<PAGE> 1
[PHOTO]
OPPENHEIMER ENTERPRISE FUND
Semiannual Report February 28, 1997
"We're looking for
high growth,
and that means
investing
aggressively
and for
the long haul."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT A FUND THAT TAKES PART IN OPPORTUNITIES
PRESENTED BY SMALL, UNKNOWN COMPANIES WITH HIGH 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 opportunities for growth. The Fund looks to
invest in companies before they're discovered by the market, when their
potential for rapid growth is high.
The Fund intends to emphasize "micro-cap" stocks--those with market
capitalization of up to $200 million. Although small-cap stocks may be subject
to more severe price fluctuations because they involve greater risks 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 may be
lowered.
PERFORMANCE
Cumulative total returns for the six months ended 2/28/97 were (1.14)% for
Class A shares, (1.55)% for Class B shares and (1.55)% 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 were (6.62)% and 20.85%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception were (6.24)% and 22.52%, respectively.
For Class C shares, average annual total returns for the 1-year period ended
3/31/97 and since inception were (2.65)% and 25.07%, respectively. The Fund's
inception date (all classes) was 11/7/95.(2)
OUTLOOK
"As in the past, identifying and investing in successful small companies should
produce successful investment results over time, and we are confident that they
will."
Jay Tracey, Portfolio Manager
February 28, 1997
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 maximum initial sales charge of 5.75%. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 4% (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.
2 Oppenheimer Enterprise Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Enterprise Fund
Dear Shareholder,
We don't expect this year's stock market to report the record-breaking returns
we saw last year. However, we do believe it may be a year in which investors
can take advantage of some great buying opportunities. Our optimism can be
traced to three key issues: solid economic fundamentals that should remain
stable throughout the calendar year; the robust investing habits of aging baby
boomers; and the globalization of the world economy.
First, the economy is expanding slowly, but steadily. Interest rates are
still relatively low despite the Federal Reserve's recent increase in
short-term rates. In turn, low interest rates translate into reduced borrowing
rates for companies and individuals. Companies have taken advantage of the
savings by using it to improve their technologies, thereby increasing their
productivity and efficiency. By downsizing and implementing other cost-cutting
strategies, companies in the United States are now better equipped to compete
globally.
In addition, inflation is at its lowest level in three decades. While
it's true that an increase in interest rates often indicates an accelerating
economy, the Federal Reserve has been quick to acknowledge that inflation and
growth are under control. In fact, they've labeled the recent move as a
"preemptive" act to keep inflation at these low levels and extend the economy's
healthy growth cycle.
Second, monthly cash flows into mutual funds have been higher, largely
due to the savings pattern of the baby boomers. The first wave of this
crowd--those just turning 50--are beginning to direct more money toward their
retirement. Concerned about proposed cutbacks in Social Security benefits,
more and more individuals believe they will have to fund a large portion of
their retirement themselves. In addition to retirement, baby boomers have
other very strong incentives to save. As they gradually pay off their
children's college expenses and reduce their mortgages, their budgets may allow
them to save more aggressively.
Third, with many stock prices in the United States having reach all-time
highs, investors are discovering attractive opportunities overseas. For
example, throughout Europe we continue to see slow but steady economic growth,
combined with low inflation and low interest rates. In addition, many of these
countries have begun to instill the management practices of downsizing and
streamlining operations that made U.S. corporations so profitable a decade ago.
Currently, European large-cap stocks are trading in a range of 12 to 16 times
earnings, versus U.S. stocks that are trading at a average 18 to 19 times
earnings. While foreign investments are subject to greater expenses and risks,
such as currency fluctuations, they can also offer outstanding opportunities
for both diversification and long-term appreciation potential.
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. We look forward to helping you reach your investment goals
in the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
March 21, 1997
3 Oppenheimer Enterprise Fund
<PAGE> 4
[PHOTOS]
Q + A
Q WHAT
INVESTMENTS
MADE POSITIVE
CONTRIBUTIONS TO
PERFORMANCE?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED?
Because investors seem to have preferred the conservative nature of larger-cap
stocks during the second half of last year, small-cap investments reported
smaller gains. But, in December, the Fund rebounded significantly.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
In this Fund, we use a "bottom-up" investment style, carefully choosing each
stock based on the underlying company's individual sales and earnings-growth
characteristics. This strategy led us to invest in a number of stocks that
became star performers during the period.
One example is a business that serves a niche market of car hobbyists and
collectors. Beginning as a small shop that sold customized tires, the business
has grown into a thriving enterprise with a reputation for offering highly
coveted, trendsetting automotive products. Another strong performer is a firm
that specializes in mixed-signal integrated circuits used in products such as
laptop computers and cellular phones. These chips enable such devices to
economize and manage power consumption, thereby optimizing and extending
battery performance.
Within the energy sector, we've invested in companies that have strong
management teams and hold much growth potential. One firm, in particular, is
leading the way to uncovering new oil and gas reserves in untapped areas of the
world, such as Poland.(1)
DID ANY INVESTMENTS HINDER THE PORTFOLIO'S PERFORMANCE?
Healthcare stocks lagged due in part to pre-election fears concerning Medicare
and Medicaid reimbursement reforms. In addition, some of the industry's
small-cap companies reported
1. The Fund's portfolio is subject to change.
4 Oppenheimer Enterprise Fund
<PAGE> 5
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 ENERGY
COMPANIES THAT
HAVE STRONG
MANAGEMENT
TEAMS AND HOLD
MUCH GROWTH
POTENTIAL.
disappointing September quarter earnings.
Some specialty retail stocks also were disappointing. One stock, a
retail jewelry chain, suffered from lower industry-wide jewelry sales over this
Christmas season. In another case, a retailer of party goods and supplies, the
stock declined despite good earnings because of investor concerns about
competition. Believing those concerns to be unwarranted, we added to the Fund's
position.
[PHOTO]
WHAT FACTORS DO YOU EXPECT TO HAVE THE MOST IMPACT ON THE FUND IN THE CURRENT
MARKET ENVIRONMENT?
We expect the Fund's performance to be driven more by individual stock
selection than by sector or industry-group weightings over the coming months.
Also, though large-cap stocks have outperformed small-caps in recent months,
emerging growth stocks, such as those held by the Fund, are now attractively
valued and poised to perform better going forward.
Our basic investment approach is to search for well-run companies with
outstanding growth prospects. We still favor many of the same types of
companies. For instance, the success of healthcare companies is not dependent
upon the typical business cycle, so we'll continue to search for unique
businesses that will have the potential to revolutionize healthcare, either
through technologies, services or innovative devices. Another area of great
interest to us is commercial telecommunications service companies. We see a new
pattern of rapid growth and consolidation emerging and believe this trend also
offers potential for growth opportunities.
[PHOTO]
WHAT IS YOUR OUTLOOK FOR THE FUND?
We remain optimistic. While we don't know whether small-cap stocks, as a
sector, will outperform this year, many opportunities exist to invest in
companies with good business fundamentals at attractive prices. As in the past,
identifying and investing in successful small companies should produce
successful investment results over time, and we are confident that they will.
5 Oppenheimer Enterprise Fund
<PAGE> 6
STATEMENT OF INVESTMENTS February 28, 1997 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
===================================================================================================================================
<S> <C> <C>
COMMON STOCKS--92.5%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--3.4%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.4%
Alyn Corp.(1) 50,000 $ 468,750
----------------------------------------------------------------------------------------------------------------------------
ArQule, Inc.(1) 50,000 987,500
----------------------------------------------------------------------------------------------------------------------------
Brunswick Technologies, Inc.(1) 80,000 760,000
----------
2,216,250
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--20.9%
- -----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--3.8%
Boyds Wheels, Inc.(1) 100,000 712,500
----------------------------------------------------------------------------------------------------------------------------
National R.V. Holdings, Inc.(1)(2) 70,000 889,437
----------------------------------------------------------------------------------------------------------------------------
NHP, Inc.(1) 14,400 349,200
----------------------------------------------------------------------------------------------------------------------------
Team Rental Group, Inc.(1) 20,000 557,500
----------
2,508,637
- -----------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--6.6%
Casa Ole(acute) Restaurants, Inc.(1)(3) 76,500 702,844
----------------------------------------------------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(1) 45,000 1,125,000
----------------------------------------------------------------------------------------------------------------------------
PJ America, Inc.(1) 40,000 670,000
----------------------------------------------------------------------------------------------------------------------------
Schlotzsky's, Inc.(1) 70,000 770,000
----------------------------------------------------------------------------------------------------------------------------
Silver Diner, Inc.(1) 80,000 300,000
----------------------------------------------------------------------------------------------------------------------------
Silver Diner, Inc.(1)(2) 50,000 178,125
----------------------------------------------------------------------------------------------------------------------------
Vacation Break USA, Inc.(1) 40,000 565,000
----------
4,310,969
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIA--0.6%
Raster Graphics, Inc. 50,000 418,750
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--2.0%
North Face, Inc. (The)(1) 24,000 417,000
----------------------------------------------------------------------------------------------------------------------------
Sport-Haley, Inc.(1) 60,000 900,000
----------
1,317,000
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--7.9%
Coldwater Creek, Inc.(1) 30,000 551,250
----------------------------------------------------------------------------------------------------------------------------
dELiA*s, Inc.(1) 30,000 532,500
----------------------------------------------------------------------------------------------------------------------------
Factory Card Outlet Corp.(1) 100,000 925,000
----------------------------------------------------------------------------------------------------------------------------
Marks Bros. Jewelers, Inc.(1) 50,000 450,000
----------------------------------------------------------------------------------------------------------------------------
Mazel Stores, Inc.(1) 30,000 716,250
----------------------------------------------------------------------------------------------------------------------------
Party City Corp.(1) 70,000 1,137,500
----------------------------------------------------------------------------------------------------------------------------
RDO Equipment Co., Cl. A(1) 50,000 868,750
----------
5,181,250
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--24.1%
- -----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.0%
Puro Water Group, Inc.(1) 110,000 660,000
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.8%
ARIAD Pharmaceuticals, Inc.(1) 100,000 700,000
----------------------------------------------------------------------------------------------------------------------------
Diagnostic Health Services, Inc.(1) 140,000 1,242,500
----------------------------------------------------------------------------------------------------------------------------
Global Pharmaceutical Corp.(1) 40,000 320,000
----------------------------------------------------------------------------------------------------------------------------
Norland Medical Systems, Inc.(1) 40,000 280,000
----------------------------------------------------------------------------------------------------------------------------
Onyx Pharmaceuticals, Inc.(1) 60,000 630,000
----------
3,172,500
</TABLE>
6 Oppenheimer Enterprise Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES &
SERVICES--18.3%
Advance ParadigM, Inc.(1) 40,000 $ 595,000
----------------------------------------------------------------------------------------------------------------------------
Apogee, Inc.(1) 135,000 506,250
----------------------------------------------------------------------------------------------------------------------------
Calypte Biomedical Corp.(1) 80,000 660,000
----------------------------------------------------------------------------------------------------------------------------
Carriage Services, Inc.(3) 30,000 630,000
----------------------------------------------------------------------------------------------------------------------------
Cornell Corrections, Inc.(1) 80,000 850,000
----------------------------------------------------------------------------------------------------------------------------
EP MedSystems, Inc.(1) 100,000 400,000
----------------------------------------------------------------------------------------------------------------------------
HumaScan, Inc.(1) 117,600 1,675,800
----------------------------------------------------------------------------------------------------------------------------
Integrated Living Communities, Inc.(1) 70,900 469,712
----------------------------------------------------------------------------------------------------------------------------
Medical Manager Corp.(1) 50,000 525,000
----------------------------------------------------------------------------------------------------------------------------
Meridian Diagnostics, Inc. 100,000 1,112,500
----------------------------------------------------------------------------------------------------------------------------
Nitinol Medical Technologies, Inc.(1) 61,000 610,000
----------------------------------------------------------------------------------------------------------------------------
Photoelectron Corp.(1) 70,000 542,500
----------------------------------------------------------------------------------------------------------------------------
Premier Research Worldwide Ltd.(1) 20,000 442,500
----------------------------------------------------------------------------------------------------------------------------
Sabratek Corp.(1) 40,000 935,000
----------------------------------------------------------------------------------------------------------------------------
Superior Consultant Holdings Corp.(1) 60,000 1,215,000
----------------------------------------------------------------------------------------------------------------------------
Ventana Medical Systems, Inc.(1) 50,000 900,000
-----------
12,069,262
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.8%
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--3.4%
FX Energy, Inc.(1) 100,000 1,050,000
----------------------------------------------------------------------------------------------------------------------------
NUMAR Corp.(1) 45,000 753,750
----------------------------------------------------------------------------------------------------------------------------
Superior Energy Services, Inc.(1) 100,000 445,313
-----------
2,249,063
- -----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.4%
Dailey Petroleum Services Corp.(1) 60,000 600,000
----------------------------------------------------------------------------------------------------------------------------
Patterson Energy, Inc.(1) 15,000 345,000
-----------
945,000
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--4.9%
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--4.9%
Investors Financial Services Corp. 45,000 1,428,750
----------------------------------------------------------------------------------------------------------------------------
Rockford Industries, Inc.(1) 80,000 840,000
----------------------------------------------------------------------------------------------------------------------------
Winthrop Resources Corp. 30,000 975,000
-----------
3,243,750
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--14.7%
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--12.1%
Correctional Services Corp.(1) 20,000 207,500
----------------------------------------------------------------------------------------------------------------------------
Cuno, Inc.(1) 60,000 907,500
----------------------------------------------------------------------------------------------------------------------------
Dynamex, Inc.(1) 100,000 875,000
----------------------------------------------------------------------------------------------------------------------------
Farr Co.(1) 60,000 1,125,000
----------------------------------------------------------------------------------------------------------------------------
ICTS International NV(1) 60,000 472,500
----------------------------------------------------------------------------------------------------------------------------
Leap Group, Inc. (The)(1) 100,000 775,000
----------------------------------------------------------------------------------------------------------------------------
NCO Group, Inc.(1) 15,000 405,000
----------------------------------------------------------------------------------------------------------------------------
ONTRACK Data International, Inc.(1) 45,000 826,875
----------------------------------------------------------------------------------------------------------------------------
Service Experts, Inc.(1) 35,000 901,250
----------------------------------------------------------------------------------------------------------------------------
Stericycle, Inc.(1) 100,000 937,500
----------------------------------------------------------------------------------------------------------------------------
Unidigital, Inc.(1) 100,000 537,500
-----------
7,970,625
</TABLE>
7 Oppenheimer Enterprise Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING--1.2%
Flanders Corp.(1) 70,000 $ 805,000
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
Genesee & Wyoming, Inc., Cl. A(1) 30,000 930,000
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--19.7%
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.9%
MicroTouch Systems, Inc.(1) 40,000 1,050,000
----------------------------------------------------------------------------------------------------------------------------
Network Computing Devices, Inc.(1) 120,000 1,515,000
-----------
2,565,000
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--7.6%
Engineering Animation, Inc.(1) 27,000 614,250
----------------------------------------------------------------------------------------------------------------------------
ILOG SA, Sponsored ADR(1) 40,000 330,000
----------------------------------------------------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(1) 30,000 536,250
----------------------------------------------------------------------------------------------------------------------------
Qualix Group, Inc.(1) 75,000 571,875
----------------------------------------------------------------------------------------------------------------------------
Rogue Wave Software, Inc.(1) 40,000 465,000
----------------------------------------------------------------------------------------------------------------------------
SeaChange International, Inc.(1) 30,000 585,000
----------------------------------------------------------------------------------------------------------------------------
SELECT Software Tools Ltd., ADR(1) 40,000 560,000
----------------------------------------------------------------------------------------------------------------------------
SPSS, Inc.(1) 20,000 500,000
----------------------------------------------------------------------------------------------------------------------------
Versant Object Technology Corp.(1) 20,000 215,000
----------------------------------------------------------------------------------------------------------------------------
Visigenic Software, Inc.(1) 60,000 585,000
-----------
4,962,375
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--3.0%
Advanced Technology Materials, Inc.(1) 47,000 893,000
----------------------------------------------------------------------------------------------------------------------------
BENCHMARQ Microelectronics, Inc.(1) 60,000 1,065,000
-----------
1,958,000
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--5.2%
GeoTel Communications Corp.(1) 50,000 787,500
----------------------------------------------------------------------------------------------------------------------------
Lightbridge, Inc.(1) 75,000 656,250
----------------------------------------------------------------------------------------------------------------------------
PhoneTel Technologies, Inc.(1) 350,000 1,246,875
----------------------------------------------------------------------------------------------------------------------------
Spectran Corp.(1) 40,000 735,000
-----------
3,425,625
-----------
Total Common Stocks (Cost $55,199,703) 60,909,056
<CAPTION>
FACE
AMOUNT
===================================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--7.3%
----------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 5.36%, dated
2/28/97, to be repurchased at $4,802,144 on 3/3/97, collateralized
by U.S. Treasury Nts., 6.125%--7.875%, 5/15/99--11/15/04,
with a value of $4,911,859 (Cost $4,800,000) $4,800,000 4,800,000
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $59,999,703) 99.8% 65,709,056
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.2 105,866
---------- -----------
NET ASSETS 100.0% $65,814,922
========== ===========
</TABLE>
1. Non-income producing security.
2. Identifies issues considered to be illiquid--See Note 5 of Notes to
Financial Statements.
3. 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
$1,332,844 or 2.03% of the Fund's net assets, at February 28, 1997.
See accompanying Notes to Financial Statements.
8 Oppenheimer Enterprise Fund
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES February 28, 1997 (Unaudited)
<TABLE>
===================================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $59,999,703)--see accompanying statement $65,709,056
----------------------------------------------------------------------------------------------------------------------------
Cash 75,250
----------------------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 321,735
Shares of beneficial interest sold 70,640
Interest 715
----------------------------------------------------------------------------------------------------------------------------
Other 17,808
-----------
Total assets 66,195,204
===================================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 255,815
Shareholder reports 45,254
Distribution and service plan fees 26,178
Trustees' fees 15,010
Transfer and shareholder servicing agent fees 11,140
Legal and auditing fees 7,747
Other 18,838
-----------
Total liabilities 380,282
===================================================================================================================================
NET ASSETS $65,814,922
===========
===================================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $58,133,751
----------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (488,984)
----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 2,460,802
----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies--Note 3 5,709,353
-----------
Net assets $65,814,922
===========
===================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $41,608,534
and 2,922,551 shares of beneficial interest outstanding) $14.24
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $15.11
----------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $19,761,173 and 1,402,053 shares of beneficial interest outstanding) $14.09
----------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $4,445,215 and 315,477 shares of beneficial interest outstanding) $14.09
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Enterprise Fund
<PAGE> 10
STATEMENT OF OPERATIONS For the Six Months Ended February 28, 1997
(Unaudited)
<TABLE>
===================================================================================================================================
<S> <C>
Investment Income
Interest $ 108,982
----------------------------------------------------------------------------------------------------------------------------
Dividends 14,250
-----------
Total income 123,232
===================================================================================================================================
EXPENSES
Management fees--Note 4 259,757
----------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 46,419
Class B 103,084
Class C 23,417
----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 73,850
----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 67,421
----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 14,668
----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 6,870
----------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 5,965
----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 179
Class B 262
----------------------------------------------------------------------------------------------------------------------------
Other 8,156
-----------
Total expenses 610,048
===================================================================================================================================
NET INVESTMENT LOSS (486,816)
===================================================================================================================================
REALIZED AND
UNREALIZED GAIN (LOSS)
Net realized gain on investments 4,869,082
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (5,202,579)
-----------
Net realized and unrealized loss (333,497)
===================================================================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (820,313)
==========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Enterprise Fund
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
FEB. 28, 1997 AUGUST 31,
(UNAUDITED) 1996(1)
===================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment loss $ (486,816) $ (343,149)
----------------------------------------------------------------------------------------------------------------------------
Net realized gain 4,869,082 2,595,623
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (5,202,579) 10,911,932
----------- -----------
Net increase (decrease) in net assets resulting from operations (820,313) 13,164,406
===================================================================================================================================
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions from net realized gain:
Class A (2,947,280) --
Class B (1,406,497) --
Class C (317,008) --
===================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A 591,689 35,949,485
Class B 864,019 16,853,753
Class C (22,227) 3,904,895
===================================================================================================================================
NET ASSETS
Total increase (decrease) (4,057,617) 69,872,539
----------------------------------------------------------------------------------------------------------------------------
Beginning of period 69,872,539 --
----------- -----------
End of period (including accumulated net investment losses of
$488,984 and $2,168, respectively) $65,814,922 $69,872,539
=========== ===========
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
August 31, 1996.
See accompanying Notes to Financial Statements.
11 Oppenheimer Enterprise Fund
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------------------ ------------------------ -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
FEB. 28, 1997 AUG. 31, FEB. 28, 1997 AUG. 31, FEB. 28, 1997 AUG. 31,
(UNAUDITED) 1996(1) (UNAUDITED) 1996(1) (UNAUDITED) 1996(1)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.48 $10.00 $15.39 $10.00 $15.39 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.01) (.05) (.06) (.14) (.06) (.14)
Net realized and unrealized gain (loss) (.16) 5.53 (.17) 5.53 (.17) 5.53
-------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations (.17) 5.48 (.23) 5.39 (.23) 5.39
- -------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (1.07) -- (1.07) -- (1.07) --
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.24 $15.48 $14.09 $15.39 $14.09 $15.39
======== ======= ======= ======= ======= =======
===============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (1.14)% 54.80% (1.55)% 53.90% (1.55)% 53.90%
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $41,609 $44,421 $19,761 $20,606 $4,445 $4,846
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $44,399 $30,655 $20,821 $14,123 $4,729 $3,472
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment loss (1.11)% (0.59)% (1.89)% (1.37)% (1.89)% (1.35)%
Expenses(4) 1.47% 1.66% 2.25% 2.44% 2.25% 2.43%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 76.7% 155.6% 76.7% 155.6% 76.7% 155.6%
Average brokerage commission rate(6) $0.0600 $0.0579 $0.0600 $0.0579 $0.0600 $0.0579
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to August
31, 1996.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or commencement of operations), 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 expense ratio reflects the effect of gross expenses paid indirectly by
the Fund.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended February 28, 1997 were $49,749,791 and $55,945,362,
respectively.
6. 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.
12 Oppenheimer Enterprise Fund
<PAGE> 13
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, primarily through investment in equity securities
of small U.S. and foreign companies. The Fund's investment adviser 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 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.
------------------------------------------------------------------------
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.
13 Oppenheimer Enterprise Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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.
During the six months ended February 28, 1997, a provision of $12,413
was made for the Fund's projected benefit obligations, and payments of
$9,450 were made to retired trustees, resulting in an accumulated
liability of $3,622 at February 28, 1997.
------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
------------------------------------------------------------------------
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 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.
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.
14 Oppenheimer Enterprise Fund
<PAGE> 15
===============================================================================
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>
SIX MONTHS ENDED FEBRUARY 28, 1997 PERIOD ENDED AUGUST 31, 1996(1)
---------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 241,064 $ 3,699,551 3,497,248 $45,306,140
Reinvested 193,508 2,765,233 -- --
Redeemed (382,394) (5,873,095) (626,875) (9,356,655)
---------- ------------ ------------ ------------
Net increase 52,178 $ 591,689 2,870,373 $35,949,485
========== ============ ============ ============
------------------------------------------------------------------------------------------------------------
Class B:
Sold 91,440 $ 1,397,172 1,532,771 $19,742,737
Reinvested 93,212 1,320,815 -- --
Redeemed (121,623) (1,853,968) (193,747) (2,888,984)
---------- ------------ ------------ ------------
Net increase 63,029 $ 864,019 1,339,024 $16,853,753
========== ============ ============ ============
------------------------------------------------------------------------------------------------------------
Class C:
Sold 22,883 $ 347,846 395,954 $ 5,114,214
Reinvested 20,665 292,614 -- --
Redeemed (43,010) (662,687) (81,015) (1,209,319)
---------- ------------ ------------ ------------
Net increase (decrease) 538 $ (22,227) 314,939 $ 3,904,895
========== ============ ============ ============
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
August 31, 1996.
===============================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At February 28, 1997, net unrealized appreciation on investments of
$5,709,353 was composed of gross appreciation of $10,400,759, and gross
depreciation of $4,691,406.
===============================================================================
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.
For the six months ended February 28, 1997, commissions (sales
charges paid by investors) on sales of Class A shares totaled $49,957,
of which $12,294 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 $43,045
and $2,869, of which $1,761 was paid to an affiliated broker/dealer for
Class B. During the six months ended February 28, 1997, OFDI received
contingent deferred sales charges of $20,930 and $2,588, 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.
15 Oppenheimer Enterprise Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
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.
Expenses paid indirectly represent a reduction of custodian fees
for earnings on cash balances maintained by the Fund.
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. Reimburse ment 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 February 28, 1997, OFDI paid $1,303 to an
affiliated broker/dealer as reimbursement for Class A personal service
and maintenance expenses.
The Fund has adopted compensation type Distribution and Service
Plans for Class B and Class C shares to compensate OFDI for its services
and costs in distributing Class B and Class C shares and servicing
accounts. Under the Plans, the Fund pays OFDI an annual asset-based
sales charge of 0.75% per year on Class B shares and Class C shares, as
compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a
service fee of 0.25% per year as compensation for costs incurred in
connection with the personal service and maintenance of accounts that
hold shares of the Fund, including amounts paid to brokers, dealers,
banks and other financial institutions. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as
of the close of each regular business day. During the six months ended
February 28, 1997, OFDI retained $97,856 and $18,877, respectively, as
compensation for Class B and Class C sales commissions and service fee
advances, as well as financing costs. If the Plans are 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 Plans were terminated. At February 28, 1997, OFDI had
incurred unreimbursed expenses of $543,423 for Class B and $41,603 for
Class C.
===============================================================================
5. ILLIQUID AND RESTRICTED
SECURITIES
At February 28, 1997, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in
private placement transactions, are not registered under the Securities
Act of 1933, may have contractual restrictions on resale, and are valued
under methods approved by the Board of 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 these securities
subject to this limitation at February 28, 1997 was $1,067,562, which
represents 1.62% of the Fund's net assets. Information concerning
restricted securities is as follows:
<TABLE>
<CAPTION>
COST VALUATION PER UNIT
SECURITY ACQUISITION DATE PER UNIT AS OF FEBRUARY 28, 1997
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
National R.V. Holdings, Inc. 11/26/96 $13.25 $12.71
Silver Diner, Inc. 7/10/96 5.50 3.56
</TABLE>
16 Oppenheimer Enterprise Fund
<PAGE> 17
===============================================================================
6. SHAREHOLDER MEETING
On October 3, 1996, a special shareholder meeting was held at which the
twelve Trustees identified below were elected, the selection of KPMG
Peat Marwick LLP as the independent certified public accountants and
auditors of the Fund for the fiscal period beginning November 7, 1996
was ratified (Proposal No. 1), the proposed investment advisory
agreement was approved (Proposal No. 2), the Fund's Class A 12b-1
Distribution and Service Plan was approved by Class A shareholders
(Proposal No. 3), the Fund's Class B 12b-1 Distribution and Service
plan was approved by Class B shareholders (Proposal No. 4), the Fund's
Class C 12b-1 Distribution and Service Plan was approved by Class C
shareholders (Proposal No. 5) as described in the Fund's proxy statement
for the meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
WITHHELD/ BROKER
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN NON-VOTES TOTAL
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUSTEES
Bridget A. Macaskill 3,003,991.405 34,970.878 N/A 1,482,660.845 3,038,965.283
Robert G. Galli 3,003,378.119 35,584.164 N/A 1,482,600.845 3,038,962.283
Leon Levy 3,000,575.459 38,386.824 N/A 1,482,660.845 3,038,962.283
Benjamin Lipstein 2,994,507.335 44,454.948 N/A 1,482,660.845 3,038,962.283
Elizabeth B. Moynihan 3,000,168.595 38,793.688 N/A 1,482,660.845 3,038,962.283
Kenneth A. Randall 3,000,394.013 38,568.270 N/A 1,482,660.845 3,038,962.283
Edward V. Regan 3,000,656.371 38,305.912 N/A 1,482,660.845 3,038,962.283
Russell S. Reynolds, Jr. 3,001,258.920 37,703.363 N/A 1,482,660.845 3,038,962.283
Sidney M. Robbins 2,990,956.905 48,005.378 N/A 1,482,660.845 3,038,962.283
Donald W. Spiro 2,998,429.229 40,532.984 N/A 1,482,660.845 3,038,962.283
Pauline Trigere 2,991,161.846 47,800.437 N/A 1,482,660.845 3,038,962.283
Clayton K. Yeutter 3,001,207.761 37,754.522 N/A 1,482,660.845 3,038,962.283
--------------------------------------------------------------------------------------------------------------------------
Proposal No. 1 2,965,354.292 6,377.986 67,230.005 1,482,660.845 3,038,962.283
Proposal No. 2 2,282,726.597 23,070.786 68,626.900 2,147,198.845 2,374,424.283
Proposal No. 3 1,355,145.006 35,410.895 51,595.022 1,405,783.383 1,442,150.923
Proposal No. 4 682,012.554 17,135.122 22,976.500 363,321.782 772,124.176
Proposal No. 5 197,445.968 4,738.175 7,965.041 105,093.680 210,149.184
</TABLE>
17 Oppenheimer Enterprise Fund
<PAGE> 18
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
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 ADVISER
OppenheimerFunds, Inc.
===============================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
===============================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
===============================================================================
CUSTODIAN OF PORTFOLIO SECURITIES
The Bank of New York
===============================================================================
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, are not insured by the FDIC or any other
agency, and involve investment risks, including possible loss of the
principal amount invested.
18 Oppenheimer Enterprise Fund
<PAGE> 19
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.
<TABLE>
==================================================================================================================================
<S> <C>
STOCK FUNDS
Developing Markets Fund Quest Capital Value Fund
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Capital Appreciation Fund(3) Quest 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) Rochester Division
Pennsylvania Municipal 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
</TABLE>
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.
19 Oppenheimer Enterprise Fund
<PAGE> 20
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
RS0885.001.0297 April 30, 1997
[PHOTO]
CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"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.
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- ---------------------------------------------
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