-----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, H9cu0vdZ+S2ofuZDp9j9GgmOIB575fU2KsTe7XU3vpHCnGGPjPBesxKfvBArFsOA y3oJvi473IWFG5nUfzmV2w== 0000935069-03-001665.txt : 20031219 0000935069-03-001665.hdr.sgml : 20031219 20031219124509 ACCESSION NUMBER: 0000935069-03-001665 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20031031 FILED AS OF DATE: 20031219 EFFECTIVENESS DATE: 20031219 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: 031064308 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 ra0721_9440vef.txt RA0721_9440VEF 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. Two World Financial Center, New York, New York 10281-1008 - -------------------------------------------------------------------------------- (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: November 1, 2002 - October 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of the Fund's performance during its fiscal year ended October 31, 2003, followed by a graphical comparison of the Fund's performance to appropriate broad-based market indices. Management's Discussion of Fund Performance. Over the 12-month period ended October 31, 2003, the Fund delivered exceptionally strong performance, providing returns that far outpaced both of its benchmarks, The Russell 2000 Index and the Russell 2000 Growth Index. The Fund's gains were driven by the sharp upturn in small-cap growth stock prices that began in March 2003 and continued throughout the remainder of the period, and by a large number of exceptionally good individual stock selections produced by our disciplined, bottom-up selection process. During the reporting period, our stock selection approach led us to invest the greatest percentage of the Fund's assets in the traditional growth areas of technology, health care and consumer discretionary. Technology stocks provided some of the Fund's best returns, with several performers delivering substantial gains. For example, Lexar Media, Inc., a producer of flash memory, benefited from rapidly growing demand from consumers for digital cameras, MP3 players, and other digital devices. Netease.com, Inc., a China-based Internet portal provider, climbed sharply on the basis of rising revenues from advertising, online gaming and e-mail messaging. SupportSoft, Inc. grew as a result of new corporate customers for its software providing automated online technical assistance. In the health care area, returns particularly benefited from investments in specialty pharmaceutical companies, such as Martek Biosciences Corp., developers of a group of algae-derived food additives with an excellent safety profile that have demonstrated clear health benefits for infants; and Taro Pharmaceutical Industries Ltd., a company with proprietary technology for developing user-friendly topical preparations. Other health care stocks among the Fund's top performers included eResearch Technology, Inc., providing drug development companies with digitized test data to meet new FDA requirements; and Pharmaceutical Resources, Inc., a generic drug maker with a host of new drug applications under review that received approvals for generic versions of several popular drugs. Finally, in the consumer cyclical area, the Fund's best holdings included retailer Urban Outfitters, Inc. which expanded its target customer base beyond young adults through its "Anthropologie" brand store chain; and continuing education providers Corinthian Colleges, Inc., and Career Education Corp. Of course, not all of the Fund's holdings enhanced returns. A few disappointments undermined performance, particularly in late-2002 before the market started its steady climb. Among these were Action Performance Companies Inc., an import-dependent company that was hurt by a port strike, and CTI Molecular Imaging, Inc., a medical device 6 | OPPENHEIMER EMERGING GROWTH FUND maker that reported weaker-than-expected earnings. Diminished confidence regarding future growth led us to sell both positions in late 2002. The Fund's portfolio holdings, allocations and strategies are subject to change. Comparing the Fund's Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each Class of shares of the Fund held until October 31, 2003. Performance is measured from the inception of Class A, B, C, and Y on November 1, 2000. In the case of Class N shares, performance is measured from inception of the Class on March 1, 2001.The Fund's performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class B, Class C and Class N shares, and reinvestments of all dividends and capital gains distributions. The Fund's performance is compared to the performance of the Russell 2000 Index and the Russell 2000 Growth Index, unmanaged indices of small cap issuers and small cap issuers with above-average growth characteristics, respectively. Index performance reflects the reinvestment of dividends but does not consider the effect of capital gains or transaction costs, and none of the data in the graphs shows the effect of taxes. The Fund's performance reflects the effects of Fund business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the securities. 7 | OPPENHEIMER EMERGING GROWTH FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- Class A Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE CHART] Oppenheimer Emerging Russell Russell 2000 Growth Fund (Class A) 2000 Index Growth Index 11/01/2000 $9,425 $10,000 $10,000 01/31/2001 9,863 10,251 9,388 04/30/2001 8,350 9,823 8,266 07/31/2001 8,983 9,848 7,947 10/31/2001 7,990 8,730 6,850 01/31/2002 8,860 9,883 7,603 04/30/2002 7,716 10,479 7,562 07/31/2002 5,683 8,080 5,515 10/31/2002 5,522 7,720 5,373 01/31/2003 5,711 7,721 5,349 04/30/2003 6,439 8,303 5,785 07/31/2003 8,435 9,946 7,057 10/31/2003 9,740 11,068 7,874 Average Annual Total Returns of Class A Shares of the Fund at 10/31/03* 1-Year 66.23% Since Inception -0.88% Class B Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE CHART] Oppenheimer Emerging Russell Russell 2000 Growth Fund (Class B) 2000 Index Growth Index 11/01/2000 $10,000 $10,000 $10,000 01/31/2001 10,439 10,251 9,388 04/30/2001 8,815 9,823 8,266 07/31/2001 9,466 9,848 7,947 10/31/2001 8,403 8,730 6,850 01/31/2002 9,296 9,883 7,603 04/30/2002 8,083 10,479 7,562 07/31/2002 5,937 8,080 5,515 10/31/2002 5,756 7,720 5,373 01/31/2003 5,937 7,721 5,349 04/30/2003 6,689 8,303 5,785 07/31/2003 8,744 9,946 7,057 10/31/2003 9,778 11,068 7,874 Average Annual Total Returns of Class B Shares of the Fund at 10/31/03* 1-Year 70.09% Since Inception -0.75% *See Notes on page 11 for further details. 8 | OPPENHEIMER EMERGING GROWTH FUND Class C Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE CHART] Oppenheimer Emerging Russell 2000 Russell 2000 Growth Fund (Class C) Index Growth Index 11/01/2000 $10,000 $10,000 $10,000 01/31/2001 10,448 10,251 9,388 04/30/2001 8,823 9,823 8,266 07/31/2001 9,475 9,848 7,947 10/31/2001 8,412 8,730 6,850 01/31/2002 9,295 9,883 7,603 04/30/2002 8,091 10,479 7,562 07/31/2002 5,946 8,080 5,515 10/31/2002 5,765 7,720 5,373 01/31/2003 5,946 7,721 5,349 04/30/2003 6,698 8,303 5,785 07/31/2003 8,753 9,946 7,057 10/31/2003 10,087 11,068 7,874 Average Annual Total Returns of Class C Shares of the Fund at 10/31/03* 1-Year 73.96% Since Inception 0.29% Class N Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE CHART] Oppenheimer Emerging Growth Russell Russell 2000 Growth Fund (Class N) 2000 Index Growth Index 03/01/2001 $10,000 $10,000 $10,000 04/30/2001 10,652 10,255 10,204 07/31/2001 11,449 10,281 9,810 10/31/2001 10,181 9,114 8,455 01/31/2002 11,268 10,317 9,385 04/30/2002 9,807 10,940 9,334 07/31/2002 7,222 8,435 6,807 10/31/2002 7,017 8,060 6,632 01/31/2003 7,246 8,061 6,602 04/30/2003 8,164 8,668 7,141 07/31/2003 10,676 10,384 8,711 10/31/2003 12,331 11,555 9,719 Average Annual Total Returns of Class N Shares of the Fund at 10/31/03* 1-Year 74.73% Since Inception 8.17% The performance information for both indices in the graphs begins on 10/31/00 for Class A, Class B, Class C and Class Y, and on 2/28/01 for Class N. Past performance cannot guarantee future results. Graphs are not drawn to same scale. 9 | OPPENHEIMER EMERGING GROWTH FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- Class Y Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE CHART] Oppenheimer Emerging Russell Russell 2000 Growth Fund (Class Y) 2000 Index Growth Index 11/01/2000 $10,000 $10,000 $10,000 01/31/2001 10,468 10,251 9,388 04/30/2001 8,862 9,823 8,266 07/31/2001 9,545 9,848 7,947 10/31/2001 8,501 8,730 6,850 01/31/2002 9,424 9,883 7,603 04/30/2002 8,220 10,479 7,562 07/31/2002 6,062 8,080 5,515 10/31/2002 5,901 7,720 5,373 01/31/2003 6,112 7,721 5,349 04/30/2003 6,905 8,303 5,785 07/31/2003 9,053 9,946 7,057 10/31/2003 10,468 11,068 7,874 Average Annual Total Returns of Class Y Shares of the Fund at 10/31/03* 1-Year 77.38% Since Inception 1.54% *See Notes on page 11 for further details. The performance information for both indices in the graphs begins on 10/31/00 for Class A, Class B, Class C and Class Y, and on 2/28/01 for Class N. Past performance cannot guarantee future results. Graphs are not drawn to same scale. 10 | OPPENHEIMER EMERGING GROWTH FUND NOTES - -------------------------------------------------------------------------------- In reviewing performance and rankings, please remember that past performance cannot guarantee future results. Investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Because of ongoing market volatility, the Fund's performance may be subject to substantial fluctuations, and current performance may be more or less than the results shown. For updates on the Fund's performance, visit our website at www.oppenheimerfunds.com. Total returns and the ending account values in the graphs include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund's total returns shown do not reflect the deduction of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. 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. 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 one-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 one-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. 11 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF INVESTMENTS October 31, 2003 - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - --------------------------------------------------- Common Stocks--98.8% - --------------------------------------------------- Consumer Discretionary--14.6% - --------------------------------------------------- Hotels, Restaurants & Leisure--3.2% Alliance Gaming Corp. 1 37,200 $ 902,100 - --------------------------------------------------- Ruby Tuesday, Inc. 22,100 604,435 - --------------------------------------------------- Scientific Games Corp., Cl. A 1 75,000 997,500 - --------------------------------------------------- Station Casinos, Inc. 23,400 696,150 ----------- 3,200,185 - --------------------------------------------------- Household Durables--0.3% Tripath Technology, Inc. 1 48,300 241,983 - --------------------------------------------------- Internet & Catalog Retail--1.0% RedEnvelope, Inc. 1 76,000 1,013,840 - --------------------------------------------------- Leisure Equipment & Products--1.1% Marvel Enterprises, Inc. 1 35,500 1,045,475 - --------------------------------------------------- Media--1.5% Radio One, Inc. 1 27,300 437,619 - --------------------------------------------------- Sonic Solutions, Inc. 1 61,100 1,087,580 ----------- 1,525,199 - --------------------------------------------------- Multiline Retail--1.0% Fred's, Inc. 26,200 987,216 - --------------------------------------------------- Specialty Retail--5.8% bebe stores, Inc. 1 30,000 837,000 - --------------------------------------------------- Finish Line, Inc. (The), Cl. A 1 28,800 881,856 - --------------------------------------------------- Hot Topic, Inc. 1 26,050 747,896 - --------------------------------------------------- Jo-Ann Stores, Inc., Cl. A 1 21,200 636,212 - --------------------------------------------------- Pacific Sunwear of California, Inc. 1 31,250 721,563 - --------------------------------------------------- Select Comfort Corp. 1 23,300 729,290 - --------------------------------------------------- Urban Outfitters, Inc. 1 35,800 1,194,288 ----------- 5,748,105 - --------------------------------------------------- Textiles, Apparel & Luxury Goods--0.7% Authentidate Holding Corp. 1 62,200 716,482 - --------------------------------------------------- Consumer Staples--1.5% - --------------------------------------------------- Food & Staples Retailing--0.7% Central European Distribution Corp. 1 17,500 657,825 - --------------------------------------------------- Food Products--0.8% Stake Technology Ltd. 1 84,700 812,273 Market Value Shares See Note 1 - --------------------------------------------------- Energy--2.0% - --------------------------------------------------- Energy Equipment & Services--1.4% Patterson-UTI Energy, Inc. 1 23,800 $ 680,442 - --------------------------------------------------- Rowan Cos., Inc. 1 28,300 677,785 ----------- 1,358,227 - --------------------------------------------------- Oil & Gas--0.6% Brigham Exploration Co. 1 97,400 652,580 - --------------------------------------------------- Financials--3.1% - --------------------------------------------------- Capital Markets--0.6% National Financial Partners Corp. 1 21,600 585,360 - --------------------------------------------------- Commercial Banks--0.5% UCBH Holdings, Inc. 14,300 510,653 - --------------------------------------------------- Diversified Financial Services--1.5% CapitalSource, Inc. 1 22,000 478,500 - --------------------------------------------------- Investors Financial Services Corp. 18,000 635,940 - --------------------------------------------------- Raymond James Financial, Inc. 9,600 391,584 ----------- 1,506,024 - --------------------------------------------------- Real Estate--0.5% Newcastle Investment Corp. 18,700 437,580 - --------------------------------------------------- Health Care--17.9% - --------------------------------------------------- Biotechnology--3.9% Digene Corp. 1 22,800 802,560 - --------------------------------------------------- Gen-Probe, Inc. 1 53,400 1,429,518 - --------------------------------------------------- Martek Biosciences Corp. 1 24,900 1,205,409 - --------------------------------------------------- Nuerocrine Biosciences, Inc. 1 8,700 407,421 ----------- 3,844,908 - --------------------------------------------------- Health Care Equipment & Supplies--2.4% Advanced Neuromodulation Systems, Inc. 1 19,350 793,350 - --------------------------------------------------- Inamed Corp. 1 11,600 1,001,892 - --------------------------------------------------- VISX, Inc. 1 24,000 582,240 ----------- 2,377,482 12 | OPPENHEIMER EMERGING GROWTH FUND Market Value Shares See Note 1 - --------------------------------------------------- Health Care Providers & Services--2.4% Bio-Imaging Technologies, Inc. 1,2 123,800 $ 631,009 - --------------------------------------------------- eResearch Technology, Inc. 1 30,100 1,384,299 - --------------------------------------------------- VistaCare, Inc., Cl. A 1 11,500 396,865 ----------- 2,412,173 - --------------------------------------------------- Pharmaceuticals--9.2% Able Laboratories, Inc. 1 21,800 421,612 - --------------------------------------------------- Acusphere, Inc. 1 9,400 90,240 - --------------------------------------------------- Angiotech Pharmaceuticals, Inc. 1 35,500 1,623,415 - --------------------------------------------------- Columbia Laboratories, Inc. 1 39,600 418,968 - --------------------------------------------------- Connetics Corp. 1 44,700 800,577 - --------------------------------------------------- Discovery Laboratories, Inc. 1 34,000 246,160 - --------------------------------------------------- DOV Pharmaceutical, Inc. 1,2 28,500 349,125 - --------------------------------------------------- Eon Labs, Inc. 1 6,800 286,348 - --------------------------------------------------- Flamel Techologies SA, Sponsored ADR 1 40,000 1,010,000 - --------------------------------------------------- MGI Pharma, Inc. 1 25,600 961,536 - --------------------------------------------------- Penwest Pharmaceuticals Co. 1 25,000 409,500 - --------------------------------------------------- Penwest Pharmaceuticals Co. 1 20,000 303,456 - --------------------------------------------------- Pharmaceutical Resources, Inc. 1 14,400 1,040,832 - --------------------------------------------------- Pozen, Inc. 1 34,400 431,032 - --------------------------------------------------- Taro Pharmaceutical Industries Ltd. 1 11,300 726,025 ----------- 9,118,826 - --------------------------------------------------- Industrials--10.2% - --------------------------------------------------- Aerospace & Defense--0.3% Cubic Corp. 11,200 318,080 - --------------------------------------------------- Airlines--1.7% AirTran Holdings, Inc. 1 58,200 943,422 - --------------------------------------------------- Frontier Airlines, Inc. 1 44,500 715,115 ----------- 1,658,537 Market Value Shares See Note 1 - --------------------------------------------------- Commercial Services & Supplies--7.7% - --------------------------------------------------- Bennett Environmental, Inc. 1 38,500 $ 720,720 - --------------------------------------------------- Career Education Corp. 1 20,400 1,092,420 - --------------------------------------------------- Corinthian Colleges, Inc. 1 15,900 984,528 - --------------------------------------------------- Corporate Executive Board Co. 1 7,200 367,272 - --------------------------------------------------- Education Management Corp. 1 8,200 518,076 - --------------------------------------------------- Exult, Inc. 1 106,800 846,924 - --------------------------------------------------- Gevity HR, Inc. 29,200 441,504 - --------------------------------------------------- Monster Worldwide, Inc. 1 38,800 988,236 - --------------------------------------------------- Navigant Consulting, Inc. 1 30,000 492,900 - --------------------------------------------------- Stericycle, Inc. 1 14,400 664,992 - --------------------------------------------------- Sylvan Learning Systems, Inc. 1 18,400 520,720 ----------- 7,638,292 - --------------------------------------------------- Machinery--0.2% Ceradyne, Inc. 1 5,800 240,932 - --------------------------------------------------- Road & Rail--0.3% Pacer International, Inc. 1 14,700 303,114 - --------------------------------------------------- Information Technology--48.5% - --------------------------------------------------- Communications Equipment--9.0% ADTRAN, Inc. 20,200 1,374,204 - --------------------------------------------------- Audiocodes Ltd. 1 66,800 572,476 - --------------------------------------------------- Emulex Corp. 1 28,800 815,616 - --------------------------------------------------- IxiA 1 78,400 940,800 - --------------------------------------------------- McDATA Corp., Cl. B 1 57,700 589,694 - --------------------------------------------------- NetScreen Technologies, Inc. 1 27,900 742,698 - --------------------------------------------------- Packeteer, Inc. 1 47,600 832,048 - --------------------------------------------------- Performance Technologies, Inc. 1 108,000 1,122,120 - --------------------------------------------------- REMEC, Inc. 1 69,000 761,070 - --------------------------------------------------- UTStarcom, Inc. 1 36,500 1,149,750 ----------- 8,900,476 13 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - --------------------------------------------------- Computers & Peripherals--4.8% Advanced Digital Information Corp. 1 38,500 $ 625,625 - --------------------------------------------------- ATI Technologies, Inc. 1 37,600 538,056 - --------------------------------------------------- Dot Hill Systems Corp. 1 24,400 327,204 - --------------------------------------------------- Lexar Media, Inc. 1 45,200 1,035,532 - --------------------------------------------------- Maxtor Corp. 1 69,400 948,698 - --------------------------------------------------- Network Engines, Inc. 1 49,700 488,004 - --------------------------------------------------- Western Digital Corp. 1 60,000 807,000 ----------- 4,770,119 - --------------------------------------------------- Electronic Equipment & Instruments--5.1% Bell Microproducts, Inc. 1 120,300 1,015,332 - --------------------------------------------------- Brightpoint, Inc. 1 67,550 1,935,308 - --------------------------------------------------- Innovex, Inc. 1 51,400 580,820 - --------------------------------------------------- TTM Technologies, Inc. 1 48,400 779,240 - --------------------------------------------------- Vishay Intertechnology, Inc. 1 38,500 721,875 ----------- 5,032,575 - --------------------------------------------------- Internet Software & Services--11.5% Digital River, Inc. 1 31,500 862,470 - --------------------------------------------------- Digitas, Inc. 1 46,000 400,200 - --------------------------------------------------- eCollege.com, Inc. 1 85,400 1,852,326 - --------------------------------------------------- Lionbridge Technologies, Inc. 1 66,800 603,204 - --------------------------------------------------- MicroStrategy, Inc., Cl. A 1 21,200 1,166,000 - --------------------------------------------------- National Information Consortium, Inc. 1 111,700 578,606 - --------------------------------------------------- Netease.com, Inc., ADR1 12,600 572,040 - --------------------------------------------------- Openwave Systems, Inc. 1 35,633 465,011 - --------------------------------------------------- SINA Corp. 1 20,900 807,367 - --------------------------------------------------- SupportSoft, Inc. 1 121,600 1,457,984 - --------------------------------------------------- United Online, Inc. 1 69,900 2,012,421 - --------------------------------------------------- VeriSign, Inc. 1 37,400 593,538 ----------- 11,371,167 Market Value Shares See Note 1 - --------------------------------------------------- IT Services--1.3% Cognizant Technology Solutions Corp. 1 19,800 $ 898,722 - --------------------------------------------------- Mediware Information Systems, Inc. 1 28,800 424,800 ----------- 1,323,522 - --------------------------------------------------- Office Electronics--1.7% Metrologic Instruments, Inc. 1 46,400 1,087,152 - --------------------------------------------------- Zebra Technologies Corp., Cl. A 1 11,000 626,450 ----------- 1,713,602 - --------------------------------------------------- Semiconductors & Semiconductor Equipment--8.4% AMIS Holdings, Inc. 1 16,300 328,445 - --------------------------------------------------- FEI Co. 1 23,800 565,250 - --------------------------------------------------- Integrated Circuit Systems, Inc. 1 14,900 500,193 - --------------------------------------------------- Kopin Corp. 1 59,200 433,936 - --------------------------------------------------- LTX Corp. 1 30,000 428,700 - --------------------------------------------------- MEMC Electronic Materials, Inc. 1 42,900 480,480 - --------------------------------------------------- Microsemi Corp. 1 37,900 784,530 - --------------------------------------------------- O2Micro International Ltd. 1 28,800 613,728 - --------------------------------------------------- OmniVision Technologies, Inc. 1 21,200 1,204,160 - --------------------------------------------------- ON Semiconductor Corp. 1 100,000 430,000 - --------------------------------------------------- Power Integrations, Inc. 1 32,500 1,131,650 - --------------------------------------------------- Skyworks Solutions, Inc. 1 13,700 117,546 - --------------------------------------------------- Standard Microsystems Corp. 1 25,000 750,000 - --------------------------------------------------- Vitesse Semiconductor Corp. 1 80,900 569,536 ----------- 8,338,154 14 | OPPENHEIMER EMERGING GROWTH FUND Market Value Shares See Note 1 - --------------------------------------------------- Software--6.7% Activision, Inc. 1 56,000 $ 845,040 - --------------------------------------------------- Altiris, Inc. 1 21,400 735,732 - --------------------------------------------------- BEA Systems, Inc. 1 30,000 417,000 - --------------------------------------------------- FileNet Corp. 1 47,500 1,269,200 - --------------------------------------------------- Inet Technologies, Inc. 1 33,600 451,920 - --------------------------------------------------- Macromedia, Inc. 1 32,200 615,342 - --------------------------------------------------- Magma Design Automation, Inc. 1 43,100 1,044,313 - --------------------------------------------------- Micromuse, Inc. 1 68,500 551,425 - --------------------------------------------------- Take-Two Interactive Software, Inc. 1 16,800 664,440 ----------- 6,594,412 - --------------------------------------------------- Materials--0.4% - --------------------------------------------------- Metals & Mining--0.4% GrafTech International Ltd. 1 40,100 416,639 - --------------------------------------------------- Telecommunication Services--0.6% - --------------------------------------------------- Diversified Telecommunication Services--0.6% PTEK Holdings, Inc. 1 63,900 556,569 ----------- Total Common Stocks (Cost $77,034,527) 97,928,586 Units - --------------------------------------------------- Rights, Warrants and Certificates--0.0% - --------------------------------------------------- Discovery Laboratories, Inc. Wts., Exp. 9/20/10 1,2 6,800 31,199 - --------------------------------------------------- Penwest Pharmaceuticals Co. Wts., Exp. 11/5/03 1 20,000 821 ----------- Total Rights, Warrants and Certificates (Cost $0) 32,020 Principal Market Value Amount See Note 1 - --------------------------------------------------- Joint Repurchase Agreements--0.4% Undivided interest of 0.28% in joint repurchase agreement (Principal Amount/ Market Value $149,808,000, with a maturity value of $149,820,109) with Banc One Capital Markets, Inc., 0.97%, dated 10/31/03, to be repurchased at $426,034 on 11/3/03, collateralized by U.S. Treasury Bonds, 3.625%--9%, 3/31/04--8/15/23, with a value of $152,949,680 (Cost $426,000) $426,000 $ 426,000 - --------------------------------------------------- Total Investments, at Value (Cost $77,460,527) 99.2% 98,386,606 - --------------------------------------------------- Other Assets Net of Liabilities 0.8 754,675 --------------------- Net Assets 100.0% $99,141,281 ===================== Footnotes to Statement of Investments 1. Non-income producing security. 2. Identifies issues considered to be illiquid or restricted. See Note 5 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 15 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES October 31, 2003 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Assets - -------------------------------------------------------------------------------- Investments, at value (cost $77,460,527)--see accompanying statement $ 98,386,606 - ----------------------------------------------------------------------------------- Cash 6,705 - ----------------------------------------------------------------------------------- Receivables and other assets: Investments sold 3,076,833 Shares of beneficial interest sold 1,194,063 Interest and dividends 3,386 Other 314 -------------- Total assets 102,667,907 - ----------------------------------------------------------------------------------- Liabilities - ----------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 3,188,395 Shares of beneficial interest redeemed 248,166 Shareholder reports 23,646 Transfer and shareholder servicing agent fees 21,120 Distribution and service plan fees 18,538 Trustees' compensation 1,726 Other 25,035 ------------ Total liabilities 3,526,626 - ----------------------------------------------------------------------------------- Net Assets $ 99,141,281 ============= - ----------------------------------------------------------------------------------- Composition of Net Assets - ----------------------------------------------------------------------------------- Paid-in capital $ 87,825,290 - ----------------------------------------------------------------------------------- Accumulated investment loss (1,695) - ----------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (9,608,393) - ----------------------------------------------------------------------------------- Net unrealized appreciation on investments 20,926,079 ------------ Net Assets $ 99,141,281 =============
16 | 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 $59,396,398 and 5,766,332 shares of beneficial interest outstanding) $10.30 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $10.93 - -------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $20,519,828 and 2,041,758 shares of beneficial interest outstanding) $10.05 - -------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $13,887,172 and 1,380,244 shares of beneficial interest outstanding) $10.06 - -------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $2,424,566 and 237,526 shares of beneficial interest outstanding) $10.21 - -------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $2,913,317 and 279,342 shares of beneficial interest outstanding) $10.43 See accompanying Notes to Financial Statements. 17 | OPPENHEIMER EMERGING GROWTH FUND STATEMENT OF OPERATIONS For the Year Ended October 31, 2003 - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------- Investment Income - ----------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $621) $ 96,654 - ----------------------------------------------------------------------------------- Interest 20,022 ------------ Total investment income 116,676 - ----------------------------------------------------------------------------------- Expenses - ----------------------------------------------------------------------------------- Management fees 479,700 - ----------------------------------------------------------------------------------- Distribution and service plan fees: Class A 66,802 Class B 105,056 Class C 66,240 Class N 5,598 - ----------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 107,197 Class B 71,554 Class C 33,491 Class N 5,469 Class Y 46 - ----------------------------------------------------------------------------------- Shareholder reports 52,953 - ----------------------------------------------------------------------------------- Custodian fees and expenses 5,510 - ----------------------------------------------------------------------------------- Trustees' compensation 2,365 - ----------------------------------------------------------------------------------- Other 15,612 ------------ Total expenses 1,017,593 Less reduction to custodian expenses (268) Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (12,869) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (40,654) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (11,916) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (1,619) ------------ Net expenses 950,267 - ----------------------------------------------------------------------------------- Net Investment Loss (833,591) - ----------------------------------------------------------------------------------- Realized and Unrealized Gain - ----------------------------------------------------------------------------------- Net realized gain on investments 5,534,053 - ----------------------------------------------------------------------------------- Net change in unrealized appreciation on investments 23,236,139 - ----------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $27,936,601 ============
See accompanying Notes to Financial Statements. 18 | OPPENHEIMER EMERGING GROWTH FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Year Ended October 31, 2003 2002 - ----------------------------------------------------------------------------------- Operations - ----------------------------------------------------------------------------------- Net investment loss $ (833,591) $ (564,932) - ----------------------------------------------------------------------------------- Net realized gain (loss) 5,534,053 (10,327,183) - ----------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 23,236,139 (4,009,696) -------------------------- Net increase (decrease) in net assets resulting from operations 27,936,601 (14,901,811) - ----------------------------------------------------------------------------------- Beneficial Interest Transactions - ----------------------------------------------------------------------------------- Net increase in net assets resulting from beneficial interest transactions: Class A 23,540,294 9,052,385 Class B 8,157,568 5,795,703 Class C 5,135,955 3,538,108 Class N 1,182,442 794,048 Class Y 1,354,893 675,716 - ----------------------------------------------------------------------------------- Net Assets - ----------------------------------------------------------------------------------- Total increase 67,307,753 4,954,149 - ----------------------------------------------------------------------------------- Beginning of period 31,833,528 26,879,379 -------------------------- End of period [including accumulated net investment loss of $1,695 and $830, respectively] $99,141,281 $31,833,528 ==========================
See accompanying Notes to Financial Statements. 19 | OPPENHEIMER EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Class A Year Ended October 31, 2003 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 (.08) (.10) (.03) Net realized and unrealized gain (loss) 4.54 (2.51) (1.49) ---------------------------- Total from investment operations 4.46 (2.61) (1.52) - -------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - -------------------------------------------------------------------------------------- Net asset value, end of period $10.30 $5.84 $ 8.45 ============================ - -------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 76.37% (30.89)% (15.22)% - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $59,396 $19,310 $20,392 - -------------------------------------------------------------------------------------- Average net assets (in thousands) $28,386 $24,497 $16,941 - -------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.48)% (1.35)% (0.57)% Total expenses 1.77% 1.85% 1.58% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 1.72% 1.78% N/A 4 - -------------------------------------------------------------------------------------- Portfolio turnover rate 204% 263% 214% 1. For the period from November 1, 2000 (commencement of operations) to October 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or commencement of operations), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements. 20 | OPPENHEIMER EMERGING GROWTH FUND
Class B Year Ended October 31, 2003 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 (.09) (.12) (.07) Net realized and unrealized gain (loss) 4.40 (2.52) (1.52) ---------------------------- Total from investment operations 4.31 (2.64) (1.59) - -------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - -------------------------------------------------------------------------------------- Net asset value, end of period $10.05 $5.74 $ 8.38 ============================ - -------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 75.09% (31.50)% (15.96)% - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $20,520 $6,395 $3,866 - -------------------------------------------------------------------------------------- Average net assets (in thousands) $10,544 $6,979 $2,256 - -------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (2.20)% (2.22)% (1.78)% Total expenses 2.83% 2.74% 2.47% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 2.44% 2.67% N/A 4 - -------------------------------------------------------------------------------------- Portfolio turnover rate 204% 263% 214% 1. For the period from November 1, 2000 (commencement of operations) to October 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or commencement of operations), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements. 21 | OPPENHEIMER EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
Class C Year Ended October 31, 2003 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 (.11) (.08) (.04) Net realized and unrealized gain (loss) 4.42 (2.56) (1.54) ---------------------------- Total from investment operations 4.31 (2.64) (1.58) - -------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.03) - -------------------------------------------------------------------------------------- Net asset value, end of period $10.06 $5.75 $ 8.39 ============================ - -------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 74.96% (31.47)% (15.88)% - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $13,887 $4,877 $2,356 - -------------------------------------------------------------------------------------- Average net assets (in thousands) $ 6,649 $3,061 $1,022 - -------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (2.22)% (2.25)% (1.76)% Total expenses 2.65% 2.72% 2.46% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 2.47% 2.65% N/A 4 - -------------------------------------------------------------------------------------- Portfolio turnover rate 204% 263% 214% 1. For the period from November 1, 2000 (commencement of operations) to October 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or commencement of operations), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. See accompanying Notes to Financial Statements.
22 | OPPENHEIMER EMERGING GROWTH FUND
Class N Year Ended October 31, 2003 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 (.10) (.08) (.05) Net realized and unrealized gain (loss) 4.50 (2.54) .20 ---------------------------- Total from investment operations 4.40 (2.62) .15 - -------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- - -------------------------------------------------------------------------------------- Net asset value, end of period $10.21 $5.81 $8.43 ============================ - -------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 75.73% (31.08)% 1.81% - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $2,425 $594 $34 - -------------------------------------------------------------------------------------- Average net assets (in thousands) $1,125 $412 $16 - -------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (1.76)% (1.63)% (1.69)% Total expenses 2.14% 2.18% 2.03% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 2.00% 2.11% N/A 4 - -------------------------------------------------------------------------------------- Portfolio turnover rate 204% 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements. 23 | OPPENHEIMER EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
Class Y Year Ended October 31, 2003 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) (.09) (.08) .02 Net realized and unrealized gain (loss) 4.64 (2.51) (1.51) ---------------------------- Total from investment operations 4.55 (2.59) (1.49) - -------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- (.04) - -------------------------------------------------------------------------------------- Net asset value, end of period $10.43 $5.88 $ 8.47 ============================ - -------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 77.38% (30.58)% (14.99)% - -------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $2,913 $657 $232 - -------------------------------------------------------------------------------------- Average net assets (in thousands) $1,449 $532 $ 30 - -------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment loss (0.92)% (0.84)% (0.97)% Total expenses 1.15% 1.48% 3.87% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses N/A 4 1.29% 1.28% - -------------------------------------------------------------------------------------- Portfolio turnover rate 204% 263% 214% 1. For the period from November 1, 2000 (commencement of operations) to October 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or commencement of operations), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements. 24 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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. The Fund assesses 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. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- Foreign Currency Translation. The Fund's accounting records are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. 25 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. Secured by U.S. government securities, these balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. The tax components of capital shown in the table below represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes. Net Unrealized Appreciation Based on Cost of Securities and Undistributed Undistributed Accumulated Other Investments Net Investment Long-Term Loss for Federal Income Income Gain Carryforward 1,2 Tax Purposes ------------------------------------------------------------------- $-- $-- $9,570,101 $20,887,787 1. As of October 31, 2003, the Fund had $9,570,101 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of October 31, 2003, details of the capital loss carryforward were as follows: Expiring ---------------------- 2010 9,570,101 2. During the fiscal year October 31, 2003, the Fund utilized $5,140,037 of capital loss carryforward to offset capital gains realized in that fiscal year. During the fiscal year October 31, 2002, the Fund did not utilize any capital loss carryforwards. 26 | OPPENHEIMER EMERGING GROWTH FUND 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. Accordingly, the following amounts have been reclassified for October 31, 2003. Net assets of the Fund were unaffected by the reclassifications. From To (From) Net Ordinary Capital Gain Tax Return Investment Loss (Loss) of Capital Loss ------------------------------------------------------ $832,726 $-- $-- $839,268 No distributions were paid during the years ended October 31, 2003 and October 31, 2002. The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of October 31, 2003 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities and other investments $77,498,819 =========== Gross unrealized appreciation $22,398,904 Gross unrealized depreciation (1,511,117) ----------- Net unrealized appreciation $20,887,787 =========== - -------------------------------------------------------------------------------- Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended October 31, 2003, the Fund's projected benefit obligations were increased by $923 and payments of $59 were made to retired trustees, resulting in an accumulated liability of $1,694 as of October 31, 2003. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or are invested in other Oppenheimer funds 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. Amounts will be deferred until distributed in accordance to the Plan. - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually. 27 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued 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. - -------------------------------------------------------------------------------- Expense Offset Arrangement. The reduction of custodian fees represents earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of no par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Year Ended October 31, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount - ----------------------------------------------------------------------------------- Class A Sold 6,075,182 $51,242,510 3,152,945 $26,194,011 Redeemed (3,613,483) (27,702,216) (2,260,696) (17,141,626) ------------------------------------------------------- Net increase 2,461,699 $23,540,294 892,249 $ 9,052,385 ======================================================= - ----------------------------------------------------------------------------------- Class B Sold 1,756,252 $14,456,517 1,439,747 $11,365,085 Redeemed (828,442) (6,298,949) (787,181) (5,569,382) ------------------------------------------------------- Net increase 927,810 $ 8,157,568 652,566 $ 5,795,703 ======================================================= - ----------------------------------------------------------------------------------- Class C Sold 1,820,923 $15,186,788 1,063,885 $ 7,600,986 Redeemed (1,289,240) (10,050,833) (496,262) (4,062,878) ------------------------------------------------------- Net increase 531,683 $ 5,135,955 567,623 $ 3,538,108 ======================================================= - ----------------------------------------------------------------------------------- Class N Sold 264,715 $ 2,110,308 196,949 $ 1,522,929 Redeemed (129,515) (927,866) (98,624) (728,881) ------------------------------------------------------- Net increase 135,200 $ 1,182,442 98,325 $ 794,048 =======================================================
28 | OPPENHEIMER EMERGING GROWTH FUND
Year Ended October 31, 2003 Year Ended October 31, 2002 Shares Amount Shares Amount - ----------------------------------------------------------------------------------- Class Y Sold 274,183 $ 2,217,398 129,755 $ 1,009,456 Redeemed (106,636) (862,505) (45,335) (333,740) ------------------------------------------------------- Net increase 167,547 $ 1,354,893 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 year ended October 31, 2003, were $138,540,850 and $99,572,605, 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 per account fee. For the year ended October 31, 2003, the Fund paid $145,703 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees up to an annual rate of 0.35% of average annual net assets for all classes. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- Distribution and Service Plan (12b-1) Fees. Under its General Distributor's Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the different classes of shares of the Fund. The compensation paid to (or retained by) the Distributor from the sale of shares or on the redemption of shares is shown in the table below for the period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions Front-End Front-End on Class A on Class B on Class C on Class N Sales Charges Sales Charges Shares Shares Shares Shares on Class A Retained by Advanced by Advanced by Advanced by Advanced by Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1 - ----------------------------------------------------------------------------------------------------- October 31, 2003 $314,446 $84,802 $8,149 $186,107 $54,496 $8,598
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. 29 | OPPENHEIMER EMERGING GROWTH FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Fees and Other Transactions with Affiliates Continued Class A Class B Class C Class N Contingent Contingent Contingent Contingent Deferred Deferred Deferred Deferred Sales Charges Sales Charges Sales Charges Sales Charges Retained by Retained by Retained by Retained by Year Ended Distributor Distributor Distributor Distributor - -------------------------------------------------------------------------------- October 31, 2003 $-- $25,525 $1,327 $5,266 - -------------------------------------------------------------------------------- Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class A shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made quarterly at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. For the year ended October 31, 2003, expense under the Class A Plan totaled $66,802, all of which were paid by the Distributor to recipients, which included $95 retained by the Distributor and $5,250 which was paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. - -------------------------------------------------------------------------------- Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% per year on Class B shares and on Class C shares and the Fund pays the Distributor an annual asset-based sales charge of 0.25% per year on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. Distribution fees paid to the Distributor for the year ended October 31, 2003, were as follows: Distributor's Distributor's Aggregate Aggregate Uncompensated Uncompensated Expenses as % Total Expenses Amount Retained Expenses of Net Assets Under Plan by Distributor Under Plan of Class - -------------------------------------------------------------------------------- Class B Plan $105,056 $75,815 $243,456 1.19% Class C Plan 66,240 27,667 90,836 0.65 Class N Plan 5,598 4,436 15,443 0.64 - -------------------------------------------------------------------------------- 5. Illiquid or Restricted Securities As of October 31, 2003, investments in securities included issues that are illiquid or restricted. Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified 30 | OPPENHEIMER EMERGING GROWTH FUND institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of October 31, 2003 was $1,011,333, which represents 1.02% of the Fund's net assets, all of which was considered restricted. Information concerning restricted securities is as follows:
Unrealized Acquisition Valuation as of Appreciation Security Dates Cost October 31, 2003 (Depreciation) - ---------------------------------------------------------------------------------------- Stocks and/or Warrants Bio-Imaging Technologies, Inc. 9/12/03 $758,275 $631,009 $(127,266) Discovery Laboratories, Inc. Wts., Exp. 9/20/10 6/18/03 -- 31,199 31,199 DOV Pharmaceutical, Inc. 9/19/03 514,391 349,125 (165,266)
- -------------------------------------------------------------------------------- 6. Borrowing and Lending Arrangements 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 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 year ended or at October 31, 2003. 31 | OPPENHEIMER EMERGING GROWTH FUND INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Oppenheimer Emerging Growth Fund: We have audited the accompanying statement of assets and liabilities of Oppenheimer Emerging Growth Fund, including the statement of investments, as of October 31, 2003, and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and the period from November 1, 2000 (commencement of operations) to October 31, 2001. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Emerging Growth Fund as of October 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and the period from November 1, 2000 (commencement of operations) to October 31, 2001, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Denver, Colorado November 21, 2003 32 | OPPENHEIMER EMERGING GROWTH FUND FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- In early 2004, if applicable, shareholders of record will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2003. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. A portion, if any, of the dividends paid by the Fund during the fiscal year ended October 31, 2003 which are not designated as capital gain distributions are eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. $97,275 of the Fund's fiscal year taxable income may be eligible for the lower individual income tax rates. In early 2004, shareholders of record will receive information regarding the percentage of distributions that are eligible for lower individual income tax rates. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. 33 | OPPENHEIMER EMERGING GROWTH FUND TRUSTEES AND OFFICERS Unaudited - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------ Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held Fund, Length of Service, Age by Trustee; Number of Portfolios in Fund Complex Currently Overseen by Trustee INDEPENDENT The address of each Trustee in the chart below is 6803 S. Tucson Way, TRUSTEES Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his or her resignation, retirement, death or removal. Mr. Motley was elected as Trustee to the Board I funds effective October 10, 2002 and did not hold shares of Board I funds during the calendar year ended December 31, 2002. Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law firm). Other directorships: Chairman of the Board Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002); of Trustees (since 2003), formerly a director of Caterpillar, Inc. (1993-December 2002). Oversees 25 Trustee (since 2000) portfolios in the OppenheimerFunds complex. Age: 72 Robert G. Galli, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in the Trustee (since 2000) OppenheimerFunds complex. Age: 70 Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J., a Trustee (since 2000) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward Age: 65 Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A member of: the National Academy of Sciences (since 1979), American Academy of Arts and Sciences (since 1995), American Philosophical Society (since 1996) and Council on Foreign Relations (since 2002). Formerly a director of Bankers Trust New York Corporation (1994-1999). Oversees 25 portfolios in the OppenheimerFunds complex. Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. (privately-held financial Trustee (since 2002) adviser); Managing Director (since 2002) Carmona Motley, Inc. (privately-held Age: 51 financial adviser); Formerly he held the following positions: Managing Director (January 1998-December 2001), Carmona Motley Hoffman Inc. (privately-held financial adviser); Managing Director (January 1992-December 1997), Carmona Motley & Co. (privately-held financial adviser). Oversees 25 portfolios in the OppenheimerFunds complex. Kenneth A. Randall, A director of Dominion Resources, Inc. (electric utility holding company) and Trustee (since 2000) Prime Retail, Inc. (real estate investment trust); formerly a director of Age: 76 Dominion Energy, Inc. (electric power and oil & gas producer), President and Chief Executive Officer of The Conference Board, Inc. (international economic and business research) and a director of Lumbermens Mutual Casualty Company, American Motorists Insurance Company and American Manufacturers Mutual Insurance Company. Oversees 25 portfolios in the OppenheimerFunds complex. Edward V. Regan, President, Baruch College, CUNY; a director of RBAsset (real estate manager); a Trustee (since 2000) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB Age: 73 and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College, Chairman of Municipal Assistance Corporation for the City of New York, New York State Comptroller and Trustee of New York State and Local Retirement Fund. Oversees 25 investment companies in the OppenheimerFunds complex.
34 | OPPENHEIMER EMERGING GROWTH FUND
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate Trustee (since 2000) governance consulting and executive recruiting); a life trustee of International Age: 71 House (non-profit educational organization), and a trustee (since 1996) of the Greenwich Historical Society. Oversees 25 portfolios in the OppenheimerFunds complex. Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director Vice Chairman of (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the the Board of Trustees, OppenheimerFunds complex. Trustee (since 2000) Age: 77 - ------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is Two World Financial Center, 225 AND OFFICER Liberty St., New York, NY 10281-1008. Mr. Murphy serves for an indefinite term, until his resignation, death or removal. John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President President and Trustee, (since September 2000) of the Manager; President and a director or trustee of Trustee (since 2001) other Oppenheimer funds; President and a director (since July 2001) of Age: 54 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager); President and a director (since July 2001) of OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a director of the investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the Manager); Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company (the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a holding company that owns the shares of David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September 2000-June 2001) of the Manager; President and trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 72 portfolios as Trustee/Officer and 10 portfolios as Officer in the OppenheimerFunds complex.
35 | OPPENHEIMER EMERGING GROWTH FUND TRUSTEES AND OFFICERS Unaudited / Continued - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------ OFFICERS The address of the Officers in the chart below is as follows: for Ms. Granger and Mr. Zack, Two World Financial Center, 225 Liberty St., New York, NY 10281-1008, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual term or until his or her earlier resignation, death or removal. Laura Granger, Vice President of the Manager (since October 2000); an officer of 3 portfolios Vice President and Portfolio in the OppenheimerFunds complex; formerly a portfolio manager at Fortis Advisors Manager (since 2000) (July 1998-October 2000) prior to which she was portfolio manager at General Age: 42 Motors Investment Management (July 1993-July 1998). Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer Treasurer (since 2000) (since March 1999) of HarbourView Asset Management Corporation, Shareholder Age: 44 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000) and OFI Institutional Asset Management, Inc. (since November 2000) (offshore fund management subsidiaries of the Manager); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal and Chief Operating Officer (March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An officer of 82 portfolios in the OppenheimerFunds complex. Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002) Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of Age: 55 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel (since November 2001) of HarbourView Asset Management Corporation; Vice President and a director (since November 2000) of Oppenheimer Partnership Holdings, Inc.; Senior Vice President, General Counsel and a director (since November 2001) of Shareholder Services, Inc., Shareholder Financial Services, Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI Institutional Asset Management, Inc.; General Counsel (since November 2001) of Centennial Asset Management Corporation; a director (since November 2001) of Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director (since November 2001) of OppenheimerFunds International Ltd.; Vice President (since November 2001) of OppenheimerFunds Legacy Program; Secretary (since November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds plc (October 1997-November 2001). An officer of 82 portfolios in the OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information about the Fund's Trustees and is available without charge upon request. 36 | OPPENHEIMER EMERGING GROWTH FUND ITEM 2. CODE OF ETHICS ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the Fund has determined that Edward V. Regan, the Chairman of the Board's Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Mr. Regan as the Audit Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. NOT APPLICABLE ITEM 6. RESERVED ITEM 7. NOT APPLICABLE ITEM 8. RESERVED ITEM 9. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of October 31, 2003, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.CERT 3 ex99_302cert-721.txt EX99_302CERT-721.TXT 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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. Date: 12/16/03 /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; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls. Date: 12/16/03 /s/Brian W. Wixted ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 4 ex99_906cert-721.txt EX99_906CERT-721.TXT 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 October 31, 2003 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Chief Executive Officer Chief Financial Officer Oppenheimer Emerging Growth Fund Oppenheimer Emerging Growth Fund /s/John V. Murphy /s/Brian W. Wixted - ---------------------------- ---------------------------- John V. Murphy Brian W. Wixted Date: 12/16/03 Date: 12/16/03 EX-99.CODE ETH 5 ex99_code-721.txt EX99_CODE-721.TXT EX-99.CODE ETH CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE OPPENHEIMER FUNDS AND OF OPPENHEIMERFUNDS, INC. This Code of Ethics for Principal Executive and Senior Financial Officers (referred to in this document as the "Code") has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as "OFI") acts as investment adviser (individually, a "Fund" and collectively, the "Funds"), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406. This Code applies to each Fund's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Covered Officers"). A listing of positions currently within the ambit of Covered Officers is attached as EXHIBIT A.(1) 1. Purpose of the Code This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; o compliance with applicable governmental laws, rules and regulations; o the prompt internal reporting of violations of this Code to the Code Administrator identified below; and o accountability for adherence to this Code. In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Fund's financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds' business and affairs in an honest and ethical manner. - -------- 1 The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by the Oppenheimer Funds dated May 15, 2002, under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI's fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds. 2. Prohibitions The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders. No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders. No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations. No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund: (i) employ any device, scheme or artifice to defraud a Fund or its shareholders; (ii) intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; (iv) engage in any manipulative practice with respect to any Fund; (v) use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; (vi) intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; (vii) intentionally mislead or omit to provide material information to the Fund's independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; (viii) fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; (ix) retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or (x) fails to acknowledge or certify compliance with this Code if requested to do so. 3. Reports of Conflicts of Interests If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer's reasonable belief, the appearance of one, he or she must immediately report the matter to the Code's Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI's Chief Executive Officer. Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund's Board of Trustees/Directors. 4. Waivers Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund. In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver: : (i) is prohibited by this Code; (ii) is consistent with honest and ethical conduct; and (iii) will result in a conflict of interest between the Covered Officer's personal and professional obligations to a Fund. In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund's Board of Trustees/Directors. 5. Reporting Requirements (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code. (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto. (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser. (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments. (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code. (f) Any changes to or waivers of this Code, including "implicit" waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules.(2) 6. Annual Renewal At least annually, the Board of Trustees/Directors of each Fund shall review the Code and determine whether any amendments (including any amendments that may be recommended by OFI or the Fund's legal counsel) are necessary or desirable, and shall consider whether to renew and/or amend the Code. 7. Sanctions Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI. 8. Administration and Construction (a) The administration of this Code of Ethics shall be the responsibility of OFI's General Counsel or his designee as the "Code Administrator" of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. (b) The duties of such Code Administrator will include: (i) Continuous maintenance of a current list of the names of all Covered Officers; (ii) Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; (iii) Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; (iv) Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; (v) Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the - --------- 2 An "implicit waiver" is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, an executive officer of the Fund or OFI. affected Fund(s) or any committee appointed by them to deal with such information; and (vi) Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. 9. Required Records The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred): (a) A copy of any Code which has been in effect during the period; (b) A record of any violation of any such Code and of any action taken as a result of such violation, during the period; (c) A copy of each annual report pursuant to the Code made by a Covered Officer during the period; (d) A copy of each report made by the Code Administrator pursuant to this Code during the period; (e) A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; (f) A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and (g) A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. 10. Amendments and Modifications This Code may not be amended or modified except by an amendment in writing which is approved or ratified by OFI and by a majority vote of the Independent Trustees/Directors of each of the applicable Funds. 11. Confidentiality. This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process. Dated as of: June 25, 2003 Adopted by Board I of the Oppenheimer Funds June 13, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board IV of the Oppenheimer Funds May 21, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by the Boards of Directors of OppenheimerFunds, Inc. and its subsidiaries and affiliates that act as investment adviser to the Oppenheimer or Centennial funds June 1, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Senior Vice President and General Counsel EXHIBIT A POSITIONS COVERED BY THIS CODE OF ETHICS FOR SENIOR OFFICERS Each Oppenheimer or Centennial fund Principal Executive Officer Principal Financial Officer Treasurer Assistant Treasurer Personnel of OFI who by virtue of their jobs perform critical financial and accounting functions for OFI on behalf of a Fund, including: Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting -----END PRIVACY-ENHANCED MESSAGE-----