomon Brothers Mortgage Securities VII,
Series 1996-B, Cl. 1, 7.136%, 4/25/26 297,430 193,702
-----------
Total Mortgage-Backed Obligations (Cost $14,049,049) 14,092,820
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U.S. GOVERNMENT OBLIGATIONS
- --23.1%
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U.S. Treasury Bonds, 6.50%, 11/15/26 360,000 331,313
------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
10.75%, 5/15/03 2,150,000 2,564,548
6%, 2/15/26(6)(7) 500,000 427,656
6.25%, 2/15/03 7,330,000 7,130,719
7.50%, 10/31/99(8) 4,000,000 4,087,504
7.50%, 5/15/02 327,000 337,219
8.50%, 2/15/00 5,500,000 5,769,846
-----------
Total U.S. Government Obligations (Cost $21,164,016) 20,648,805
</TABLE>
5 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
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- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOREIGN GOVERNMENT
OBLIGATIONS--20.8%
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ARGENTINA--1.7% Argentina (Republic of):
Bonds, 5%, 12/20/02(JPY) 20,000,000 $ 161,235
Bonds, Bonos de Consolidacion de Deudas, Series I, 3.176%,
4/1/01(4)(9)(ARP) 220,946 195,239
Bonds, Bonos de Consolidacion de Deudas, Series I, 5.438%,
4/1/01(4)(9) 575,189 548,212
Nts., 11.75%, 2/12/07(10)(ARP) 150,000 150,572
Par Bonds, 5.50%, 3/31/23(11) 55,000 34,444
Past Due Interest Bonds, Series L, 6.75%, 3/31/05(4) 252,200 226,192
Unsec. Unsub. Nts., 5.50%, 3/27/01(JPY) 20,000,000 167,503
-----------
1,483,397
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AUSTRALIA--1.7% Australia (Commonwealth of) Bonds:
12%, 7/15/99(AUD) 440,000 381,806
7.50%, 7/15/05(AUD) 40,000 30,549
------------------------------------------------------------------------------------------------
Queensland Treasury Corp.:
Exchangeable Gtd. Nts., 8%, 8/14/01(AUD) 615,000 489,598
Gtd. Nts., 10.50%, 5/15/03(AUD) 90,000 79,546
------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 10.25%, 11/15/06(AUD) 545,000 485,282
------------------------------------------------------------------------------------------------
Western Australia Treasury Corp. Gtd. Bonds, Series 3, 8%,
7/15/03 (AUD) 55,000 43,251
-----------
1,510,032
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BRAZIL--1.1% Brazil (Federal Republic of) Eligible Interest Bonds, 6.50%,
4/15/06(4) 650,000 581,344
------------------------------------------------------------------------------------------------
Comtel Brasileira Ltd. Nts., 10.75%, 9/26/04(10) 400,000 423,000
------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Medium-Term Nts., 11.301%,
12/9/99(4) 10,000 10,475
-----------
1,014,819
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CANADA--3.3% Canada (Government of) Bonds:
11.75%, 2/1/03(CAD) 290,000 265,720
7%, 12/1/06(CAD) 60,000 44,301
8.75%, 12/1/05(CAD) 495,000 407,306
9.75%, 12/1/01(CAD) 260,000 216,429
9.75%, 6/1/01(CAD) 1,670,000 1,379,781
Series A-33, 11.50%, 9/1/00(CAD) 585,000 499,920
------------------------------------------------------------------------------------------------
NAV Canada Bonds, Series 97-2, 7.56%, 3/1/27(CAD) 150,000 107,683
-----------
2,921,140
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FINLAND--1.3% Finland (Republic of) Bonds:
7.25%, 4/18/06(FIM) 2,000,000 429,410
9.50%, 3/15/04(FIM) 3,000,000 728,327
-----------
1,157,737
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GERMANY--1.9% Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24(DEM) 2,955,000 1,681,900
- ----------------------------------------------------------------------------------------------------------------------------------
GREAT BRITAIN--2.2% United Kingdom Treasury:
Bonds, 10%, 9/8/03(GBP) 875,000 1,610,952
Nts., 12.50%, 11/21/05(GBP) 62,000 127,483
9.75%, 8/27/02(GBP) 115,000 207,190
-----------
1,945,625
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INDONESIA--1.0% Wijaya Karya Negotiable Promissory Nts., Zero Coupon,
14.43%, 12/9/97(12)(IDR) 2,400,000,000 908,905
</TABLE>
6 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
IRELAND--0.1% Ireland (Government of) Bonds, 9.25%, 7/11/03(IEP) 60,000 $ 109,557
- ----------------------------------------------------------------------------------------------------------------------------------
ITALY--0.8% Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
10.50%, 4/1/00(ITL) 200,000,000 129,213
10.50%, 7/15/00(ITL) 430,000,000 278,633
10.50%, 7/15/98(ITL) 85,000,000 52,664
9%, 10/1/03(ITL) 195,000,000 123,143
9.50%, 5/1/01(ITL) 195,000,000 124,545
-----------
708,198
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MALAYSIA--0.1% Petronas Carigali Nts., Zero Coupon, 7.15%, 5/12/97(12)(MYR) 200,000 80,107
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MEXICO--1.3% Banco Nacional de Comercio Exterior SNC International Finance
BV Gtd.:
Bonds, 10.629%, 6/23/97(4)(10) 120,000 121,665
Registered Bonds, 11.25%, 5/30/06 110,000 120,038
------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon:
23.15%, 12/31/97(12)(MXP) 6,186,170 664,013
24.71%, 12/4/97(12)(MXP) 729,960 79,623
------------------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03(DEM) 150,000 99,977
16.50%, 9/1/08(5)(GBP) 35,000 78,580
-----------
1,163,896
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NEW ZEALAND--1.4% New Zealand (Government of):
Bonds, 10%, 7/15/97(NZD) 975,000 682,013
Bonds, 8%, 11/15/06(NZD) 345,000 241,023
Index Linked Bonds, 4.60%, 2/15/16(NZD) 225,000 150,004
------------------------------------------------------------------------------------------------
Transpower Finance Ltd. Gtd. Unsec. Unsub. Bonds:
8%, 2/15/01(5)(NZD) 165,000 113,577
8%, 3/15/02(NZD) 165,000 113,077
-----------
1,299,694
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POLAND--0.6% Poland (Republic of) Bonds:
16%, 2/12/99(PLZ) 1,400,000 423,660
16%, 6/12/98(PLZ) 300,000 91,944
-----------
515,604
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ROMANIA--0.0% Romanian Commercial Bank Bonds, 9.125%, 3/10/00(5) 25,000 24,516
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SOUTH AFRICA--0.2% South Africa (Republic of) Bonds, 12.50%, 12/21/06(ZAR) 400,000 77,871
------------------------------------------------------------------------------------------------
Telkom SA Ltd. Bonds, Series TK05, 12%, 3/31/98(ZAR) 699,000 153,036
-----------
230,907
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SPAIN--1.1% Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
10.25%, 11/30/98(ESP) 25,800,000 193,718
10.30%, 6/15/02(ESP) 39,150,000 320,253
10.50%, 10/30/03(ESP) 22,100,000 185,286
12.25%, 3/25/00(ESP) 31,600,000 258,381
-----------
957,638
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SWEDEN--0.5% Sweden (Kingdom of):
Bonds, Series 1030, 13%, 6/15/01(SEK) 2,600,000 433,142
Debs., Series 1038, 6.50%, 10/25/06(SEK) 500,000 63,018
-----------
496,160
</TABLE>
7 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VENEZUELA--0.5% Venezuela (Republic of):
Disc. Bonds, Series DL, 6.50%, 12/18/07(4) $250,000 $ 216,250
New Money Bonds, Series A, 6.625%, 12/18/05(4) 250,000 218,906
-----------
435,156
-----------
Total Foreign Government Obligations (Cost $18,824,372) 18,644,988
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LOAN PARTICIPATIONS--0.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds,
6.563%, 7/1/01(4)(5) 285,760 268,614
------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche A,
6.375%, 1/1/09(4) 165,000 142,416
------------------------------------------------------------------------------------------------
United Mexican States, Combined Facility 3, Loan Participation
Agreement, Tranche A, 6.437%, 9/20/97(4)(5) 28,640 26,635
-----------
Total Loan Participations (Cost $442,340) 437,665
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CORPORATE BONDS AND NOTES--20.1%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--3.0%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.2% NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05(13) 230,000 208,150
- ----------------------------------------------------------------------------------------------------------------------------------
METALS/MINING--0.4% Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03(5) 300,000 328,500
- ----------------------------------------------------------------------------------------------------------------------------------
PAPER--1.7% Asia Pulp & Paper International Finance Co.,
Zero Coupon Asian Currency Nts.:
14.46%, 1/23/98(12) IDR 130,000,000 48,499
16.32%, 11/14/97(12) IDR 1,000,000,000 382,881
------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc.:
10.625% Second Priority Sr. Sec. Nts., 4/15/05 60,000 58,950
8.875% First Priority Sr. Sec. Nts., 7/15/00(4) 200,000 196,000
------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 220,000 213,950
------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.25% Sr. Nts., 4/1/06 250,000 232,500
------------------------------------------------------------------------------------------------
Stone Container Corp.:
10.75% First Mtg. Nts., 10/1/02 200,000 197,750
10.75% Sr. Sub. Nts., 6/15/97 200,000 201,250
-----------
1,531,780
- ----------------------------------------------------------------------------------------------------------------------------------
STEEL--0.7% AK Steel Corp., 9.125% Sr. Nts., 12/15/06 300,000 297,750
------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 300,000 300,000
-----------
597,750
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--1.3%
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS--0.5% E & S Holdings Corp., 10.375% Sr. Sub. Nts., 10/1/06 400,000 412,000
------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd.:
10% Cv. Unsec. Sub. Nts., 4/30/05(NZD) 35,000 25,023
10.75% Cv. Sub. Nts., 12/15/97(NZD) 35,000 24,643
14.50% Cv. Sub. Nts., 9/30/00(NZD) 35,000 27,966
-----------
489,632
- ----------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING--0.6% Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02(10) 25,000 24,797
------------------------------------------------------------------------------------------------
Showboat Marina Casino Partnership/Showboat Marina Finance Corp.,
13.50% First Mtg. Nts., Series B, 3/15/03 400,000 444,000
------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City Funding, Inc.,
11.25% First Mtg. Nts., 5/1/06 50,000 45,375
-----------
514,172
</TABLE>
8 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS--0.2% Ameriking, Inc., 10.75% Sr. Nts., 12/1/06(5) $ 200,000 $ 208,500
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY--0.2%
- ----------------------------------------------------------------------------------------------------------------------------------
Esso Malaysia Berhad, Zero Coupon Promissory Nts., 7.72%,
7/10/97(12)(MYR) 500,000 197,924
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--2.1%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS--0.8% Alliance & Leicester Building Society, 8.75% Unsec. Sub. Nts.,
12/7/06(GBP) 60,000 99,434
------------------------------------------------------------------------------------------------
Banco de Colombia, 5.20% Cv. Jr. Unsec. Sub. Nts., 2/1/99(5) 50,000 45,250
------------------------------------------------------------------------------------------------
Banco Nacional de Mexico SA, 11% Sub. Exchangeable Capital Debs.,
7/15/03 100,000 105,250
------------------------------------------------------------------------------------------------
Bank Dagang Nasional Indonesia, Zero Coupon Negotiable CD,
14.91%, 11/21/97(12)(IDR) 200,000,000 76,738
------------------------------------------------------------------------------------------------
Bank of America Malaysia, Zero Coupon Nts., 7.20%, 4/25/97(12)(MYR) 200,000 80,379
------------------------------------------------------------------------------------------------
First Nationwide Escrow Corp., 10.625% Sr. Sub. Nts., 10/1/03(10) 250,000 265,625
-----------
672,676
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--0.9% Amresco, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 197,750
------------------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 50,000 49,187
------------------------------------------------------------------------------------------------
General Electric Capital Corp., 11.625% Nts., 10/29/97(SKK) 7,800,000 233,955
------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts.,
Series B, 4/1/02 300,000 322,500
-----------
803,392
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.4% Life Partners Group, Inc., 12.75% Sr. Sub. Nts., 7/15/02(5)(8) 300,000 316,500
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED--0.5%
- ----------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/ Blue Bell Funding, Inc., 11.85% Sec. Extendible Adjustable Rate
REAL ESTATE--0.5% Nts., 5/1/99 396,000 405,900
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--2.1%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/ America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 510,000 536,775
COMPUTERS--0.8% -----------------------------------------------------------------------------------------------
Bell & Howell Co. (New), 0%/11.50% Sr. Disc. Debs., Series B,
3/1/05(13) 250,000 193,750
-----------
730,525
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--0.3% Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 217,000
-----------------------------------------------------------------------------------------------
Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04(5) 45,000 45,112
-----------
262,112
- ----------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--1.0% Communications & Power Industries, Inc., 12% Sr. Sub. Nts.,
Series B, 8/1/05(5) 300,000 333,750
-----------------------------------------------------------------------------------------------
Mettler Toledo, Inc., 9.75% Gtd. Sr. Sub. Nts., 10/1/06 300,000 310,500
-----------------------------------------------------------------------------------------------
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05(5) 219,000 245,827
-----------
890,077
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.9%
- ----------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--0.2% TV Azteca SA de CV, 10.50% Sr. Nts., 2/15/07(10) 200,000 196,000
- ----------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--2.3% Cablevision Systems Corp.:
10.50% Sr. Sub. Debs., 5/15/16 250,000 253,750
9.875% Sr. Sub. Debs., 2/15/13 250,000 243,125
-----------------------------------------------------------------------------------------------
EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04(13) 50,000 43,000
-----------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts., Series B,
11/1/03(4) 200,000 203,500
-----------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts.,
8/1/03(13) 750,000 706,875
-----------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 300,000 312,750
-----------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 300,000 324,429
-----------
2,087,429
</TABLE>
9 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENTERTAINMENT/FILM--0.4% Imax Corp., 10% Sr. Nts., 3/1/01 $ 320,000 $ 326,800
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER--0.2%
- ----------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--0.1% Empresas ICA Sociedad Controladora SA de CV, 11.875% Nts., 5/30/01 30,000 32,062
-----------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Bonds, 12/30/99(10) 38,000 39,069
-----------
71,131
- ----------------------------------------------------------------------------------------------------------------------------------
SERVICES--0.1% Protection One Alarm Monitoring, Inc., 6.75% Cv. Gtd. Sr. Sub. Nts.,
9/15/03 110,000 104,637
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL--0.7%
- ----------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS--0.7% Grand Union Co., 12% Sr. Nts., 9/1/04 423,000 421,943
-----------------------------------------------------------------------------------------------
Ralph's Grocery Co., 10.45% Sr. Nts., 6/15/04 225,000 236,813
-----------
658,756
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.6%
- ----------------------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION--0.1% American International Group, Inc., 11.70% Unsec. Unsub.
Bonds, 12/4/01(14) ITL 95,000,000 65,737
- ----------------------------------------------------------------------------------------------------------------------------------
RAILROADS--0.5% Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series B, 12/15/03(5)(13) 500,000 406,250
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--6.5%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.0% California Energy, Inc., 10.25% Sr. Disc. Nts., 1/15/04 450,000 481,500
-----------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Bonds, Series E, 5/1/11 250,000 271,875
-----------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B,
1/15/16 115,000 122,619
-----------------------------------------------------------------------------------------------
New Zealand Electric Corp., 10% Debs., 10/15/01 NZD 330,000 241,771
-----------------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 413,793 426,207
9.50% Sr. Sec. Nts., 12/28/08(10) 82,758 85,241
-----------------------------------------------------------------------------------------------
Tenaga Nasional Berhad, Zero Coupon Malaysian Commercial Paper,
7.11%, 5/26/97(12) MYR 500,000 199,713
-----------
1,828,926
- ----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.5% Bell Cablemedia plc, 0%/11.95% Sr. Disc. Nts., 7/15/04(13) 500,000 435,625
-----------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04(13) 200,000 168,000
-----------------------------------------------------------------------------------------------
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04(5)(13) 350,000 301,000
-----------------------------------------------------------------------------------------------
Cellular Communications International, Inc., Zero Coupon
Sr. Disc. Nts., 12.32%, 8/15/00(12) 600,000 433,500
-----------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(13) 350,000 238,000
-----------------------------------------------------------------------------------------------
Comunicacion Celular SA, 0%/13.125% Sr. Deferred Coupon Bonds, 11/15/03
(13) 300,000 207,750
-----------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc., 0%/13% Sr. Disc. Nts., Series B,
4/15/03(13) 275,000 153,313
-----------------------------------------------------------------------------------------------
ICG Holdings, Inc.:
0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06(13) 470,000 296,100
0%/13.50% Sr. Disc. Nts., 9/15/05(13) 50,000 34,125
-----------------------------------------------------------------------------------------------
McCaw International Ltd., Units (each unit consists of $1,000 principal
amount of 0%/13% sr. disc. nts., 4/15/07 and one warrant to purchase
0.10616 share of common stock)(10)(13)(15) 340,000 161,500
-----------------------------------------------------------------------------------------------
Metrocall, Inc., 10.375% Sr. Sub. Nts., 10/1/07 300,000 241,500
-----------------------------------------------------------------------------------------------
Omnipoint Corp., 11.625% Sr. Nts., 8/15/06 300,000 265,500
-----------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04 155,000 157,713
</TABLE>
10 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01
(CONTINUED) (5)(13) $500,000 $502,500
-----------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp.,
0%/12.50% Sr. Disc. Nts., 8/15/06(13) 295,000 193,225
-----------------------------------------------------------------------------------------------
Teleport Communications Group, Inc., 0%/11.125% Sr. Disc. Nts.,
7/1/07(13) 400,000 268,000
-----------
4,057,351
-----------
Total Corporate Bonds and Notes (Cost $17,639,540) 17,960,607
<CAPTION>
SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--19.5%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY--1.0%
- ----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS--0.0% Equitable Bag, Inc.(5)(16) 1,861 9,305
- ----------------------------------------------------------------------------------------------------------------------------------
METALS/MINING--1.0% USX-U.S. Steel Group, Inc. 33,000 878,625
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED--0.5%
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO--0.5% Philip Morris Cos., Inc. 4,000 456,500
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY--3.9%
- ----------------------------------------------------------------------------------------------------------------------------------
Phillips Petroleum Co. 22,000 899,250
-----------------------------------------------------------------------------------------------
Unocal Corp. 31,000 1,181,875
-----------------------------------------------------------------------------------------------
USX-Marathon Group 50,000 1,393,750
-----------
3,474,875
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--5.8%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS--0.9% BankAmerica Corp. 8,000 806,000
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--3.1% Dean Witter, Discover & Co. 6,000 209,250
-----------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 36,000 981,000
-----------------------------------------------------------------------------------------------
Green Tree Financial Corp. 24,000 810,000
-----------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 9,000 772,875
-----------
2,773,125
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.8% Cigna Corp. 7,000 1,022,875
-----------------------------------------------------------------------------------------------
Loews Corp. 7,000 622,125
-----------
1,645,000
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED--1.0%
- ----------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--1.0% Centex Corp. 25,000 881,250
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--6.1%
- ----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/ Compaq Computer Corp.(16) 15,000 1,149,375
COMPUTERS--6.1% -----------------------------------------------------------------------------------------------
Data General Corp.(16) 64,000 1,088,000
-----------------------------------------------------------------------------------------------
Intel Corp. 8,000 1,113,000
-----------------------------------------------------------------------------------------------
International Business Machines Corp. 6,000 824,250
-----------------------------------------------------------------------------------------------
Seagate Technology(16) 8,000 359,000
-----------------------------------------------------------------------------------------------
Tandem Computers, Inc.(16) 79,000 938,125
-----------
5,471,750
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL--1.0%
- ----------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT STORES--1.0% Dayton Hudson Corp. 21,000 876,750
</TABLE>
11 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITIES--0.2%
- ----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--0.2% Celcaribe SA(5)(16) 65,040 $ 178,860
-----------
Total Common Stocks (Cost $14,496,149) 17,452,040
- ----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.0%
- ----------------------------------------------------------------------------------------------------------------------------------
California Federal Bank:
10.625% Non-Cum., Series B 500 55,000
11.50% Non-Cum. 2,000 226,000
-----------------------------------------------------------------------------------------------
Panamsat Corp., 12.75% Sr. Preferred Exchangeable(5)(9) 255 306,000
-----------------------------------------------------------------------------------------------
Prime Retail, Inc., $19.00 Cv., Series B 12,000 276,000
-----------
Total Preferred Stocks (Cost $866,649) 863,000
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER SECURITIES--0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum Corp., 8.255% Cv. Preferred Redeemable
Increased Dividend Equity Securities (Cost $25,344) 2,400 27,000
UNITS
- ----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 2,000 1,625
-----------------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03(5) 300 21,000
-----------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01(5) 275 8,250
-----------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 300 --
-----------
Total Rights, Warrants and Certificates (Cost $0) 30,875
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STRUCTURED INSTRUMENTS--3.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank CD, New York Branch:
10.30%, 3/16/98 (linked to Greek Drachma on 3/14/98) $1,000,000 987,500
13.75%, 8/18/97 (indexed to the cross currency rates of
Greek Drachma and Chilean Peso) 550,000 547,250
-----------------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce CD, New York Branch,
16.75%, 4/16/97 (indexed to the Federation GKO, Zero Coupon, 4/9/97) 100,000 99,938
-----------------------------------------------------------------------------------------------
ING (U.S.) Capital Holdings Corp., Zero Coupon Czech Koruna
Linked Promissory Nts., 12.18%, 6/23/97(12) CZK 2,180,000 73,127
-----------------------------------------------------------------------------------------------
ING (U.S.) Financial Holdings Corp., Zero Coupon:
Czech Koruna Linked Promissory Nts., 10.98%, 11/17/97(12) CZK 4,462,296 142,428
Czech Koruna/U.S. Dollar Linked Nts., 11.10%, 3/3/98(12) 75,000 66,487
Czech Koruna/U.S. Dollar Linked Nts., 11.10%, 3/4/98(12) 75,000 66,937
Korean Won/U.S. Dollar Linked Nts., 10.87%, 6/9/97(12) 75,000 67,308
Slovakia Koruna Linked Nts., 12.52%, 9/4/97(12) 50,000 47,735
South African Rand/U.S. Dollar Linked Nts., 15.41%, 3/18/98(12) 150,000 129,765
-----------------------------------------------------------------------------------------------
Internationale Nederlanden Bank NV, Prague Branch,
Zero Coupon Promissory Nts., 10.52%, 4/28/97(12) CZK 4,600,000 156,763
-----------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., Zero Coupon Greek
Drachma/Swiss Franc Linked Nts., 14.709%, 1/15/98(12) 50,000 50,110
</TABLE>
12 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STRUCTURED INSTRUMENTS Salomon, Inc., Zero Coupon:
(CONTINUED) Chilean Peso-Indexed Enhanced Access Nts., 10.12%, 6/17/97(12) $71,339 $71,011
Chilean Peso-Indexed Enhanced Access Nts., 10.64%, 9/9/97(12) 70,000 66,318
Russia S-Account Credit Linked Nts., 12.07%, 8/15/97(12) 130,000 123,864
Russia S-Account Credit Linked Nts., 11.86%, 8/28/97(12) 250,000 237,100
Russia S-Account Credit Linked Nts., 12.10%, 8/7/97(12) 150,000 143,325
Russia S-Account Credit Linked Nts., 12.07%, 8/8/97(12) 200,000 191,020
-----------------------------------------------------------------------------------------------
SPARC EM Ltd., Zero Coupon Russian GKO Linked/U.S. Dollar Nts.,
12.24%, 10/15/97(12) 40,000 37,460
-----------
Total Structured Instruments (Cost $3,350,926) 3,305,446
</TABLE>
<TABLE>
<CAPTION>
DATE STRIKE CONTRACTS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PUT OPTIONS PURCHASED--0.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Deutsche Mark Put Opt. 5/97 1.633DEM 600,000 9,868
-----------------------------------------------------------------------------------------------
Deutsche Mark Put Opt. 5/97 1.64DEM 2,740,000 39,311
-----------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds,
Buoni del Tesoro Poliennali, 9.50%,
5/1/01 Put Opt. 7/97 102.30%ITL 211 169
------------
Total Put Options Purchased (Cost $46,340) 49,348
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $90,904,725) 104.5% 93,512,594
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS (4.5) (4,055,123)
---------- ------------
NET ASSETS 100.0% $89,457,471
---------- ------------
---------- ------------
<CAPTION>
<S><C>
1. Face amount is reported in U.S. Dollars, except for those denoted in the following currencies:
ARP--Argentine Peso ITL--Italian Lira
AUD--Australian Dollar JPY--Japanese Yen
CAD--Canadian Dollar MXP--Mexican Peso
CZK--Czech Koruna MYR--Malaysian Ringgit
DEM--German Deutsche Mark NZD--New Zealand Dollar
ESP--Spanish Peseta PLZ--Polish Zloty
FIM--Finnish Markka SEK--Swedish Krona
GBP--British Pound Sterling SKK--Slovakia Koruna
IDR--Indonesian Rupiah ZAR--South African Rand
IEP--Irish Punt
2. 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.
3. When-issued security to be delivered and settled after March 31, 1997.
4. Represents the current interest rate for a variable rate security.
5. Identifies issues considered to be illiquid or restricted--See Note 8 of Notes to Financial
Statements.
6. A sufficient amount of securities has been designated to cover outstanding written call
options, as follows:
</TABLE>
<TABLE>
<CAPTION>
CONTRACTS/FACE EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL/PUT DATES PRICE RECEIVED SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar Put Option 1,170,000 5/23/97 1.375CAD $3,340 $ 7,371
- ----------------------------------------------------------------------------------------------------------------------------------
Canadian Dollar Put Option 680,000 6/18/97 1.38CAD 2,055 3,450
- ----------------------------------------------------------------------------------------------------------------------------------
German (Republic of) Bonds, Series 118,
5.25%, 2/21/01 Put Option 200,000 7/16/97 99.57%DEM 4,800 140
- ----------------------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 305,000 5/29/97 1.434NZD 2,189 1,739
- ----------------------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 140,000 5/28/97 1.438NZD 966 914
- ----------------------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 600,000 5/23/97 1.441NZD 4,200 4,224
- ----------------------------------------------------------------------------------------------------------------------------------
New Zealand Dollar Call Option 280,000 6/9/97 1.42NZD 2,016 1,114
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 6%, 2/15/26 Call Option $ 500,000 4/11/97 93.00% 3,125 --
-------- --------
$22,691 $18,952
-------- --------
-------- --------
13 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<CAPTION>
<S><C>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
-------------------------------------------------------------------------------------------------
7. Indexed instrument for which the principal amount and/or interest due at maturity is affected
by the relative value of a foreign currency.
8. Securities with an aggregate market value of $717,781 are held in collateralized accounts to
cover initial margin requirements on open futures sales contracts. See Note 6 of Notes to
Financial Statements.
9. Interest or dividend is paid in kind.
10. Represents securities sold under Rule 144A, which are exempt from registration under the
Securities Act of 1933, as amended. These securities have been determined to be liquid under
guidelines established by the Board of Trustees. These securities amount to $1,467,469 or 1.64%
of the Fund's net assets, at March 31, 1997.
11. Represents the current interest rate for an increasing rate security.
12. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase.
13. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at
a designated future date.
14. A sufficient amount of securities has been designated to cover outstanding forward foreign
currency exchange contracts. See Note 5 of Notes to Financial Statements.
15. Units may be comprised of several components, such as debt and equity and/or warrants to
purchase equity at some point in the future. For units which represent debt securities, face
amount disclosed represents total underlying principal.
16. Non-income producing security.
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $90,904,725)--see accompanying statement $93,512,594
-----------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 86,627
-----------------------------------------------------------------------------------------------
Receivables:
Interest, dividends and principal paydowns 1,186,480
Shares of beneficial interest sold 649,265
Investments sold 616,410
Closed forward foreign currency exchange contracts 2,927
Daily variation on futures contracts--Note 6 2,125
-----------------------------------------------------------------------------------------------
Other 5,466
-----------
Total assets 96,061,894
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Bank overdraft 108,992
-----------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency exchange contracts
--Note 5 11,207
-----------------------------------------------------------------------------------------------
Options written, at value (premiums received $22,691)--
see accompanying statement--Note 7 18,952
-----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $5,295,750 purchased on a when-issued basis)
--Note 1 5,581,580
Dividends 392,187
Shares of beneficial interest redeemed 334,511
Distribution and service plan fees 53,659
Transfer and shareholder servicing agent fees 19,910
Closed forward foreign currency exchange contracts 4,336
Other 79,089
-----------
Total liabilities 6,604,423
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $89,457,471
-----------
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $82,610,742
NET ASSETS ------------------------------------------------------------------------------------------------
Overdistributed net investment income (507,765)
------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 4,629,123
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 2,725,371
-----------
Net assets $89,457,471
-----------
-----------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets of $49,728,653
and 8,783,879 shares of beneficial interest outstanding) $5.66
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $5.94
-----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $37,190,296 and 6,580,454 shares of beneficial interest outstanding) $5.65
-----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $2,538,522 and 450,174 shares of beneficial interest outstanding) $5.64
See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest (net of foreign withholding taxes of $9,680) $2,686,297
-----------------------------------------------------------------------------------------------
Dividends 247,940
-----------
Total income 2,934,237
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 317,319
-----------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 59,272
Class B 165,857
Class C 8,913
-----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 68,108
-----------------------------------------------------------------------------------------------
Shareholder reports 50,534
-----------------------------------------------------------------------------------------------
Custodian fees and expenses 24,620
-----------------------------------------------------------------------------------------------
Legal and auditing fees 7,006
-----------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 181
Class B 2,474
Class C 391
-----------------------------------------------------------------------------------------------
Tustees' fees and expenses 2,323
-----------------------------------------------------------------------------------------------
Other 3,655
-----------
Total expenses 710,653
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 2,223,584
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) on:
GAIN (LOSS) Investments 4,488,975
Closing of futures contracts (33,442)
Closing and expiration of options written--Note 7 60,276
Foreign currency transactions 110,189
-----------
Net realized gain 4,625,998
-----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (2,127,851)
Translation of assets and liabilities denominated in foreign currencies (221,514)
-----------
Net change (2,349,365)
-----------
Net realized and unrealized gain 2,276,633
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,500,217
-----------
-----------
See accompanying Notes to Financial Statements.
</TABLE>
16 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $2,223,584 $3,732,693
-----------------------------------------------------------------------------------------------
Net realized gain 4,625,998 7,952,007
-----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (2,349,365) (1,463,235)
----------- ----------
Net increase in net assets resulting from operations 4,500,217 10,221,465
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A (1,489,957) (2,671,884)
SHAREHOLDERS Class B (876,134) (1,293,779)
Class C (46,387) (20,396)
-----------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (3,183,894) --
Class B (2,069,731) --
Class C (92,338) --
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from beneficial interest
TRANSACTIONS transactions--Note 2:
Class A 4,830,659 1,764,170
Class B 9,579,994 6,853,287
Class C 1,518,471 1,071,210
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 12,670,900 15,924,073
-----------------------------------------------------------------------------------------------
Beginning of period 76,786,571 60,862,498
----------- -----------
End of period (including overdistributed net investment income
of $507,765 and $318,871, respectively) $89,457,471 $76,786,571
----------- -----------
----------- -----------
See accompanying Notes to Financial Statements.
</TABLE>
17 Oppenheimer Strategic Income & Growth Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993 1992(3)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $5.88 $5.36 $4.92 $5.26 $5.03 $5.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .16 .32 .32 .21 .22 .07(4)
Net realized and unrealized gain (loss) .19 .54 .44 (.23) .22 .02
------ ------ ---- ---- ---- ----
Total income (loss) from investment operations .35 .86 .76 (.02) .44 .09
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.18) (.34) (.32) (.21) (.20) (.06)
Dividends in excess of net investment income -- -- -- (.01) -- --
Distributions from net realized gain (.39) -- -- -- (.01) --
Distributions in excess of net realized gain -- -- -- (.10) -- --
------ ------ ---- ---- ---- ----
Total dividends and distributions to shareholders (.57) (.34) (.32) (.32) (.21) (.06)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $5.66 $5.88 $5.36 $4.92 $5.26 $5.03
------ ------ ---- ---- ---- ----
------ ------ ---- ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(5) 5.91% 16.53% 16.09% (0.23)% 8.84% 1.74%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $49,729 $46,747 $40,977 $42,733 $55,291 $48,397
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $49,656 $43,764 $40,799 $48,360 $59,209 $30,264
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.58%(6) 5.75% 6.37% 4.56% 4.33% 4.59%(6)
Expenses 1.36%(6) 1.43% 1.35% 1.43% 1.36% 1.46%(4)(6)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 76.8% 147.3% 114.0% 80.0% 122.4% 25.8%
Average brokerage commission rate(8) $0.0598 $0.0595 -- -- -- --
<CAPTION>
<S><C>
1. For the period from October 2, 1995 (inception of offering) to September 30, 1996.
2. For the period from November 30, 1992 (inception of offering) to September 30, 1993.
3. For the period from June 1, 1992 (commencement of operations) to September 30, 1992.
4. Net investment income would have been $.07 per share absent the voluntary expense
reimbursement, resulting in an expense ratio of 1.74%.
5. Assumes a hypothetical initial investment on the business day before the first day of the
fiscal period (or inception of offering), with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net asset value calculated
on the last business day of the fiscal period. Sales charges are not reflected in the total
returns. Total returns are not annualized for periods of less than one full year.
</TABLE>
18 Oppenheimer Strategic Income & Growth Fund
<PAGE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993(2)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $5.87 $5.35 $4.91 $5.26 $5.10
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .14 .29 .28 .19 .14
Net realized and unrealized gain (loss) .18 .53 .44 (.25) .16
------ ------ ---- ---- ----
Total income (loss) from investment operations .32 .82 .72 (.06) .30
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.30) (.28) (.18) (.13)
Dividends in excess of net investment income -- -- -- (.01) --
Distributions from net realized gain (.39) -- -- -- (.01)
Distributions in excess of net realized gain -- -- -- (.10) --
------ ------ ---- ---- ----
Total dividends and distributions to shareholders (.54) (.30) (.28) (.29) (.14)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $5.65 $5.87 $5.35 $4.91 $5.26
------ ------ ---- ---- ----
------ ------ ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(5) 5.52% 15.69% 15.26% (1.17)% 5.86%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $37,190 $28,933 $19,885 $16,053 $12,386
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $33,582 $24,263 $17,316 $14,986 $ 7,541
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.79%(6) 4.94% 5.61% 3.86% 3.32%(6)
Expenses 2.12%(6) 2.19% 2.10% 2.17% 2.21%(6)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 76.8% 147.3% 114.0% 80.0% 122.4%
Average brokerage commission rate(8) $0.0598 $0.0595 -- -- --
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, 1997 SEPT. 30,
(UNAUDITED) 1996(1)
- ----------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 5.86 $ 5.36
- ----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .14 .28
Net realized and unrealized gain (loss) .18 .49
----- -----
Total income (loss) from investment operations .33 .77
- ----------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.27)
Dividends in excess of net investment income -- --
Distributions from net realized gain (.39) --
Distributions in excess of net realized gain -- --
----- -----
Total dividends and distributions to shareholders (.54) (.27)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 5.64 $ 5.86
-------- -------
-------- -------
- ----------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(5) 5.52% 15.18%
- ----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,539 $1,106
- ----------------------------------------------------------------------------------
Average net assets (in thousands) $1,797 $ 400
- ----------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.67%(6) 4.58%(6)
Expenses 2.14%(6) 2.28%(6)
- ----------------------------------------------------------------------------------
Portfolio turnover rate(7) 76.8% 147.3%
Average brokerage commission rate(8) $0.0598 $0.0595
<CAPTION>
<S><C>
6. Annualized.
7. 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 March 31, 1997 were $74,335,704 and $63,368,545, respectively.
8. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
</TABLE>
19 Oppenheimer Strategic Income & Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Strategic Income & Growth Fund (the Fund)
ACCOUNTING POLICIES is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management
investment company. The Fund's primary investment
objective is to seek a high level of current income and
capital appreciation through investments in U.S.
government, high-yield corporate and foreign bonds and
common stocks. The Fund's investment adviser is
OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares are
sold with a front-end sales charge. Class B and Class C
shares may be subject to a contingent deferred sales
charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that
each class has its own 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 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 foreign
currency exchange 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 is used.
------------------------------------------------------
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS. Delivery
and payment for securities that have been purchased by
the Fund on a forward commitment or when-issued basis
can take place a month or more after the transaction
date. During this period, such securities do not earn
interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery.
The Fund maintains, in a segregated account with its
custodian, assets with a market value equal to the
amount of its purchase commitments. The purchase of
securities on a when-issued or forward commitment basis
may increase the volatility of the Fund's net asset
value to the extent the Fund makes such purchases while
remaining substantially fully invested. As of March 31,
1997, the Fund had entered into outstanding when-issued
or forward commitments of $5,295,750.
In connection with its ability to purchase
securities on a when-issued or forward commitment
basis, the Fund may enter into mortgage "dollar-rolls''
in which the Fund sells securities for delivery in the
current month and simultaneously contracts with the
same counterparty to repurchase similar (same type
coupon and maturity) but not identical securities on a
specified future date. The Fund records each
dollar-roll as a sale and a new purchase transaction.
------------------------------------------------------
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.
20 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- -------------------------------------------------------------------------------
1. SIGNIFICANT REPURCHASE AGREEMENTS. The Fund requires the
ACCOUNTING POLICIES custodian to take possession, to have legally
(CONTINUED) segregated in the Federal Reserve Book Entry System
or to have segregated within the custodian's
vault, all securities held as collateral for
repurchase agreements. The market value of the
underlying securities is required to be at least
102% of the resale price at the time of purchase.
If the seller of the agreement defaults and the
value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the
value of the collateral by the Fund may be delayed
or limited.
------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, 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.
------------------------------------------------------
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.
------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to
declare dividends separately for Class A, Class B and
Class C 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 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 was recorded
by the Fund.
------------------------------------------------------
OTHER. Investment transactions are accounted for on the
date the investments are purchased or sold (trade date)
and dividend income is recorded on the ex-dividend
date. Discount on securities purchased is amortized
over the life of the respective securities, in
accordance with federal income tax requirements.
Realized gains and losses on investments and 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.
Interest on payment-in-kind debt instruments is accrued
as income at the coupon rate and a market adjustment is
made on the ex-date.
The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and
the reported amounts of income and expenses during the
reporting period. Actual results could differ from
those estimates.
21 Oppenheimer Strategic Income & Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- ---------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no
BENEFICIAL INTEREST par value shares of beneficial interest of each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 31, YEAR ENDED SEPTEMBER 30,
1997 1996(1)
-------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,288,809 $7,564,980 2,387,772 $13,431,087
Dividends and distributions reinvested 715,731 4,151,483 402,412 2,264,550
Redeemed (1,177,058) (6,885,804) (2,477,164) (13,931,467)
--------- ---------- ---------- -----------
Net increase 827,482 $4,830,659 313,020 $1,764,170
--------- ---------- ---------- -----------
--------- ---------- ---------- -----------
- -----------------------------------------------------------------------------------------------
Class B:
Sold 1,867,907 $10,888,282 2,134,954 $12,031,686
Dividends and distributions reinvested 417,008 2,413,500 179,351 1,009,405
Redeemed (637,186) (3,721,788) (1,096,517) (6,187,804)
--------- ---------- ---------- -----------
Net increase 1,647,729 $9,579,994 1,217,788 $6,853,287
--------- ---------- ---------- -----------
--------- ---------- ---------- -----------
- -----------------------------------------------------------------------------------------------
Class C:
Sold 343,133 $1,996,492 253,236 $1,433,118
Dividends and distributions reinvested 20,739 119,760 2,268 12,899
Redeemed (102,631) (597,781) (66,571) (374,807)
--------- ---------- ---------- -----------
Net increase 261,241 $1,518,471 188,933 $1,071,210
--------- ---------- ---------- -----------
--------- ---------- ---------- -----------
1. For the year ended September 30, 1996 for Class A and Class B
shares and for the period from October 2, 1995 (inception of
offering) to September 30, 1996 for Class C shares.
</TABLE>
- -------------------------------------------------------------------------
3. UNREALIZED GAINS AND At March 31, 1997, net unrealized
LOSSES ON INVESTMENTS appreciation on investments and options
written of $2,611,608 was composed of gross
appreciation of $4,499,749, and gross
depreciation of $1,838,141.
- -------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER TRANSACTIONS accordance with the investment
WITH AFFILIATES advisory agreement with the Fund which
provides for a fee of 0.75% on the first $200
million of average annual net assets, 0.72%
on the next $200 million, 0.69% on the next
$200 million, 0.66% on the next $200 million,
0.60% on the next $200 million and 0.50% on
net assets in excess of $1 billion.
For the six months ended March 31,
1997, commissions (sales charges paid by
investors) on sales of Class A shares totaled
$178,816, of which $53,796 was retained by
OppenheimerFunds Distributor, Inc. (OFDI), a
subsidiary of the Manager, as general
distributor, and by an affiliated
broker/dealer. Sales charges advanced to
broker/dealers by OFDI on sales of the Fund's
Class B and Class C shares totaled $385,298
and $19,387, of which $24,739 and $1,101,
respectively, was paid to an affiliated
broker/dealer. During the six months ended
March 31, 1997, OFDI received contingent
deferred sales charges of $55,377 and $2,225,
respectively, upon redemption of Class B and
Class C shares, as reimbursement for sales
commissions advanced by OFDI at the time of
sale of such shares.
OppenheimerFunds Services (OFS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and
for other registered investment companies.
OFS's total costs of providing such services
are allocated ratably to these companies.
The Fund has adopted a Service Plan
for Class A shares to reimburse OFDI for a
portion of its costs incurred in connection
with the personal service and maintenance of
accounts that hold Class A shares.
Reimbursement is made quarterly at an annual
rate that may not exceed 0.25% of the average
annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial
institutions quarterly for providing personal
service and maintenance of accounts of their
customers that hold Class A shares. During
the six months ended March 31, 1997, OFDI
paid $7,527 to an affiliated broker/dealer as
reimbursement for Class A personal service
and maintenance expenses.
22 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- -------------------------------------------------------------------------------
4. MANAGEMENT FEES AND The Fund has adopted a reimbursement type
OTHER TRANSACTIONS Distribution and Service Plan for
WITH AFFILIATES Class B shares to reimburse OFDI for its
(CONTINUED) services and costs in distributing Class B
shares and servicing accounts. Under the
Plan, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on
Class B shares. OFDI also receives a service
fee of 0.25% per year to reimburse dealers
for providing personal services for accounts
that hold Class B shares. Both fees are
computed on the average annual net assets of
Class B shares, determined as of the close of
each regular business day. During the six
months ended March 31, 1997, OFDI paid $1,681
to an affiliated broker/dealer as
reimbursement for Class B personal service
and maintenance expenses and retained
$139,479 as reimbursement for Class B sales
commissions and service fee advances, as well
as financing costs. If the Plan is terminated
by the Fund, the Board of Trustees may allow
the Fund to continue payments of the
asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was
terminated. As of March 31, 1997, OFDI had
incurred unreimbursed expenses of $1,604,837
for Class B.
The Fund has adopted a compensation
type Distribution and Service Plan for Class
C shares to compensate OFDI for its services
and costs in distributing Class C shares and
servicing accounts. Under the Plan, the Fund
pays OFDI an annual asset-based sales charge
of 0.75% per year on Class C shares. OFDI
also receives a service fee of 0.25% per year
to compensate dealers for providing personal
services for accounts that hold Class C
shares. Both fees are computed on the average
annual net assets of Class C shares,
determined as of the close of each regular
business day. During the six months ended
March 31, 1997, OFDI retained $8,514 as
compensation for Class C sales commissions
and service fee advances, as well as
financing costs. If the Plan is terminated by
the Fund, the Board of Trustees may allow the
Fund to continue payments of the asset-based
sales charge to OFDI for certain expenses it
incurred before the Plan was terminated. As
of March 31, 1997, OFDI had incurred
unreimbursed expenses of $64,357 for Class C.
- -------------------------------------------------------------------------------
5. FORWARD CONTRACTS A forward foreign currency exchange contract
(forward contract) is a commitment to
purchase or sell a foreign currency at a
future date, at a negotiated rate.
The Fund uses forward contracts to
seek to manage foreign currency risks. They
may also be used to tactically shift
portfolio currency risk. The Fund generally
enters into forward contracts as a hedge upon
the purchase or sale of a security
denominated in a foreign currency. In
addition, the Fund may enter into such
contracts as a hedge against changes in
foreign currency exchange rates on portfolio
positions.
Forward contracts are valued based
on the closing prices of the forward currency
contract rates in the London foreign exchange
markets on a daily basis as provided by a
reliable bank or dealer. The Fund will
realize a gain or loss upon the closing or
settlement of the forward transaction.
Securities held in segregated
accounts to cover net exposure on outstanding
forward contracts are noted in the Statement
of Investments where applicable. Unrealized
appreciation or depreciation on forward
contracts is reported in the Statement of
Assets and Liabilities. Realized gains and
losses are reported with all other foreign
currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential
inability of the counterparty to meet the
terms of the contract and unanticipated
movements in the value of a foreign currency
relative to the U.S. Dollar.
At March 31, 1997, the Fund had outstanding
forward contracts to purchase and sell
foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT
AMOUNT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACTS TO PURCHASE EXPIRATION DATES (000S) MARCH 31, 1997 APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New Zealand Dollar (NZD) 4/7/97 347 NZD $241,230 $-- $139
CONTRACTS TO SELL
- -----------------------------------------------------------------------------------------------
Canadian Dollar (CAD) 4/14/97--5/23/97 2,340 CAD $1,695,747 $34,143 $--
French Franc (FRF) 4/28/97 1,145 FRF 204,341 3,804 --
New Zealand Dollar (NZD) 4/4/97--4/14/97 1,193 NZD 828,992 8,026 --
Swiss Franc (CHF) 4/7/97--7/2/97 2,670 CHF 1,863,621 40,654 11,068
---------- ------- -------
$4,592,701 86,627 11,068
---------- ------- -------
----------
Net Unrealized Appreciation
and Depreciation $86,627 $11,207
------- -------
------- -------
</TABLE>
23 Oppenheimer Strategic Income & Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- ----------------------------------------------------------------------
6. 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 contracts.
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.
Securities held in collateralized
accounts to cover initial margin requirements
on open futures contracts are noted in the
Statement of Investments. The Statement of
Assets and Liabilities reflects a receivable
or payable for the daily mark to market for
variation margin.
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.
At March 31, 1997, the Fund had outstanding
futures contracts to purchase and sell debt
securities as follows:
<TABLE>
<CAPTION>
NUMBER OF UNREALIZED
EXPIRATION FUTURES VALUATION AS OF APPRECIATION
CONTRACTS TO PURCHASE DATES CONTRACTS MARCH 31, 1997 (DEPRECIATION)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Nts., 5-yr. 6/97 12 $1,251,563 $(9,750)
---------- --------
CONTRACTS TO SELL
- -----------------------------------------------------------------------------------------------
U.S. Treasury Nts., 10-yr. 6/97 25 $2,637,500 $30,156
U.S. Treasury Bonds, 30-yr. 6/97 5 536,094 7,969
French Government Bonds, 10-yr. 6/97 11 1,253,318 14,960
---------- --------
$5,678,475 $43,335
---------- --------
---------- --------
</TABLE>
- ----------------------------------------------------------------------
7. OPTIONS ACTIVITY The Fund may buy and sell put and call
options, or write put and covered 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.
24 Oppenheimer Strategic Income & Growth Fund
<PAGE>
- ----------------------------------------------------------------------
7. OPTIONS ACTIVITY Securities designated to cover outstanding
(CONTINUED) 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 six months
ended March 31, 1997 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
--------------------------- --------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
OPTIONS PREMIUMS OPTIONS PREMIUMS
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at
September 30, 1996 1,755,965 $10,578 123,388 $5,330
- -------------------------------------------------------------------------------------
Options written 7,412,583 80,257 1,850,000 5,395
- -------------------------------------------------------------------------------------
Options closed or expired (7,843,048) (78,339) (123,188) (530)
--------- ------- --------- -------
Options outstanding at
March 31, 1997 1,325,500 $12,496 1,850,200 $10,195
--------- ------- --------- -------
--------- ------- --------- -------
</TABLE>
- ----------------------------------------------------------------------
8. ILLIQUID AND At March 31, 1997, investments in securities
RESTRICTED SECURITIES included issues that are illiquid or
restricted. Restricted securities are often
purchased in private placement transactions,
are not registered under the Securities Act
of 1933, may have contractual restrictions on
resale, and are valued under methods approved
by the Board of Trustees as reflecting fair
value. A security may be considered illiquid
if it lacks a readily-available market or if
its valuation has not changed for a certain
period of time. The Fund intends to invest no
more than 10% of its net assets (determined
at the time of purchase and reviewed from
time to time) in illiquid or restricted
securities. Certain restricted securities,
eligible for resale to qualified
institutional investors, are not subject to
that limit. The aggregate value of illiquid
or restricted securities subject to this
limitation at March 31, 1997 was $4,202,364,
which represents 4.70% of the Fund's net
assets. Information concerning restricted
securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT MARCH 31, 1997
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Transpower Finance Ltd. Gtd. Unsec.
Unsub. Bonds, 8%, 2/15/01 1/30/97 70.10% 68.83%
</TABLE>
25 Oppenheimer Strategic Income & Growth Fund
<PAGE>
OPPENHEIMER STRATEGIC INCOME & GROWTH FUND
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OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive
Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and
Assistant Secretary
Robert C. Doll, Jr., Senior Vice President
Andrew J. Donohue, Vice President and Secretary
David P. Negri, Vice President
Arthur P. Steinmetz, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
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INVESTMENT ADVISER OppenheimerFunds, Inc.
- -----------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- -----------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- -----------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- -----------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche LLP
- -----------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been
taken from the records of the Fund without
examination by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Strategic Income & Growth Fund. This
report must be preceded or accompanied by a
Prospectus of Oppenheimer 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, are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
26 Oppenheimer Strategic Income & Growth Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
- -----------------------------------------------------------------------------
OppenheimerFunds offers over 50 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 comfortable 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 3 million
shareholder accounts and more than $60 billion under
OppenheimerFunds' 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 telephone.1 For more information on
Oppenheimer funds, please contact your financial
adviser 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.
- -----------------------------------------------------------------------------
REAL ASSET FUNDS Real Asset Fund Gold & Special Minerals Fund
- -----------------------------------------------------------------------------
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Global Fund
Growth Fund
Enterprise Fund(2) Quest Global Value Fund
International
Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap
Value Fund Value Stock Fund
Capital
Appreciation Fund(3) Quest Value Fund
Quest Capital
Value Fund
- -----------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income &
Growth Fund Equity Income Fund
Quest Opportunity
Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
Quest Growth & Income
Value Fund Strategic Income & Growth Fund
Global Growth &
Income Fund Bond Fund for Growth
- -----------------------------------------------------------------------------
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
- -----------------------------------------------------------------------------
MUNICIPAL FUNDS California Municipal
Fund(5) Insured Municipal Fund
Florida Municipal Fund(5)Intermediate Municipal Fund
New Jersey Municipal
Fund(5)
New York Municipal
Fund(5)
Pennsylvania Municipal Rochester Division
Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York
Municipal Fund
- ------------------------------------------------------------------------------
MONEY MARKET FUNDS(6) Money Market Fund Cash Reserves
- -----------------------------------------------------------------------------
LIFESPAN Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or
termination. Shares may be exchanged only for shares of
the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new
investors.
3. On 12/18/96, the Fund's name was changed from
"Target Fund."
4. On 3/6/97, the Fund's name was changed from "Asset
Allocation Fund."
5. Available only to investors in certain states.
6. An investment in money market funds is neither
insured nor guaranteed by the U.S. government and there
can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per
share.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights
reserved.
27 Oppenheimer Strategic Income & Growth Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 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
RS0275.001.0397 May 31, 1997
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
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 funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
- --------------------------------------------------------------------------------
[LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -------------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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