<PAGE>
Oppenheimer Enterprise Fund
Semiannual Report February 29, 1996
[COVER PHOTO]Couple using laptop computer
"We're looking for HIGH GROWTH, and that means investing AGGRESSIVELY and for
the long haul."
[LOGO]OppenheimerFunds/r/
<PAGE>
This Fund is for people who want to take part in opportunities presented by
SMALL, unknown companies with GREAT GROWTH POTENTIAL.
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Enterprise Fund seeks capital appreciation by investing primarily in
equity securities of small U.S. and foreign companies that are believed to have
favorable growth prospects. Historically, the stocks of small companies have
offered long-term investors the best opportunities for growth. The Fund looks to
invest in companies before they're discovered by the market, when their
potential for rapid growth is greatest. The Fund intends to emphasize
"micro-cap" stocks--those with market capitalizations of up to $200 million.
Although small-cap stocks may be subject to more severe price fluctuations than
the stocks of larger companies, small-cap stocks have a history of often
outperforming larger-cap common stocks over time. Through careful stock
selection and diversification, overall risk inherent in such securities can be
lowered.
- -----------
PERFORMANCE
- -----------
Cumulative total returns at net asset value since inception of the Fund on
11/7/95 for Class A, B and C shares were 35.20%, 34.90% and 34.90%,
respectively.(1)
Your Fund's cumulative total returns at maximum offering price since inception
of the Fund on 11/7/95 for Class A, B and C shares were 27.43%, 29.90% and
33.90%, respectively.(2)
- -------
OUTLOOK
- -------
"We're optimistic. We think the economic environment will remain positive for
small company stocks, and, though they've appreciated in price recently, they
still have room to grow before we'd consider them overly expensive. We're
evaluating companies we own and carefully researching those we would consider
buying, thus working to avoid disappointments and to protect the gains we've
made so far."
Jay Tracey, Portfolio Manager
February 29, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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. Based on the change in the net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 11/7/95
(commencement of operations), after deducting the current maximum initial
sales charge of 5.75%. Class B returns show results of hypothetical investments
on 11/7/95 after the applicable contingent deferred sales charge of 5%. Class C
returns show results of hypothetical investments on 11/7/95 after the 1%
contingent deferred sales charge. An explanation of the different total returns
is in the Fund's prospectus.
2 Oppenheimer Enterprise Fund
<PAGE>
Dear Shareholder,
[PHOTO]Bridget A. Macaskill
President
Oppenheimer
Enterprise Fund
Defying the experts, the U.S. stock market rose more than 7% in the first two
months of 1996. A closer look at this strong performance, however, reveals stock
prices that were extremely volatile, as the Dow Jones Industrial Average
routinely fluctuated by 50 points or more from one day to the next.
This volatility was due to a combination of factors. First, because the
Dow has continued to trend up over the last five years, any kind of
disappointment--whether in corporate earnings, upward movements in interest
rates, unexpected economic data, or some international incident--was likely to
cause a temporary selloff.
Second, with economic growth barely positive at the end of last year,
and with unusually bad winter weather that dragged down growth, the ecomony
entered 1996 on wobbly ground. Furthermore, growth in corporate profits appears
to have slowed to single-digits.
Additionally, the presidential campaign has produced some surprises.
For example, the possibility that the Republicans' goal for a balanced budget
may not be achieved has contributed further to the increased volatility in the
stock market.
Not all the news is negative, however, as inflatation remained dormant,
giving the Federal Reserve Board the confidence to lower short-term interest
rates by a quarter percentage point by January 31, 1996. As the year progressed,
however, mixed economic data made the likelihood of further interest rate cuts
less certain, sending the stock market tumbling and causing bond market yields
to rise during February and March.
Although we expect the short-term stock market volatilty to continue,
we believe that the long-term case for stocks remains positive. The U.S. economy
is expected to remain in a 2% growth environment for a while. But slow growth
usually means low interest rates and low inflation, two big pluses for the stock
market.
Additionally, the demand for stocks remains high. Money continues to
flow into mutual funds while, at the same time, the supply of stocks has shrunk
as cash-rich corporations have bought back record amounts of stock. This surging
demand for stocks from Individual Retirement Accounts and 401(k) plans, combined
with the lower supply, should continue to support higher stock prices.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages.
Thank you for your confidence in OppenheimerFunds, and we look forward
to helping you reach your investment goals in the future.
/s/Bridget A. Macaskill
Bridget A. Macaskill
March 21, 1996
3 Oppenheimer Enterprise Fund
<PAGE>
Q + A
[PHOTO]Jay Tracey [PHOTO]Robert Doll
An interview with your Fund's managers.
Q - How has the Fund PERFORMED?
HOW HAS THE FUND PERFORMED SINCE ITS INCEPTION LATE LAST YEAR?
We're very pleased. Both in terms of pure performance and relative to many of
our competitors, we've done well. This good performance in part reflects the
fact that the Fund was introduced at a great time--near the end of a terrific
year for stocks, and at a time when existing small companies were being received
with enthusiasm by investors. The Fund's good performance was also driven by
higher valuations awarded by the market on the kind of rapidly growing companies
that we had already owned.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The Fund's good performance has been driven primarily by the market's
increasing recognition of the Fund's emerging-growth companies. Over the past
four months we've worked hard to try to find companies that offer either a
unique product or innovative approach to business that may give them an edge.
With at least half of the companies in our portfolio turning in positive
earnings surprises and another third having met earnings expectations, our
vigilance has paid off as we've benefited from their appreciation over the
period.
Although our holdings are diversified across many industry sectors, we've had a
lot of success with our investments in technology and healthcare stocks in
particular. Technology stocks were strong throughout most of 1995 and, after a
correction, have been performing well. We expect the performance of software
companies to continue as they reap the rewards of corporate America's shift to
network computing and the demand for new applications. And, healthcare stocks
continue
[PHOTO]Michael Levine
4 Oppenheimer Enterprise Fund
<PAGE>
FACING PAGE
Top Left: Jay Tracey, Portfolio Manager
Top right: Robert Doll, Executive VP, Director of Equity Investments
Bottom: Michael Levine, Member of Equity Investments Team
THIS PAGE
Top: Richard Rubinstein, Member of Equity Investments Team
Bottom: Paul LaRocco, Member of Equity Investments Team
A - We're very PLEASED.
to benefit as companies in this sector, whose earnings are less dependent on the
economy for continued growth, have climbed higher over this period.(1)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS WELL AS EXPECTED?
We haven't had many disappointments, in part because we've been watching the
companies we own and scrutinizing them for any changes in their fundamental
strengths or earnings outlook. As the economy has slowed, we have started to cut
back on consumer cyclical stocks because these are companies whose earnings tend
to be more closely tied to changes in the economy.
WHAT TYPES OF COMPANIES ARE YOU CURRENTLY TARGETING?
At this time, we're consolidating our holding and our aim is to own fewer
issuers, but more of the ones we believe have the greatest potential. This
consolidation is in preparation for a market in which we believe selectivity
will continue to be very important. Our basic strategy, which emphasizes high
growth, should also benefit the Fund.
[PHOTO] Richard Rubinstein
WHAT IS YOUR OUTLOOK FOR THE FUND?
We're optimistic. We think the economic environment will remain positive for
small company stocks, and, though they've appreciated in price recently, they
still have room to grow before we'd consider them overly expensive. We expect
more good news in small stocks as long as the economy avoids recession. But
again, while the economy remains supportive for small caps--especially those
with above-average growth potential--we're evaluating companies we own and
carefully researching those we consider buying. We're working to avoid
disappointments and to protect the gains we've made so far.//
[PHOTO]Paul LaRocco
1. The Fund's portfolio is subject to change.
5 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================================================
STATEMENT OF INVESTMENTS February 29, 1996 (Unaudited)
MARKET VALUE
SHARES SEE NOTE 1
================================================================================================================================
COMMON STOCKS - 83.4%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.0%
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
METALS - 0.7%
---------------------------------------------------------------------------------------------------------------------
Custom Chrome, Inc.(1) 12,000 $ 300,000
- --------------------------------------------------------------------------------------------------------------------------------
PAPER - 0.3%
---------------------------------------------------------------------------------------------------------------------
Visioneer, Inc.(1) 7,000 119,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 21.0%
- --------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 7.2%
---------------------------------------------------------------------------------------------------------------------
Alrenco, Inc.(1) 60,000 885,000
---------------------------------------------------------------------------------------------------------------------
Belmont Homes, Inc.(1) 40,000 700,000
---------------------------------------------------------------------------------------------------------------------
Cavalier Homes, Inc. 40,000 595,000
---------------------------------------------------------------------------------------------------------------------
NHP, Inc.(1) 20,000 367,500
---------------------------------------------------------------------------------------------------------------------
Wilmar Industries, Inc.(1) 25,000 475,000
--------------
3,022,500
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 6.0%
---------------------------------------------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(1) 23,600 354,000
---------------------------------------------------------------------------------------------------------------------
Manhattan Bagel Co., Inc.(1) 15,000 345,000
---------------------------------------------------------------------------------------------------------------------
Morrow Snowboards, Inc.(1) 10,500 123,375
---------------------------------------------------------------------------------------------------------------------
Play By Play Toys & Novelties, Inc.(1) 29,000 366,125
---------------------------------------------------------------------------------------------------------------------
Quality Dining, Inc.(1) 12,000 342,000
---------------------------------------------------------------------------------------------------------------------
Schlotzsky's, Inc.(1) 32,000 320,000
---------------------------------------------------------------------------------------------------------------------
Studio Plus Hotels, Inc.(1) 15,000 423,750
---------------------------------------------------------------------------------------------------------------------
Taco Cabana, Cl. A(1) 35,000 210,000
--------------
2,484,250
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA - 3.6%
---------------------------------------------------------------------------------------------------------------------
Children's Broadcasting Corp.(1) 40,000 380,000
---------------------------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., Cl. A(1) 13,000 430,625
---------------------------------------------------------------------------------------------------------------------
Unidigital, Inc.(1) 75,000 384,375
---------------------------------------------------------------------------------------------------------------------
Wireless One, Inc.(1) 20,000 295,000
--------------
1,490,000
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 4.2%
---------------------------------------------------------------------------------------------------------------------
Globe Business Resources, Inc.(1) 60,000 675,000
---------------------------------------------------------------------------------------------------------------------
Moovies, Inc.(1) 36,000 450,000
---------------------------------------------------------------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl. A(1) 16,000 444,000
---------------------------------------------------------------------------------------------------------------------
NuCo2, Inc.(1) 10,000 175,000
--------------
1,744,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 24.5%
- --------------------------------------------------------------------------------------------------------------------------------
EDUCATION - 1.0%
---------------------------------------------------------------------------------------------------------------------
Childtime Learning Centers(1) 37,500 435,937
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 9.0%
---------------------------------------------------------------------------------------------------------------------
Ethical Holdings PLC, Sponsored ADR(1) 40,000 405,000
---------------------------------------------------------------------------------------------------------------------
Genome Therapeutics Corp.(1) 30,000 401,250
---------------------------------------------------------------------------------------------------------------------
Global Pharmaceutical Corp.(1) 40,000 455,000
---------------------------------------------------------------------------------------------------------------------
IRIDEX Corp.(1) 70,000 721,875
---------------------------------------------------------------------------------------------------------------------
NCS HealthCare, Inc., Cl. A(1) 32,000 808,000
---------------------------------------------------------------------------------------------------------------------
Norland Medical Systems, Inc.(1) 16,000 416,000
---------------------------------------------------------------------------------------------------------------------
Pharmaceutical Product Development, Inc.(1) 6,700 181,738
---------------------------------------------------------------------------------------------------------------------
Physician Support Systems, Inc.(1) 20,000 355,000
--------------
3,743,863
</TABLE>
6 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES - 13.7%
---------------------------------------------------------------------------------------------------------------------
ArthroCare Corp.(1) 11,600 $ 261,000
---------------------------------------------------------------------------------------------------------------------
ARV Assisted Living, Inc.(1) 12,000 210,000
---------------------------------------------------------------------------------------------------------------------
Conceptus, Inc.(1) 20,000 395,000
---------------------------------------------------------------------------------------------------------------------
Emeritus Corp.(1) 10,000 212,500
---------------------------------------------------------------------------------------------------------------------
ESC Medical Systems Ltd.(1) 18,000 594,000
---------------------------------------------------------------------------------------------------------------------
Heartstream, Inc.(1) 20,000 295,000
---------------------------------------------------------------------------------------------------------------------
IMPATH, Inc.(1) 30,000 468,750
---------------------------------------------------------------------------------------------------------------------
Intercardia, Inc.(1) 30,000 705,000
---------------------------------------------------------------------------------------------------------------------
Kensey Nash Corp.(1) 20,000 315,000
---------------------------------------------------------------------------------------------------------------------
MedCath, Inc.(1) 18,000 441,000
---------------------------------------------------------------------------------------------------------------------
Molecular Devices Corp.(1) 30,000 371,250
---------------------------------------------------------------------------------------------------------------------
National Surgery Centers, Inc.(1) 7,500 208,125
--------------------------------------------------------------------------------------------------------------------
Pet Practice, Inc. (The)(1) 15,000 133,125
---------------------------------------------------------------------------------------------------------------------
Renal Care Group, Inc.(1) 20,000 550,000
---------------------------------------------------------------------------------------------------------------------
Serologicals Corp.(1) 13,800 277,725
---------------------------------------------------------------------------------------------------------------------
Spine-Tech, Inc.(1) 6,400 160,800
---------------------------------------------------------------------------------------------------------------------
Vitalcom, Inc.(1) 10,000 132,500
--------------
5,730,775
- --------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.8%
---------------------------------------------------------------------------------------------------------------------
Ultralife Batteries, Inc.(1) 20,000 337,500
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.7%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.5%
---------------------------------------------------------------------------------------------------------------------
NUMAR Corp.(1) 18,000 211,500
- --------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 1.2%
---------------------------------------------------------------------------------------------------------------------
3-D Geophysical, Inc.(1) 40,000 380,000
---------------------------------------------------------------------------------------------------------------------
Brown (Tom), Inc.(1) 8,500 110,500
--------------
490,500
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 2.8%
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.3%
---------------------------------------------------------------------------------------------------------------------
Investors Financial Services Corp.(1) 15,000 333,750
---------------------------------------------------------------------------------------------------------------------
Rockford Industries, Inc.(1) 20,000 207,500
--------------
541,250
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.5%
---------------------------------------------------------------------------------------------------------------------
First Commonwealth, Inc.(1) 15,000 390,000
---------------------------------------------------------------------------------------------------------------------
Meadowbrook Insurance Group, Inc. 8,000 216,000
--------------
606,000
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 7.3%
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 6.8%
---------------------------------------------------------------------------------------------------------------------
CIBER, Inc.(1) 15,000 397,500
---------------------------------------------------------------------------------------------------------------------
CKS Group, Inc.(1) 3,900 129,675
---------------------------------------------------------------------------------------------------------------------
CORT Business Services Corp.(1) 20,000 320,000
---------------------------------------------------------------------------------------------------------------------
Daisytek International Corp.(1) 15,000 461,250
---------------------------------------------------------------------------------------------------------------------
Eagle USA Airfreight, Inc.(1) 9,000 252,000
---------------------------------------------------------------------------------------------------------------------
META Group, Inc.(1) 20,000 485,000
---------------------------------------------------------------------------------------------------------------------
Sitel Corp.(1) 16,400 627,300
---------------------------------------------------------------------------------------------------------------------
Transaction Network Services, Inc.(1) 6,000 181,500
--------------
2,854,225
</TABLE>
7 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.5%
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Zoltek Cos., Inc.(1) 9,000 $ 220,500
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 25.1%
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 2.4%
---------------------------------------------------------------------------------------------------------------------
Citrix Systems, Inc.(1) 4,000 174,000
---------------------------------------------------------------------------------------------------------------------
Encad, Inc.(1) 20,000 500,000
---------------------------------------------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(1) 25,000 325,000
---------------------------------------------------------------------------------------------------------------------
Objective Systems Integrators, Inc.(1) 500 20,500
--------------
1,019,500
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 16.0%
---------------------------------------------------------------------------------------------------------------------
Adept Technology, Inc.(1) 5,300 88,775
---------------------------------------------------------------------------------------------------------------------
AMISYS Managed Care Systems, Inc.(1) 6,300 141,750
---------------------------------------------------------------------------------------------------------------------
Arbor Software Corp.(1) 2,500 107,500
---------------------------------------------------------------------------------------------------------------------
Aspen Technologies, Inc.(1) 8,400 327,600
---------------------------------------------------------------------------------------------------------------------
Casino Data Systems(1) 9,000 159,750
---------------------------------------------------------------------------------------------------------------------
Cybercash, Inc.(1) 15,000 753,750
---------------------------------------------------------------------------------------------------------------------
Cylink Corp.(1) 25,000 587,500
--------------------------------------------------------------------------------------------------------------------
Datalogix International, Inc.(1) 20,000 320,000
---------------------------------------------------------------------------------------------------------------------
Documentum, Inc.(1) 6,000 232,500
---------------------------------------------------------------------------------------------------------------------
Engineering Animation, Inc.(1) 9,500 244,625
---------------------------------------------------------------------------------------------------------------------
Fractal Design Corp.(1) 10,000 153,750
---------------------------------------------------------------------------------------------------------------------
Gensym Corp.(1) 20,000 320,000
---------------------------------------------------------------------------------------------------------------------
IMNET Systems, Inc.(1) 15,000 487,500
---------------------------------------------------------------------------------------------------------------------
Inference Corp., Cl. A(1) 20,000 385,000
---------------------------------------------------------------------------------------------------------------------
Mecon, Inc.(1) 20,000 395,000
---------------------------------------------------------------------------------------------------------------------
MetaTools, Inc.(1) 4,500 119,250
---------------------------------------------------------------------------------------------------------------------
Open Environment Corp.(1) 20,000 160,000
---------------------------------------------------------------------------------------------------------------------
Raptor Systems, Inc.(1) 4,000 127,000
---------------------------------------------------------------------------------------------------------------------
Red Brick Systems, Inc.(1) 12,000 612,000
---------------------------------------------------------------------------------------------------------------------
Spacetec IMC Corp.(1) 25,000 368,750
---------------------------------------------------------------------------------------------------------------------
SPSS, Inc.(1) 10,000 183,750
---------------------------------------------------------------------------------------------------------------------
SQA, Inc.(1) 15,000 405,000
--------------
6,680,750
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.3%
---------------------------------------------------------------------------------------------------------------------
Advanced Technology Materials, Inc.(1) 8,000 84,000
---------------------------------------------------------------------------------------------------------------------
Benchmarq Microelectronics, Inc.(1) 40,000 270,000
---------------------------------------------------------------------------------------------------------------------
Euphonix, Inc.(1) 14,800 148,000
---------------------------------------------------------------------------------------------------------------------
Mackie Designs, Inc.(1) 28,000 269,500
---------------------------------------------------------------------------------------------------------------------
Photon Dynamics, Inc.(1) 29,500 280,250
---------------------------------------------------------------------------------------------------------------------
Richey Electronics, Inc.(1) 30,000 337,500
--------------
1,389,250
</TABLE>
8 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 3.4%
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AML Communications, Inc.(1) 15,000 $ 166,875
---------------------------------------------------------------------------------------------------------------------
Periphonics Corp.(1) 9,000 216,000
---------------------------------------------------------------------------------------------------------------------
ProNet, Inc.(1) 8,000 210,000
---------------------------------------------------------------------------------------------------------------------
Tel-Save Holdings, Inc.(1) 18,800 329,000
---------------------------------------------------------------------------------------------------------------------
TresCom International, Inc.(1) 25,000 375,000
---------------------------------------------------------------------------------------------------------------------
Westell Technologies, Inc., Cl. A(1) 3,000 117,000
------------
1,413,875
------------
Total Common Stocks (Cost $29,396,390) 34,835,175
FACE
AMOUNT
================================================================================================================================
REPURCHASE AGREEMENT - 23.0%
- --------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.41%, dated 2/29/96, to
be repurchased at $9,601,443 on 3/1/96, collateralized by U.S. Treasury
Bonds, 7.25%-7.625%, 8/15/22-11/15/22, with a value of $9,709,201, and
U.S. Treasury Nts., 7.875%, 7/31/96, with a value of $181,137
(Cost $9,600,000) $9,600,000 9,600,000
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $38,996,390) 106.4% 44,435,175
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (6.4) (2,657,479)
------ ------------
NET ASSETS 100.0% $41,777,696
====== ============
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
9 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996(UNAUDITED)
=================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (including repurchase agreement of
$9,600,000)(cost $38,996,390)--see accompanying statement $44,435,175
------------------------------------------------------------------------------------------------------
Cash 513,365
------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,342,127
Investments sold 728,678
Interest 1,442
------------------------------------------------------------------------------------------------------
Deferred organization costs 12,181
------------------------------------------------------------------------------------------------------
Other 1,313
------------
Total assets 47,034,281
=================================================================================================================================
LIABILITIES Payables and other liabilities:
Investments purchased 5,068,506
Shares of beneficial interest redeemed 150,218
Distribution and service plan fees 10,978
Trustees' fees 60
Other 26,823
------------
Total liabilities 5,256,585
=================================================================================================================================
NET ASSETS $41,777,696
============
=================================================================================================================================
COMPOSITION OF Paid-in capital $36,895,313
NET ASSETS ------------------------------------------------------------------------------------------------------
Accumulated net investment loss (33,720)
------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (522,682)
------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 5,438,785
------------
Net assets $41,777,696
============
=================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $26,395,441 and 1,952,497 shares of beneficial interest outstanding) $13.52
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $14.34
------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $12,370,659 and 916,766 shares of beneficial interest outstanding) $13.49
------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $3,011,596 and 223,190 shares of beneficial interest outstanding) $13.49
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Enterprise Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE PERIOD ENDED FEBRUARY 29, 1996(1)(UNAUDITED)
=================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Interest $ 71,858
=================================================================================================================================
EXPENSES Management fees--Note 4 41,767
------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 8,533
Class B 15,551
Class C 4,199
------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 7,954
Class B 3,746
Class C 900
------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 7,022
------------------------------------------------------------------------------------------------------
Custodian fees and expenses 4,516
------------------------------------------------------------------------------------------------------
Legal and auditing fees 3,601
------------------------------------------------------------------------------------------------------
Shareholder reports 2,787
------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 60
------------------------------------------------------------------------------------------------------
Other 4,942
------------
Total expenses 105,578
=================================================================================================================================
NET INVESTMENT LOSS (33,720)
=================================================================================================================================
REALIZED AND Net realized loss on investments (522,682)
UNREALIZED GAIN (LOSS) ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 5,438,785
-----------
Net realized and unrealized gain 4,916,103
=================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,882,383
===========
</TABLE>
1. For the period from November 7, 1995
(commencement of operations) to February 29, 1996.
See accompanying Notes to Financial Statements.
11 Oppenheimer Enterprise Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
FEBRUARY 29,
1996(1)
(UNAUDITED)
=================================================================================================================================
<S> <C> <C>
OPERATIONS Net investment loss $ (33,720)
------------------------------------------------------------------------------------------------------
Net realized loss (522,682)
------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 5,438,785
------------
Net increase in net assets resulting
from operations 4,882,383
=================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions--Note 2:
Class A 23,260,137
Class B 10,991,433
Class C 2,643,743
=================================================================================================================================
NET ASSETS Total increase 41,777,696
------------------------------------------------------------------------------------------------------
Beginning of period --
------------
End of period (including accumulated loss of $33,720) $41,777,696
============
</TABLE>
1. For the period from November 7, 1995
(commencement of operations) to February 29, 1996.
See accompanying Notes to Financial Statements.
12 Oppenheimer Enterprise Fund
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------ ------------ ------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
FEBRUARY 29, FEBRUARY 29, FEBRUARY 29,
1996(1) 1996(1) 1996(1)
=============================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.00 $10.00
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.01) (.02) (.02)
Net realized and unrealized gain 3.53 3.51 3.51
------- ------- -------
Total income from investment operations 3.52 3.49 3.49
- -------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment
income -- -- --
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.52 $13.49 $13.49
======= ======= =======
=============================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 35.20% 34.90% 34.90%
=============================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $26,395 $12,371 $3,012
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $11,687 $ 5,030 $1,356
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets(3):
Net investment loss (0.31)% (1.08)% (1.05)%
Expenses 1.58% 2.34% 2.32%
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 21.9% 21.9% 21.9%
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
February 29, 1996.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended February 29, 1996 were $33,890,556 and $3,972,985, respectively.
See accompanying Notes to Financial Statements.
13 Oppenheimer Enterprise Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Enterprise Fund (the Fund), is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is capital appreciation. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund
offers Class A, Class B and Class C shares. Class B and Class C shares may be
subject to a contingent deferred sales charge. All three classes of shares have
identical rights to earnings, assets and voting privileges, except that each
class has its own distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights with respect to
matters affecting a single class. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a summary
of significant accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
asked price or the last sale price on the prior trading day. Long-term and
short-term "non-money market" debt securities are valued by a portfolio pricing
service approved by the Board of Trustees. Such securities which cannot be
valued by the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less are
valued at cost (or last determined market value) adjusted for amortization to
maturity of any premium or discount.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, 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.
- --------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
14 Oppenheimer Enterprise Fund
<PAGE>
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
ORGANIZATION COSTS. The Manager advanced $13,000 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.
- --------------------------------------------------------------------------------
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 (loss) 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 unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
================================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 29, 1996(1)
------------------------------------
SHARES AMOUNT
-------------------------------------------------------------------------------------
Class A:
<S> <C> <C>
Sold 2,058,210 $24,551,955
Redeemed (105,713) (1,291,818)
---------- -----------
Net increase 1,952,497 $23,260,137
========== ===========
-------------------------------------------------------------------------------------
Class B:
Sold 933,084 $11,200,949
Redeemed (16,318) (209,516)
---------- -----------
Net increase 916,766 $10,991,433
========== ===========
-------------------------------------------------------------------------------------
Class C:
Sold 227,794 $ 2,698,852
Redeemed (4,604) (55,109)
---------- -----------
Net increase 223,190 $ 2,643,743
========== ===========
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
February 29, 1996.
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At February 29, 1996, net unrealized appreciation on investments of $5,438,785
was composed of gross appreciation of $5,827,155, and gross depreciation of
$388,370.
15 Oppenheimer Enterprise Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of 0.75% of
the first $200 million of aggregate net assets, 0.72% of the next $200 million,
0.69% of the next $200 million, 0.66% of the next $200 million, and 0.60% of net
assets in excess of $800 million. The Manager has agreed to reimburse the Fund
if aggregate expenses (with specified exceptions) exceed the most stringent
applicable regulatory limit on Fund expenses.
For the period ended February 29, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $298,942, of which $69,399 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 $349,030 and $20,748, of which $3,831 and $150,
respectively, was paid to an affiliated broker/dealer. During the period ended
February 29, 1996, OFDI received contingent deferred sales charges of $2,070 and
$1,170, 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.
Under separate approved plans, each class may expend up to .25% of its net
assets annually to compensate OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other institutions. In
addition, Class B and Class C shares are subject to an asset-based sales charge
of .75% of net assets annually, to compensate OFDI for sales commissions paid
from its own resources at the time of sale and associated financing costs. In
the event of termination or discontinuance of the Class B or Class C plan, the
Board of Trustees may allow the Fund to continue payment of the asset-based
sales charge to OFDI for distribution expenses incurred on Class B or Class C
shares sold prior to termination or discontinuance of the plan. During the
period ended February 29, 1996, OFDI retained $15,551 and $4,199, respectively,
as compensation for Class B and Class C sales commissions and service fee
advances, as well as financing costs.
16 Oppenheimer Enterprise Fund
<PAGE>
OPPENHEIMER ENTERPRISE FUND
================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Jay W. Tracey, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
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 Enterprise Fund. This
report must be preceded or accompanied by a Prospectus of Oppenheimer Enterprise
Fund. For material information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
17 Oppenheimer Enterprise 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 comfor-
table knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people
just like you reach their financial goals. And you're investing
with a leader in global, growth stock and flexible fixed-income
investments--with over 2.8 million shareholder accounts and more
than $50 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by tele-
phone.(1) For more information on Oppenheimer funds, please con-
tact your financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on the
back cover. As always, please read the prospectus carefully
before you invest.
================================================================================
STOCK FUNDS Disciplined Value Fund Oppenheimer Fund
Discovery Fund Quest Global Value Fund
Enterprise Fund Quest Small Cap Value Fund
Global Emerging Growth Fund Quest Value Fund
Global Fund Target Fund
Gold & Special Minerals Fund Value Stock Fund
Growth Fund
================================================================================
STOCK & BOND Asset Allocation Fund Main Street Income & Growth Fund
FUNDS Bond Fund for Growth Quest Growth & Income Value Fund
Disciplined Allocation Fund Quest Opportunity Value Fund
Equity Income Fund Strategic Income & Growth Fund
Global Growth & Income Fund Total Return Fund
================================================================================
BOND FUNDS Bond Fund Limited-Term Government Fund
Champion Income Fund Strategic Income Fund
High Yield Fund U.S. Government Trust
International Bond Fund
================================================================================
TAX-EXEMPT California Tax-Exempt Fund(2) Pennsylvania Tax-Exempt Fund(2)
FUNDS Florida Tax-Exempt Fund(2) Tax-Free Bond Fund
Insured Tax-Exempt Fund
Intermediate Tax-Exempt Fund Rochester Division
New Jersey Tax-Exempt Fund(2) Limited-Term N.Y. Municipal Fund(2)
New York Tax-Exempt Fund(2) Rochester Fund Municipals
================================================================================
MONEY MARKET Cash Reserves Money Market Fund
FUNDS
================================================================================
LIFESPAN Balanced Fund Income Fund
Growth 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. Available only to investors in certain states.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c-Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
18 Oppenheimer Enterprise Fund
<PAGE>
[Blank page]
<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
- --------------
RS0885.001.0296 April 30, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
As an Oppenheimer funds 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 fund's transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-R- --------------
OppenheimerFunds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
--------------
