N-CSR 1 ra0775_8056vef.txt RA0775_8056VEF UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08613 OPPENHEIMER TRINITY LARGE CAP GROWTH FUND (Exact name of registrant as specified in charter) 6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. 498 Seventh Avenue, New York, New York 10018 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: July 31 Date of reporting period: August 1, 2002 - July 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. FUND PERFORMANCE DISCUSSION of 2002. As a result of these disappointments, the Fund's technology holdings delivered weaker total returns than the technology component of the S&P 500/BARRA Growth Index. Relatively weak performance among utilities holdings, especially Verizon Communications, Inc., which fell roughly 6% after it was purchased in the reporting period, also hurt the Fund's performance compared to its benchmark. While the Fund's disciplined investment approach remained essentially unchanged, we continued to refine our library of stock ranking models with the intent of enhancing the effectiveness of our approach during the period. The Fund's portfolio holdings, allocations 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 in each Class of shares of the Fund held until July 31, 2003. In the case of Class A and Y shares, performance is measured from inception of the Class on December 17, 1998. In the case of Class B and C shares, performance is measured from inception of the Class on March 1, 1999. In the case of Class N shares, performance is measured from inception of the Class on March 1, 2001. The Fund's performance reflects the deduction of the maximum initial sales charge on Class A shares and the applicable contingent deferred sales charge for Class B, Class C and Class N shares. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares. The Fund's performance is compared to the performance of the S&P 500 BARRA/Growth Index, a capitalization-weighted index comprised of stocks of the S&P 500 Index with higher book-to-price ratios relative to the S&P 500 Index as a whole. Each company of the S&P 500 Index is assigned to either the Barra/Value or Barra/Growth index so that the sum of the two indices reflects the total S&P 500 Index. 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 may not be limited to those investments found in an index. 6 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND Class A Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Trinity Large Cap Growth Fund (Class A) S&P 500 BARRA/Growth Index [LINE CHART] Value of Investment S & P 500 Date In Fund Barra Growth Index 12/17/1998 9,425 10,000 01/31/1999 10,650 10,611 04/30/1999 10,405 10,667 07/31/1999 11,244 10,747 10/31/1999 11,564 11,451 01/31/2000 12,640 11,970 04/30/2000 14,054 12,691 07/31/2000 13,901 12,570 10/31/2000 12,612 11,688 01/31/2001 10,801 10,278 04/30/2001 9,300 8,991 07/31/2001 8,814 8,866 10/31/2001 7,573 7,999 01/31/2002 8,245 8,707 04/30/2002 7,707 8,032 07/31/2002 6,662 6,897 10/31/2002 6,642 6,797 01/31/2003 6,342 6,497 04/30/2003 6,807 7,051 07/31/2003 7,180 7,510 Average Annual Total Returns of Class A Shares of the Fund at 7/31/03* 1-Year 1.57% Since Inception -6.92% Class B Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Trinity Large Cap Growth Fund (Class B) S&P 500 BARRA/Growth Index [LINE CHART] Value of Investment S & P 500 Date In Fund Barra Growth Index 03/01/1999 10,000 10,000 04/30/1999 10,525 10,464 07/31/1999 11,345 10,542 10/31/1999 11,641 11,233 01/31/2000 12,702 11,742 04/30/2000 14,095 12,449 07/31/2000 13,920 12,330 10/31/2000 12,595 11,465 01/31/2001 10,771 10,082 04/30/2001 9,250 8,819 07/31/2001 8,747 8,697 10/31/2001 7,499 7,847 01/31/2002 8,159 8,541 04/30/2002 7,614 7,879 07/31/2002 6,565 6,766 10/31/2002 6,534 6,667 01/31/2003 6,219 6,373 04/30/2003 6,670 6,917 07/31/2003 6,889 7,367 Average Annual Total Returns of Class B Shares of the Fund at 7/31/03* 1-Year 1.87% Since Inception -8.09% *See Notes on page 10 for further details. The performance information for the S&P 500 BARRA/Growth Index in the graphs begins on 12/31/98 for Class A and Class Y, on 2/28/99 for Class B and Class C and 2/28/01 for Class N shares. Past performance cannot guarantee future results. Graphs are not drawn to same scale. 7 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND FUND PERFORMANCE DISCUSSION Class C Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Trinity Large Cap Growth Fund (Class C) S&P 500 BARRA/Growth Index [LINE CHART] Value of Investment S & P 500 Date In Fund Barra Growth Index 03/01/1999 10,000 10,000 04/30/1999 10,525 10,464 07/31/1999 11,345 10,542 10/31/1999 11,651 11,233 01/31/2000 12,711 11,742 04/30/2000 14,094 12,449 07/31/2000 13,920 12,330 10/31/2000 12,605 11,465 01/31/2001 10,770 10,082 04/30/2001 9,260 8,819 07/31/2001 8,756 8,697 10/31/2001 7,498 7,847 01/31/2002 8,159 8,541 04/30/2002 7,613 7,879 07/31/2002 6,565 6,766 10/31/2002 6,544 6,667 01/31/2003 6,219 6,373 04/30/2003 6,670 6,917 07/31/2003 7,016 7,367 Average Annual Total Returns of Class C Shares of the Fund at 7/31/03* 1-Year 5.87% Since Inception -7.71% Class N Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Trinity Large Cap Growth Fund (Class N) S&P 500 BARRA/Growth Index [LINE CHART] Value of Investment S & P 500 Date In Fund Barra Growth Index 03/01/2001 10,000 10,000 04/30/2001 9,945 9,912 07/31/2001 9,413 9,775 10/31/2001 8,084 8,820 01/31/2002 8,793 9,600 04/30/2002 8,217 8,856 07/31/2002 7,099 7,604 10/31/2002 7,076 7,494 01/31/2003 6,744 7,163 04/30/2003 7,243 7,774 07/31/2003 7,619 8,280 Average Annual Total Returns of Class N Shares of the Fund at 7/31/03* 1-Year 6.33% Since Inception -10.64% *See Notes on page 10 for further details. 8 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND Class Y Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Trinity Large Cap Growth Fund (Class Y) S&P 500 BARRA/Growth Index [LINE CHART] Value of Investment S & P 500 Date In Fund Barra Growth Index 12/17/1998 10,000 10,000 01/31/1999 11,300 10,611 04/30/1999 11,050 10,667 07/31/1999 11,950 10,747 10/31/1999 12,310 11,451 01/31/2000 13,472 11,970 04/30/2000 14,992 12,691 07/31/2000 14,850 12,570 10/31/2000 13,492 11,688 01/31/2001 11,571 10,278 04/30/2001 9,959 8,991 07/31/2001 9,465 8,866 10/31/2001 8,149 7,999 01/31/2002 8,884 8,707 04/30/2002 8,314 8,032 07/31/2002 7,195 6,897 10/31/2002 7,195 6,797 01/31/2003 6,866 6,497 04/30/2003 7,392 7,051 07/31/2003 7,798 7,510 Average Annual Total Returns of Class Y Shares of the Fund at 7/31/03* 1-Year 8.38% Since Inception -5.24% The performance information for the S&P 500 BARRA/Growth Index in the graphs begins on 12/31/98 for Class A and Class Y, on 2/28/99 for Class B and Class C and 2/28/01 for Class N shares. Past performance cannot guarantee future results. Graphs are not drawn to same scale. 9 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND NOTES In reviewing performance and rankings, please remember that past performance cannot 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 fluctuations, and current performance may be more or less than the results shown. For updates on the Fund's performance, visit our website at www.oppenheimerfunds.com. Total returns and the ending account values in the graph includes changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund's total returns shown do not reflect the deduction of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. The Fund's portfolio managers are employed by the Fund's sub-advisor, Trinity Investment Management Corporation, an affiliate of OppenheimerFunds, Inc., the Fund's investment manager. For more complete information about the Fund, including charges, expenses and risks, please refer to the prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677). Read the prospectus carefully before you invest or send money. Class A shares of the Fund were first publicly offered on 12/17/98. Unless otherwise noted, Class A total returns are shown net of the applicable 5.75% maximum initial sales charge. Class B shares of the Fund were first publicly offered on 3/1/99. Unless otherwise noted, Class B total returns are shown net of the applicable contingent deferred sales charge of 5% (1-year) and 2% (since inception). Class B shares are subject to an annual 0.75% asset-based sales charge. Class C shares of the Fund were first publicly offered on 3/1/99. Unless otherwise noted Class C total returns are shown net of the 1% contingent deferred sales charge for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge. Class Y shares of the Fund were first publicly offered on 12/17/98. Class Y shares are only offered to certain institutional investors under special agreement with the distributor. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 10 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENT OF INVESTMENTS July 31, 2003 Market Value Shares See Note 1 ----------------------------------------------------------------- Common Stocks--98.5% ----------------------------------------------------------------- Consumer Discretionary--12.4% ----------------------------------------------------------------- Automobiles--1.5% Harley-Davidson, Inc. 12,600 $ 590,688 ----------------------------------------------------------------- Internet & Catalog Retail--1.7% eBay, Inc. 1 6,300 675,360 ----------------------------------------------------------------- Media--1.1% McGraw-Hill Cos., Inc. (The) 3,900 237,042 ----------------------------------------------------------------- Omnicom Group, Inc. 2,300 169,924 --------------- 406,966 ----------------------------------------------------------------- Specialty Retail--8.1% AutoZone, Inc. 1 16,300 1,357,138 ----------------------------------------------------------------- Gap, Inc. (The) 58,500 1,052,415 ----------------------------------------------------------------- TJX Cos., Inc. (The) 38,400 746,880 --------------- 3,156,433 ----------------------------------------------------------------- Consumer Staples--14.1% ----------------------------------------------------------------- Beverages--4.1% Anheuser-Busch Cos., Inc. 30,500 1,580,510 ----------------------------------------------------------------- Food & Staples Retailing--3.3% Wal-Mart Stores, Inc. 23,200 1,297,112 ----------------------------------------------------------------- Food Products--0.4% General Mills, Inc. 3,800 174,306 ----------------------------------------------------------------- Household Products--6.3% Clorox Co. (The) 29,000 1,258,310 ----------------------------------------------------------------- Colgate-Palmolive Co. 2,000 109,200 ----------------------------------------------------------------- Procter & Gamble Corp. (The) 12,200 1,072,014 --------------- 2,439,524 ----------------------------------------------------------------- Energy--0.3% ----------------------------------------------------------------- Oil & Gas--0.3% Anadarko Petroleum Corp. 3,000 131,400 ----------------------------------------------------------------- Financials--4.2% ----------------------------------------------------------------- Thrifts & Mortgage Finance--4.2% Fannie Mae 25,800 1,652,232 ----------------------------------------------------------------- Health Care--29.5% ----------------------------------------------------------------- Biotechnology--1.6% Amgen, Inc. 1 9,100 633,178 Market Value Shares See Note 1 ----------------------------------------------------------------- Health Care Equipment & Supplies--5.5% Medtronic, Inc. 34,900 $1,797,350 ----------------------------------------------------------------- Zimmer Holdings, Inc. 1 7,000 334,670 --------------- 2,132,020 ----------------------------------------------------------------- Health Care Providers & Services--3.1% UnitedHealth Group, Inc. 23,400 1,218,906 ----------------------------------------------------------------- Pharmaceuticals--19.3% Abbott Laboratories 35,600 1,397,300 ----------------------------------------------------------------- Forest Laboratories, Inc. 1 18,100 866,628 ----------------------------------------------------------------- Johnson & Johnson 46,500 2,408,235 ----------------------------------------------------------------- Merck & Co., Inc. 30,600 1,691,568 ----------------------------------------------------------------- Pfizer, Inc. 33,900 1,130,904 --------------- 7,494,635 ----------------------------------------------------------------- Industrials--6.3% ----------------------------------------------------------------- Industrial Conglomerates--6.3% 3M Co. 5,500 771,100 ----------------------------------------------------------------- General Electric Co. 58,800 1,672,272 --------------- 2,443,372 ----------------------------------------------------------------- Information Technology--29.3% ----------------------------------------------------------------- Communications Equipment--2.0% Cisco Systems, Inc. 1 39,200 765,184 ----------------------------------------------------------------- Computers & Peripherals--10.4% Dell, Inc. 1 54,700 1,842,296 ----------------------------------------------------------------- International Business Machines Corp. 14,200 1,153,750 ----------------------------------------------------------------- Lexmark International, Inc., Cl. A 1 16,500 1,058,805 --------------- 4,054,851 ----------------------------------------------------------------- IT Services--4.1% Automatic Data Processing, Inc. 9,600 355,968 ----------------------------------------------------------------- DST Systems, Inc. 1 3,800 139,688 ----------------------------------------------------------------- Electronic Data Systems Corp. 9,300 207,111 ----------------------------------------------------------------- Unisys Corp. 1 74,100 908,466 --------------- 1,611,233 ----------------------------------------------------------------- Semiconductor & Semiconductor Equipment--4.3% Intel Corp. 67,200 1,676,640 11 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ----------------------------------------------------------------- Software--8.5% Intuit, Inc. 1 2,300 $ 98,946 ----------------------------------------------------------------- Microsoft Corp. 106,900 2,822,160 ----------------------------------------------------------------- Oracle Corp. 1 33,900 406,800 --------------- 3,327,906 ----------------------------------------------------------------- Materials--0.4% ----------------------------------------------------------------- Containers & Packaging--0.4% Ball Corp. 2,900 144,130 ----------------------------------------------------------------- Telecommunication Services--2.0% ----------------------------------------------------------------- Diversified Telecommunication Services--2.0% Verizon Communications, Inc. 22,300 777,378 --------------- Total Common Stocks (Cost $39,406,315) 38,383,964 Principal Market Value Amount See Note 1 ----------------------------------------------------------------- Joint Repurchase Agreements--1.5% Undivided interest of 14.56% in joint repurchase agreement (Principal Amount/ Market Value $4,093,000, with a maturity value of $4,093,117) with Banc One Capital Markets, Inc., 1.03%, dated 7/31/03, to be repurchased at $596,017 on 8/1/03, collateralized by U.S. Treasury Nts., 3%, 2/29/04, with a value of $4,178,213 (Cost $596,000) $596,000 $ 596,000 ----------------------------------------------------------------- Total Investments, at Value (Cost $40,002,315) 100.0% 38,979,964 ----------------------------------------------------------------- Liabilities in Excess of Other Assets (0.0) (4,541) ------------------------------- Net Assets 100.0% $38,975,423 =============================== Footnotes to Statement of Investments 1. Non-income producing security. See accompanying Notes to Financial Statements. 12 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES July 31, 2003 -------------------------------------------------------------------------------- Assets Investments, at value (cost $40,002,315)--see accompanying statement $ 38,979,964 -------------------------------------------------------------------------------- Cash 16,022 -------------------------------------------------------------------------------- Receivables and other assets: Shares of beneficial interest sold 61,414 Interest and dividends 34,360 Other 2,772 -------------- Total assets 39,094,532 -------------------------------------------------------------------------------- Liabilities Payables and other liabilities: Shareholder reports 40,721 Shares of beneficial interest redeemed 34,053 Legal, auditing and other professional fees 21,897 Transfer and shareholder servicing agent fees 8,480 Distribution and service plan fees 7,999 Trustees' compensation 4,763 Other 1,196 -------------- Total liabilities 119,109 -------------------------------------------------------------------------------- Net Assets $ 38,975,423 ============== -------------------------------------------------------------------------------- Composition of Net Assets Par value of shares of beneficial interest $ 5,722 -------------------------------------------------------------------------------- Additional paid-in capital 55,685,520 -------------------------------------------------------------------------------- Accumulated net investment loss (4,681) -------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (15,688,787) -------------------------------------------------------------------------------- Net unrealized depreciation on investments (1,022,351) -------------- Net Assets $ 38,975,423 ============== 13 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES Continued -------------------------------------------------------------------------------- Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $18,871,404 and 2,720,815 shares of beneficial interest outstanding) $6.94 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $7.36 -------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $13,836,497 and 2,067,732 shares of beneficial interest outstanding) $6.69 -------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $5,581,423 and 834,118 shares of beneficial interest outstanding) $6.69 -------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $553,887 and 80,489 shares of beneficial interest outstanding) $6.88 -------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $132,212 and 18,601 shares of beneficial interest outstanding) $7.11 See accompanying Notes to Financial Statements. 14 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENT OF OPERATIONS For the Year Ended July 31, 2003 -------------------------------------------------------------------------------- Investment Income Dividends $ 435,820 -------------------------------------------------------------------------------- Interest 11,543 ------------- Total investment income 447,363 -------------------------------------------------------------------------------- Expenses Management fees 254,235 -------------------------------------------------------------------------------- Distribution and service plan fees: Class A 38,938 Class B 119,602 Class C 47,497 Class N 1,941 -------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 107,011 Class B 90,452 Class C 31,562 Class N 2,771 Class Y 8 -------------------------------------------------------------------------------- Shareholder reports 85,190 -------------------------------------------------------------------------------- Trustees' compensation 2,018 -------------------------------------------------------------------------------- Custodian fees and expenses 1,474 -------------------------------------------------------------------------------- Other 39,963 ------------- Total expenses 822,662 Less reduction to custodian expenses (25) Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (53,899) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (52,847) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (16,397) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (1,502) ------------- Net expenses 697,992 -------------------------------------------------------------------------------- Net Investment Loss (250,629) -------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized loss on investments (4,222,969) -------------------------------------------------------------------------------- Net change in unrealized appreciation on investments 6,652,439 -------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $2,178,841 ============= See accompanying Notes to Financial Statements. 15 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002 ---------------------------------------------------------------------------------------------------- Operations Net investment loss $ (250,629) $ (347,681) ---------------------------------------------------------------------------------------------------- Net realized loss (4,222,969) (4,180,725) ---------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 6,652,439 (4,530,887) ---------------------------------- Net increase (decrease) in net assets resulting from operations 2,178,841 (9,059,293) ---------------------------------------------------------------------------------------------------- Beneficial Interest Transactions Net increase in net assets resulting from beneficial interest transactions: Class A 3,426,009 6,840,815 Class B 2,996,444 4,657,802 Class C 1,254,799 3,184,637 Class N 309,222 234,202 Class Y 24,877 113,887 ---------------------------------------------------------------------------------------------------- Net Assets Total increase 10,190,192 5,972,050 ---------------------------------------------------------------------------------------------------- Beginning of period 28,785,231 22,813,181 ---------------------------------- End of period [including accumulated net investment loss of $4,681 and $4,090, respectively] $38,975,423 $28,785,231 ==================================
See accompanying Notes to Financial Statements. 16 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND FINANCIAL HIGHLIGHTS
Class A Year Ended July 31, 2003 2002 2001 2000 1999 1 ---------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $6.44 $8.52 $14.55 $11.93 $10.00 ---------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.03) (.07) (.10) (.11) (1.05) Net realized and unrealized gain (loss) .53 (2.01) (5.06) 2.91 2.98 ---------------------------------------------------------- Total from investment operations .50 (2.08) (5.16) 2.80 1.93 ---------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- (.87) (.18) -- ---------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $6.94 $6.44 $ 8.52 $14.55 $11.93 ========================================================== 7.76% (24.41)% (36.60)% 23.63% 19.30% ---------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 ---------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $18,871 $14,356 $12,029 $16,470 $6,059 ---------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $16,712 $15,495 $14,063 $11,973 $4,028 ---------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (0.36)% (0.75)% (1.01)% (1.03)% (1.05)% Expenses, gross 2.00% 2.03% 1.54% 1.91% 1.81% Expenses, net 1.68% 4,5 1.75% 4,5 1.54% 4 1.89% 6 1.65% 4,7 ---------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July 31, 1999. 2. Assumes an 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. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Net of reduction to custodian expenses. 7. Net of voluntary reimbursement of expenses. See accompanying Notes to Financial Statements. 17 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND FINANCIAL HIGHLIGHTS Continued
Class B Year Ended July 31, 2003 2002 2001 2000 1999 1 ---------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $6.26 $8.34 $14.39 $11.89 $10.48 ---------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.05) (.09) (.16) (.17) (1.04) Net realized and unrealized gain (loss) .48 (1.99) (5.02) 2.85 2.45 ---------------------------------------------------------- Total from investment operations .43 (2.08) (5.18) 2.68 1.41 ---------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- (.87) (.18) -- ---------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $6.69 $6.26 $ 8.34 $14.39 $11.89 ========================================================== ---------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 6.87% (24.94)% (37.17)% 22.70% 13.45% ---------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $13,836 $10,101 $8,800 $11,499 $1,764 ---------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $11,970 $11,463 $9,945 $ 7,257 $ 722 ---------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.12)% (1.52)% (1.81)% (1.81)% (1.93)% Expenses, gross 2.89% 2.80% 2.34% 2.69% 2.92% Expenses, net 2.45% 4,5 2.52% 4,5 2.34% 4 2.67% 6 2.75% 4,7 ---------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July 31, 1999. 2. Assumes an 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. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Net of reduction to custodian expenses. 7. Net of voluntary reimbursement of expenses. See accompanying Notes to Financial Statements. 18 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class C Year Ended July 31, 2003 2002 2001 2000 1999 1 ---------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $6.26 $8.35 $14.39 $11.89 $10.48 ---------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.06) (.05) (.14) (.19) (1.04) Net realized and unrealized gain (loss) .49 (2.04) (5.03) 2.87 2.45 ---------------------------------------------------------- Total from investment operations .43 (2.09) (5.17) 2.68 1.41 ---------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- (.87) (.18) -- ---------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $6.69 $6.26 $ 8.35 $14.39 $11.89 ========================================================== ---------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 6.87% (25.03)% (37.10)% 22.70% 13.45% ---------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $5,581 $4,032 $1,983 $2,241 $438 ---------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $4,754 $3,814 $2,109 $1,566 $192 ---------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.13)% (1.47)% (1.82)% (1.82)% (1.95)% Expenses, gross 2.79% 2.79% 2.35% 2.72% 2.90% Expenses, net 2.45% 4,5 2.51% 4,5 2.35% 4 2.70% 6 2.73% 4,7 ---------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July 31, 1999. 2. Assumes an 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. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. 6. Net of reduction to custodian expenses. 7. Net of voluntary reimbursement of expenses. See accompanying Notes to Financial Statements. 19 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND FINANCIAL HIGHLIGHTS Continued
Class N Year Ended July 31, 2003 2002 2001 1 ------------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $6.41 $8.50 $9.03 ------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment loss (.06) (.10) (.06) Net realized and unrealized gain (loss) .53 (1.99) (.47) ----------------------------------- Total from investment operations .47 (2.09) (.53) ------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- ------------------------------------------------------------------------------------------------ Net asset value, end of period $6.88 $6.41 $8.50 =================================== ------------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 2 7.33% (24.59)% (5.87)% ------------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $554 $201 $1 ------------------------------------------------------------------------------------------------ Average net assets (in thousands) $389 $ 87 $1 ------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment loss (0.67)% (0.87)% (1.67)% Expenses, gross 2.34% 2.29% 1.48% Expenses, net 1.95% 4,5 2.01% 4,5 1.48% 4 ------------------------------------------------------------------------------------------------ Portfolio turnover rate 140% 96% 160%
1. For the period from March 1, 2001 (inception of offering) to July 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 20 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class Y Year Ended July 31, 2003 2002 2001 2000 1999 1 ---------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $6.56 $8.63 $14.65 $11.95 $10.00 ---------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.01) (.15) (.05) (.07) (1.03) Net realized and unrealized gain (loss) .56 (1.92) (5.10) 2.95 2.98 ---------------------------------------------------------- Total from investment operations .55 (2.07) (5.15) 2.88 1.95 ---------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- (.87) (.18) -- ---------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $7.11 $6.56 $ 8.63 $14.65 $11.95 ========================================================== ---------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 8.38% (23.99)% (36.26)% 24.27% 19.50% ---------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $132 $95 $1 $1 $1 ---------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $101 $68 $1 $1 $1 ---------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment gain (loss) 0.15% (0.10)% (0.48)% (0.54)% (0.72)% Expenses, gross 1.14% 4.83% 168.30% 4 1.45% 1.65% Expenses, net 1.14% 5 1.20% 5,6 1.10% 5 1.43% 7 1.50% 5,8 ---------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July 31, 1999. 2. Assumes an 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. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Added since July 31, 2001 to reflect expenses before reduction to custodian expenses and voluntary waiver of transfer agent fees. 5. Reduction to custodian expenses less than 0.01%. 6. Net of voluntary waiver of transfer agent fees. 7. Net of reduction to custodian expenses. 8. Net of voluntary reimbursement of expenses. See accompanying Notes to Financial Statements. 21 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Trinity Large Cap Growth Fund (the Fund), is registered under the Investment Company Act of 1940, as amended, as an 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 Manager has entered into a sub-advisory agreement with Trinity Investment Management Corporation, a related party to theManager. The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. 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 and voting privileges. Earnings, net assets and net asset value per share may differ by minor amounts due to each class having its own expenses directly attributable to that class. Classes A, B, C and N 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. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). -------------------------------------------------------------------------------- Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. Secured by U.S. government securities, these balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. 22 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis 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 comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. The tax components of capital shown in the table below represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of investment for federal income tax purposes.
Net Unrealized Undistributed Depreciation Based Net Undistributed Accumulated on Cost of Securities Investment Long-Term Loss for Federal Income Income Gain Carryforward 1,2,3 Tax Purposes ---------------------------------------------------------------------------- $-- $-- $16,007,591 $1,315,914
1. As of July 31, 2003, the Fund had $13,336,905 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of July 31, 2003, details of the capital loss carryforwards were as follows: Expiring ----------------------- 2009 $ 2,814,048* 2010 7,389,585 2011 3,133,272 ----------- Total $13,336,905 =========== *$612,369 of the capital loss carryforward was acquired in connection with the Oppenheimer Trinity Growth Fund merger. 2. During the fiscal years ended July 31, 2003 and July 31, 2002, the Fund did not utilize any capital loss carryforwards. 3. As of July 31, 2003, the Fund had $2,670,685 of post-October losses available to offset future capital gains, if any. Such losses, if unutilized, will expire in 2012. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. 23 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued Accordingly, the following amounts have been reclassified for July 31, 2003. Net assets of the Fund were unaffected by the reclassifications. From To (From) Net Ordinary Capital Gain Tax Return Investment Loss (Loss) of Capital Loss ----------------------------------------------------------------------- $250,038 $-- $-- $198,805 No distributions were paid during the years ended July 31, 2003 and July 31, 2002. The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investments for federal income tax purposes as of July 31, 2003 are noted below. The primary difference between book and tax appreciation or depreciation of investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal Tax Cost $40,295,878 =========== Gross unrealized appreciation $ 1,808,685 Gross unrealized depreciation (3,124,599) ----------- Net unrealized depreciation $(1,315,914) =========== -------------------------------------------------------------------------------- Trustees' Compensation. The Fund has adopted an unfunded 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 July 31, 2003, the Fund's projected benefit obligations were increased by $738 and payments of $147 were made to retired trustees, resulting in an accumulated liability of $4,684 as of July 31, 2003. 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 the annual compensation they are entitled to receive from the Fund. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or are invested in other selected Oppenheimer 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 investment income per share. Amounts will be deferred until distributed in accordance to the Plan. -------------------------------------------------------------------------------- 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. Income and capital gain distributions, if any, are declared and paid annually. -------------------------------------------------------------------------------- Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. 24 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND -------------------------------------------------------------------------------- Expense Offset Arrangement. The reduction of custodian fees represents earnings on cash balances maintained by the Fund. -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows: Year Ended July 31, 2003 Year Ended July 31, 2002 Shares Amount Shares Amount -------------------------------------------------------------------------------- Class A Sold 1,920,993 $12,512,024 1,220,919 $ 9,861,258 Acquisition--Note 5 -- -- 488,341 3,716,273 Redeemed (1,429,508) (9,086,015) (892,005) (6,736,716) --------------------------------------------------------- Net increase 491,485 $ 3,426,009 817,255 $ 6,840,815 ========================================================= -------------------------------------------------------------------------------- Class B Sold 1,319,060 $ 8,295,051 949,955 $ 7,487,395 Acquisition--Note 5 -- -- 327,908 2,439,639 Redeemed (864,979) (5,298,607) (718,719) (5,269,232) --------------------------------------------------------- Net increase 454,081 $ 2,996,444 559,144 $ 4,657,802 ========================================================= -------------------------------------------------------------------------------- Class C Sold 686,591 $ 4,294,225 557,904 $ 4,306,057 Acquisition--Note 5 -- -- 129,384 962,619 Redeemed (496,405) (3,039,426) (280,869) (2,084,039) --------------------------------------------------------- Net increase 190,186 $ 1,254,799 406,419 $ 3,184,637 ========================================================= -------------------------------------------------------------------------------- Class N Sold 58,283 $ 370,273 34,570 $ 256,789 Acquisition--Note 5 -- -- 115 875 Redeemed (9,246) (61,051) (3,344) (23,462) --------------------------------------------------------- Net increase 49,037 $ 309,222 31,341 $ 234,202 ========================================================= -------------------------------------------------------------------------------- Class Y Sold 17,368 $ 113,161 9,810 $ 77,807 Acquisition--Note 5 -- -- 7,350 56,743 Redeemed (13,243) (88,284) (2,784) (20,663) --------------------------------------------------------- Net increase 4,125 $ 24,877 14,376 $ 113,887 ========================================================= 25 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued -------------------------------------------------------------------------------- 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended July 31, 2003, were $54,014,435 and $46,314,970, respectively. -------------------------------------------------------------------------------- 4. 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 a fee at an annual rate of 0.75% of the first $200 million of average annual net assets, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million, and 0.60% of average annual net assets over $800 million. -------------------------------------------------------------------------------- Sub-Advisor Fees. The Manager pays Trinity Investment Management Corporation (the Sub-Advisor) based on the fee schedule set forth in the Prospectus. For the year ended July 31, 2003, the Manager paid $85,313 to the Sub-Advisor for services to the Fund. -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the year ended July 31, 2003, the Fund paid $115,648 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees up to an annual rate of 0.35% of average annual net assets for all classes. This undertaking may be amended or withdrawn at any time. -------------------------------------------------------------------------------- Distribution and Service Plan (12b-1) Fees. Under its General Distributor's Agreement with the Manager, OppenheimerFunds Distributor, Inc. (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.
Aggregate Class A Concessions Concessions Concessions Concessions Front-End Front-End on Class A on Class B on Class C on Class N Sales Charges Sales Charges Shares Shares Shares Shares on Class A Retained by Advanced by Advanced by Advanced by Advanced by Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1 -------------------------------------------------------------------------------------------------------------------------- July 31, 2003 $116,220 $41,939 $4,337 $115,008 $18,691 $3,095
1. The Distributor advances concession payments to dealers for certain sales of Class A shares and for sales of Class B, Class C and Class N shares from its own resources at the time of sale. 26 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class A Class B Class C Class N Contingent Contingent Contingent Contingent Deferred Deferred Deferred Deferred Sales Charges Sales Charges Sales Charges Sales Charges Retained by Retained by Retained by Retained by Year Ended Distributor Distributor Distributor Distributor ----------------------------------------------------------------------------------------------- July 31, 2003 $582 $33,397 $1,049 $312
-------------------------------------------------------------------------------- Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class A Shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made quarterly at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. For the year ended July 31, 2003, expense under the Class A Plan totaled $38,938, all of which were paid by the Distributor to recipients, which included $575 retained by the Distributor and $4,410 which was paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. -------------------------------------------------------------------------------- Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% per year on Class B shares and on Class C shares and the Fund pays the Distributor an annual asset-based sales charge of 0.25% per year on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. Distribution fees paid to the Distributor for the year ended July 31, 2003, were as follows:
Distributor's Distributor's Aggregate Aggregate Unreimbursed Unreimbursed Expenses as % Total Payments Amount Retained Expenses of Net Assets Under Plan by Distributor Under Plan of Class ---------------------------------------------------------------------------------------------- Class B Plan $119,602 $97,050 $246,318 1.78% Class C Plan 47,497 20,001 75,165 1.35 Class N Plan 1,941 1,752 8,737 1.58
-------------------------------------------------------------------------------- 5. Acquisition of Oppenheimer Trinity Growth Fund On October 12, 2001, the Fund acquired all of the net assets of Oppenheimer Trinity Growth Fund, pursuant to an Agreement and Plan of Reorganization approved by the Oppenheimer Trinity Growth Fund shareholders on April 12, 2001. The Fund issued (at an exchange ratio of 0.929111 for Class A, 0.934499 for Class B, 0.933942 for Class C, 0.927699 for Class N and 0.922201 for Class Y of the Fund, to one share of Oppenheimer Trinity Large Cap Growth Fund) 488,341; 327,908; 129,384; 115 and 7,350 shares of beneficial interest for Class A, Class B, Class C, Class N and Class Y, respectively, valued at $3,716,273; $2,439,639; $962,619; $875 and $56,743 in exchange for the net assets, resulting in combined Class A net assets of $14,652,007, Class B net assets of $10,711,439, Class C net assets of $2,969,374, Class N net assets of $22,045 and Class Y net assets of $61,005 on October 12, 2001. The net assets acquired included net unrealized depreciation of 27 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued -------------------------------------------------------------------------------- 5. Acquisition of Oppenheimer Trinity Growth Fund Continued $1,140,630, undistributed realized losses of $2,775,589 and unused capital loss carryforward of $2,775,589. The exchange qualified as a tax-free reorganization for federal income tax purposes. -------------------------------------------------------------------------------- 6. Fund Reorganization On September 12, 2003, Shareholders of Oppenheimer Trinity Large Cap Growth Fund approved a fund reorganization, whereby Shareholders received shares of Oppenheimer Growth Fund. The reorganization occurred on September 18, 2003. 28 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND INDEPENDENT AUDITORS' REPORT -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Oppenheimer Trinity Large Cap Growth Fund: We have audited the accompanying statement of assets and liabilities of Oppenheimer Trinity Large Cap Growth Fund, including the statement of investments, as of July 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, and the period from December 17, 1998 (commencement of operations) to July 31, 1999. 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 auditing standards generally accepted in the United States of America. 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 July 31, 2003, by correspondence with the custodian. 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 Trinity Large Cap Growth Fund as of July 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, and the period from December 17, 1998 (commencement of operations) to July 31, 1999, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Denver, Colorado August 21, 2003 29 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND FEDERAL INCOME TAX INFORMATION Unaudited -------------------------------------------------------------------------------- In early 2004, if applicable, shareholders of record will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2003. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. 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. PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. 30 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND TRUSTEES AND OFFICERS Unaudited -------------------------------------------------------------------------------- Name, Position(s) Held Principal Occupation(s) During Past 5 Years; Other with Fund, Length of Trusteeships/Directorships Held by Trustee; Number of Service, Age Portfolios in Fund Complex Currently Overseen by Trustee INDEPENDENT TRUSTEES The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his or her resignation, retirement, death or removal. Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law Chairman of the Board of firm). Other directorships: Weyerhaeuser Corp. (since Trustees (since 2003), 1999) and Danielson Holding Corp. (since 2002); Trustee (since 1998) formerly a director of Caterpillar, Inc. Age: 72 (1993-December 2002). Oversees 29 portfolios in the OppenheimerFunds complex. Robert G. Galli, A trustee or director of other Oppenheimer funds. Trustee (since 1998) Formerly Trustee (May 2000-2002) of Research Age: 69 Foundation of AIMR (investment research, non-profit) and Vice Chairman (October 1995-December 1997) of OppenheimerFunds, Inc. (the Manager). Oversees 39 portfolios in the OppenheimerFunds complex. Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Trustee (since 1998) Study, Princeton, N.J., a director (since 2001) of Age: 64 GSI Lumonics, a trustee (since 1983) of Woodward Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A member of: the National Academy of Sciences (since 1979), American Academy of Arts and Sciences (since 1995), American Philosophical Society (since 1996) and Council on Foreign Relations (since 2002). Formerly a director of Bankers Trust New York Corporation (1994-1999). Oversees 29 portfolios in the OppenheimerFunds complex. Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. Trustee (since 2002) (privately-held financial adviser); Managing Director Age: 53 (since 2002) Carmona Motley, Inc. (privately-held financial adviser); Formerly he held the following positions: Managing Director (January 1998-December 2001), Carmona Motley Hoffman Inc. (privately-held financial adviser); Managing Director (January 1992-December 1997), Carmona Motley & Co. (privately-held financial adviser). Oversees 29 portfolios in the OppenheimerFunds complex. Kenneth A. Randall, A director of Dominion Resources, Inc. (electric Trustee (since 1998) utility holding company) and Prime Retail, Inc. (real Age: 76 estate investment trust); formerly a director of Dominion Energy, Inc. (electric power and oil & gas producer), President and Chief Executive Officer of The Conference Board, Inc. (international economic and business research) and a director of Lumbermens Mutual Casualty Company, American Motorists Insurance Company and American Manufacturers Mutual Insurance Company. Oversees 29 portfolios in the OppenheimerFunds complex. Edward V. Regan, President, Baruch College, CUNY; a director of Trustee (since 1998) RBAsset (real estate manager); a director of Age: 73 OffitBank; formerly Trustee, Financial Accounting Foundation (FASB and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College, Chairman of Municipal Assistance Corporation for the City of New York, New York State Comptroller and Trustee of New York State and Local Retirement Fund. Oversees 29 investment companies in the OppenheimerFunds complex. Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Trustee (since 1998) Group, Inc. (corporate governance consulting and Age: 71 executive recruiting); a life trustee of International House (non-profit educational organization), and a trustee (since 1996) of the Greenwich Historical Society. Oversees 31 portfolios in the OppenheimerFunds complex. 31 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND TRUSTEES AND OFFICERS Unaudited / Continued Donald W. Spiro, Chairman Emeritus (since January 1991) of the Vice Chairman of the Manager. Formerly a director (January 1969-August Board of Trustees, 1999) of the Manager. Oversees 29 portfolios in the Trustee (since 1998) OppenheimerFunds complex. Age: 77 -------------------------------------------------------------------------------- INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498 AND OFFICER Seventh Avenue, New York, NY 10018. Mr. Murphy serves for an indefinite term, until his resignation, death or removal. John V. Murphy, Chairman, Chief Executive Officer and director (since President and Trustee, June 2001) and President (since September 2000) of Trustee (since 2001) the Manager; President and a director or trustee of Age: 54 other Oppenheimer funds; President and a director (since July 2001) of Oppenheimer Acquisition Corp. (the Manager's parent holding company) and of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager); President and a director (since July 2001) of OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a director of the investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the Manager); Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company (the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a holding company that owns the shares of David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September 2000-June 2001) of the Manager; President and trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 73 portfolios in the OppenheimerFunds complex. -------------------------------------------------------------------------------- OFFICERS The address of the Officers in the chart below is as follows: for Mr. Zack, 498 Seventh Avenue, New York, NY 10018, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual term or until his or her earlier resignation, death or removal. Brian W. Wixted, Senior Vice President and Treasurer (since March Treasurer (since 1999) 1999) of the Manager; Treasurer (since March 1999) of Age: 43 HarbourView Asset Management Corporation, Shareholder Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and OppenheimerFunds plc (offshore fund management subsidiary of the Manager) (since May 2000) and OFI Institutional Asset Management, Inc. (since November 2000) (offshore fund management subsidiaries of the Manager); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer Trust 32 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND Brian W. Wixted, Company (a trust company subsidiary of the Manager); Continued Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal and Chief Operating Officer (March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An officer of 89 portfolios in the OppenheimerFunds complex. Robert G. Zack, Senior Vice President (since May 1985) and General Secretary (since 2001) Counsel (since February 2002) of the Manager; General Age: 54 Counsel and a director (since November 2001) of OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel (since November 2001) of HarbourView Asset Management Corporation; Vice President and a director (since November 2000) of Oppenheimer Partnership Holdings, Inc.; Senior Vice President, General Counsel and a director (since November 2001) of Shareholder Services, Inc., Shareholder Financial Services, Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI Institutional Asset Management, Inc.; General Counsel (since November 2001) of Centennial Asset Management Corporation; a director (since November 2001) of Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director (since November 2001) of OppenheimerFunds International Ltd.; Vice President (since November 2001) of OppenheimerFunds Legacy Program; Secretary (since November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds plc (October 1997-November 2001). An officer of 89 portfolios in the OppenheimerFunds complex. The Fund's Statement of Additional Information contains additional information about the Fund's Trustee's and is available without charge upon request. 33 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND ITEM 2. CODE OF ETHICS ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the Fund has determined that Edward V. Regan, the Chairman of the Board's Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Mr. Regan as the Audit Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. NOT APPLICABLE ITEM 6. RESERVED ITEM 7. NOT APPLICABLE ITEM 8. RESERVED ITEM 9. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)