-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, STIz16lQE7MJDGl55oJGUJHMrLB9YxgelktJ7a4aRW0tYKz7FC8E9+Pr/Kpsh3cV HU3J7wGN5eURJUxOeN35iw== 0000935069-03-000958.txt : 20030709 0000935069-03-000958.hdr.sgml : 20030709 20030709135037 ACCESSION NUMBER: 0000935069-03-000958 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030709 EFFECTIVENESS DATE: 20030709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER EMERGING TECHNOLOGIES FUND CENTRAL INDEX KEY: 0001108472 IRS NUMBER: 912028278 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-09845 FILM NUMBER: 03779769 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUSCON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 N-CSR/A 1 rs0765_6845vef.txt RS0765_6845VEF 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 811-09845 Oppenheimer Emerging Technologies 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: October 31 Date of reporting period: October 31, 2002 - April 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. STATEMENT OF INVESTMENTS April 30, 2003 / Unaudited Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Common Stocks--97.1% - -------------------------------------------------------------------------------- Consumer Discretionary--8.0% - -------------------------------------------------------------------------------- Internet & Catalog Retail--2.9% eBay, Inc. 1 13,000 $1,206,010 - -------------------------------------------------------------------------------- USA Interactive 1 80,000 2,396,000 ---------- 3,602,010 - -------------------------------------------------------------------------------- Media--3.7% Comcast Corp., Cl. A Special, Non-Vtg. 1 50,000 1,503,000 - -------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A 1 65,000 1,947,400 - -------------------------------------------------------------------------------- TMP Worldwide, Inc. 1 60,000 1,006,200 ---------- 4,456,600 - -------------------------------------------------------------------------------- Specialty Retail--1.4% CDW Computer Centers, Inc. 1 39,500 1,684,280 - -------------------------------------------------------------------------------- Health Care--10.5% - -------------------------------------------------------------------------------- Biotechnology--5.4% Amgen, Inc. 1 24,300 1,489,833 - -------------------------------------------------------------------------------- BioMarin Pharmaceutical, Inc. 1 50,400 553,392 - -------------------------------------------------------------------------------- Corixa Corp. 1 117,700 843,909 - -------------------------------------------------------------------------------- Genzyme Corp. (General Division) 1 50,000 2,014,000 - -------------------------------------------------------------------------------- Nuerocrine Biosciences, Inc. 1 35,100 1,588,275 ---------- 6,489,409 - -------------------------------------------------------------------------------- Health Care Equipment & Supplies--3.3% Boston Scientific Corp. 1 30,000 1,291,500 - -------------------------------------------------------------------------------- Varian Medical Systems, Inc. 1 51,200 2,757,632 ---------- 4,049,132 - -------------------------------------------------------------------------------- Health Care Providers & Services--0.8% CTI Molecular Imaging, Inc. 1 54,100 993,276 - -------------------------------------------------------------------------------- Pharmaceuticals--1.0% NPS Pharmaceuticals, Inc. 1 59,900 1,141,095 - -------------------------------------------------------------------------------- Industrials--2.7% - -------------------------------------------------------------------------------- Commercial Services & Supplies--2.7% FTI Consulting, Inc. 135,000 1,583,750 Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Commercial Services & Supplies Continued University of Phoenix Online 1 39,000 $ 1,721,460 ----------- 3,305,210 - -------------------------------------------------------------------------------- Information Technology--75.0% - -------------------------------------------------------------------------------- Communications Equipment--12.6% Alcatel Alsthom CGE SA, Sponsored ADR 1 100,000 806,000 - -------------------------------------------------------------------------------- Brocade Communications Systems, Inc. 1 250,000 1,442,500 - -------------------------------------------------------------------------------- Centillium Communications, Inc. 1 150,000 868,500 - -------------------------------------------------------------------------------- Ciena Corp. 1 60,000 292,200 - -------------------------------------------------------------------------------- Comverse Technology, Inc. 1 70,000 914,900 - -------------------------------------------------------------------------------- Corning, Inc. 1 80,000 433,600 - -------------------------------------------------------------------------------- Emulex Corp. 1 55,000 1,126,950 - -------------------------------------------------------------------------------- Foundry Networks, Inc. 1 89,000 968,320 - -------------------------------------------------------------------------------- Ixia 1 189,100 1,151,619 - -------------------------------------------------------------------------------- McDATA Corp., Cl. B 1 95,200 1,001,504 - -------------------------------------------------------------------------------- NetScreen Technologies, Inc. 1 89,800 1,821,144 - -------------------------------------------------------------------------------- Nokia Corp., Sponsored ADR, A Shares 119,200 1,975,144 - -------------------------------------------------------------------------------- UTStarcom, Inc. 1 112,600 2,451,415 ---------- 15,253,796 - -------------------------------------------------------------------------------- Computers & Peripherals--9.7% ATI Technologies, Inc. 1 150,000 945,000 - -------------------------------------------------------------------------------- Dell Computer Corp. 1 80,000 2,312,800 - -------------------------------------------------------------------------------- International Business Machines Corp. 15,000 1,273,500 - -------------------------------------------------------------------------------- Lexar Media, Inc. 1 346,000 1,678,100 - -------------------------------------------------------------------------------- Maxtor Corp. 1 358,400 1,971,200 - -------------------------------------------------------------------------------- Network Appliance, Inc. 1 177,500 2,357,200 - -------------------------------------------------------------------------------- SanDisk Corp. 1 52,000 1,258,400 ---------- 11,796,200 - -------------------------------------------------------------------------------- Electronic Equipment & Instruments--2.1% Innovex, Inc. 1 68,000 588,200 7 | OPPENHEIMER EMERGING TECHNOLOGIES FUND STATEMENT OF INVESTMENTS Unaudited / Continued Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Electronic Equipment & Instruments Continued Jabil Circuit, Inc. 1 50,000 $ 935,000 - -------------------------------------------------------------------------------- Sanmina-SCI Corp. 1 205,600 986,880 ---------- 2,510,080 - -------------------------------------------------------------------------------- Internet Software & Services--7.4% Check Point Software Technologies Ltd. 1 60,000 943,800 - -------------------------------------------------------------------------------- Digital River, Inc. 1 56,800 949,696 - -------------------------------------------------------------------------------- Embarcadero Technologies, Inc. 1 153,800 1,055,068 - -------------------------------------------------------------------------------- FindWhat.com 1 75,000 952,500 - -------------------------------------------------------------------------------- Netease.com, Inc., Sponsored ADR 1 69,400 1,509,519 - -------------------------------------------------------------------------------- SeeBeyond Technology Corp. 1 243,100 583,440 - -------------------------------------------------------------------------------- United Online, Inc. 1 85,000 1,900,600 - -------------------------------------------------------------------------------- VeriSign, Inc. 1 88,800 1,102,896 ---------- 8,997,519 - -------------------------------------------------------------------------------- IT Consulting & Services--1.4% Cognizant Technology Solutions Corp. 1 99,000 1,778,040 - -------------------------------------------------------------------------------- Semiconductor Equipment & Products--21.3% Agere Systems, Inc., Cl. A 1 392,900 703,291 - -------------------------------------------------------------------------------- Altera Corp. 1 60,000 948,600 - -------------------------------------------------------------------------------- Analog Devices, Inc. 1 20,000 662,400 - -------------------------------------------------------------------------------- Applied Micro Circuits Corp. 1 147,300 659,904 - -------------------------------------------------------------------------------- Atmel Corp. 1 293,900 540,776 - -------------------------------------------------------------------------------- Broadcom Corp., Cl. A 1 74,900 1,339,961 - -------------------------------------------------------------------------------- ChipPAC, Inc. 1 221,900 1,198,260 - -------------------------------------------------------------------------------- Cree, Inc. 1 96,100 1,917,195 - -------------------------------------------------------------------------------- Integrated Circuit Systems, Inc. 1 40,000 868,800 - -------------------------------------------------------------------------------- Intel Corp. 60,000 1,104,000 - -------------------------------------------------------------------------------- Linear Technology Corp. 58,200 2,006,154 - -------------------------------------------------------------------------------- Marvell Technology Group Ltd. 1 81,100 1,871,707 - -------------------------------------------------------------------------------- Maxim Integrated Products, Inc. 43,000 1,689,470 Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Semiconductor Equipment & Products Continued Micron Technology, Inc. 1 70,000 $ 595,000 - -------------------------------------------------------------------------------- MKS Instruments, Inc. 1 40,000 558,400 - -------------------------------------------------------------------------------- PMC-Sierra, Inc. 1 113,000 932,250 - -------------------------------------------------------------------------------- Power Integrations, Inc. 1 67,700 1,498,336 - -------------------------------------------------------------------------------- QLogic Corp. 1 14,200 624,658 - -------------------------------------------------------------------------------- Silicon Image, Inc. 1 132,300 791,154 - -------------------------------------------------------------------------------- Silicon Laboratories, Inc. 1 61,300 1,743,985 - -------------------------------------------------------------------------------- Skyworks Solutions, Inc. 1 143,100 765,585 - -------------------------------------------------------------------------------- STMicroelectronics NV, NY Registered Shares 45,000 926,550 - -------------------------------------------------------------------------------- Texas Instruments, Inc. 42,400 783,976 - -------------------------------------------------------------------------------- Vitesse Semiconductor Corp. 1 352,200 1,095,694 ----------- 25,826,106 - -------------------------------------------------------------------------------- Software--20.5% Amdocs Ltd. 1 131,600 2,324,056 - -------------------------------------------------------------------------------- Autodesk, Inc. 152,800 2,377,568 - -------------------------------------------------------------------------------- BEA Systems, Inc. 1 94,800 1,015,308 - -------------------------------------------------------------------------------- Business Objects SA, Sponsored ADR 1 59,100 1,284,243 - -------------------------------------------------------------------------------- Fair Isaac Corp. 30,000 1,562,400 - -------------------------------------------------------------------------------- Intuit, Inc. 1 35,200 1,365,056 - -------------------------------------------------------------------------------- Mercury Interactive Corp. 1 41,100 1,394,934 - -------------------------------------------------------------------------------- Micromuse, Inc. 1 150,000 981,150 - -------------------------------------------------------------------------------- Microsoft Corp. 137,800 3,523,546 - -------------------------------------------------------------------------------- NetIQ Corp. 1 146,900 2,024,282 - -------------------------------------------------------------------------------- Oracle Corp. 1 122,700 1,457,676 - -------------------------------------------------------------------------------- SAP AG (Systeme, Anwendungen, Produkte in der Datenverarbeitung), Sponsored ADR 40,000 1,020,400 - -------------------------------------------------------------------------------- Symantec Corp. 1 89,600 3,937,920 - -------------------------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 28,800 648,000 ----------- 24,916,539 8 | OPPENHEIMER EMERGING TECHNOLOGIES FUND Market Value Shares See Note 1 - ------------------------------------------------------------------------------ Telecommunication Services--0.9% - ------------------------------------------------------------------------------ Diversified Telecommunication Services--0.9% China Telecom Corp. Ltd. 1 55,000 $ 1,045,000 ----------- Total Common Stocks (Cost $106,592,722) 117,844,292 - ------------------------------------------------------------------------------ Preferred Stocks--0.3% Axsun Technologies, Inc., Cv., Series C 1,2,3 685,519 323,496 - ------------------------------------------------------------------------------ Blaze Network Products, Inc., 8% Cv., Series D 1,2,3 166,836 -- - ------------------------------------------------------------------------------ BroadBand Office, Inc., Cv., Series C 1,2 52,909 -- - ------------------------------------------------------------------------------ Centerpoint Broadband Technologies, Inc., Cv., Series D 1,2 463,822 -- - ------------------------------------------------------------------------------ Centerpoint Broadband Technologies, Inc., Cv., Series Z 1,2 37,491 -- - ------------------------------------------------------------------------------ fusionOne, Inc., 8% Non-Cum. Cv., Series D 1,2 264,186 9,960 - ------------------------------------------------------------------------------ MicroPhotonix Integration Corp., Cv., Series C 1,2,3 316,691 -- Market Value Shares See Note 1 - ------------------------------------------------------------------------------ Preferred Stocks Continued Multiplex, Inc., Cv., Series C 1,2 387,138 $ 52,419 - ------------------------------------------------------------------------------ Questia Media, Inc., Cv., Series B 1,2 258,859 2,951 ----------- Total Preferred Stocks (Cost $23,351,600) 388,826 Principal Amount - ------------------------------------------------------------------------------ Joint Repurchase Agreements--3.6% Undivided interest of 1.29% in joint repurchase agreement (Market Value $332,883,000) with Banc One Capital Markets, Inc., 1.26%, dated 4/30/03, to be repurchased at $4,307,151 on 5/1/03, collateralized by U.S. Treasury Nts., 4.875%--5.875%, 11/15/04--2/15/12, with a value of $327,261,153 and U.S. Treasury Bonds, 2.125%, 8/31/04, with a value of $12,489,849 (Cost $4,307,000) $4,307,000 4,307,000 - ------------------------------------------------------------------------------ Total Investments, at Value (Cost $134,251,322) 101.0% 122,540,118 - ------------------------------------------------------------------------------ Liabilities in Excess of Other Assets (1.0) (1,159,353) ----------------------- Net Assets 100.0% $121,380,765 ======================= Footnotes to Statement of Investments 1. Non-income producing security. 2. Identifies issues considered to be illiquid or restricted--See Note 6 of Notes to Financial Statements. 3. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer, and is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended April 30, 2003. The aggregate fair value of securities of affiliated companies held by the Fund as of April 30, 2003 amounts to $323,496. Transactions during the period in which the issuer was an affiliate are as follows:
Shares Shares October 31, Gross Gross April 30, Unrealized 2002 Additions Reductions 2003 Depreciation - --------------------------------------------------------------------------------------------------------- Stocks and/or Warrants Axsun Technologies, Inc., Cv., Series C 685,519 -- -- 685,519 $7,676,510 Blaze Network Products, Inc., 8% Cv., Series D 166,836 -- -- 166,836 1,067,750 MicroPhotonix Integration Corp., Cv., Series C 316,691 -- -- 316,691 1,999,999
See accompanying Notes to Financial Statements. 9 | OPPENHEIMER EMERGING TECHNOLOGIES FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited April 30, 2003 - ------------------------------------------------------------------------------- Assets Investments, at value--see accompanying statement: Unaffiliated companies (cost $123,183,566) $ 122,216,622 Affiliated companies (cost $11,067,756) 323,496 -------------- 122,540,118 - ------------------------------------------------------------------------------- Cash 125,666 - ------------------------------------------------------------------------------- Receivables and other assets: Investments sold 1,974,686 Shares of beneficial interest sold 391,537 Interest and dividends 22,406 Other 1,959 -------------- Total assets 125,056,372 - ------------------------------------------------------------------------------- Liabilities Payables and other liabilities: Investments purchased 2,873,510 Shares of beneficial interest redeemed 498,718 Shareholder reports 171,842 Trustees' compensation 41,856 Transfer and shareholder servicing agent fees 30,727 Distribution and service plan fees 22,755 Other 36,199 -------------- Total liabilities 3,675,607 - ------------------------------------------------------------------------------- Net Assets $ 121,380,765 ============== - ------------------------------------------------------------------------------- Composition of Net Assets Paid-in capital $ 625,322,794 - ------------------------------------------------------------------------------- Accumulated net investment loss (997,475) - ------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (491,233,350) - ------------------------------------------------------------------------------- Net unrealized depreciation on investments (11,711,204) - ------------------------------------------------------------------------------- Net Assets $ 121,380,765 ============== 10 | OPPENHEIMER EMERGING TECHNOLOGIES FUND - -------------------------------------------------------------------------------- Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $57,253,352 and 27,283,139 shares of beneficial interest outstanding) $2.10 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $2.23 - -------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $43,698,644 and 21,268,621 shares of beneficial interest outstanding) $2.05 - -------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $16,822,460 and 8,185,012 shares of beneficial interest outstanding) $2.06 - -------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $2,390,849 and 1,146,531 shares of beneficial interest outstanding) $2.09 - -------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,215,460 and 568,346 shares of beneficial interest outstanding) $2.14 See accompanying Notes to Financial Statements. 11 | OPPENHEIMER EMERGING TECHNOLOGIES FUND STATEMENT OF OPERATIONS Unaudited For the Six Months Ended April 30, 2003 - ------------------------------------------------------------------------------ Investment Income Dividends (net of foreign withholding taxes of $7,335) $74,321 - ------------------------------------------------------------------------------ Interest 27,467 ----------- Total investment income 101,788 - ------------------------------------------------------------------------------ Expenses Management fees 522,296 - ------------------------------------------------------------------------------ Distribution and service plan fees: Class A 57,879 Class B 196,210 Class C 69,681 Class N 4,760 - ------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees: Class A 395,014 Class B 405,236 Class C 102,031 Class N 5,815 Class Y 88 - ------------------------------------------------------------------------------ Shareholder reports 206,186 - ------------------------------------------------------------------------------ Trustees' compensation 1,603 - ------------------------------------------------------------------------------ Custodian fees and expenses 232 - ------------------------------------------------------------------------------ Other 3,980 ----------- Total expenses 1,971,011 Less reduction to custodian expenses (232) Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (390,360) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (422,828) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (97,929) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (2,465) ----------- Net expenses 1,057,197 - ------------------------------------------------------------------------------ Net Investment Loss (955,409) - ------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (6,979,103) Closing and expiration of option contracts written 31,777 ----------- Net realized loss (6,947,326) - ------------------------------------------------------------------------------ Net change in unrealized appreciation on investments 23,073,719 ----------- Net realized and unrealized gain 16,126,393 - ------------------------------------------------------------------------------ Net Increase in Net Assets Resulting from Operations $15,170,984 =========== See accompanying Notes to Financial Statements. 12 | OPPENHEIMER EMERGING TECHNOLOGIES FUND STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year Ended Ended April 30, 2003 October 31, (Unaudited) 2002 - ---------------------------------------------------------------------------------------------------------- Operations Net investment loss $ (955,409) $ (2,952,878) - ---------------------------------------------------------------------------------------------------------- Net realized loss (6,947,326) (180,422,416) - ---------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 23,073,719 91,696,018 ------------------------------- Net increase (decrease) in net assets resulting from operations 15,170,984 (91,679,276) - ---------------------------------------------------------------------------------------------------------- Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A 5,955,757 (4,784,726) Class B 1,313,661 (1,860,465) Class C 653,450 2,051,070 Class N 517,384 1,159,593 Class Y 194,847 325,037 - ---------------------------------------------------------------------------------------------------------- Net Assets Total increase (decrease) 23,806,083 (94,788,767) - ---------------------------------------------------------------------------------------------------------- Beginning of period 97,574,682 192,363,449 ------------------------------- End of period [including accumulated net investment loss of $997,475 and $42,066, respectively] $ 121,380,765 $ 97,574,682 ===============================
See accompanying Notes to Financial Statements. 13 | OPPENHEIMER EMERGING TECHNOLOGIES FUND FINANCIAL HIGHLIGHTS
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class A (Unaudited) 2002 2001 2000 1 - ------------------------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $1.82 $3.51 $11.24 $10.00 - ------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) (.02) (.04) (.01) .01 Net realized and unrealized gain (loss) .30 (1.65) (7.71) 1.23 -------------------------------------------------- Total from investment operations .28 (1.69) (7.72) 1.24 - ------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.01) -- - ------------------------------------------------------------------------------------------------------------ Net asset value, end of period $2.10 $1.82 $3.51 $11.24 ================================================== - ------------------------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 2 15.39% (48.15)% (68.74)% 12.40% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $57,253 $44,150 $ 91,220 $253,471 - ------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $48,813 $68,695 $158,376 $149,623 - ------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) (1.47)% (1.61)% (0.23)% 0.25% Expenses, gross 3.27% 3.11% 2.08% 1.65% Expenses, net 1.66% 4,5 2.10% 4,5 2.04% 4,5 1.65% 4 - ------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 116% 159% 85% 6%
1. For the period from April 25, 2000 (inception of offering) to October 31, 2000. 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. 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. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 14 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class B (Unaudited) 2002 2001 2000 1 - ------------------------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $1.79 $3.48 $11.20 $10.00 - ------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment loss (.02) (.07) (.06) (.01) Net realized and unrealized gain (loss) .28 (1.62) (7.66) 1.21 -------------------------------------------------- Total from investment operations .26 (1.69) (7.72) 1.20 - ------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- - ------------------------------------------------------------------------------------------------------------ Net asset value, end of period $2.05 $1.79 $3.48 $11.20 ================================================== - ------------------------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 2 14.53% (48.56)% (68.93)% 12.00% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $43,699 $36,813 $75,336 $200,251 - ------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $39,605 $58,029 $128,540 $106,620 - ------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment loss (2.12)% (2.40)% (0.99)% (0.48)% Expenses, gross 4.46% 3.95% 2.84% 2.39% Expenses, net 2.31% 4,5 2.94% 4,5 2.80% 4,5 2.39% 4 - ------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 116% 159% 85% 6%
1. For the period from April 25, 2000 (inception of offering) to October 31, 2000. 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. 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. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 15 | OPPENHEIMER EMERGING TECHNOLOGIES FUND FINANCIAL HIGHLIGHTS Continued
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class C (Unaudited) 2002 2001 2000 1 - ------------------------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $1.79 $3.48 $11.20 $10.00 - ------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment loss (.02) (.05) (.05) (.01) Net realized and unrealized gain (loss) .29 (1.64) (7.67) 1.21 -------------------------------------------------- Total from investment operations .27 (1.69) (7.72) 1.20 - ------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- - ------------------------------------------------------------------------------------------------------------ Net asset value, end of period $2.06 $1.79 $3.48 $11.20 ================================================== - ------------------------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 2 15.08% (48.56)% (68.93)% 12.00% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $16,822 $14,143 $23,121 $56,597 - ------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $14,067 $17,800 $38,049 $28,193 - ------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment loss (2.27)% (2.36)% (1.00)% (0.47)% Expenses, gross 3.86% 3.84% 2.84% 2.39% Expenses, net 2.46% 4,5 2.83% 4,5 2.80% 4,5 2.39% 4 - ------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 116% 159% 85% 6%
1. For the period from April 25, 2000 (inception of offering) to October 31, 2000. 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. 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. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 16 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class N (Unaudited) 2002 2001 1 - ------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $1.81 $3.50 $6.59 - ------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment loss (.02) (.04) (.03) Net realized and unrealized gain (loss) .30 (1.65) (3.06) ---------------------------- Total from investment operations .28 (1.69) (3.09) - ------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- - ------------------------------------------------------------------------------------------ Net asset value, end of period $2.09 $1.81 $3.50 ============================ - ------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 2 15.47% (48.29)% (46.89)% - ------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $2,391 $1,582 $1,450 - ------------------------------------------------------------------------------------------ Average net assets (in thousands) $1,924 $1,547 $1,287 - ------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment loss (2.05)% (1.80)% (1.24)% Expenses, gross 2.51% 3.05% 2.61% Expenses, net 2.25% 4,5 2.04% 4,5 2.57% 4,5 - ------------------------------------------------------------------------------------------ Portfolio turnover rate 116% 159% 85%
1. For the period from March 1, 2001 (inception of offering) to October 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. 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. Reduction to custodian expenses less than 0.01%. 5. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 17 | OPPENHEIMER EMERGING TECHNOLOGIES FUND FINANCIAL HIGHLIGHTS Continued
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class Y (Unaudited) 2002 2001 2000 1 - ------------------------------------------------------------------------------------------------------------ Per Share Operating Data Net asset value, beginning of period $1.85 $3.55 $11.26 $10.00 - ------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) (.02) (.03) -- 2 .02 Net realized and unrealized gain (loss) .31 (1.67) (7.69) 1.24 ---------------------------------------------- Total from investment operations .29 (1.70) (7.69) 1.26 - ------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.02) -- - ------------------------------------------------------------------------------------------------------------ Net asset value, end of period $2.14 $1.85 $3.55 $11.26 ============================================== - ------------------------------------------------------------------------------------------------------------ Total Return, at Net Asset Value 3 15.68% (47.89)% (68.40)% 12.60% - ------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data Net assets, end of period (in thousands) $1,215 $ 887 $1,236 $1 - ------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $1,050 $1,057 $ 331 $1 - ------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income (loss) (1.23)% (1.03)% (0.08)% 0.33% Expenses, gross 1.42% 1.57% 1.33% 1.42% Expenses, net 1.42% 5 1.53% 5,6 1.23% 5,6 1.42% 5 - ------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 116% 159% 85% 6%
1. For the period from April 25, 2000 (inception of offering) to October 31, 2000. 2. Less than $0.005 per share. 3. 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. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 4. Annualized for periods of less than one full year. 5. Reduction to custodian expenses less than 0.01%. 6. Net of voluntary waiver of transfer agent fees. See accompanying Notes to Financial Statements. 18 | OPPENHEIMER EMERGING TECHNOLOGIES FUND NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Emerging Technologies Fund (the Fund) is a non-diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek long-term capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). 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. 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 under 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. The Fund, along with other affiliated funds of the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. government securities. 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; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. 19 | OPPENHEIMER EMERGING TECHNOLOGIES FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued 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 capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. As of April 30, 2003, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of $487,760,711. This estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules for the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended April 30, 2003, the Fund did not use carryforward to offset capital gains realized. During the year ended October 31, 2002, the Fund did not use carryforward to offset capital gains realized. As of October 31, 2002, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: Expiring ---------------------- 2008 $ 5,646,461 2009 277,396,446 2010 197,770,478 ------------ Total $480,813,385 ============ - -------------------------------------------------------------------------------- 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 six months ended April 30, 2003, the Fund's projected benefit obligations were increased by $1,462 and payments of $1,350 were made to retired trustees, resulting in an accumulated liability of $42,178 as of April 30, 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, the compensation deferred is invested by the Fund in the fund(s) selected by the trustee. 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. - -------------------------------------------------------------------------------- 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. 20 | OPPENHEIMER EMERGING TECHNOLOGIES FUND - -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. 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. No distributions were paid during the six months ended April 30, 2003 and the year ended October 31, 2002. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- 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 no par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Six Months Ended April 30, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount - ----------------------------------------------------------------------------------- Class A Sold 8,709,006 $ 17,136,868 9,326,514 $ 25,428,472 Redeemed (5,713,041) (11,181,111) (11,033,670) (30,213,198) ------------------------------------------------------- Net increase (decrease) 2,995,965 $ 5,955,757 (1,707,156) $ (4,784,726) ======================================================= - ----------------------------------------------------------------------------------- Class B Sold 3,358,293 $ 6,437,710 6,616,144 $ 17,684,754 Redeemed (2,704,275) (5,124,049) (7,676,699) (19,545,219) ------------------------------------------------------- Net increase (decrease) 654,018 $ 1,313,661 (1,060,555) $ (1,860,465) =======================================================
21 | OPPENHEIMER EMERGING TECHNOLOGIES FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest Continued
Six Months Ended April 30, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount - ----------------------------------------------------------------------------------- Class C Sold 3,223,950 $ 6,176,828 3,887,508 $ 9,097,690 Redeemed (2,953,885) (5,523,378) (2,625,476) (7,046,620) ------------------------------------------------------- Net increase 270,065 $ 653,450 1,262,032 $ 2,051,070 ======================================================= - ----------------------------------------------------------------------------------- Class N Sold 383,297 $ 729,176 563,908 $ 1,409,424 Redeemed (109,620) (211,792) (105,319) (249,831) ------------------------------------------------------- Net increase 273,677 $ 517,384 458,589 $1,159,593 ======================================================= - ----------------------------------------------------------------------------------- Class Y Sold 375,215 $ 763,841 353,446 $ 890,176 Redeemed (286,276) (568,994) (222,801) (565,139) ------------------------------------------------------- Net increase 88,939 $ 194,847 130,645 $ 325,037 =======================================================
- -------------------------------------------------------------------------------- 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended April 30, 2003, were $125,451,590 and $116,603,165, 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 1.00% of average annual net assets. - -------------------------------------------------------------------------------- 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 $19.75 per account fee. 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. 22 | OPPENHEIMER EMERGING TECHNOLOGIES FUND - -------------------------------------------------------------------------------- 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 Six Months on Class A Retained by Advanced by Advanced by Advanced by Advanced by Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1 - ----------------------------------------------------------------------------------------------------- April 30, 2003 $152,921 $47,284 $17,870 $165,553 $17,414 $6,268
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.
Class A Class B Class C Class N Contingent Contingent Contingent Contingent Deferred Deferred Deferred Deferred Sales Charges Sales Charges Sales Charges Sales Charges Six Months Retained by Retained by Retained by Retained by Ended Distributor Distributor Distributor Distributor - ------------------------------------------------------------------------------------ April 30, 2003 $704 $75,453 $1,591 $266
- -------------------------------------------------------------------------------- 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 six months ended April 30, 2003, payments under the Class A Plan totaled $57,879, all of which were paid by the Distributor to recipients, and included $5,443 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 six months ended April 30, 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 $196,210 $157,058 $9,113,184 20.85% Class C Plan 69,681 17,404 804,166 4.78 Class N Plan 4,760 3,695 57,457 2.40
23 | OPPENHEIMER EMERGING TECHNOLOGIES FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 5. Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the six months ended April 30, 2003 was as follows: Call Options ------------------------ Number of Amount of Contracts Premiums - ---------------------------------------------------- Options outstanding as of October 31, 2002 -- $ -- Options written 1,285 518,887 Options closed or expired (1,285) (518,887) ------------------------ Options outstanding as of April 30, 2003 -- $ -- ======================== 24 | OPPENHEIMER EMERGING TECHNOLOGIES FUND - -------------------------------------------------------------------------------- 6. Illiquid or Restricted Securities As of April 30, 2003, 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 15% 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 April 30, 2003 was $388,826, which represents 0.32% of the Fund's net assets, all of which is considered restricted. Information concerning restricted securities is as follows:
Valuation as of Unrealized Security Acquisition Dates Cost April 30, 2003 Depreciation - ------------------------------------------------------------------------------------------------ Stocks and/or Warrants Axsun Technologies, Inc., Cv., Series C 12/13/00 $8,000,006 $323,496 $7,676,510 - ------------------------------------------------------------------------------------------------ Blaze Network Products, Inc., 8% Cv., Series D 10/17/00 1,067,750 -- 1,067,750 - ------------------------------------------------------------------------------------------------ BroadBand Office, Inc., Cv., Series C 8/28/00 999,980 -- 999,980 - ------------------------------------------------------------------------------------------------ Centerpoint Broadband Technologies, Inc., Cv., Series D 5/26/00 5,000,001 -- 5,000,001 - ------------------------------------------------------------------------------------------------ Centerpoint Broadband Technologies, Inc., Cv., Series Z 10/23/00 999,999 -- 999,999 - ------------------------------------------------------------------------------------------------ fusionOne, Inc., 8% Non-Cum. Cv., Series D 9/6/00 1,434,530 9,960 1,424,570 - ------------------------------------------------------------------------------------------------ MicroPhotonix Integration Corp., Cv., Series C 7/6/00 1,999,999 -- 1,999,999 - ------------------------------------------------------------------------------------------------ Multiplex, Inc., Cv., Series C 2/9/01 2,849,335 52,419 2,796,916 - ------------------------------------------------------------------------------------------------ Questia Media, Inc., Cv., Series B 8/18/00 999,998 2,951 997,047
25 | OPPENHEIMER EMERGING TECHNOLOGIES FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 7. Borrowing and Lending Arrangements Bank Borrowings. The Fund had the ability to borrow from banks for temporary or emergency purposes. Asset coverage for borrowings must be at least 300%. The Fund and other Oppenheimer funds participated in a $400 million unsecured line of credit from a bank, for liquidity purposes. Under that line of credit, each fund was charged interest on its borrowings at a rate equal to the Federal Funds rate plus 0.45%. The Fund paid a commitment fee on its pro rata share of the average unutilized amount of the credit facility at a rate of 0.08% per annum. The credit facility was terminated on November 12, 2002, when the Fund entered into the interfund borrowing and lending arrangements described below. The Fund had no outstanding borrowings under the credit facility through November 12, 2002. - -------------------------------------------------------------------------------- Interfund Borrowing and Lending Arrangements. Commencing November 12, 2002, the Fund entered into an "interfund borrowing and lending arrangement" with other funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The arrangement was initiated pursuant to exemptive relief granted by the Securities and Exchange Commission to allow these affiliated funds to lend money to, and borrow money from, each other, in an attempt to reduce borrowing costs below those of bank loan facilities. Under the arrangement the Fund may lend money to other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate set by the Fund's Board of Trustees, based upon a recommendation by the investment manager. The Fund's borrowings, if any, are subject to asset coverage requirements under the Investment Company Act and the provisions of the SEC order and other applicable regulations. If the Fund borrows money, there is a risk that the loan could be called on one day's notice, in which case the Fund might have to borrow from a bank at higher rates if a loan were not available from another Oppenheimer fund. If the Fund lends money to another fund, it will be subject to the risk that the other fund might not repay the loan in a timely manner, or at all. The Fund had no interfund borrowings or loans outstanding during the six months ended or at April 30, 2003. 26 | OPPENHEIMER EMERGING TECHNOLOGIES FUND ITEM 2. CODE OF ETHICS - NOT REQUIRED ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. RESERVED 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 April 30, 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 ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.302CERT 3 ex99_302cert-765.txt EX99_302CERT-765 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, JOHN V. MURPHY, certify that: -------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer Emerging Technologies Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: 07/01/03 /S/JOHN V. MURPHY John V. Murphy Chief Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, BRIAN W. WIXTED, certify that: --------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer Emerging Technologies Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: 07/01/03 /S/BRIAN W. WIXTED Brian W. Wixted Chief Financial Officer EX-99.906CERT 4 ex99_906cert-765.txt EX99_906CERT-765 EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2003 JOHN V. MURPHY, Chief Executive Officer, and BRIAN W. WIXTED Chief Financial Officer of Oppenheimer Emerging Technologies Fund (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30, 2003 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Chief Executive Officer Chief Financial Officer Oppenheimer Emerging Technologies Oppenheimer Emerging Technologies Fund Fund /S/JOHN V. MURPHY /S/BRIAN W. WIXTED John V. Murphy Brian W. Wixted Date: 07/01/03 Date: 07/01/03 -----END PRIVACY-ENHANCED MESSAGE-----