-----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, ISET7FXhE/gDVAYt+oOHZXyHHwx2M4db7keSkHkxvu0Twrkl2Jtn4+qbIWunpP/M 44xPw4O9Elpv4EYAAnS6/g== 0000935069-03-000855.txt : 20030627 0000935069-03-000855.hdr.sgml : 20030627 20030627161733 ACCESSION NUMBER: 0000935069-03-000855 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030627 EFFECTIVENESS DATE: 20030627 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER EMERGING GROWTH FUND CENTRAL INDEX KEY: 0001121966 IRS NUMBER: 134134341 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10071 FILM NUMBER: 03761555 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON 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 1 rs0721_6844vef.txt RS0721_6844VEF 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 811-10071 Oppenheimer Emerging 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: October 31 Date of reporting period: October 31, 2002 - April 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC] April 30, 2003 Oppenheimer Emerging Growth Fund Management Commentaries and Semiannual Report MANAGEMENT COMMENTARIES Performance Update Investment Strategy Discussion Listing of Top Holdings SEMIANNUAL REPORT AND FINANCIAL STATEMENTS Listing of Investments Financials "Oppenheimer Emerging Growth Fund delivered exceptionally strong performance by focusing on small companies with attractive new products that resulted in greater-than-average growth. Individual holdings in the areas of health care and technology generated most of the Fund's returns during the period." [LOGO] OppenheimerFunds[R] The Right Way to Invest HIGHLIGHTS Fund Objective Oppenheimer Emerging Growth Fund seeks capital appreciation. Fund Highlight Over the last six months, Oppenheimer Emerging Growth Fund has delivered exceptionally strong relative performance, outpacing its benchmark, the Russell 2000 Growth Index, by almost 9.0%. 1 MANAGEMENT COMMENTARIES AND ADDITIONAL DISCLOSURES 1 Letter to Shareholders 2 An Interview with Your Fund's Manager 25 Trustees and Officers 28 Privacy Policy Notice SEMIANNUAL REPORT AND FINANCIAL STATEMENTS 7 Statement of Investments 10 Statement of Assets and Liabilities 12 Statement of Operations 13 Statements of Changes in Net Assets 14 Financial Highlights 19 Notes to Financial Statements Cumulative Total Returns* For the 6-Month Period Ended 4/30/03 Without With Sales Chg. Sales Chg. - --------------------------------- Class A 16.61% 9.91% - --------------------------------- Class B 16.20 11.20 - --------------------------------- Class C 16.17 15.17 - --------------------------------- Class N 16.35 15.35 - --------------------------------- Class Y 17.01 Average Annual Total Returns* For the 1-Year Period Ended 4/30/03 Without With Sales Chg. Sales Chg. - --------------------------------- Class A -16.54% -21.34% - --------------------------------- Class B -17.25 -21.38 - --------------------------------- Class C -17.22 -18.05 - --------------------------------- Class N -16.75 -17.58 - --------------------------------- Class Y -16.00 1. The Fund's performance (Class A shares @ NAV) is compared to the 7.65% six month return for the Russell 2000 Growth Index, an unmanaged index of small-cap issuers with above-average growth characteristics, for the period ended 4/30/03. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. *See Notes on page 6 for further details. Not part of the semiannual report to Fund shareholders LETTER TO SHAREHOLDERS Dear Shareholder, It is nearly impossible to reflect on the past six months without thinking about the war with Iraq. We experienced a range of emotions in the days leading up to the war and especially as the media brought the war into our homes, as never before. At OppenheimerFunds, we face the difficult task of looking beyond the war to see its long-term impact, together with other factors, on the global economy, the financial markets and, in the end, your investment with us. It's a responsibility that we take very seriously and becomes our primary focus during uncertain times like these. It is our strong belief that investors can be well served by this professional insight and by the guidance provided by a financial advisor. In partnership with OppenheimerFunds, your financial advisor can help you navigate through this volatile and sometimes unpredictable environment. We encourage you to continue to work closely with your advisor to develop and implement an investment plan that fits your goals and risk tolerance. On our end, we continue to be the home to some of the most experienced and talented investment professionals in the industry. They remain focused on proven methods that drive informed, intelligent investment decisions. It is an approach we are proud of and one that has served investors well in a variety of market conditions. We've found that in good times and bad, the fundamental principles of investing remain key for financial success. These principles-- investing according to your goals, diversifying your portfolio and benefiting from the value of professional investment advice--are simple ideas that have proven themselves over time, and, we believe, will prove themselves again. We thank you for your continued confidence in OppenheimerFunds and encourage you to visit our website, www.oppenheimerfunds.com, or speak with your advisor for up to date information on your investments and the markets. Sincerely, /S/ JOHN V. MURPHY John V. Murphy May 21, 2003 These general market views represent opinions of OppenheimerFunds, Inc. and are not intended to predict performance of the securities markets or any particular fund. Specific information that applies to your Fund is contained in the pages that follow. PHOTO OF John V. Murphy John V. Murphy President Oppenheimer Emerging Growth Fund Not part of the semiannual report to Fund shareholders 1 | OPPENHEIMER EMERGING GROWTH FUND AN INTERVIEW WITH YOUR FUND'S MANAGERS Q How would you characterize the Fund's performance during the six-month period that ended April 30, 2003? A. The Fund delivered exceptionally strong returns during the period, performing significantly better than its benchmark, the Russell 2000 Growth Index and most other small-cap growth funds. 2 We attribute these results to a positive market environment for growth stocks, particularly the kinds of small-cap growth stocks on which the Fund concentrates. The magnitude of the Fund's success during the period also demonstrates the effectiveness of our disciplined, bottom-up investment approach, which focuses on individual company fundamentals in the search for attractive investment opportunities. What made this a positive period for emerging growth stocks? To a surprising degree, considering the Fund's sharp move from negative to positive performance, the recent period represented a continuation of the investment environment that had prevailed during the prior year. Markets remained volatile, buffeted by conflicting economic and geopolitical forces. On the positive side, the U.S. economy showed signs of modest growth, while interest rates remained low and inflation remained in check. On the negative side, corporate capital spending remained weak, consumer sentiment declined and uncertainties related to the U.S.-led war in Iraq and the global battle against terrorism undermined investor confidence. In light of these uncertainties, traditionally defensive value-oriented stocks had outperformed their growth-oriented counterparts during most of the prior year. As a result, by the beginning of the period, price-earnings ratios for most value-oriented small-cap stocks stood at historically high levels relative to small-cap growth stocks. At the same time, earnings expectations for most growth-oriented stocks had finally fallen to [SIDEBAR] Portfolio Manager Laura Granger 2. The Fund's performance (Class A shares @ NAV) is compared to the 7.65% six-month return for the Russell 2000 Growth Index for the period ended 4/30/03. Not part of the semiannual report to Fund shareholders 2 | OPPENHEIMER EMERGING GROWTH FUND realistic levels. By early 2003, for the first time in many months, growth-oriented companies began to deliver earnings that consistently met or exceeded expectations. Furthermore, the decisive U.S. move into Iraq in March ended some of the uncertainties that held stock prices in check, setting the stage for a growth-led rally in March and April. How did you manage the Fund in light of these conditions? We remained firmly committed to the Fund's investment approach, which focuses on disciplined, issue-by-issue stock analysis in the small-cap growth arena. We continue to believe that well-managed, financially sound companies, which offer products and services of emerging importance, will be rewarded by the marketplace over time. With that in mind, we conduct a time-consuming, hands-on evaluation of each potential investment's finances, operations, management quality and competitive environment. We pour over balance sheets, talk to key company personnel and employ a wide range of other resources to identify the companies with the greatest opportunities to expand margins, accelerate growth and emerge as leaders within their respective industries. By identifying and investing in such companies for the long term, we seek to capture the reward for our shareholders. Which industries and individual holdings had the greatest impact on performance? We realized some of our best returns in the area of health care, particularly among generic drug manufacturers and distributors, such as Eon Labs, Inc. and Pharmaceutical Resources, Inc. Expiring patents on several blockbuster drugs, along with a favorable regulatory environment, opened the door for these companies to expand their product lines and enter lucrative new markets. The growing number of new drug approvals also boosted stock prices for biotechnology holdings with promising drug candidates. [SIDEBAR] "We continue to believe that well-managed, financially sound companies, which offer products and services of emerging importance, will be rewarded by the marketplace over time." Not part of the semiannual report to Fund shareholders 3 | OPPENHEIMER EMERGING GROWTH FUND AN INTERVIEW WITH YOUR FUND'S MANAGER Technology proved another fruitful area for investment during the period. As was the case in health care, we targeted companies that appeared likely to benefit from the introduction of important new products. Several such companies achieved rapid growth rates despite sluggish U.S. economic conditions. Of course, not all of the Fund's holdings performed so well. Some of our holdings in the financial and gaming sectors remained under pressure from the challenging economic environment. However, the Fund more than made up for disappointments in these areas with advances in the overwhelming majority of holdings. What is your outlook for the future? We are cautiously optimistic regarding near-term prospects for growth. Recent economic news appears generally positive, with many sectors showing improvements in growth rates during the first quarter of 2003, the first such increases in years. Many companies have issued better-than-expected earnings reports, and have offered upbeat guidance for the near future. On the other hand, capital spending remains weak and consumer confidence appears shaky. We believe that the Fund's recent returns highlight the futility of attempting to trade the Fund in anticipation of near-term performance. Investors, who followed the market's trends during the reporting period, shifting assets in response to changing sentiment, were likely to miss the Fund's upturn. History shows us that the market's greatest gains often occur abruptly over brief period of time and without advance warning. That's why the most effective long-term approach involves consistent diversification among a group of well-conceived, well-conducted investment strategies. Average Annual Total Returns with Sales Charge For the Periods Ended 3/31/03 3 Class A Since 1-Year Inception - -------------------------- - -32.37% -19.82% Class B Since 1-Year Inception - -------------------------- - -32.40% -19.59% Class C Since 1-Year Inception - -------------------------- - -29.52% -18.52% Class N Since 1-Year Inception - -------------------------- - -29.20% -13.30% Class Y Since 1-Year Inception - -------------------------- - -27.83% -17.55% 3. See Notes on page 6 for further details. Not part of the semiannual report to Fund shareholders 4 | OPPENHEIMER EMERGING GROWTH FUND [PIE CHART] Sector Allocation 4 o Information Technology 35.7% Semiconductor Equipment & Products 10.4 Software 5.8 Internet Software & Services 5.4 Communications Equipment 5.2 Computers & Peripherals 4.1 Electronic Equipment & Instruments 3.7 IT Consulting & Services 1.1 o Health Care 28.1 Biotechnology 9.9 Pharmaceuticals 9.2 Health Care Equipment & Supplies 5.3 Health Care Providers & Services 3.7 o Consumer Discretionary 11.6 o Industrials 9.7 o Financials 8.6 o Energy 4.4 o Consumer Staples 1.4 o Telecommunication Services 0.5 Whatever the Fund's performance over the short term, we remain confident that our disciplined investment strategy will enable us to continue identifying companies with exceptional growth potential. That's what makes Oppenheimer Emerging Growth Fund an effective part of a diversified portfolio, and a continuing part of The Right Way to Invest. Top Ten Common Stock Holdings 5 - ------------------------------------------------------------- Eon Labs, Inc. 1.7% - ------------------------------------------------------------- Taro Pharmaceutical Industries Ltd. 1.7 - ------------------------------------------------------------- Cree, Inc. 1.6 - ------------------------------------------------------------- Corinthian Colleges, Inc. 1.6 - ------------------------------------------------------------- Pharmaceutical Resources, Inc. 1.5 - ------------------------------------------------------------- Penn National Gaming, Inc. 1.5 - ------------------------------------------------------------- Martek Biosciences Corp. 1.5 - ------------------------------------------------------------- Advanced Neuromodulation Systems, Inc. 1.4 - ------------------------------------------------------------- Alliance Gaming Corp. 1.4 - ------------------------------------------------------------- eResearch Technology, Inc. 1.4 For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com. Top Five Common Stock Industries 5 - ------------------------------------------------------------- Semiconductor Equipment & Products 10.1% - ------------------------------------------------------------- Biotechnology 9.7 - ------------------------------------------------------------- Pharmaceuticals 9.1 - ------------------------------------------------------------- Commercial Services & Supplies 6.6 - ------------------------------------------------------------- Software 5.7 4. Portfolio's holdings and allocations are subject to change. Percentages are as of April 30, 2003, and are based on total market value of common stock holdings. 5. Portfolio's holdings and allocations are subject to change. Percentages are as of April 30, 2003, and are based on net assets. Not part of the semiannual report to Fund shareholders 5 | OPPENHEIMER EMERGING GROWTH FUND NOTES In reviewing performance, 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 include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized. 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. 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) or visit the OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus carefully before you invest or send money. Please remember that this Fund has a limited operating history. Class A shares of the Fund were first publicly offered on 11/1/00. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 5.75%. Class B shares of the Fund were first publicly offered on 11/1/00. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 3% (since inception). Class B shares are subject to an annual 0.75% asset-based sales charge. Class C shares of the Fund were first publicly offered on 11/1/00. Unless otherwise noted, Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. Class 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 11/1/00. Class Y shares are offered only 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. Not part of the semiannual report to Fund shareholders 6 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF INVESTMENTS APRIL 30, 2003 / UNAUDITED Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Common Stocks--98.0% - ------------------------------------------------------------------------------- Consumer Discretionary--11.3% - ------------------------------------------------------------------------------- Hotels, Restaurants & Leisure--4.9% Alliance Gaming Corp. 1 31,200 $ 498,264 - ------------------------------------------------------------------------------- Cheesecake Factory, Inc. (The) 1 6,600 208,494 - ------------------------------------------------------------------------------- Penn National Gaming, Inc. 1 26,800 523,404 - ------------------------------------------------------------------------------- Ruby Tuesday, Inc. 12,100 238,370 - ------------------------------------------------------------------------------- Station Casinos, Inc. 1 10,800 233,388 --------------- 1,701,920 - ------------------------------------------------------------------------------- Leisure Equipment & Products--0.5% Marvel Enterprises, Inc. 1 10,500 176,820 - ------------------------------------------------------------------------------- Media--0.5% Radio One, Inc., Cl. D 1 11,800 180,540 - ------------------------------------------------------------------------------- Specialty Retail--4.5% Aaron Rents, Inc. 21,200 473,820 - ------------------------------------------------------------------------------- Hot Topic, Inc. 1 10,900 266,505 - ------------------------------------------------------------------------------- Select Comfort Corp. 1 13,000 176,670 - ------------------------------------------------------------------------------- Sharper Image Corp. 1 22,300 441,317 - ------------------------------------------------------------------------------- Urban Outfitters, Inc. 1 7,200 214,704 --------------- 1,573,016 - ------------------------------------------------------------------------------- Textiles & Apparel--0.9% Quicksilver, Inc. 1 10,000 326,000 - ------------------------------------------------------------------------------- Consumer Staples--1.4% - ------------------------------------------------------------------------------- Food & Drug Retailing--1.4% Central European Distribution Corp. 1 8,600 234,780 - ------------------------------------------------------------------------------- United Natural Foods, Inc. 1 8,600 251,034 --------------- 485,814 - ------------------------------------------------------------------------------- Energy--4.3% - ------------------------------------------------------------------------------- Energy Equipment & Services--3.6% Patterson-UTI Energy, Inc. 1 10,800 357,372 - ------------------------------------------------------------------------------- Pride International, Inc. 1 10,900 169,168 - ------------------------------------------------------------------------------- Rowan Cos., Inc. 19,100 391,550 - ------------------------------------------------------------------------------- W-H Energy Services, Inc. 1 19,300 347,400 --------------- 1,265,490 Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Oil & Gas--0.7% Ultra Petroleum Corp. 1 25,100 $ 251,000 - ------------------------------------------------------------------------------- Financials--8.4% - ------------------------------------------------------------------------------- Banks--3.0% Dime Community Bancshares, Inc. 10,800 249,048 - ------------------------------------------------------------------------------- UCBH Holdings, Inc. 16,200 412,128 - ------------------------------------------------------------------------------- W. Holding Co., Inc. 20,600 405,614 --------------- 1,066,790 - ------------------------------------------------------------------------------- Diversified Financials--3.0% American Capital Strategies Ltd. 18,200 441,532 - ------------------------------------------------------------------------------- iDine Rewards Network, Inc. 1 39,200 382,200 - ------------------------------------------------------------------------------- Providian Financial Corp. 1 30,200 222,574 --------------- 1,046,306 - ------------------------------------------------------------------------------- Insurance--1.8% Arch Capital Group Ltd. 1 8,600 299,366 - ------------------------------------------------------------------------------- Hub International Ltd. 21,600 317,736 --------------- 617,102 - ------------------------------------------------------------------------------- Real Estate--0.6% American Mortgage Acceptance Co. 13,400 206,762 - ------------------------------------------------------------------------------- Health Care--27.6% - ------------------------------------------------------------------------------- Biotechnology--9.7% Amylin Pharmaceuticals, Inc. 1 20,400 390,660 - ------------------------------------------------------------------------------- BioMarin Pharmaceutical, Inc. 1 33,000 362,340 - ------------------------------------------------------------------------------- Cepheid, Inc. 1 49,200 184,992 - ------------------------------------------------------------------------------- Corixa Corp. 1 31,500 225,855 - ------------------------------------------------------------------------------- Digene Corp. 1 12,900 245,229 - ------------------------------------------------------------------------------- Gen-Probe, Inc. 1 11,900 369,495 - ------------------------------------------------------------------------------- Martek Biosciences Corp. 1 15,100 513,853 - ------------------------------------------------------------------------------- Medicines Co. (The) 1 22,300 458,265 - ------------------------------------------------------------------------------- Nuerocrine Biosciences, Inc. 1 9,800 443,450 - ------------------------------------------------------------------------------- United Therapeutics Corp. 1 10,800 193,849 --------------- 3,387,988 7 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Health Care Equipment & Supplies--5.2% Advanced Neuromodulation Systems, Inc. 1 12,100 $ 506,627 - ------------------------------------------------------------------------------- Biosite, Inc. 1 11,100 473,748 - ------------------------------------------------------------------------------- Cyberonics, Inc. 1 7,200 164,376 - ------------------------------------------------------------------------------- Immucor, Inc. 1 8,500 174,505 - ------------------------------------------------------------------------------- Osteotech, Inc. 1 25,000 261,500 - ------------------------------------------------------------------------------- Possis Medical, Inc. 1 12,900 247,680 --------------- 1,828,436 - ------------------------------------------------------------------------------- Health Care Providers & Services--3.6% Andrx Corp. 1 13,700 221,118 - ------------------------------------------------------------------------------- CTI Molecular Imaging, Inc. 1 12,800 235,008 - ------------------------------------------------------------------------------- eResearch Technology, Inc. 1 16,100 479,780 - ------------------------------------------------------------------------------- IMPAC Medical Systems, Inc. 1 17,600 313,632 --------------- 1,249,538 - ------------------------------------------------------------------------------- Pharmaceuticals--9.1% Able Laboratories, Inc. 1 6,500 109,590 - ------------------------------------------------------------------------------- Alteon, Inc. 1 38,300 151,285 - ------------------------------------------------------------------------------- Connetics Corp. 1 20,500 346,245 - ------------------------------------------------------------------------------- Eon Labs, Inc. 1 19,200 588,288 - ------------------------------------------------------------------------------- Inspire Pharmaceuticals, Inc. 1 28,800 420,480 - ------------------------------------------------------------------------------- Kos Pharmaceuticals, Inc. 1 12,900 263,160 - ------------------------------------------------------------------------------- MGI Pharma, Inc. 1 12,000 173,280 - ------------------------------------------------------------------------------- Pharmaceutical Resources, Inc. 1 12,000 527,400 - ------------------------------------------------------------------------------- Taro Pharmaceutical Industries Ltd. 1 12,800 585,729 --------------- 3,165,457 - ------------------------------------------------------------------------------- Industrials--9.6% - ------------------------------------------------------------------------------- Aerospace & Defense--0.6% Aeroflex, Inc. 1 35,200 189,376 - ------------------------------------------------------------------------------- Airlines--0.6% JetBlue Airways Corp. 1 7,000 220,010 Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Commercial Services & Supplies--6.6% Corinthian Colleges, Inc. 1 12,300 $ 563,217 - ------------------------------------------------------------------------------- Corporate Executive Board Co. 1 8,100 332,019 - ------------------------------------------------------------------------------- Exult, Inc. 1 32,400 232,956 - ------------------------------------------------------------------------------- FTI Consulting, Inc. 1 10,300 466,075 - ------------------------------------------------------------------------------- Portfolio Recovery Associates, Inc. 1 9,100 248,339 - ------------------------------------------------------------------------------- Stericycle, Inc. 1 6,800 267,172 - ------------------------------------------------------------------------------- University of Phoenix Online 1 4,200 185,388 --------------- 2,295,166 - ------------------------------------------------------------------------------- Road & Rail--1.8% Pacer International, Inc. 1 21,600 343,440 - ------------------------------------------------------------------------------- Yellow Corp. 1 10,800 288,360 --------------- 631,800 - ------------------------------------------------------------------------------- Information Technology--34.9% - ------------------------------------------------------------------------------- Communications Equipment--5.1% Emulex Corp. 1 13,600 278,664 - ------------------------------------------------------------------------------- Ixia 1 41,500 252,735 - ------------------------------------------------------------------------------- NetScreen Technologies, Inc. 1 21,000 425,880 - ------------------------------------------------------------------------------- Packeteer, Inc. 1 27,000 353,160 - ------------------------------------------------------------------------------- UTStarcom, Inc. 1 22,000 478,962 --------------- 1,789,401 - ------------------------------------------------------------------------------- Computers & Peripherals--4.0% Lexar Media, Inc. 1 83,500 404,975 - ------------------------------------------------------------------------------- Maxtor Corp. 1 50,400 277,200 - ------------------------------------------------------------------------------- Overland Storage, Inc. 1 20,600 364,414 - ------------------------------------------------------------------------------- SanDisk Corp. 1 6,800 164,560 - ------------------------------------------------------------------------------- Synaptics, Inc. 1 24,800 189,968 --------------- 1,401,117 - ------------------------------------------------------------------------------- Electronic Equipment & Instruments--3.6% Innovex, Inc. 1 52,300 452,395 - ------------------------------------------------------------------------------- Kopin Corp. 1 67,000 322,270 - ------------------------------------------------------------------------------- OSI Systems, Inc. 1 13,600 205,768 - ------------------------------------------------------------------------------- Sanmina-SCI Corp. 1 57,300 275,040 --------------- 1,255,473 8 | OPPENHEIMER EMERGING GROWTH FUND Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Internet Software & Services--5.3% Digital Insight Corp. 1 16,900 $ 273,104 - ------------------------------------------------------------------------------- Digital River, Inc. 1 24,300 406,296 - ------------------------------------------------------------------------------- Embarcadero Technologies, Inc. 1 39,100 268,226 - ------------------------------------------------------------------------------- Harris Interactive, Inc. 1 43,300 207,407 - ------------------------------------------------------------------------------- Netease.com, Inc., Sponsored ADR 1 12,900 280,588 - ------------------------------------------------------------------------------- SupportSoft, Inc. 1 71,900 237,270 - ------------------------------------------------------------------------------- VeriSign, Inc. 1 13,200 163,944 --------------- 1,836,835 - ------------------------------------------------------------------------------- IT Consulting & Services--1.1% Cognizant Technology Solutions Corp. 1 22,100 396,916 - ------------------------------------------------------------------------------- Semiconductor Equipment & Products--10.1% ASM International NV 1 15,800 215,354 - ------------------------------------------------------------------------------- ChipPAC, Inc. 1 67,500 364,500 - ------------------------------------------------------------------------------- Cree, Inc. 1 28,900 576,555 - ------------------------------------------------------------------------------- Integrated Circuit Systems, Inc. 1 10,700 232,404 - ------------------------------------------------------------------------------- Microsemi Corp. 1 33,100 388,263 - ------------------------------------------------------------------------------- MKS Instruments, Inc. 1 17,551 245,012 - ------------------------------------------------------------------------------- O2Micro International Ltd. 1 18,300 213,927 - ------------------------------------------------------------------------------- Power Integrations, Inc. 1 15,000 331,980 - ------------------------------------------------------------------------------- QLogic Corp. 1 4,000 175,960 - ------------------------------------------------------------------------------- Silicon Image, Inc. 1 27,400 163,852 - ------------------------------------------------------------------------------- Silicon Laboratories, Inc. 1 8,100 230,445 - ------------------------------------------------------------------------------- Skyworks Solutions, Inc. 1 29,400 157,290 - ------------------------------------------------------------------------------- Vitesse Semiconductor Corp. 1 80,500 250,435 --------------- 3,545,977 - ------------------------------------------------------------------------------- Software--5.7% Autodesk, Inc. 26,700 415,452 - ------------------------------------------------------------------------------- BEA Systems, Inc. 1 18,100 193,851 Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Software Continued Business Objects SA, Sponsored ADR 1 16,700 $ 362,891 - ------------------------------------------------------------------------------- Group 1 Software, Inc. 1 9,700 167,034 - ------------------------------------------------------------------------------- Hyperion Solutions Corp. 1 9,700 274,316 - ------------------------------------------------------------------------------- NetIQ Corp. 1 27,800 383,084 - ------------------------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 8,100 182,250 --------------- 1,978,878 - ------------------------------------------------------------------------------- Telecommunication Services--0.5% - ------------------------------------------------------------------------------- Wireless Telecommunication Services--0.5% @Road, Inc. 1 27,000 173,070 --------------- Total Common Stocks (Cost $30,339,234) 34,242,998 Principal Amount - ------------------------------------------------------------------------------- Joint Repurchase Agreements--2.8% Undivided interest of 0.30% 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 $999,035 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 $999,000) $999,000 999,000 - ------------------------------------------------------------------------------- Total Investments, at Value (Cost $31,338,234) 100.8% 35,241,998 - ------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (0.8) (285,618) --------------- Net Assets 100.0% $ 34,956,380 =============== Footnotes to Statement of Investments 1. Non-income producing security. See accompanying Notes to Financial Statements. 9 | OPPENHEIMER EMERGING GROWTH FUND - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES UNAUDITED April 30, 2003 - ------------------------------------------------------------------------------- Assets Investments, at value (cost $31,338,234)--see accompanying statement $ 35,241,998 - ------------------------------------------------------------------------------- Receivables and other assets: Investments sold 628,762 Shares of beneficial interest sold 250,017 Interest and dividends 2,085 Other 1,194 ------------- Total assets 36,124,056 - ------------------------------------------------------------------------------- Liabilities Bank overdraft 10,063 - ------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 1,070,182 Shares of beneficial interest redeemed 35,550 Shareholder reports 14,419 Transfer and shareholder servicing agent fees 7,373 Distribution and service plan fees 5,091 Trustees' compensation 1,342 Other 23,656 ------------- Total liabilities 1,167,676 - ------------------------------------------------------------------------------- Net Assets $34,956,380 ============= - ------------------------------------------------------------------------------- Composition of Net Assets Paid-in capital $ 47,985,758 - ------------------------------------------------------------------------------- Accumulated net investment loss (254,386) - ------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (16,678,756) - ------------------------------------------------------------------------------- Net unrealized appreciation on investments 3,903,764 ------------- Net Assets $34,956,380 ============= 10 | OPPENHEIMER EMERGING GROWTH FUND - ------------------------------------------------------------------------------- Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $22,002,589 and 3,229,317 shares of beneficial interest outstanding) $6.81 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $7.23 - ------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $7,610,041 and 1,140,483 shares of beneficial interest outstanding) $6.67 - ------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $3,492,929 and 522,805 shares of beneficial interest outstanding) $6.68 - ------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $743,440 and 109,965 shares of beneficial interest outstanding) $6.76 - ------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,107,381 and 161,002 shares of beneficial interest outstanding) $6.88 See accompanying Notes to Financial Statements. 11 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF OPERATIONS UNAUDITED For the Six Months Ended April 30, 2003 - ------------------------------------------------------------------------------- Investment Income Dividends (net of foreign withholding taxes of $412) $ 38,127 - ------------------------------------------------------------------------------- Interest 5,008 --------------- Total investment income 43,135 - ------------------------------------------------------------------------------- Expenses Management fees 149,789 - ------------------------------------------------------------------------------- Distribution and service plan fees: Class A 19,906 Class B 34,668 Class C 18,812 Class N 1,682 - ------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 42,847 Class B 32,598 Class C 13,703 Class N 1,828 Class Y 26 - ------------------------------------------------------------------------------- Shareholder reports 21,026 - ------------------------------------------------------------------------------- Custodian fees and expenses 2,376 - ------------------------------------------------------------------------------- Trustees' compensation 1,164 - ------------------------------------------------------------------------------- Other 4,175 --------------- Total expenses 344,600 Less reduction to custodian expenses (166) Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (13,569) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (24,917) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (8,697) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (560) --------------- Net expenses 296,691 - ------------------------------------------------------------------------------- Net Investment Loss (253,556) - ------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized loss on investments (1,536,310) - ------------------------------------------------------------------------------- Net change in unrealized appreciation on investments 6,213,824 --------------- Net realized and unrealized gain 4,677,514 - ------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $4,423,958 =============== See accompanying Notes to Financial Statements. 12 | OPPENHEIMER EMERGING GROWTH FUND STATEMENTS OF CHANGES IN NET ASSETS Six Months Year Ended Ended April 30, 2003 October 31, (Unaudited) 2002 - -------------------------------------------------------------------------------- Operations Net investment loss $ (253,556) $ (564,932) - ------------------------------------------------------------------------------- Net realized loss (1,536,310) (10,327,183) - ------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 6,213,824 (4,009,696) ------------------------------- Net increase (decrease) in net assets resulting from operations 4,423,958 (14,901,811) - ------------------------------------------------------------------------------- Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A 33,852 9,052,385 Class B 244,389 5,795,703 Class C (1,951,625) 3,538,108 Class N 55,487 794,048 Class Y 316,791 675,716 - ------------------------------------------------------------------------------- Net Assets Total increase 3,122,852 4,954,149 - ------------------------------------------------------------------------------- Beginning of period 31,833,528 26,879,379 ------------------------------- End of period [including accumulated net investment loss of $254,386 and $830, respectively] $34,956,380 $31,833,528 =============================== See accompanying Notes to Financial Statements. 13 | OPPENHEIMER EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class A (Unaudited) 2002 2001 1 - ------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 5.84 $ 8.45 $10.00 - ------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.04) (.10) (.03) Net realized and unrealized gain (loss) 1.01 (2.51) (1.49) ---------------------------------------- Total from investment operations .97 (2.61) (1.52) - ------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - ------------------------------------------------------------------------------------------- Net asset value, end of period $6.81 $5.84 $8.45 ======================================== - ------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 16.61% (30.89)% (15.22)% - ------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $22,003 $19,310 $20,392 - ------------------------------------------------------------------------------------------- Average net assets (in thousands) $17,976 $24,497 $16,941 - ------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.46)% (1.35)% (0.57)% Expenses, gross 1.89% 1.85% 1.58% Expenses, net 1.74% 4,5 1.78% 4,5 1.58% 4 - ------------------------------------------------------------------------------------------- Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (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. 14 | OPPENHEIMER EMERGING GROWTH FUND
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class B (Unaudited) 2002 2001 1 - -------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 5.74 $ 8.38 $10.00 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.06) (.12) (.07) Net realized and unrealized gain (loss) .99 (2.52) (1.52) -------------------------------------------- Total from investment operations .93 (2.64) (1.59) - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - -------------------------------------------------------------------------------------------- Net asset value, end of period $6.67 $5.74 $8.38 ============================================ - -------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 16.20% (31.50)% (15.96)% - -------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $7,610 $6,395 $3,866 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $6,998 $6,979 $2,256 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (2.12)% (2.22)% (1.78)% Expenses, gross 3.13% 2.74% 2.47% Expenses, net 2.41% 4,5 2.67% 4,5 2.47% 4 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (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. 15 | OPPENHEIMER EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS CONTINUED
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class C (Unaudited) 2002 2001 1 - -------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 5.75 $ 8.39 $10.00 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.07) (.08) (.04) Net realized and unrealized gain (loss) 1.00 (2.56) (1.54) -------------------------------------------- Total from investment operations .93 (2.64) (1.58) - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - -------------------------------------------------------------------------------------------- Net asset value, end of period $6.68 $5.75 $8.39 ============================================ - -------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 16.17% (31.47)% (15.88)% - -------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $3,493 $4,877 $2,356 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $3,786 $3,061 $1,022 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (2.15)% (2.25)% (1.76)% Expenses, gross 2.92% 2.72% 2.46% Expenses, net 2.46% 4,5 2.65% 4,5 2.46% 4 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (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. 16 | OPPENHEIMER EMERGING GROWTH 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 $ 5.81 $ 8.43 $ 8.28 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.06) (.08) (.05) Net realized and unrealized gain (loss) 1.01 (2.54) .20 -------------------------------------------- Total from investment operations .95 (2.62) .15 - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- - -------------------------------------------------------------------------------------------- Net asset value, end of period $6.76 $5.81 $8.43 ============================================ - -------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 16.35% (31.08)% 1.81% - -------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $743 $594 $34 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $679 $412 $16 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.78)% (1.63)% (1.69)% Expenses, gross 2.23% 2.18% 2.03% Expenses, net 2.06% 4,5 2.11% 4,5 2.03% 4 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 120% 263% 214%
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 GROWTH FUND FINANCIAL HIGHLIGHTS CONTINUED
Six Months Year Ended Ended April 30, 2003 Oct. 31, Class Y (Unaudited) 2002 2001 1 - -------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 5.88 $ 8.47 $10.00 - -------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.05) (.08) .02 Net realized and unrealized gain (loss) 1.05 (2.51) (1.51) -------------------------------------------- Total from investment operations 1.00 (2.59) (1.49) - -------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.04) - -------------------------------------------------------------------------------------------- Net asset value, end of period $6.88 $5.88 $ 8.47 ============================================ - -------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 17.01% (30.58)% (14.99)% - -------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $1,107 $657 $232 - -------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 783 $532 $ 30 - -------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (0.91)% (0.84)% (0.97)% Expenses, gross 1.20% 1.48% 3.87% Expenses, net 1.20% 4 1.29% 4,5 1.28% 4,5 - -------------------------------------------------------------------------------------------- Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (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. 18 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Emerging Growth Fund (the Fund) is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C, 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. Effective May 1, 2003 the Fund will assess a 2% fee on the proceeds of fund shares that are redeemed (either by selling or exchanging to another Oppenheimer fund) within 30 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. 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 GROWTH 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 $16,246,448. 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 ------------------------------ 2009 $ 4,313,838 2010 10,396,300 ------------- Total $14,710,138 ============= - -------------------------------------------------------------------------------- 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 $435 and payments of $45 were made to retired trustees, resulting in an accumulated liability of $1,220 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 GROWTH 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 1,620,418 $ 10,537,098 3,152,945 $ 26,194,011 Redeemed (1,695,734) (10,503,246) (2,260,696) (17,141,626) ------------------------------------------------------------- Net increase (decrease) (75,316) $ 33,852 892,249 $ 9,052,385 ============================================================= - ----------------------------------------------------------------------------------------- Class B Sold 416,869 $ 2,611,838 1,439,747 $ 11,365,085 Redeemed (390,334) (2,367,449) (787,181) (5,569,382) ------------------------------------------------------------- Net increase 26,535 $ 244,389 652,566 $ 5,795,703 ============================================================= - ----------------------------------------------------------------------------------------- Class C Sold 244,814 $ 1,512,881 1,063,885 $ 7,600,986 Redeemed (570,570) (3,464,506) (496,262) (4,062,878) ------------------------------------------------------------- Net increase (decrease) (325,756) $ (1,951,625) 567,623 $ 3,538,108 =============================================================
21 | OPPENHEIMER EMERGING GROWTH 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 N Sold 96,097 $ 598,629 196,949 $ 1,522,929 Redeemed (88,458) (543,142) (98,624) (728,881) ------------------------------------------------------------- Net increase 7,639 $ 55,487 98,325 $ 794,048 ============================================================= - ----------------------------------------------------------------------------------------- Class Y Sold 88,108 $ 563,181 129,755 $ 1,009,456 Redeemed (38,901) (246,390) (45,335) (333,740) ------------------------------------------------------------- Net increase 49,207 $ 316,791 84,420 $ 675,716 =============================================================
- -------------------------------------------------------------------------------- 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 $36,637,981 and $37,280,985, 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 the first $500 million of average annual net assets; 0.90% of the next $500 million; and 0.85% of average annual net assets over $1 billion. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- 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. 22 | OPPENHEIMER EMERGING GROWTH 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 $40,551 $12,099 $584 $29,178 $5,369 $1,603
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 $-- $11,283 $305 $3,459
- -------------------------------------------------------------------------------- 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 $19,906, all of which were paid by the Distributor to recipients, and included $1,557 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 $34,668 $28,845 $161,341 2.12% Class C Plan 18,812 8,602 38,794 1.11 Class N Plan 1,682 1,596 7,904 1.06
23 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- 5. 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. 24 | OPPENHEIMER EMERGING GROWTH FUND OPPENHEIMER EMERGING GROWTH FUND - -------------------------------------------------------------------------------- Trustees and Officers Clayton K. Yeutter, Chairman and Trustee Donald W. Spiro, Vice Chairman and Trustee John V. Murphy, President and Trustee Robert G. Galli, Trustee Phillip A. Griffiths, Trustee Joel W. Motley, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Laura Granger, Vice President Robert G. Zack, Secretary Brian W. Wixted, Treasurer - -------------------------------------------------------------------------------- Investment Advisor OppenheimerFunds, Inc. - -------------------------------------------------------------------------------- Distributor OppenheimerFunds Distributor, Inc. - -------------------------------------------------------------------------------- Transfer and OppenheimerFunds Services Shareholder Servicing Agent - -------------------------------------------------------------------------------- Independent Auditors KPMG LLP - -------------------------------------------------------------------------------- Legal Counsel Mayer Brown Rowe & Maw The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent auditors. (COPYRIGHT)Copyright 2003 OppenheimerFunds, Inc. All rights reserved. Not part of the semiannual report to Fund shareholders 25 | OPPENHEIMER EMERGING GROWTH FUND OPPENHEIMERFUNDS FAMILY
- ------------------------------------------------------------------------------------------------------- Global Equity Developing Markets Fund Global Fund International Small Company Fund Quest Global Value Fund, Inc. International Growth Fund Global Opportunities Fund 1 - ------------------------------------------------------------------------------------------------------- Equity Stock Stock & Bond Emerging Technologies Fund Quest Opportunity Value Fund Emerging Growth Fund Total Return Fund, Inc. Enterprise Fund Quest Balanced Value Fund Discovery Fund Capital Income Fund Main Street Small Cap Fund(R) Multiple Strategies Fund Small Cap Value Fund Disciplined Allocation Fund MidCap Fund Convertible Securities Fund Main Street Opportunity Fund(R) Specialty Growth Fund Real Asset Fund(R) Capital Appreciation Fund Gold & Special Minerals Fund Main Street Fund(R)2 Tremont Market Neutral Fund, LLC 3 Value Fund Tremont Opportunity Fund, LLC 3 Quest Capital Value Fund, Inc. Quest Value Fund, Inc. Trinity Large Cap Growth Fund Trinity Core Fund Trinity Value Fund - ------------------------------------------------------------------------------------------------------- Income Taxable Rochester Division International Bond Fund California Municipal Fund 5 High Yield Fund New Jersey Municipal Fund 5 Champion Income Fund AMT-Free New York Municipals 5,6 Strategic Income Fund Municipal Bond Fund Bond Fund Limited Term Municipal Fund Total Return Bond Fund Rochester National Municipals Senior Floating Rate Fund Rochester Fund Municipals U.S. Government Trust Limited Term New York Municipal Fund Limited-Term Government Fund Pennsylvania Municipal Fund 5 Capital Preservation Fund 4 - ------------------------------------------------------------------------------------------------------- Select Managers Stock Stock & Bond Mercury Advisors Focus Growth Fund QM Active Balanced Fund 4 Gartmore Millennium Growth Fund II Jennison Growth Fund Salomon Brothers All Cap Fund Mercury Advisors S&P 500(R) Index Fund 4 - ------------------------------------------------------------------------------------------------------- Money Market 7 Money Market Fund, Inc. Cash Reserves
1. The Fund's name changed from Oppenheimer Global Growth & Income Fund on 6/1/03. 2. The Fund's name changed from Oppenheimer Main Street Growth & Income Fund(R) on 4/30/03. 3. Special investor qualification and minimum investment requirements apply. See the prospectus for details. 4. Available only through qualified retirement plans. 5. Available to investors only in certain states. 6. The Fund's name changed from Oppenheimer New York Municipal Fund on 1/22/03. 7. An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. Not part of the semiannual report to Fund shareholders 26 | OPPENHEIMER EMERGING GROWTH FUND 1.800.CALL OPP PHONELINK Call 1.800.CALL OPP (1.800.225.5677) for answers to many of your questions. Our automated speech recognition system provides you access to all the information and services you need. With PhoneLink you can: o Obtain account balances, share price (NAV) and dividends paid o Verify your most recent transactions o Buy, redeem or exchange mutual fund shares o Create custom lists of your accounts, funds or market indices o Order duplicate statements or Form 1099 DIV o Obtain market data (closing market information for Dow Jones Industrial Average, Nasdaq Composite and S&P 500 Index) o Speak to a Customer Service Representative 1 by saying "Agent" when prompted o And more! Quick list of PhoneLink commands Say To: [Account # or Social Security # + PIN] Get dollar and share balances, NAVs, transaction history or request transactions [Fund name, share class] Get current price/dividend information Balance Hear your balance/list of accounts History Hear your most recent transactions Purchase or buy Buy shares Exchange Exchange shares Liquidation or redemption Sell shares Dow Jones or Market Indices Hear closing market information (Dow Jones Industrial Average, Nasdaq Composite and S&P 500) Custom list Create, play or edit custom list of your accounts, funds or market indices 1. You may speak to a Customer Service Representative during normal business hours. Not part of the semiannual report to Fund shareholders 27 | OPPENHEIMER EMERGING GROWTH FUND PRIVACY POLICY NOTICE As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure. Information Sources We obtain nonpublic personal information about our shareholders from the following sources: o Applications or other forms o When you create a user ID and password for online account access o When you enroll in eDocs Direct, our electronic document delivery service o Your transactions with us, our affiliates or others o A software program on our website, often referred to as a "cookie," which indicates which parts of our site you've visited If you visit www.oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and to assist you in other ways. Protection of Information We do not disclose any nonpublic personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law. Disclosure of Information We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. Right of Refusal We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or "opt out" of such disclosure. Security In the coming months, an Internet browser that supports 128-bit encryption will be required to view the secure pages of www.oppenheimerfunds.com. These areas include: o Account access o Create a user ID and profile o User profile o eDocs Direct, our electronic document delivery service Not part of the semiannual report to Fund shareholders 28 | OPPENHEIMER EMERGING GROWTH FUND To find out if your Internet browser supports 128-bit encryption, or for instructions on how to upgrade your browser, visit the Help section of www.oppenheimerfunds.com. Emails and Encryption As a security measure, we do not include personal or account information in nonsecure emails, and we advise you not to send such information to us in nonsecure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use an Internet browser that supports 128-bit encryption. If you are not sure if your Internet browser supports 128-bit encryption, or need instructions on how to upgrade your browser, visit the Help section of www.oppenheimerfunds.com for assistance. o All transactions, including redemptions, exchanges and purchases are secured by Secure Socket Layers (SSL) and encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds' server. It transmits information in an encrypted and scrambled format. o Encryption is achieved through an electronic scrambling technology that uses a "key" to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. o You can exit the secure area by either closing your browser, or for added security, you can use the Log Out of Account Area button before you close your browser. Other Security Measures We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services to you, for example, when responding to your account questions. How You Can Help You can also do your part to keep your account information private, and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others. - -------------------------------------------------------------------------------- This joint notice describes the privacy policies of Oppenheimer funds, OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7) tax-sheltered custodial accounts. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security number--whether or not you remain a shareholder of our funds. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at www.oppenheimerfunds.com or call us at 1.800.CALL OPP (1.800.225.5677). Not part of the semiannual report to Fund shareholders 29 | OPPENHEIMER EMERGING GROWTH FUND INFORMATION AND SERVICES GRAPHIC OMITTED eDocs Direct Get This Report Online! You can quickly view, download and print this report at your convenience. It's EASY, FAST, CONVENIENT, and FREE! With OppenheimerFunds eDocs Direct, you'll receive email notification when shareholder reports, prospectuses or prospectus supplements for your fund(s) become available online, instead of receiving them through the mail. You'll cut down on paper mail and help reduce fund expenses! Sign up for eDocs Direct today at www.oppenheimerfunds.com Internet 24-hr access to account information and transactions 1 www.oppenheimerfunds.com - -------------------------------------------------------------------------------- PhoneLink 1 and General Information 24-hr automated information and automated transactions Representatives also available Mon-Fri 8am-9pm ET Sat (January-April) 10am-4pm ET 1.800.CALL OPP (1.800.225.5677) - -------------------------------------------------------------------------------- Written Correspondence and Transaction Requests OppenheimerFunds Services P.O. Box 5270, Denver, CO 80217-5270 For Overnight Delivery OppenheimerFunds Services 10200 East Girard Avenue, Building D Denver, CO 80231 - -------------------------------------------------------------------------------- Ticker Symbols Class A: OEGAX Class B: OEGBX Class C: OEGCX Class N: OEGNX Class Y: OEGYX 1. At times the website or PhoneLink may be inaccessible or their transaction features may be unavailable. Not part of the semiannual report to Fund shareholders [GRAPHIC] OppenheimerFunds[R] Distributor, Inc. RS0721.001.0403 June 27, 2003 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_302-721.txt EX99_302-721 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 Growth 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; and 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. Date: 06/19/03 /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 Growth 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; and 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. Date: 06/19/03 /S/BRIAN W. WIXTED ------------------ Brian W. Wixted Chief Financial Officer EX-99.906CERT 4 ex99_906-721.txt EX99_906-721 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 Growth 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 Sections 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. Chief Executive Officer Chief Financial Officer Oppenheimer Emerging Growth Oppenheimer Emerging Growth Fund Fund /S/JOHN V. MURPHY /S/BRIAN W. WIXTED - ----------------- ------------------ John V. Murphy Brian W. Wixted Date: 06/19/03 Date: 06/19/03 A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Oppenheimer Emerging Growth Fund and will be retained by Oppenheimer Emerging Growth Fund and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. 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. -----END PRIVACY-ENHANCED MESSAGE-----