----------------------------------------
Semiannual Report February 28, 1998
----------------------------------------
OPPENHEIMER
Enterprise
Fund
[Graphic Omitted]
[LOGO]
OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's
Manager
10 Statement of
Investments
14 Statement of
Assets and
Liabilities
16 Statement of
Operations
17 Statements of
Changes in
Net Assets
18 Financial Highlights
20 Notes to Financial
Statements
27 Officers and
Trustees
28 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o The Asian economic crisis created concerns among investors regarding small
companies. This was due to difficulties in Asia that spurred a renewed
preference for large-cap companies that were perceived as less vulnerable.
However, by the end of February, a degree of confidence had been restored, and
small-cap stocks rallied.
o Our portfolio includes companies that primarily do business in the United
States, where the economy is strong. For that reason, we believe that there is
little cause for concern about falling demand from Asian customers or compe
tition with Asian companies oper ating with devalued currencies.
o We expect 1998 to be a strong year for small company stocks. We are encouraged
by a com bination of factors: attractive valuations in the small-cap sector, as
well as the potential for higher, more stable earnings growth.
- --------------------------------------------------------
Cumulative Total Returns
- --------------------------------------------------------
For the 6-Month Period
Ended 2/28/98
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------------------------
10.43% 4.08%
- --------------------------------------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------------------------
9.96% 4.96%
- --------------------------------------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------------------------------
10.03% 9.03%
- --------------------------------------------------------
Total returns include changes 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 changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
(2). Class A returns include the current maximum initial sales charge of 5.75%.
Class B returns include the applicable contingent deferred sales charge of 5%.
Class C returns include the contingent deferred sales charge of 1%. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.25% service fee and
0.75% asset-based sales charge, and Class A shares are subject to an annual
0.25% service fee. * Oppenheimer Enterprise Fund *
2 Oppenheimer Enterprise Fund
<PAGE>
[Photo omitted]
Bridget A. Macaskill
President
Oppenheimer
Enterprise Fund
Dear shareholder,
- --------------------------------------------------------------------------------
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since the government
began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch farther and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that if
the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see a period of deflation in
the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers, we
continue to keep a watchful eye on these situations and are closely monitoring
your fund's investments. In times like these, your financial advisor can be of
invaluable assistance to you in helping review your financial plan and guide
your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right Way to Invest.
We look forward to helping you reach your investment goals in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
March 20, 1998
3 Oppenheimer Enterprise Fund
<PAGE>
- ---------------------------------------
Avg Annual Total Returns
- ---------------------------------------
For the Periods Ended 3/31/98(1)
Class A
Since
1 year Inception
- ---------------------------------------
54.14% 37.08%
- ---------------------------------------
Class B
Since
1 year Inception
- ---------------------------------------
57.33% 38.68%
- ---------------------------------------
Class C
Since
1 year Inception
- ---------------------------------------
61.37% 39.44%
- ---------------------------------------
Performance update
- --------------------------------------------------------------------------------
Oppenheimer Enterprise Fund performed very well, its Class A shares producing a
cumulative total return, without sales charges, of 10.43% for the six-month
period ended February 28, 1998.(2) The past six months have been an especially
difficult period for small-cap stocks, primarily because investors tended to
favor large-cap stocks whose earnings were considered more predictable. However,
now that a certain degree of confidence has been restored because the Asian
problem appears containable, stocks as a whole--and small stocks in
particular--have begun to perform better. It is our belief that as investors
become more confident, they'll consider small companies more readily.
Largest Industries(3)
- --------------------------------------------------------------------------------
Healthcare/Supplies &
Services 17.8% Leisure & Entertainment 4.8%
- --------------------------------------------------------------------------------
Computer Software/Services 14.3 Oil-Integrated 4.4
- --------------------------------------------------------------------------------
Industrial Services 11.4 Healthcare/Drugs 3.7
- --------------------------------------------------------------------------------
Retail: Specialty 8.0 Electronics 3.6
- --------------------------------------------------------------------------------
Telecommunications/ Energy Services &
Technology 6.1 Producers 3.3
- --------------------------------------------------------------------------------
(1). Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A, B and C shares were first publicly offered on 11/7/95. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 3% since inception. Class C returns for the 1-year period include the
contingent deferred sales charge of 1% for the 1-year result. An explanation of
the different performance calculations is in the Fund's prospectus. Class B and
C shares are subject to an annual 0.25% service fee and 0.75% asset-based sales
charge, and Class A shares are subject to an annual 0.25% service fee.
4 Oppenheimer Enterprise Fund
<PAGE>
Portfolio Allocation(3)
[The following information was represented by a pie chart in the printed
materials.]
[Graphic omitted]
o Stocks 90.5%
o Cash Equivalents 9.5
Portfolio review
- --------------------------------------------------------------------------------
Oppenheimer Enterprise Fund is for investors aggressively seeking long-term
growth from high potential stocks.
What We Look For
o Companies between their start-up and emerging growth phases that we believe
are poised for rapid growth.
o Currently, we emphasize companies with market capitalization of up to $200
million.
o Diversification in a variety of companies and industries to help lower the
volatility of small- and micro-cap investments.
Top 10 Stock Holdings(3)
- --------------------------------------------------------------------------------
New Era of Networks, Inc. 3.4% International Isotopes, Inc. 1.7%
- --------------------------------------------------------------------------------
Keystone Automotive
Advance ParadigM, Inc. 2.8 Industries, Inc. 1.7
- --------------------------------------------------------------------------------
Engineering Animation, Inc. 2.8 Star Buffet, Inc. 1.7
- --------------------------------------------------------------------------------
Cal Dive International, Inc. 2.4 Symphonix Devices, Inc. 1.6
- --------------------------------------------------------------------------------
Party City Corp. 1.8 RDO Equipment Co., Cl. A 1.6
- --------------------------------------------------------------------------------
(2). Includes changes 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.
(3). Portfolio is subject to change. Percentages are as of February 28, 1998 and
are based on total market value of investments.
5 Oppenheimer Enterprise Fund
<PAGE>
"Small U.S. companies tend to be less vulnerable to a slowdown in the Far East
than many U.S. multinational exporters."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did the Fund perform?
For the six-month period ended February 28, 1998, Oppenheimer Enterprise Fund's
Class A shares produced a cumulative total return, without sales charges, of
10.43%.(1) As you know, the Fund emphasizes small companies that the manager
believes have strong growth prospects. Companies of this type performed very
well until mid-October of 1997, when concerns about economic turmoil in Asia led
to a renewed preference for large-cap com panies that were perceived to be less
vulnerable.
However, as the end of the six-month period approached, some degree of
confidence was restored that the Asian problem was containable, and stocks as a
whole--and small stocks in particular--began doing better. When investors are
more confident, they'll consider small companies more readily.
Would the Fund's performance continue to be adversely affected if Asia's
economic problems last a long time?
We don't believe so. U.S. multinationals that produce goods related to Asia's
growth--autos, commodities, computer hardware, construction equipment, tractors,
etc.--are more likely to see their earnings impacted than small stocks and
micro-cap stocks, which are less likely to derive sales from overseas markets.
Our portfolio includes companies that primarily do business in the U.S., where
the economy is strong. We don't believe we have to worry about falling demand
from Asian customers who may no longer be able to afford to buy U.S. products.
(1). Includes changes 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.
6 Oppenheimer Enterprise Fund
<PAGE>
[Photo omitted]
Portfolio Management
Team (l to r)
Jay Tracey
(Portfolio Manager)
Paul LaRocco(2)
Nor do we believe we have to worry as much about competing against Asian
companies with devalued currencies who can now sell their products at lower
prices. In short, we believe small U.S. companies may do better than large-cap
companies because U.S. small caps tend to be less vulnerable to a slowdown in
the Far East than are many U.S. multinational exporters.
What other factors affected your performance?
Many companies in our portfolio are "anti-cyclical," meaning that their fortunes
are less dependent upon the economy's strength than upon management talent.
That's been a benefit for the Fund because many investors expect economic growth
to decelerate in 1998 due to the problems in the Far East. For instance,
healthcare stocks, which comprised nearly 18% of the portfolio at the end of
February, are relatively immune to changes in economic growth rates.
Technology has been a mixed story. As a whole, technology performed poorly
during much of the six-month period. However, our emphasis on software rather
than on hardware, such as semiconductors and equipment, was a plus. The hardware
companies are much more exposed to problems in Asia because a greater percentage
of their customers are there; in contrast, software com panies sell most of
their products domestically.
(2). Paul LaRocco is no longer a member of this portfolio management team as of
3/15/98.
7 Oppenheimer Enterprise Fund
<PAGE>
"While technology as a whole performed poorly during much of the six-month
period..."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
What stocks performed well during the six-month period?
In computer software, the stock of Engineering Animation, Inc., based in Ames,
Iowa, performed very well. The company develops 3-D visual technology products
that address the education, communication, entertainment and productivity needs
of its customers. Historically, the company's software has found its way into
electronic games. They've since developed more sophisticated software and
recently won a large contract from Lockheed/Martin Marietta that helps Lockheed
design airplanes. Instead of building an expensive prototype, an aerospace
company can construct a model electronically and test it using engineering
animation software. Engineering Animation has successfully transitioned from
serving smaller less-lucrative markets to larger markets that are more
sophisticated and more profitable. As a result, the stock is doing very well and
we think there is potential for further appreciation.
Another company that continues to do well is Party City Corp., based in
Rockaway, New Jersey. Party City, which sells party supplies, is a "category
killer," thoroughly dominating its market. Party City has a network of nearly 50
company-owned stores and more than 160 franchise stores throughout the U.S.,
Canada, Puerto Rico and Spain. The company stocks about 20,000 different items
of inventory. For instance, while most supermarkets might only carry two brands
of birthday napkins, Party City carries 20 selections. Party City is an
excellent example of a stock that has continued to perform well for the Fund for
quite a while now.
8 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
"...our emphasis on software, rather than on hardware, was a plus."
Have there been any disappointments in the portfolio?
A few factors hurt our performance. As we said earlier, technology hardware has
been a poor performer because of the Asian concerns. For example, one of our
smaller holdings lost half of its value even though the company continues to
meet earnings expectations. Fortunately, it has rebounded substantially in
recent weeks.
We've also had a smaller-than-average percentage of financial services
companies in the portfolio, mainly because we thought they were expensive and
were waiting for them to fall in price before increasing our exposure. However,
the area has continued to report strong gains during the past six months and our
limited exposure there hindered our overall performance. In addition, energy
stocks, which comprise about 8% of the portfolio, had a weak fourth quarter in
1997 because of softness in commodity prices.
What is your outlook for the Fund?
We think that our segment of the market is very attractive. We like to compare
our companies' growth rates with those of the Standard & Poor's 500 Index, a
measure of larger U.S. companies. For 1998, expected earnings growth for the S&P
500 has slowed significantly. By contrast, the expected growth rate is much
greater for smaller com panies, and the gap in growth rates appears to be
widening. At the same time, the stock prices for small companies are generally
quite attractive. Going forward, we believe these positive characteristics will
only enhance the attractiveness of small-cap stocks.
9 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Value
Shares See Note 1
================================================================================
Common Stocks--89.8%
- --------------------------------------------------------------------------------
Basic Materials--1.0%
- --------------------------------------------------------------------------------
Chemicals--1.0%
ArQule, Inc.(1) 50,000 $ 1,106,250
- --------------------------------------------------------------------------------
Consumer Cyclicals--15.0%
- --------------------------------------------------------------------------------
Autos & Housing--1.7%
Keystone Automotive Industries, Inc.(1) 90,000 1,906,875
- --------------------------------------------------------------------------------
Leisure & Entertainment--4.8%
PJ America, Inc.(1) 60,000 1,027,500
- --------------------------------------------------------------------------------
Schlotzsky's, Inc.(1) 70,000 1,312,500
- --------------------------------------------------------------------------------
Silver Diner, Inc.(1)(3) 80,000 117,500
- --------------------------------------------------------------------------------
Silver Diner, Inc.(1)(2)(3) 750,000 1,046,484
- --------------------------------------------------------------------------------
Star Buffet, Inc.(1) 125,000 1,843,750
------------
5,347,734
- --------------------------------------------------------------------------------
Retail: General--0.6%
North Face, Inc. (The)(1) 24,000 660,000
- --------------------------------------------------------------------------------
Retail: Specialty--7.9%
Big Dog Holdings, Inc.(1) 150,000 937,500
- --------------------------------------------------------------------------------
Books-A-Million, Inc.(1) 150,000 937,500
- --------------------------------------------------------------------------------
CDnow, Inc.(1) 40,000 915,000
- --------------------------------------------------------------------------------
National Vision Associates Ltd.(1) 240,000 1,305,000
- --------------------------------------------------------------------------------
New England Business Service, Inc. 30,000 956,250
- --------------------------------------------------------------------------------
Party City Corp.(1) 75,000 2,043,750
- --------------------------------------------------------------------------------
RDO Equipment Co., Cl. A(1) 100,000 1,750,000
------------
8,845,000
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--23.3%
- --------------------------------------------------------------------------------
Education--1.9%
Bright Horizons, Inc.(1) 50,000 1,075,000
- --------------------------------------------------------------------------------
Career Education Corp.(1) 50,000 1,081,250
------------
2,156,250
- --------------------------------------------------------------------------------
Healthcare/Drugs--3.7%
Boron, LePore & Associates, Inc.(1) 50,000 1,675,000
- --------------------------------------------------------------------------------
Ethical Holdings plc, Sponsored ADR(1) 500,000 500,000
- --------------------------------------------------------------------------------
International Isotopes, Inc.(1) 100,000 1,925,000
------------
4,100,000
10 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Value
Shares See Note 1
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--17.7%
Advance ParadigM, Inc.(1) 100,000 $ 3,062,500
- --------------------------------------------------------------------------------
Autonomous Technologies Corp.(1)(2) 200,000 940,000
- --------------------------------------------------------------------------------
Coast Dental Services, Inc.(1) 40,000 990,000
- --------------------------------------------------------------------------------
Cornell Corrections, Inc.(1) 80,000 1,680,000
- --------------------------------------------------------------------------------
Dental Care Alliance, Inc.(1) 100,000 1,100,000
- --------------------------------------------------------------------------------
EP MedSystems, Inc.(1)(3) 500,000 671,875
- --------------------------------------------------------------------------------
HumaScan, Inc.(1) 116,000 1,421,000
- --------------------------------------------------------------------------------
Lynx Therapeutics, Inc. (New)(1)(2) 60,000 892,500
- --------------------------------------------------------------------------------
Medical Manager Corp.(1) 50,000 1,250,000
- --------------------------------------------------------------------------------
Novoste Corp.(1) 50,000 1,481,250
- --------------------------------------------------------------------------------
Ortivus AB, A Shares(1) 13,700 484,248
- --------------------------------------------------------------------------------
Ortivus AB, B Shares(1) 7,000 257,043
- --------------------------------------------------------------------------------
Photoelectron Corp.(1) 100,000 712,500
- --------------------------------------------------------------------------------
Priority Healthcare Corp., Cl. B(1) 70,000 1,093,750
- --------------------------------------------------------------------------------
Somnus Medical Technologies, Inc.(1) 100,000 900,000
- --------------------------------------------------------------------------------
Superior Consultant Holdings Corp.(1) 35,000 1,290,625
- --------------------------------------------------------------------------------
Ventana Medical Systems, Inc.(1) 70,000 1,531,250
------------
19,758,541
- --------------------------------------------------------------------------------
Energy--7.7%
- --------------------------------------------------------------------------------
Energy Services & Producers--3.3%
Basin Exploration, Inc.(1) 65,000 1,068,437
- --------------------------------------------------------------------------------
Bolt Technology Corp.(1) 150,000 909,375
- --------------------------------------------------------------------------------
FX Energy, Inc.(1) 100,000 831,250
- --------------------------------------------------------------------------------
Superior Energy Services, Inc.(1) 100,000 887,500
------------
3,696,562
- --------------------------------------------------------------------------------
Oil-Integrated--4.4%
Cal Dive International, Inc.(1) 100,000 2,700,000
- --------------------------------------------------------------------------------
Dawson Geophysical Co.(1) 40,000 685,000
- --------------------------------------------------------------------------------
Magnum Hunter Resources, Inc.(1) 150,000 712,500
- --------------------------------------------------------------------------------
Miller Exploration Co.(1) 100,000 812,500
------------
4,910,000
- --------------------------------------------------------------------------------
Financial--3.8%
- --------------------------------------------------------------------------------
Banks--1.2%
First International Bancorp, Inc. 90,000 1,395,000
- --------------------------------------------------------------------------------
Diversified Financial--2.6%
American Capital Strategies Ltd. 70,000 1,470,000
- --------------------------------------------------------------------------------
Investors Financial Services Corp. 30,000 1,410,000
------------
2,880,000
11 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
Value
Shares See Note 1
- --------------------------------------------------------------------------------
Industrial--14.0%
- --------------------------------------------------------------------------------
Industrial Services--11.3%
A Consulting Team, Inc.(1) 100,000 $ 1,162,500
- --------------------------------------------------------------------------------
Condor Technology Solutions, Inc.(1) 90,000 1,400,625
- --------------------------------------------------------------------------------
ImageMAX, Inc.(1) 200,000 1,650,000
- --------------------------------------------------------------------------------
Marquee Group, Inc.(1) 300,000 1,087,500
- --------------------------------------------------------------------------------
NCO Group, Inc.(1) 37,500 946,875
- --------------------------------------------------------------------------------
ONTRACK Data International, Inc.(1) 80,000 1,330,000
- --------------------------------------------------------------------------------
Rent-Way, Inc.(1) 50,000 1,225,000
- --------------------------------------------------------------------------------
Stericycle, Inc.(1) 100,000 1,300,000
- --------------------------------------------------------------------------------
U.S. Liquids, Inc.(1) 60,000 1,080,000
- --------------------------------------------------------------------------------
Unidigital, Inc.(1) 100,000 562,500
- --------------------------------------------------------------------------------
Waste Industries, Inc.(1) 50,000 881,250
------------
12,626,250
- --------------------------------------------------------------------------------
Manufacturing--2.7%
AstroPower, Inc.(1) 150,000 1,050,000
- --------------------------------------------------------------------------------
Denali, Inc.(1) 80,000 1,250,000
- --------------------------------------------------------------------------------
ITEQ, Inc.(1) 60,000 712,500
------------
3,012,500
- --------------------------------------------------------------------------------
Technology--25.0%
- --------------------------------------------------------------------------------
Computer Hardware--1.2%
Powerhouse Technologies, Inc.(1) 100,000 1,312,500
- --------------------------------------------------------------------------------
Computer Software/Services--14.2%
Concord Communications, Inc.(1) 60,000 1,725,000
- --------------------------------------------------------------------------------
Engineering Animation, Inc.(1) 50,000 3,062,500
- --------------------------------------------------------------------------------
First Consulting Group, Inc.(1) 60,000 1,125,000
- --------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(1) 60,000 810,000
- --------------------------------------------------------------------------------
Network Solutions, Inc., Cl. A(1) 80,000 1,620,000
- --------------------------------------------------------------------------------
New Era of Networks, Inc.(1) 200,000 3,750,000
- --------------------------------------------------------------------------------
TAVA Technologies, Inc.(1) 175,000 1,476,563
- --------------------------------------------------------------------------------
Tier Technologies, Inc.(1) 100,000 1,362,500
- --------------------------------------------------------------------------------
USWeb Corp.(1) 50,000 937,500
------------
15,869,063
- --------------------------------------------------------------------------------
Electronics--3.6%
Aeroflex, Inc.(1) 100,000 1,143,750
- --------------------------------------------------------------------------------
ATMI, Inc.(1) 40,000 1,110,000
- --------------------------------------------------------------------------------
Symphonix Devices, Inc.(1) 130,000 1,755,000
------------
4,008,750
12 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Value
Shares See Note 1
- --------------------------------------------------------------------------------
Telecommunications/Technology--6.0%
Advanced Radio Telecom Corp.(1) 100,000 $ 1,281,250
- --------------------------------------------------------------------------------
Corsair Communications, Inc.(1) 60,000 1,230,000
- --------------------------------------------------------------------------------
Innova Corp.(1) 75,000 1,246,875
- --------------------------------------------------------------------------------
Lightbridge, Inc.(1) 85,400 1,195,600
- --------------------------------------------------------------------------------
Metro One Telecommunication, Inc.(1) 100,000 1,012,500
- --------------------------------------------------------------------------------
PhoneTel Technologies, Inc.(1) 350,000 809,375
------------
6,775,600
------------
Total Common Stocks (Cost $82,967,475) 100,366,875
Face
Amount
================================================================================
Repurchase Agreements--9.4%
- --------------------------------------------------------------------------------
Repurchase agreement with Salomon Smith
Barney Holdings, Inc., 5.64%, dated 2/27/98,
to be repurchased at $10,504,935 on 3/2/98,
collateralized by U.S. Treasury Bonds,
9.875%-10.625%, 8/15/15-11/15/15, with a
value of $8,015,189, and U.S. Treasury Nts.,
4.75%-6%, 10/31/98-8/15/00, with a value
of $2,716,929 (Cost $10,500,000) $10,500,000 10,500,000
- --------------------------------------------------------------------------------
Total Investments, at Value (Cost $93,467,475) 99.2% 110,866,875
- --------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.8 934,179
------ ------------
Net Assets 100.0% $111,801,054
====== ============
(1). Non-income producing security.
(2). Identifies issues considered to be illiquid or restricted--See Note 5 of
Notes to Financial Statements.
(3). Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and, is or was an affiliate as defined in the
Investment Company Act of 1940, at or during the period ended February 28, 1998.
The aggregate fair value of securities of affiliated companies held by the Fund
as of February 28, 1998, amounts to $1,835,859. Transactions during the period
in which the issuer was an affiliate are as follows:
Shares Gross Gross Shares
August 31, 1997 Additions Reductions February 28, 1998
- --------------------------------------------------------------------------------
EP MedSystems, Inc. 100,000 400,000 -- 500,000
- --------------------------------------------------------------------------------
Silver Diner, Inc. 130,000 700,000 -- 830,000
See accompanying Notes to Financial Statements.
13 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $90,853,475) $ 109,031,016
Affiliated companies (cost $2,614,000) 1,835,859
- --------------------------------------------------------------------------------
Cash 107,137
- --------------------------------------------------------------------------------
Receivables:
Investments sold 651,478
Shares of beneficial interest sold 366,647
Interest and dividends 3,290
- --------------------------------------------------------------------------------
Deferred organization costs--Note 1 19,140
- --------------------------------------------------------------------------------
Other 6,719
-------------
Total assets 112,021,286
================================================================================
Liabilities
Payables and other liabilities:
Shareholder reports 54,493
Shares of beneficial interest redeemed 50,735
Trustees' fees--Note 1 46,522
Distribution and service plan fees 35,773
Transfer and shareholder servicing agent fees 11,808
Legal and auditing fees 5,888
Custodian fees 4,080
Other 10,933
-------------
Total liabilities 220,232
================================================================================
Net Assets $ 111,801,054
=============
================================================================================
Composition of Net Assets
Paid-in capital $ 90,237,204
- --------------------------------------------------------------------------------
Accumulated net investment loss (610,742)
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 4,775,192
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 17,399,400
-------------
Net assets $ 111,801,054
=============
14 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $67,846,489 and 3,937,216
shares of beneficial interest outstanding) $17.23
Maximum offering price per share (net asset value
plus sales charge of 5.75% of offering price) $18.28
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes
applicable contingent deferred sales charge)
and offering price per share (based on net assets
of $36,797,080 and 2,176,716 shares of beneficial
interest outstanding) $16.90
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes
applicable contingent deferred sales charge) and
offering price per share (based on net assets of
$7,157,485 and 423,559 shares of beneficial
interest outstanding) $16.90
See accompanying Notes to Financial Statements.
15 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Investment Income
Interest $ 284,434
- --------------------------------------------------------------------------------
Dividends 24,844
------------
Total income 309,278
================================================================================
Expenses
Management fees--Note 4 369,323
- --------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 65,260
Class B 157,799
Class C 32,901
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 166,395
- --------------------------------------------------------------------------------
Shareholder reports 42,053
- --------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 21,166
- --------------------------------------------------------------------------------
Legal and auditing fees 13,569
- --------------------------------------------------------------------------------
Registration and filing fees 8,066
- --------------------------------------------------------------------------------
Custodian fees and expenses 4,395
- --------------------------------------------------------------------------------
Insurance expenses 2,548
- --------------------------------------------------------------------------------
Other 3,617
------------
Total expenses 887,092
===============================================================================
Net Investment Loss (577,814)
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on investments 10,919,954
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (1,103,410)
Translation of assets and liabilities
denominated in foreign currencies (14,742)
-----------
Net change (1,118,152)
-----------
Net realized and unrealized gain 9,801,802
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 9,223,988
===========
See accompanying Notes to Financial Statements
16 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
Six Months Ended Year Ended
February 28, August 31,
1998 (Unaudited) 1997
================================================================================
Operations
Net investment loss $ (577,814) $ (992,965)
- --------------------------------------------------------------------------------
Net realized gain 10,919,954 5,153,073
- --------------------------------------------------------------------------------
Net change in unrealized appreciation
or depreciation (1,118,152) 7,605,620
------------- -------------
Net increase in net assets resulting
from operations 9,223,988 11,765,728
================================================================================
Distributions to Shareholders Distributions
from net realized gain:
Class A (4,786,062) (2,947,210)
Class B (2,598,726) (1,406,497)
Class C (542,632) (317,008)
================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting
from beneficial interest
transactions--Note 2:
Class A 14,407,914 3,467,955
Class B 10,659,769 3,163,980
Class C 1,472,619 364,697
================================================================================
Net Assets
Total increase 27,836,870 14,091,645
- --------------------------------------------------------------------------------
Beginning of period 83,964,184 69,872,539
------------- -------------
End of period (including accumulated net
investment loss of $610,742 and
$32,928, respectively) $ 111,801,054 $ 83,964,184
============= =============
See accompanying Notes to Financial Statements.
17 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
----------------------------------------------------
Six Months
Ended
February 28,
1998 Year Ended August 31,
(Unaudited) 1997 1996(1)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.98 $15.48 $10.00
- ----------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (.08) (.09) (.05)
Net realized and unrealized gain 1.70 2.66 5.53
------ ------ ------
Total income from investment operations 1.62 2.57 5.48
- ----------------------------------------------------------------------------------------------------------
Distributions from net realized gain (1.37) (1.07) --
------ ------ ------
Total dividends and distributions to shareholders (1.37) (1.07) --
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.23 $16.98 $15.48
====== ====== ======
- ----------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(2) 10.43% 17.88% 54.80%
- ----------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $67,846 $52,455 $44,421
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $60,931 $42,895 $30,655
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment loss (0.87)%(3) (1.18)% (0.59)%(3)
Expenses 1.50%(3) 1.50% 1.66%(3)
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 82.1% 142.4% 155.6%
Average brokerage commission rate(5) $0.0576 $0.0642 $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 inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
(3). Annualized.
18 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
------------------------------------------------------
Six Months
Ended
February 28,
1998 Year Ended August 31,
(Unaudited) 1997 1996(1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.75 $15.39 $10.00
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (.09) (.18) (.14)
Net realized and unrealized gain 1.61 2.61 5.53
------ ------ ------
Total income from investment operations 1.52 2.43 5.39
- --------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (1.37) (1.07) --
------ ------ ------
Total dividends and distributions to shareholders (1.37) (1.07) --
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.90 $16.75 $15.39
====== ====== ======
- --------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(2) 9.96% 17.03% 53.90%
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $36,797 $25,856 $20,606
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $31,882 $20,410 $14,123
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment loss (1.65)%(3) (1.96)% (1.37)%(3)
Expenses 2.28%(3) 2.27% 2.44%(3)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 82.1% 142.4% 155.6%
Average brokerage commission rate(5) $0.0576 $0.0642 $0.0579
</TABLE>
<TABLE>
<CAPTION>
Class C
-------------------------------------------------
Six Months
Ended
February 28,
1998 Year Ended August 31,
(Unaudited) 1997 1996(1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.74 $15.39 $10.00
- --------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (.11) (.18) (.14)
Net realized and unrealized gain 1.64 2.60 5.53
------ ------ ------
Total income from investment operations 1.53 2.42 5.39
------------
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain (1.37) (1.07) --
------ ------ ------
Total dividends and distributions to shareholders (1.37) (1.07) --
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $16.90 $16.74 $15.39
====== ====== ======
- --------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(2) 10.03% 16.97% 53.90%
- --------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,157 $5,653 $4,846
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,643 $4,539 $3,472
- --------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment loss (1.65)%(3) (1.96)% (1.35)%(3)
Expenses 2.28%(3) 2.27% 2.43%(3)
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 82.1% 142.4% 155.6%
Average brokerage commission rate(5) $0.0576 $0.0642 $0.0579
</TABLE>
(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 28, 1998 were $81,978,906 and $73,908,048, respectively.
(5). 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.
19 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 to seek capital
appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The Fund offers Class A, Class B and Class C shares. Class A shares
are sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge. All classes of shares have
identical rights to earnings, assets and voting privileges, except that each
class has its own distribution and/or service plan, expenses directly
attributable to that class and exclusive voting rights with respect to matters
affecting that 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 an
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 foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on
investments is separately identified from the fluctuations arising from changes
in market values of securities held and reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
20 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, 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. During the six months
ended February 28, 1998, a provision of $15,342 was made for the Fund's
projected benefit obligations and payments of $3,017 were made to retired
trustees, resulting in an accumulated liability of $45,254, at February 28,
1998.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Organization Costs. The Manager advanced $25,237 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.
21 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
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 its 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 fiscal year in which the income or realized gain
was recorded by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and options written and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
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.
22 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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, 1998 Year Ended August 31, 1997
---------------------------------- --------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 950,419 $ 16,581,073 852,726 $ 12,879,046
Distributions reinvested 295,138 4,571,585 193,503 2,765,162
Redeemed (397,503) (6,744,744) (827,440) (12,176,253)
------- ------------ ------- ------------
Net increase 848,054 $ 14,407,914 218,789 $ 3,467,955
======= ============ ======= ============
- ------------------------------------------------------------------------------------------------
Class B:
Sold 632,576 $ 10,808,426 388,682 $ 5,860,950
Distributions reinvested 159,531 2,428,061 93,212 1,320,815
Redeemed (159,432) (2,576,718) (276,877) (4,017,785)
------- ------------ ------- ------------
Net increase 632,675 $ 10,659,769 205,017 $ 3,163,980
======= ============ ======= ============
- ------------------------------------------------------------------------------------------------
Class C:
Sold 106,819 $ 1,841,535 93,376 $ 1,411,388
Distributions reinvested 33,204 505,369 20,665 292,614
Redeemed (54,180) (874,285) (91,264) (1,339,305)
------- ------------ ------- ------------
Net increase 85,843 $ 1,472,619 22,777 $ 364,697
======= ============ ======= ============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
At February 28, 1998, net unrealized appreciation on investments of $17,399,400
was composed of gross appreciation of $22,707,020, and gross depreciation of
$5,307,620.
23 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 average annual 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 average annual net assets in excess of $800 million.
For the six months ended February 28, 1998, commissions (sales charges
paid by investors) on sales of Class A shares totaled $199,741, of which $58,010
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 $287,410 and $11,826, respectively, of which $20,910 was
paid to an affiliated broker/dealer for Class B. During the six months ended
February 28, 1998, OFDI received contingent deferred sales charges of $23,874
upon redemption of Class B 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.
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 shareholder accounts that hold Class A shares. Reimbursement
is made quarterly at an annual rate that may not exceed 0.25% of the average
annual net assets of Class A shares of the Fund. OFDI uses the service fee to
reimburse brokers, dealers, banks and other financial institutions quarterly for
providing personal service and maintenance of accounts of their customers that
hold Class A shares. During the six months ended February 28, 1998, OFDI paid
$2,615 to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
24 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its 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 and Class C shares for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and C shares. Each fee is computed on
the average annual net assets of Class B or Class C shares, determined as of the
close of each regular business day. During the six months ended February 28,
1998, OFDI retained $128,014 and $8,735, respectively, as compensation for Class
B and Class C sales commissions and service fee advances, as well as financing
costs. If either Plan is terminated by the Fund, the Board of Trustees may allow
the Fund to continue payments of the asset-based sales charge to OFDI for
distributing shares before the Plan was terminated. At February 28, 1998, OFDI
had incurred excess distribution and servicing costs of $816,007 for Class B and
$63,708 for Class C.
- --------------------------------------------------------------------------------
5. Illiquid and Restricted Securities
At February 28, 1998, 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
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation at February 28, 1998 was $2,878,984, which represents
2.58% of the Fund's net assets, of which $1,986,484 is considered restricted.
Information concerning restricted securities is as follows:
Valuation
Cost Per Unit as of
Security Acquisition Date Per Unit Feb. 28, 1998
- --------------------------------------------------------------------------------
Autonomous Technologies Corp. 6/12/97 $3.00 $4.70
- --------------------------------------------------------------------------------
Silver Diner, Inc. 7/10/96-1/14/98 1.37-5.50 1.40
25 Oppenheimer Enterprise Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (continued)
- --------------------------------------------------------------------------------
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the six months ended
February 28, 1998.
26 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
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Jay W. Tracey, III, 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 OppenheimerFunds Services
Shareholder
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 of 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.
27 Oppenheimer Enterprise Fund
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
- ---------------------------------------
www.oppenheimerfunds.com
- ---------------------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-525-7048
- ---------------------------------------
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- ---------------------------------------
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- ---------------------------------------
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- ---------------------------------------
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insightful messages on the
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affect your investments
- ---------------------------------------
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- ---------------------------------------
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- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
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And when you need help, our Customer Service Representatives are only a
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When you want to make a transaction, you can do it easily by calling our
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For added convenience, you can get automated information with
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PhoneLink gives you access to a variety of fund, account, and market
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You can count on us whenever you need assistance. That's why the
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So call us today, or visit us at our website at www.oppenheimerfunds.com
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RS0885.001.0298 April 29, 1998
