<PAGE>
[GRAPHIC]
Annual Report August 31, 1999
OPPENHEIMER
ENTERPRISE FUND
[LOGO] OPPENHEIMERFUNDS -REGISTERED TRADEMARK-
THE RIGHT WAY TO INVEST
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
CONTENTS
3 President's Letter
5 An Interview with Your Fund's Manager
9 Fund Performance
14 Financial Statements
36 Independent Auditors' Report
37 Federal Income Tax Information
38 Officers and Trustees
39 OppenheimerFunds Family
40 Information and Services
THE FUND PERFORMED VERY WELL despite a generally lackluster performance by small
cap stocks.
WE SEEK TO CONTROL INTERNET RISK by focusing more on companies that offer
products and services to Internet companies, and less on the Internet companies
themselves.
THE FUND'S TECHNOLOGY AND FINANCIAL SERVICES STOCKS performed very well, even
though these areas had mixed success in the marketplace.
AVERAGE ANNUAL
TOTAL RETURNS
For the 1-Year Period
Ended 8/31/99 *
<TABLE>
<CAPTION>
Class A
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
82.34% 71.86%
- ----------------------
<CAPTION>
Class B
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
81.14% 76.14%
- ----------------------
<CAPTION>
Class C
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
81.22% 80.22%
- ----------------------
<CAPTION>
CUMULATIVE
TOTAL RETURNS
For the Period from
4/1/99 to 8/31/99 *
Class Y
Without With
Sales Chg. Sales Chg.
- ----------------------
<S> <C>
12.34% 12.34%
- ----------------------
</TABLE>
- ------------------
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
- ------------------
* See page 12 for further details.
2 OPPENHEIMER ENTERPRISE FUND
<PAGE>
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
[PHOTO]
BRIDGET A. MACASKILL
PRESIDENT
OPPENHEIMER
ENTERPRISE FUND
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large- capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against
inflation. In our view, history has repeatedly demonstrated that most financial
assets do best in a low-inflation environment. What's more, we believe that the
move to higher interest rates should be temporary.
3 OPPENHEIMER ENTERPRISE FUND
<PAGE>
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
One recent development IS quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue, we
are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds THE RIGHT WAY TO INVEST.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
September 22, 1999
4 OPPENHEIMER ENTERPRISE FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
A. Simply put, Oppenheimer Enterprise Fund had a very good year, despite
small-cap stocks, in general, continuing to underperform larger capitalization
stocks over most of the period. In the spring of 1999, however, small-cap stocks
outperformed. It is too early to know whether this is a trend that will
continue. We remain optimistic based upon very attractive relative valuations.
[PHOTO]
PORTFOLIO MANAGEMENT TEAM (L TO R)
Jay Tracey
(Portfolio Manager)
Jayne Stevlingson
WHAT FACTORS CONTRIBUTED TO THE FUND'S OUTSTANDING PERFORMANCE?
The single most important reason was the Fund's emphasis on technology. While
technology was not the best performing sector for the overall market during the
period, many of the Fund's holdings performed very well based on strong earnings
growth. These tended to be very specialized businesses involved in such areas as
computer software for large corporations (Micromuse, Inc.), state-of-the-art
semiconductor devices (hi/fn, inc.) and telecommunications (Proxim, Inc.). We
continue to be enthusiastic about technology, the most dynamic sector of the
U.S. stock market.
Another strong performing area for the Fund was financial services, which,
like technology, was not a top-performing sector for the market as a whole.
Generally, a rising interest rate environment is not good for banks because it
reduces borrowing demand. In addition, higher interest rates can also create a
sluggish stock market environment, which makes it difficult for brokerage firms
to grow. However, as is often the case with small-cap stocks, individual company
dynamics were able to override group influences. In addition, the Fund's most
successful financial services companies were quick to pick up on the opportunity
to sell financial services online. And their stock prices were rewarded
substantially for doing so.
5 OPPENHEIMER ENTERPRISE FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
WHAT IS YOUR INTERNET-STOCK STRATEGY?
We have worked to manage our Internet exposure by dividing it into two
categories: direct Internet and indirect Internet. A direct Internet, or
"dot-com" company, is one whose entire business model is based on the Internet
and is, therefore, completely reliant on the Internet's growth. An indirect
Internet company might sell products or services that support a direct Internet
business. Both groups benefit from the growth of the Internet but there's
typically more risk in the pure dot-com companies. Therefore, the Fund
emphasized indirect Internet stocks.
- ----------------------------------------
"THE SINGLE MOST IMPORTANT REASON THAT
THE FUND OUTPERFORMED ITS BENCHMARK
WAS ITS EMPHASIS ON TECHNOLOGY."
- ----------------------------------------
Another way the Fund attempts to control Internet risk is through
diversification. That is, we invest small amounts of money in a large portfolio
of companies, rather than devoting a significant amount of the Fund to only a
few Internet stocks. For the Fund, and the market as whole, Internet stocks
performed very well for the fiscal year, although they cooled off significantly
after mid-April as investors took profits.
HAVE ANY AREAS PROVEN DISAPPOINTING FOR THE FUND?
One general factor that hurt the Fund's performance is that this is essentially
a small-cap growth fund. During the second quarter of 1999, and continuing into
the summer, stocks in such cyclical industries as basic manufacturing, energy
and commodities performed better overall than stocks in many growth areas such
as healthcare, and consumer products and services.
6 OPPENHEIMER ENTERPRISE FUND
<PAGE>
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 9/30/99(1)
<TABLE>
<CAPTION>
Class A Since
1-Year Inception
- ---------------------------
<S> <C>
62.31% 33.47%
<CAPTION>
Class B Since
1-Year Inception
- ---------------------------
<S> <C>
66.02% 34.20%
<CAPTION>
Class C Since
1-Year Inception
- ---------------------------
<S> <C>
70.20% 34.54%
- ---------------------------
<CAPTION>
CUMULATIVE
TOTAL RETURNS
For the Period from 4/1/99
to 9/30/99(1)
Since
Inception
- ---------------------------
<S> <C>
Class Y 17.01%
- ---------------------------
</TABLE>
More specifically, our investments in the for-profit education area were
generally weak. Although the actual enrollment growth of these companies was
very healthy, it proved disappointing relative to some analysts' aggressive
expectations. We remain optimistic about this sector, particularly about those
companies that specialize in continuing education within the technology field.
In our opinion, they keep up with technology's rapid rate of change much better
than the traditional not-for-profit schools.
The Fund's performance was also negatively affected by being underinvested
in the energy sector, which performed very well, especially when oil prices
rebounded in early 1999. The performance of energy stocks is largely driven by
the direction of oil prices, a very unpredictable variable. In general, we tend
to avoid companies whose sales and earnings are heavily influenced by the price
of unpredictable commodities such as oil, copper and aluminum.
WHAT IS YOUR OUTLOOK FOR THE FUND OVER THE COMING MONTHS?
Over the past few years, large-cap companies have done a great job of producing
strong earnings growth. If small-cap company earnings can match this growth
rate--on top of their relatively low stock prices--they will enjoy a definite
advantage.
1. See page 12 for further details.
7 OPPENHEIMER ENTERPRISE FUND
<PAGE>
However, regardless of how small-cap stocks perform as a group, we will continue
to search for attractively valued companies that consistently demonstrate strong
earnings growth and superior fundamentals, which is what makes Oppenheimer
Enterprise Fund an important part of THE RIGHT WAY TO INVEST.
SECTOR ALLOCATION(2)
[PIE CHART]
<TABLE>
<S> <C>
/ / Technology 46.3%
/ / Capital Goods 10.3
/ / Consumer
Cyclicals 10.3
/ / Financial 8.7
/ / Healthcare 8.2
/ / Consumer
Staples 8.2
/ / Communication
Services 6.8
/ / Energy 1.2
</TABLE>
<TABLE>
<CAPTION>
TOP 5 INDUSTRIES(2)
------------------------------------------------------------
<S> <C>
Computer Software 19.7%
------------------------------------------------------------
Computer Services 12.9
------------------------------------------------------------
Computer Hardware 7.7
------------------------------------------------------------
Industrial Services 6.7
------------------------------------------------------------
Electronics 6.1
------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(2)
------------------------------------------------------------
<S> <C>
Corporate Executive Board Co. 2.7%
------------------------------------------------------------
Advent Software, Inc. 2.1
------------------------------------------------------------
Micromuse, Inc. 1.9
------------------------------------------------------------
Legato Systems, Inc. 1.7
------------------------------------------------------------
Alpha Industries, Inc. 1.7
------------------------------------------------------------
BindView Development Corp. 1.7
------------------------------------------------------------
Creditrust Corp. 1.7
------------------------------------------------------------
Renal Care Group, Inc. 1.7
------------------------------------------------------------
Proxim, Inc. 1.6
------------------------------------------------------------
hi/fn, inc. 1.6
------------------------------------------------------------
</TABLE>
2. Portfolio is subject to change. Percentages are as of August 31, 1999, and
are based on total market value of common stock.
8 OPPENHEIMER ENTERPRISE FUND
<PAGE>
FUND PERFORMANCE
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION, BY THE MANAGER, OF THE FUND'S
PERFORMANCE DURING ITS FISCAL YEAR ENDED AUGUST 31, 1999, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX AND TO A SECTOR INDEX.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. For the fiscal year that ended August
31, 1999, Oppenheimer Enterprise Fund outperformed its benchmark, the Russell
2000 Index. The Fund's continued emphasis on technology, the most dynamic area
of the U.S. stock market, was a principal factor in its strong performance. In
addition, the Fund benefited from its holdings in financial services companies
that have begun to offer their services online. Because Internet stocks are very
volatile, we are focusing more on companies that supply products and services to
Internet companies, and investing less in pure Internet companies themselves. In
addition, we have broadly diversified our Internet-related portfolio. Both of
these steps allow the Fund to benefit from the growth of the Internet while
limiting risk. The Fund's portfolio holdings, allocation and strategies are
subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment for Class A, B and C shares of
the Fund from the inception date of November 7, 1995, and Class Y shares from
the inception date of April 1, 1999 held until the Fund's fiscal year-end August
31, 1999. The graphs assume that all dividends and capital gains distributions
were reinvested in additional shares. The graphs reflect the deduction of the
maximum initial sales charge on Class A shares and the applicable contingent
deferred sales charge on Class B and Class C shares.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index and the Russell 2000 Index. The S&P 500 Index is a
broad-based index of equity securities widely regarded as a general measure of
the performance of the U.S. equity securities market. The Russell 2000 Index is
a capitalization-weighted index of 2,000 U.S. issuers whose common stocks are
traded on the New York and American Stock Exchanges and NASDAQ, and is widely
recognized as a measure of the performance of "mid-capitalization" stocks.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities in
the indices shown.
9 OPPENHEIMER ENTERPRISE FUND
<PAGE>
FUND PERFORMANCE
- --------------------------------------------------------------------------------
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class A),
S&P 500 and Russell 2000
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Enterprise Fund Class A $29,588
S&P 500 $24,290
Russell 2000 $15,207
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 8/31/99(1)
<S> <C>
1-YEAR 71.86% LIFE 32.87%
</TABLE>
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class B),
S&P 500 and Russell 2000
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Enterprise Fund Class B $30,227
S&P 500 $24,290
Russell 2000 $15,207
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 8/31/99(1)
<S> <C>
1-YEAR 76.14% LIFE 33.62%
</TABLE>
The performance information for the S&P 500 Index and the Russell 2000 Index
begins on 10/31/95 for Class A, B and C, and 3/31/99 for Class Y.
10 OPPENHEIMER ENTERPRISE FUND
<PAGE>
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class C),
S&P 500 and Russell 2000
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Enterprise Fund Class C $30,541
S&P 500 $24,290
Russell 2000 $15,207
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 8/31/99(1)
<S> <C>
1-YEAR 80.22% LIFE 33.98%
</TABLE>
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class Y),
S&P 500 and Russell 2000
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Enterprise Fund Class Y $11,234
S&P 500 $10,822
Russell 2000 $10,319
<CAPTION>
CUMULATIVE TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 8/31/99(1)
<S>
LIFE 12.34%
</TABLE>
1. See page 12 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 OPPENHEIMER ENTERPRISE FUND
<PAGE>
NOTES
- --------------------------------------------------------------------------------
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. BECAUSE OF ONGOING
MARKET VOLATILITY, THE FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL
SHORT-TERM CHANGES. FOR UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR
FINANCIAL ADVISOR, CALL US AT 1.800.525.7048 OR VISIT OUR WEBSITE,
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. Cumulative total returns are not
annualized.
CLASS A. The inception date of the Fund was 11/7/95. Class A returns include the
current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund 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 B shares are subject to an annual 0.75%
asset-based sales charge. The ending account value shown in the graph is net of
the applicable 3% contingent deferred sales charge.
CLASS C shares of the Fund were first publicly offered on 11/7/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 4/1/99. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
12 OPPENHEIMER ENTERPRISE FUND
<PAGE>
- --------------------------------------------------------------------------------
FINANCIALS
- --------------------------------------------------------------------------------
13 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF INVESTMENTS August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--77.4%
- --------------------------------------------------------------------------------
CAPITAL GOODS--8.1%
- --------------------------------------------------------------------------------
Aerospace/Defense--0.4%
Armor Holdings, Inc.(1) 250,000 $ 2,343,750
- --------------------------------------------------------------------------------
Industrial Services--5.2%
Coinstar, Inc.(1) 200,000 4,625,000
- --------------------------------------------------------------------------------
Corporate Executive Board Co.(1) 350,000 12,293,750
- --------------------------------------------------------------------------------
Labor Ready, Inc.(1) 225,000 3,614,062
- --------------------------------------------------------------------------------
Rainbow Rentals, Inc.(1) 220,000 2,310,000
- --------------------------------------------------------------------------------
Source Information Management Co. (The)(1) 220,000 3,052,500
- --------------------------------------------------------------------------------
Waste Connections, Inc.(1) 225,000 4,851,562
------------
30,746,874
- --------------------------------------------------------------------------------
MANUFACTURING--2.5%
AstroPower, Inc.(1) 200,000 2,900,000
- --------------------------------------------------------------------------------
Koala Corp.(1,2) 205,000 5,765,625
- --------------------------------------------------------------------------------
SLI, Inc.(1) 242,700 5,946,150
------------
14,611,775
- --------------------------------------------------------------------------------
COMMUNICATION SERVICES--5.2%
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--4.0%
Advanced Fibre Communications, Inc.(1) 200,000 3,262,500
- --------------------------------------------------------------------------------
Brocade Communications Systems, Inc.(1) 20,000 3,762,500
- --------------------------------------------------------------------------------
Clarent Corp.(1) 130,000 4,322,500
- --------------------------------------------------------------------------------
Inet Technologies, Inc.(1) 100,000 3,106,250
- --------------------------------------------------------------------------------
Latitude Communications, Inc.(1) 120,200 1,675,287
- --------------------------------------------------------------------------------
MGC Communications, Inc.(1) 291,700 6,709,100
- --------------------------------------------------------------------------------
Paradyne Networks, Inc.(1) 26,600 1,172,062
------------
24,010,199
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS: WIRELESS--1.2%
Proxim, Inc.(1) 150,000 7,312,500
- --------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.0%
- --------------------------------------------------------------------------------
Consumer Services--0.5%
Cornell Corrections, Inc.(1) 180,000 2,857,500
- --------------------------------------------------------------------------------
Leisure & Entertainment--2.5%
Championship Auto Racing Teams, Inc.(1) 80,000 2,655,000
- --------------------------------------------------------------------------------
Cheap Tickets, Inc.(1) 77,800 2,878,600
- --------------------------------------------------------------------------------
Handleman Co.(1) 400,000 5,300,000
- --------------------------------------------------------------------------------
JAKKS Pacific, Inc.(1) 140,000 4,235,000
------------
15,068,600
</TABLE>
14 OPPENHEIMER ENTERPRISE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
MEDIA--0.7%
Tweeter Home Entertainment Group, Inc.(1) 120,000 $ 4,035,000
- --------------------------------------------------------------------------------
RETAIL: SPECIALTY--3.4%
David's Bridal, Inc.(1) 433,700 3,971,066
- --------------------------------------------------------------------------------
Factory 2-U Stores, Inc.(1) 200,000 5,712,500
- --------------------------------------------------------------------------------
Pantry, Inc. (The)(1) 246,400 3,542,000
- --------------------------------------------------------------------------------
School Specialty, Inc.(1) 130,300 1,612,462
- --------------------------------------------------------------------------------
Ticketmaster Online-CitySearch, Inc., Cl. B(1) 100,000 2,562,500
- --------------------------------------------------------------------------------
Yankee Candle (The), Inc.(1) 145,800 2,597,062
------------
19,997,590
- --------------------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS--0.9%
Cutter & Buck, Inc.(1) 226,800 2,948,400
- --------------------------------------------------------------------------------
Quicksilver, Inc.(1) 150,000 2,587,500
------------
5,535,900
- --------------------------------------------------------------------------------
CONSUMER STAPLES--6.4%
- --------------------------------------------------------------------------------
BROADCASTING--2.5%
Cumulus Media, Inc., Cl. A(1) 200,000 5,575,000
- --------------------------------------------------------------------------------
Insight Communications Co., Inc.(1) 147,000 4,005,750
- --------------------------------------------------------------------------------
New Frontier Media, Inc.(1) 400,000 2,712,500
- --------------------------------------------------------------------------------
Wink Communications, Inc.(1) 58,500 2,383,875
------------
14,677,125
- --------------------------------------------------------------------------------
EDUCATION--1.9%
Argosy Education Group, Inc., Series A(1,2) 400,000 3,000,000
- --------------------------------------------------------------------------------
Career Education Corp.(1) 140,000 3,640,000
- --------------------------------------------------------------------------------
Corinthian Colleges, Inc.(1) 222,000 4,564,875
------------
11,204,875
- --------------------------------------------------------------------------------
ENTERTAINMENT--1.3%
Buca, Inc.(1) 250,000 2,937,500
- --------------------------------------------------------------------------------
P.F. Chang's China Bistro, Inc.(1) 150,000 3,300,000
- --------------------------------------------------------------------------------
Rubio's Restaurants, Inc.(1) 58,800 646,800
- --------------------------------------------------------------------------------
Silver Diner, Inc.(1,2) 80,000 70,000
- --------------------------------------------------------------------------------
Silver Diner, Inc.(1,2,3) 750,000 623,437
------------
7,577,737
</TABLE>
15 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
FOOD--0.7%
Balance Bar Co.(1) 300,000 $ 1,631,250
- --------------------------------------------------------------------------------
Diedrich Coffee, Inc.(1) 500,000 2,468,750
------------
4,100,000
- --------------------------------------------------------------------------------
ENERGY--0.9%
- --------------------------------------------------------------------------------
ENERGY SERVICES--0.7%
FX Energy, Inc.(1) 470,000 3,319,375
- --------------------------------------------------------------------------------
FX Energy, Inc.(1,3) 130,000 872,219
------------
4,191,594
- --------------------------------------------------------------------------------
Oil: Domestic--0.2%
EEX Corp.(1) 300,000 1,425,000
- --------------------------------------------------------------------------------
FINANCIAL--6.7%
- --------------------------------------------------------------------------------
BANKS--2.7%
First International Bancorp, Inc. 250,000 2,500,000
- --------------------------------------------------------------------------------
Investors Financial Services Corp. 100,000 3,662,500
- --------------------------------------------------------------------------------
Labrance & Co., Inc.(1) 487,300 6,944,025
- --------------------------------------------------------------------------------
Prism Financial Corp.(1) 160,000 3,160,000
------------
16,266,525
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.7%
Creditrust Corp.(1) 300,000 7,800,000
- --------------------------------------------------------------------------------
MicroFinancial, Inc. 586,000 6,262,875
- --------------------------------------------------------------------------------
Resource America, Inc., Cl. A 220,000 2,200,000
------------
16,262,875
- --------------------------------------------------------------------------------
INSURANCE--1.3%
Advance Paradigm, Inc.(1) 80,000 4,240,000
- --------------------------------------------------------------------------------
Scottish Annuity & Life Holdings Ltd. 350,000 3,412,500
------------
7,652,500
- --------------------------------------------------------------------------------
HEALTHCARE--6.3%
- --------------------------------------------------------------------------------
HEALTHCARE/DRUGS--2.2%
Lynx Therapeutics, Inc.(1) 250,000 3,234,375
- --------------------------------------------------------------------------------
Syncor International Corp.(1) 200,000 7,200,000
- --------------------------------------------------------------------------------
Ventana Medical Systems, Inc.(1) 150,000 2,400,000
------------
12,834,375
</TABLE>
16 OPPENHEIMER ENTERPRISE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES--4.1%
Colorado MEDtech, Inc.(1) 150,000 $ 2,868,750
- --------------------------------------------------------------------------------
EP MedSystems, Inc.(1,2) 600,000 1,800,000
- --------------------------------------------------------------------------------
Hanger Orthopedic Group, Inc.(1) 122,300 1,681,625
- --------------------------------------------------------------------------------
InfoCure Corp.(1) 130,000 2,502,500
- --------------------------------------------------------------------------------
NovaMed Eyecare, Inc.(1) 292,300 2,904,731
- --------------------------------------------------------------------------------
Polartechnics Ltd.(1) 500,000 1,099,101
- --------------------------------------------------------------------------------
Priority Healthcare Corp., Cl. B(1) 150,000 4,218,750
- --------------------------------------------------------------------------------
Renal Care Group, Inc.(1) 400,000 7,650,000
------------
24,725,457
- --------------------------------------------------------------------------------
TECHNOLOGY--35.8%
- --------------------------------------------------------------------------------
COMPUTER HARDWARE--5.9%
3DO Co. (The)(1) 285,000 2,297,812
- --------------------------------------------------------------------------------
Apex, Inc.(1) 150,000 4,978,125
- --------------------------------------------------------------------------------
Com21, Inc.(1) 130,000 2,340,000
- --------------------------------------------------------------------------------
Creo Products, Inc.(1) 194,600 4,244,712
- --------------------------------------------------------------------------------
Echelon Corp.(1) 550,000 3,953,125
- --------------------------------------------------------------------------------
Extreme Networks, Inc.(1) 50,000 3,196,875
- --------------------------------------------------------------------------------
Gadzoox Networks, Inc.(1) 35,400 3,199,275
- --------------------------------------------------------------------------------
Javelin Systems, Inc.(1) 350,000 3,762,500
- --------------------------------------------------------------------------------
Juniper Networks, Inc.(1) 11,300 2,316,500
- --------------------------------------------------------------------------------
Maxwell Technologies, Inc.(1) 100,000 2,212,500
- --------------------------------------------------------------------------------
Redback Networks, Inc.(1) 27,000 2,902,500
------------
35,403,924
- --------------------------------------------------------------------------------
COMPUTER SERVICES--10.0%
AppNet Systems, Inc.(1) 150,000 2,193,750
- --------------------------------------------------------------------------------
BackWeb Technologies Ltd.(1) 55,000 1,240,937
- --------------------------------------------------------------------------------
Braun Consulting, Inc.(1) 389,100 4,255,781
- --------------------------------------------------------------------------------
Commerce One, Inc.(1) 53,500 2,400,812
- --------------------------------------------------------------------------------
Emulex Corp.(1) 25,000 1,723,437
- --------------------------------------------------------------------------------
F5 Networks, Inc.(1) 45,000 3,051,562
- --------------------------------------------------------------------------------
Interactive Pictures Corp.(1) 146,000 2,920,000
- --------------------------------------------------------------------------------
iXL Enterprises, Inc.(1) 90,500 2,228,563
</TABLE>
17 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SERVICES Continued
MEDE AMERICA Corp.(1) 200,000 $ 4,575,000
- --------------------------------------------------------------------------------
MedQuist, Inc.(1) 150,000 5,221,875
- --------------------------------------------------------------------------------
MyPoints.com, Inc.(1) 146,100 2,027,138
- --------------------------------------------------------------------------------
nFront, Inc.(1) 70,000 927,500
- --------------------------------------------------------------------------------
OneSource Information Services, Inc.(1) 317,500 2,559,844
- --------------------------------------------------------------------------------
Online Resources & Communications Corp.(1) 100,000 1,787,500
- --------------------------------------------------------------------------------
Packeteer, Inc.(1) 82,600 3,045,875
- --------------------------------------------------------------------------------
Quotesmith.com, Inc.(1) 70,000 778,750
- --------------------------------------------------------------------------------
Salon.com, Inc.(1) 267,900 1,557,169
- --------------------------------------------------------------------------------
ShowCase Corp.(1) 242,700 2,669,700
- --------------------------------------------------------------------------------
Stamps.com, Inc.(1) 65,000 2,226,250
- --------------------------------------------------------------------------------
Student Advantage, Inc.(1) 216,100 2,593,200
- --------------------------------------------------------------------------------
Tanning Technology Corp.(1) 98,000 1,715,000
- --------------------------------------------------------------------------------
Viant Corp.(1) 100,000 3,800,000
- --------------------------------------------------------------------------------
WatchGuard Technologies, Inc.(1) 136,200 1,838,700
- --------------------------------------------------------------------------------
WebTrends Corp.(1) 65,000 1,998,750
------------
59,337,093
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE--15.2%
A Consulting Team, Inc.(1) 200,000 1,212,500
- --------------------------------------------------------------------------------
Accrue Software, Inc.(1) 100,000 1,462,500
- --------------------------------------------------------------------------------
Active Software, Inc.(1) 141,300 2,455,088
- --------------------------------------------------------------------------------
Activision, Inc.(1) 200,000 2,900,000
- --------------------------------------------------------------------------------
Advent Software, Inc.(1) 200,000 9,825,000
- --------------------------------------------------------------------------------
Agile Software Corp.(1) 20,000 995,000
- --------------------------------------------------------------------------------
Allaire Corp.(1) 50,000 2,500,000
- --------------------------------------------------------------------------------
Aware, Inc.(1) 40,000 1,340,000
- --------------------------------------------------------------------------------
BindView Development Corp.(1) 368,000 7,866,000
- --------------------------------------------------------------------------------
Brio Technology, Inc.(1) 200,000 2,825,000
- --------------------------------------------------------------------------------
Catapult Communications Corp.(1) 150,000 2,306,250
- --------------------------------------------------------------------------------
Concord Communications, Inc.(1) 50,000 1,845,313
- --------------------------------------------------------------------------------
CyberSource Corp.(1) 55,000 1,763,438
</TABLE>
18 OPPENHEIMER ENTERPRISE FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE Continued
ESPS, Inc.(1) 200,000 $1,825,000
- --------------------------------------------------------------------------------
Exchange Applications, Inc.(1) 177,000 5,287,875
- --------------------------------------------------------------------------------
Legato Systems, Inc.(1) 186,200 8,018,238
- --------------------------------------------------------------------------------
Micromuse, Inc.(1) 150,000 8,568,750
- --------------------------------------------------------------------------------
Mission Critical Software, Inc.(1) 73,000 2,965,625
- --------------------------------------------------------------------------------
NetIQ Corp.(1) 146,000 4,380,000
- --------------------------------------------------------------------------------
Optimal Robotics Corp.(1) 225,000 3,431,250
- --------------------------------------------------------------------------------
Persistance Software, Inc.(1) 100,000 1,775,000
- --------------------------------------------------------------------------------
Phone.com, Inc.(1) 20,000 2,362,500
- --------------------------------------------------------------------------------
Primus Knowledge Solutions, Inc.(1) 156,200 3,856,188
- --------------------------------------------------------------------------------
Quest Software, Inc.(1) 34,100 1,427,938
- --------------------------------------------------------------------------------
SERENA Software, Inc.(1) 50,600 711,563
- --------------------------------------------------------------------------------
SilverStream Software, Inc.(1) 52,300 1,575,538
- --------------------------------------------------------------------------------
TenFold Corp.(1) 123,900 3,384,019
- --------------------------------------------------------------------------------
Verity, Inc.(1) 40,000 1,950,000
------------
90,815,573
- --------------------------------------------------------------------------------
ELECTRONICS--4.7%
Alpha Industries, Inc.(1) 140,000 7,971,250
- --------------------------------------------------------------------------------
ATMI, Inc.(1) 150,000 4,950,000
- --------------------------------------------------------------------------------
Benchmark Electronics, Inc.(1) 143,700 5,289,956
- --------------------------------------------------------------------------------
hi/fn, inc.(1) 60,000 7,241,250
- --------------------------------------------------------------------------------
InterTAN, Inc.(1) 146,200 2,704,700
------------
28,157,156
------------
Total Common Stocks (Cost $364,536,888) 461,151,497
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.3%
Bluestone Software, Inc., $2.72 Cv., Series C(1,3) 367,647 1,000,000
- --------------------------------------------------------------------------------
Cobalt Networks, Inc., $3.70 Cv., Series C(1,3) 250,000 925,000
------------
Total Preferred Stocks (Cost $1,925,000) 1,925,000
</TABLE>
19 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------
<S> <C> <C>
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--24.2%
Repurchase agreement with First Chicago
Capital Markets, 5.41%, dated 8/31/99, to be
repurchased at $72,210,850 on 9/1/99,
collateralized by U.S. Treasury Nts.,
4%-6.375%, 11/30/99-2/28/03, with a value of
$71,561,604, and U.S. Treasury Bills,
9/15/99, with a value of $2,137,961 $72,200,000 $ 72,200,000
- --------------------------------------------------------------------------------
Repurchase agreement with Zion First National
Bank, 5.40%, dated 8/31/99, to be repurchased
at $72,210,830 on 9/1/99, collateralized by
U.S. Treasury Bonds, 8%, 11/15/21, with a
value of $4,326,909, and U.S. Treasury Nts.,
5.875%-7%, 2/15/00-2/15/07, with a value of
$69,336,118 72,200,000 72,200,000
-------------
Total Repurchase Agreements (Cost $144,400,000) 144,400,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $510,861,888) 101.9% 607,476,497
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.9) (11,707,021)
---------------------------
NET ASSETS 100.0% $595,769,476
---------------------------
---------------------------
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income-producing security.
2. 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 August 31,
1999. The aggregate fair value of securities of affiliated companies held by
the Fund as of August 31, 1999 amounts to $11,259,062. Transactions during
the period in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
SHARES GROSS GROSS SHARES
AUGUST 31, 1998 ADDITIONS REDUCTIONS AUGUST 31, 1999
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Argosy Education Group, Inc., Series A -- 400,000 -- 400,000
Cyberian Outpost, Inc. 375,000 -- 375,000 --
EPMedSystems, Inc. 538,500 61,500 -- 600,000
Koala Corp. -- 205,000 -- 205,000
Silver Diner, Inc. 830,000 -- -- 830,000
</TABLE>
3. Identifies issues considered to be illiquid or restricted-See Note 6 of Notes
to Financial Statements.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (including repurchase agreements
of $144,400,000)--see accompanying statement:
Unaffiliated companies (cost $499,561,928) $ 596,217,435
Affiliated companies (cost $11,299,960) 11,259,062
- -----------------------------------------------------------------------------------------------
Cash 1,689
- -----------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 2,362,204
Shares of beneficial interest sold 1,651,977
Interest and dividends 21,493
Other 5,634
------------
Total assets 611,519,494
- -----------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Investments purchased 14,427,123
Shares of beneficial interest redeemed 750,099
Distribution and service plan fees 218,366
Transfer and shareholder servicing agent fees 130,985
Trustees' compensation--Note 1 59,455
Shareholder reports 47,732
Other 116,258
------------
Total liabilities 15,750,018
- -----------------------------------------------------------------------------------------------
NET ASSETS $595,769,476
------------
------------
- -----------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 458,781,880
- -----------------------------------------------------------------------------------------------
Accumulated net investment loss (56,295)
- -----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 40,429,282
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies--Note 3 96,614,609
------------
Net assets $595,769,476
------------
------------
</TABLE>
21 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSET VALUE PER SHARE
CLASS A SHARES:
Net asset value and redemption price per share (based on net assets
of $335,681,882 and 12,728,748 shares of beneficial interest outstanding) $26.37
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $27.98
- ------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $189,699,274
and 7,415,520 shares of beneficial interest outstanding) $25.58
- ------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $39,082,535
and 1,527,067 shares of beneficial interest outstanding) $25.59
- ------------------------------------------------------------------------------------------------
CLASS Y SHARES:
Net asset value, redemption price and offering price per share (based on
net assets of $31,305,785 and 1,185,443 shares of beneficial interest outstanding) $26.41
</TABLE>
See accompanying Notes to Financial Statements.
22 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended August 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $3,053,164
- -----------------------------------------------------------------------------------------------
Dividends--unaffiliated 108,562
---------------
Total income 3,161,726
- -----------------------------------------------------------------------------------------------
EXPENSES
Management fees--Note 4 2,310,098
- -----------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 423,365
Class B 1,067,224
Class C 217,070
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 672,426
Class B 380,408
Class C 77,013
Class Y 4,071
- -----------------------------------------------------------------------------------------------
Shareholder reports 252,459
- -----------------------------------------------------------------------------------------------
Registration and filing fees 90,512
- -----------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 27,615
- -----------------------------------------------------------------------------------------------
Deferred organization expenses 15,289
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 11,182
- -----------------------------------------------------------------------------------------------
Trustees' compensation--Note 1 8,966
- -----------------------------------------------------------------------------------------------
Insurance expenses 4,283
- -----------------------------------------------------------------------------------------------
Other 39,704
---------------
Total expenses 5,601,685
Less expenses paid indirectly--Note 1 (9,809)
---------------
Net expenses 5,591,876
- -----------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,430,150)
- -----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments:
Unaffiliated companies $ 37,525,396
Affiliated companies 5,629,469
Foreign currency transactions (2,098)
---------------
Net realized gain 43,152,767
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 102,420,707
Translation of assets and liabilities denominated in foreign currencies 141,721
---------------
Net change 102,562,428
---------------
Net realized and unrealized gain 145,715,195
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $143,285,045
---------------
---------------
</TABLE>
See accompanying Notes to Financial Statements.
23 OPPENHEIMER ENTERPRISE FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1999 1998
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment loss $ (2,430,150) $ (1,326,655)
- -----------------------------------------------------------------------------------------------
Net realized gain 43,152,767 10,331,533
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 102,562,428 (24,465,371)
---------------------------
Net increase (decrease) in net assets resulting from operations 143,285,045 (15,460,493)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gain:
Class A (1,824,954) (4,786,108)
Class B (1,123,053) (2,599,048)
Class C (228,443) (542,632)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest
transactions--Note 2:
Class A 178,721,558 35,326,895
Class B 97,486,503 26,047,046
Class C 20,439,103 4,821,481
Class Y 32,242,392 --
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
NET ASSETS
Total increase 468,998,151 42,807,141
- -----------------------------------------------------------------------------------------------
Beginning of period 126,771,325 83,964,184
---------------------------
End of period (including accumulated net investment losses
of $56,295 and $67,426, respectively) $595,769,476 $126,771,325
---------------------------
---------------------------
</TABLE>
See accompanying Notes to Financial Statements.
24 OPPENHEIMER ENTERPRISE FUND
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A YEAR ENDED AUGUST 31, 1999 1998 1997 1996(1)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $14.72 $16.98 $15.48 $10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.11) (.14) (.09) (.05)
Net realized and unrealized gain (loss) 12.08 (.75) 2.66 5.53
----------------------------------------------------
Total income (loss) from investment operations 11.97 (.89) 2.57 5.48
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders from net
realized gain (.32) (1.37) (1.07) --
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.37 $14.72 $16.98 $15.48
----------------------------------------------------
----------------------------------------------------
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 82.34% (5.65)% 17.88% 54.80%
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $335,682 $74,456 $52,455 $44,421
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $182,121 $72,059 $42,895 $30,655
Ratios to average net assets:(3)
Net investment income (loss) (0.47)% (0.81)% (1.18)% (0.59)%
Expenses 1.48% 1.48%(4) 1.50%(4) 1.66%(4)
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 134% 182% 142% 156%
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
August 31, 1996.
2. Assumes a $1,000 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 for periods of less than one full year.
4. Expense ratio reflects the effect of 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 August 31, 1999 were $577,456,389 and $352,218,600,
respectively.
25 OPPENHEIMER ENTEPRISE FUND
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS B YEAR ENDED AUGUST 31, 1999 1998 1997 1996(1)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $14.38 $16.75 $15.39 $10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.11) (.15) (.18) (.14)
Net realized and unrealized gain (loss) 11.63 (.85) 2.61 5.53
-----------------------------------------------------
Total income (loss) from investment operations 11.52 (1.00) 2.43 5.39
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders from net
realized gain (.32) (1.37) (1.07) --
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.58 $14.38 $16.75 $15.39
-----------------------------------------------------
-----------------------------------------------------
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 81.14% (6.43)% 17.03% 53.90%
- ---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $189,699 $43,570 $25,856 $20,606
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $107,124 $39,003 $20,410 $14,123
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (1.22)% (1.58)% (1.96)% (1.37)%
Expenses 2.23% 2.26%(4) 2.27%(4) 2.44%(4)
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 134% 182% 142% 156%
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
August 31, 1996.
2. Assumes a $1,000 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 for periods of less than one full year.
4. Expense ratio reflects the effect of 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 August 31, 1999 were $577,456,389 and $352,218,600,
respectively.
26 OPPENHEIMER ENTEPRISE FUND
<PAGE>
<TABLE>
<CAPTION>
CLASS C CLASS Y
YEAR PERIOD
ENDED ENDED
AUGUST 31, AUGUST 31,
1999 1998 1997 1996 1999(6)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $14.38 $16.74 $15.39 $10.00 $23.51
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.10) (.16) (.18) (.14) 7
Net realized and unrealized gain (loss) 11.63 (.83) 2.60 5.53 2.90
--------------------------------------------------------------
Total income (loss) from investment operations 11.53 (.99) 2.42 5.39 2.90
- ------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from
net realized gain (.32) (1.37) (1.07) -- --
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.59 $14.38 $16.74 $15.39 $26.41
--------------------------------------------------------------
--------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 81.22% (6.38)% 16.97% 53.90% 12.34%
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $39,083 $8,746 $5,653 $4,846 $31,306
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $21,790 $7,908 $4,539 $3,472 $11,731
Ratios to average net assets:(3)
Net investment income (loss) (1.22)% (1.58)% (1.96)% (1.35)% 0.09%
Expenses 2.22% 2.26%(4) 2.27%(4) 2.43%(4) 0.96%
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 134% 182% 142% 156% 134%
</TABLE>
1. For the period from November 7, 1995 (commencement of operations) to
August 31, 1996.
2. Assumes a $1,000 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 for periods of less than one full year.
4. Expense ratio reflects the effect of 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 August 31, 1999 were $577,456,389 and $352,218,600,
respectively.
6. For the period from April 1, 1999 (inception of offering) to August 31,
1999.
7. Less than $0.005 per share.
See accompanying Notes to Financial Statements.
27 OPPENHEIMER ENTEPRISE FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, Class C and Class Y shares. Class A
shares are sold with a front-end sales charge on investments up to $1 million.
Class B and Class C shares may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A, B and C have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. 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.
- --------------------------------------------------------------------------------
SECURITIES 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) and adjusted for amortization to maturity of any
premium or discount. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
- --------------------------------------------------------------------------------
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.
28 OPPENHEIMER ENTERPRISE FUND
<PAGE>
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, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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' COMPENSATION. 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 year ended August
31, 1999, a credit of $10,417 was made for the Fund's projected benefit
obligations and payments of $714 were made to retired trustees, resulting in an
accumulated liability of $56,296 as of August 31, 1999.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual compensation they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Trustees in shares of one or more
Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under
the plan will be determined based upon the performance of the selected funds.
Deferral of Trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
income per share.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
29 OPPENHEIMER ENTERPRISE FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS 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. The character of 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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 1999, amounts have been reclassified to reflect a decrease
in accumulated net investment loss of $2,441,281. Accumulated net realized gain
on investments was decreased by the same amount.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
30 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>
YEAR ENDED AUGUST 31, 1999(1) YEAR ENDED AUGUST 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 8,926,370 $206,297,851 2,577,394 $46,616,420
Dividends and/or distributions
reinvested 97,571 1,742,570 295,161 4,571,937
Redeemed (1,354,467) (29,318,863) (902,443) (15,861,462)
----------------------------------------------------------------
Net increase 7,669,474 $178,721,558 1,970,112 $35,326,895
----------------------------------------------------------------
----------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
CLASS B
Sold 4,932,566 $109,637,518 1,709,642 $30,191,456
Dividends and/or distributions
reinvested 60,658 1,056,668 159,530 2,428,045
Redeemed (606,628) (13,207,683) (384,289) (6,572,455)
----------------------------------------------------------------
Net increase 4,386,596 $97,486,503 1,484,883 $26,047,046
----------------------------------------------------------------
----------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
CLASS C
Sold 1,445,655 $30,608,836 421,843 $7,464,131
Dividends and/or distributions
reinvested 12,525 218,068 33,204 505,369
Redeemed (539,269) (10,387,801) (184,608) (3,148,019)
----------------------------------------------------------------
Net increase 918,911 $20,439,103 270,439 $4,821,481
----------------------------------------------------------------
----------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
CLASS Y
Sold 1,321,190 $35,899,224 -- $ --
Redeemed (135,747) (3,656,832) -- --
----------------------------------------------------------------
Net increase 1,185,443 $32,242,392 -- $ --
----------------------------------------------------------------
----------------------------------------------------------------
</TABLE>
1. For the year ended August 31, 1999, for Class A, B and C shares and for the
period from April 1, 1999 (inception of offering) to August 31, 1999, for Class
Y shares.
31 OPPENHEIMER ENTERPRISE FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of August 31, 1999, net unrealized appreciation on securities of $96,614,609
was composed of gross appreciation of $118,931,659, and gross depreciation of
$22,317,050.
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. 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 of the Fund, 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. The
Fund's management fee for the year ended August 31, 1999 was 0.72% of average
annual net assets for each class of shares.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 1999 $1,712,169 $494,452 $140,900 $2,551,243 $171,445
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 1999 $-- $154,621 $6,105
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
32 OPPENHEIMER ENTERPRISE FUND
<PAGE>
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.25% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended August 31, 1999, payments under
the Class A Plan totaled $423,365, all of which was paid by the Distributor to
recipients. That included $21,662 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended August 31, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $1,067,224 $908,902 $3,816,411 2.01%
Class C Plan 217,070 139,265 343,005 0.88
</TABLE>
33 OPPENHEIMER ENTERPRISE FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter
into foreign currency exchange contracts for operational purposes and to seek
to protect against adverse exchange rate fluctuations. Risks to the Fund
include the potential inability of the counterparty to meet the terms of the
contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided
by a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of
Investments where applicable.
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of August 31, 1999, 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 also
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 limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of August 31, 1999, was
$3,420,656, which represents 0.57% of the Fund's net assets, all of which is
considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT AUGUST 31, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS
Bluestone Software, Inc., $2.72 Cv., Series C 5/24/99 $ 2.72 $2.72
Cobalt Networks, Inc., $3.70 Cv., Series C 5/4/99 3.70 3.70
FX Energy, Inc. 5/14/99 4.00 6.71
Silver Diner, Inc. 1/14/98-7/10/99 1.37-5.50 0.83
</TABLE>
34 OPPENHEIMER ENTERPRISE FUND
<PAGE>
-------------------------------------------------------------------------------
7. 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 year ended August 31,
1999.
35 OPPENHEIMER ENTERPRISE FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER ENTERPRISE FUND:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Enterprise Fund as of August 31,
1999, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended and the financial highlights for each of the years in the three-year
period then ended, and the period from November 7, 1995 (commencement of
operations) to August 31, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1999, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Enterprise Fund as of August 31, 1999, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the three-year period then ended, and the period from November 7, 1995
(commencement of operations) to August 31, 1996, in conformity with generally
accepted accounting principles.
KPMG LLP
Denver, Colorado
September 22, 1999
36 OPPENHEIMER ENTERPRISE FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2000, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.3189, per share paid to Class A, Class B and Class C
shareholders, respectively, on December 15, 1998, were designated as a "capital
gain distribution" for federal income tax purposes. Whether received in stock or
in cash, the capital gain distribution should be treated by shareholders as a
gain from the sale of capital assets held for more than one year (long-term
capital gains).
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
37 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
Phillip A. Griffiths, 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
-------------------------------------------------------------------------------
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 LLP
-------------------------------------------------------------------------------
LEGAL COUNSEL Mayer, Brown & Platt
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 THE POSSIBLE
LOSS OF THE PRINCIPAL AMOUNT INVESTED.
38 OPPENHEIMER ENTERPRISE FUND
<PAGE>
OPPENHEIMERFUNDS FAMILY
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
- --------------------------------------------------------------------------------------------------------------
EQUITY
STOCK STOCK & BOND
Enterprise Fund(1) Main Street-REGISTERED TRADEMARK-
Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street-REGISTERED TRADEMARK-
Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
SPECIALTY
Real Asset Fund
Gold & Special Minerals Fund
- --------------------------------------------------------------------------------------------------------------
FIXED INCOME
TAXABLE MUNICIPAL
International Bond Fund California Municipal Fund(3)
World Bond Fund Florida Municipal Fund(3)
High Yield Fund New Jersey Municipal Fund(3)
Champion Income Fund New York Municipal Fund(3)
Strategic Income Fund Pennsylvania Municipal Fund(3)
Bond Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
ROCHESTER DIVISION
Rochester Fund Municipals
Limited Term New York Municipal Fund
- --------------------------------------------------------------------------------------------------------------
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY10048-0203.
-C- Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
39 OPPENHEIMER ENTERPRISE FUND
<PAGE>
INFORMATION AND SERVICES
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
- --------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- --------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
1.800.835.3104
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- --------------------------------------------------------------------------------
[LOGO]
RA0885.001.0899 October 29, 1999
