-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, n98LD4byRSRUBbc7ZxGiob4ZE3XR6eEx0yXgTuLg+cJGYRrfJX1IHy3DrRhBIkRU AVCyjgSROEn32f89reg/Eg== 0000912057-95-007468.txt : 19950907 0000912057-95-007468.hdr.sgml : 19950907 ACCESSION NUMBER: 0000912057-95-007468 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950906 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER TARGET FUND CENTRAL INDEX KEY: 0000319767 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133054122 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03105 FILM NUMBER: 95570580 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CTR SUITE 3400 CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2123230200 MAIL ADDRESS: STREET 1: 2 WORLD TRADE CENTER 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER TARGET FUND INC DATE OF NAME CHANGE: 19870616 N-30D 1 N-30D OPPENHEIMER TARGET FUND Semiannual Report June 30, 1995 "We have some important financial goals, so [PHOTO] we want our investment to increase in value over time." This Fund is for people who want the potential for solid investment GROWTH over the long term. NEWS "HOT ON THE HEELS OF 1994'S DECENT RELATIVE PERFORMANCE, THIS FUND'S MAKING ITS PEER GROUP LOOK LACKLUSTER IN COMPARISON." --MORNINGSTAR MUTUAL FUNDS 4/28/95 BEAT THE AVERAGE Total Return for the 1-Year Period Ended 6/30/95: Oppenheimer Target Fund Class A (at net asset value)(1) 29.22% Lipper Capital Appreciation Funds Average(3) 22.18% - ------------------------ HOW YOUR FUND IS MANAGED - ------------------------ Oppenheimer Target Fund seeks long-term growth by investing in the stocks of medium- sized companies that the Fund's managers believe have excellent growth potential and are undervalued relative to their future growth prospects. So the Fund's shareholders get the potential for long-term appreciation. In today's stock market, the Fund's managers are targeting consumer and industrial companies with strong earnings momentum, as well as companies that have excellent growth prospects, especially in the technology sector, such as computer software and networking. The Fund also invests in U.S.-based companies that are believed to have superior growth potential because their products or services are in high demand abroad. - ----------- PERFORMANCE - ----------- Total return at net asset value for the 6 months ended 6/30/95 was 21.83% for Class A shares and 21.16% for Class C shares.(1) Your Fund's average annual total returns at maximum offering price for Class A shares for the 1-, 5- and 10-year periods ended 6/30/95 were 21.79%, 11.42% and 11.30%, respectively. For Class C shares, average annual total returns for the 1-year period ended 6/30/95 and since inception of the Class on 12/1/93 were 26.96% and 13.38%, respectively.(2) - ------- OUTLOOK - ------- "The stock market in general has been extremely strong during the first half of 1995. With the market up over 25% since last Thanksgiving, we want to participate--but just as important, we want to protect the gains we've made so far. We're buying very selectively, and the cash we're holding--in addition to earning a competitive rate--should help soften the effects of any short-term market volatility." Robert Doll, Portfolio Manager June 30, 1995 All figures assume reinvestment of dividends and capital gains distributions. Past performance is not indicative of future results. Investment and principal value on 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. 1. Based on the change in net asset value per share for the period shown, without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. 2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90 and 6/30/85, after deducting the current maximum initial sales charge of 5.75%. Class A shares were first publicly offered on 1/22/81. The Fund's maximum sales charge for Class A shares was higher during a portion of some of the periods shown, and actual investment results will be different as a result of the change. Class C returns show results of hypothetical investments on 6/30/94 and 12/1/93 (inception of class), with the 1% contingent deferred sales charge deducted for the 1-year result. An explanation of the different performance calculations is in the Fund's prospectus. 3. Source: Lipper Analytical Services. The Lipper total return average for the 1-year period was for 145 capital appreciation funds. The average is shown for comparative purposes only. Oppenheimer Target Fund is characterized by Lipper as a capital appreciation fund. Lipper performance does not take sales charges into consideration. 2 Oppenheimer Target Fund [photo] Donald W. Spiro President Oppenheimer Target Fund [photo] Jon S. Fossel Chairman and CEO Oppenheimer Management Corporation Dear OppenheimerFunds Shareholder, In the first six months of 1995, the stock and bond markets have improved significantly. The Federal Reserve's seven interest rate hikes between February 1994 and February 1995 appear to have achieved their intended effect, as the rate of economic growth has slowed throughout the year. This economic outlook of sustainable, healthy growth with low inflation, falling interest rates, and talk of deficit reduction inspired investors' confidence in the stock market. As a result, the Dow Jones Industrial Average hit record highs repeatedly in the first half of the year. The stock market has been strong for other reasons as well. Overall, corporate America has done an excellent job of restructuring, and has become more productive and profitable. Combined with continued investment in technology and increased competitiveness abroad as a result of a weaker dollar, these events resulted in spectacular first quarter earnings reports. While the market's rise this year has been dramatic, it has caused our equity investment team to become slightly more cautious. Because the market has already registered significant gains this year, the stock market is starting to see signs of short-term volatility, and your Fund's managers want to protect the gains the Fund has made. Still, the market's expansion has been fueled by underlying fundamental strengths. So, while we are cautious, we believe it has room to continue. Congress's continuing emphasis on deficit reduction, plus Washington's commitment to correcting our trade imbalance, should benefit the market--in addition to attracting foreign investments to U.S. stocks, creating even greater demand and possibly pushing their prices up further. Should the economy slow more than anticipated, however, we would expect to see earnings slow eventually, which could cause the market to hesitate. In this event, smaller companies and international stocks could begin to outperform the large, globally-oriented companies that have led the market so far this year. However, until your Fund's managers see signs of either increased inflation or recession on the horizon, they remain constructive on the market in general and will view any volatility in the near term as a time to search for buying opportunities. At OppenheimerFunds, our approach to the stock market is to invest with a long-term view, to participate in upswings while remaining prudent, and, finally, to know when to become more defensive to protect the gains we have made. Your portfolio manager discusses the outlook for your Fund on the following pages. Thank you for your confidence in OppenheimerFunds, and we look forward to helping you continue to reach your investment goals in the future. /s/Donald W. Spiro /s/Jon S. Fossel Donald W. Spiro Jon S. Fossel July 24, 1995 3 Oppenheimer Target Fund Q + A An interview with your Fund's manager. Q What contributed to the Fund's performance? [PHOTO] [PHOTO] TARGET FUND HAS BEEN A VERY STRONG PERFORMER OVER THE PAST SIX MONTHS. WHAT INVESTMENT DECISIONS CONTRIBUTED TO THE FUND'S PERFORMANCE? The stock market in general has been extremely strong during the first half of 1995. Interest rates moved down, corporate earnings climbed, and U.S. companies that do business overseas benefited from the weak dollar. [PHOTO] Within this bull market, the technology, financial and consumer non-cyclical sectors were among the strongest performers. Especially in the beginning of the year, the Fund did quite well, as we were overweighted in all three areas. We bought companies within these sectors early on, when they were selling at discounted prices and were able to participate as their prices increased. WITH U.S. ECONOMIC GROWTH IN 1995 NOW SLOWING DOWN SUBSTANTIALLY FROM LATE 1994'S GROWTH RATE, WHAT CHANGES HAVE YOU MADE IN THE PORTFOLIO, AND WHY? In general, we've been doing more selling than buying. As prices of the stocks we owned increased, we've been selling strong performers and putting the proceeds into stocks that we think have more appreciation potential. Examples of some trimming we've done are Travelers, Bear Stearns and Fannie Mae. These stocks have outperformed, and although their fundamentals are still good, they are now more fairly valued. We were also overweighted in American companies with broad international exposure--especially in areas such as healthcare and name-brand consumer products--believing that this would be an area of the market that would perform well over the period. It has, and we've cut back on strong performers like Colgate Palmolive and Warner Lambert 4 Oppenheimer Target Fund FACING PAGE Top left: Robert Doll, Portfolio Manager Top right: Christina Raulli, Associate International Trader Bottom left: Mark Binning, Securities Coordinator, consults with Lawrence Apolito, VP Equity Trading THIS PAGE Top: Robert Doll Bottom: The equity trading desk [PHOTO] A American companies [PHOTO] with broad international exposure. because we feel they've approached their peak prices.(1) HAS IT BEEN DIFFICULT TO FIND STOCKS THAT FIT YOUR PROFILE FOR GROWTH AT A REASONABLE PRICE IN THE CURRENT MARKET? Frankly, yes. It has definitely been difficult to find the stocks we want to own at the prices we want to pay in this strong market. Because of this, and the fact that we want to protect the gains we've made so far this year, we've allowed some cash to accumulate in the portfolio--it's near 23% now, up from approximately 10% in 1994. In general, we're not selling stocks unless we've already identified a candidate that we'd rather own. What we're looking for are stocks that haven't fully participated in the rising market, but whose earnings look promising. Along these lines, we've been selectively buying companies in the basic materials sector--chemical, paper and metals producers--believing that although the economy has slowed, once it picks up again, these stocks should lead the market. We recently bought Sterling Chemicals, and paper manufacturer Boise Cascade. Both companies have excellent cash flows and have been buying back stock and raising dividends. WHAT IS YOUR FEELING ABOUT THE MARKET'S DIRECTION? The market has done very well, supported by a growing economy, improved productivity and profitability, and continued positive earnings surprises against a backdrop of lower interest rates. While we're not becoming bearish, we feel that most of the good news from the market is probably already on the table. Looking toward the rest of the year, if we find that the economy has slowed more than we've expected, earnings could begin to slow, which could, at least temporarily, be a negative for the market. HOW ARE YOU POSITIONING THE FUND IN LIGHT OF THESE BELIEFS? Because we don't see a recession or inflation on the horizon, we're taking a cautiously optimistic view. With the market up over 25% since last Thanksgiving, we want to participate--but just as important, we want to protect the gains we've made so far. We're buying very selectively, and the cash we're holding--in addition to earning a competitive rate--should help soften the effects of any short-term market volatility./ / 1. The Fund's portfolio is subject to change. 5 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS June 30, 1995 (Unaudited) - -------------------------------------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- CONVERTIBLE CORPORATE BONDS AND NOTES--0.7% - ---------------------------------------------------------------------------------------------------------------- Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02(1) $1,700,000 $ 1,793,500 - ---------------------------------------------------------------------------------------------------------------- First Financial Management Corp., 5% Cv. Debs., 12/15/99 2,000,000 2,670,000 ----------- Total Convertible Corporate Bonds and Notes (Cost $3,723,750) 4,463,500 SHARES - ---------------------------------------------------------------------------------------------------------------- COMMON STOCKS--76.9% - ---------------------------------------------------------------------------------------------------------------- BASIC MATERIALS--4.0% - ---------------------------------------------------------------------------------------------------------------- CHEMICALS--1.8% Georgia Gulf Corp. 195,000 6,361,875 - ---------------------------------------------------------------------------------------------------------------- IMC Global, Inc. 50,000 2,706,250 - ----------------------------------------------------------------------------------------------------------------- Sterling Chemicals, Inc.(2) 173,500 2,016,938 - ----------------------------------------------------------------------------------------------------------------- Union Carbide Corp. 40,000 1,335,000 ------------ 12,420,063 - ----------------------------------------------------------------------------------------------------------------- METALS--1.0% Asarco, Inc. 37,500 1,143,750 - ----------------------------------------------------------------------------------------------------------------- Cyprus Amax Minerals Co. 52,200 1,487,700 - ----------------------------------------------------------------------------------------------------------------- Magma Copper Co. 100,000 1,625,000 - ----------------------------------------------------------------------------------------------------------------- Reynolds Metals Co. 45,000 2,328,750 ----------- 6,585,200 - ----------------------------------------------------------------------------------------------------------------- PAPER--1.2% Boise Cascade Corp. 75,000 3,037,500 - ---------------------------------------------------------------------------------------------------------------- Chesapeake Corp. 35,000 1,089,375 - ---------------------------------------------------------------------------------------------------------------- Federal Paper Board Co. 47,000 1,662,625 - ---------------------------------------------------------------------------------------------------------------- Willamette Industries, Inc. 40,000 2,220,000 ----------- 8,009,500 - ---------------------------------------------------------------------------------------------------------------- CONSUMER CYCLICALS--17.8% - ---------------------------------------------------------------------------------------------------------------- AUTOS & HOUSING--1.5% Breed Technologies, Inc. 112,000 2,688,000 - ---------------------------------------------------------------------------------------------------------------- Goodyear Tire & Rubber Co. 40,000 1,650,000 - ---------------------------------------------------------------------------------------------------------------- Navistar International Corp.(2) 220,000 3,327,500 - ---------------------------------------------------------------------------------------------------------------- Sunbeam-Oster, Inc. 181,700 2,521,088 ----------- 10,186,588 - ---------------------------------------------------------------------------------------------------------------- LEISURE & ENTERTAINMENT--2.8% Brunswick Corp. 350,000 5,950,000 - ---------------------------------------------------------------------------------------------------------------- Circus Circus Enterprises, Inc.(2) 137,500 4,846,875 - ---------------------------------------------------------------------------------------------------------------- Department 56, Inc.(2) 51,300 1,962,225 - ---------------------------------------------------------------------------------------------------------------- Mattel, Inc. 37,500 975,000 - ---------------------------------------------------------------------------------------------------------------- Outboard Marine Corp. 95,000 1,864,375 --------------------------------------------------------------------------------------------------------------- Walt Disney Co. 60,000 3,337,500 ----------- 18,935,975 - ---------------------------------------------------------------------------------------------------------------- MEDIA--1.2% Comcast Corp., Cl. A Special 140,000 2,598,750 - ---------------------------------------------------------------------------------------------------------------- Multimedia, Inc.(2) 62,500 2,421,875 - ---------------------------------------------------------------------------------------------------------------- Viacom, Inc., Cl. B(2) 75,768 3,513,741 ----------- 8,534,366
6 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (Unaudited) (Continued) - -------------------------------------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- RETAIL: GENERAL--3.7% Dollar General Corp. 321,100 $10,154,787 - --------------------------------------------------------------------------------------------------------------- Kohl's Corp.(2) 45,000 2,053,125 - --------------------------------------------------------------------------------------------------------------- Neiman-Marcus Group, Inc. 25,000 356,250 - --------------------------------------------------------------------------------------------------------------- Revco D.S., Inc.(2) 270,000 6,480,000 - --------------------------------------------------------------------------------------------------------------- Waban, Inc.(2) 105,000 1,561,875 - --------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 185,000 4,948,750 ----------- 25,554,787 - --------------------------------------------------------------------------------------------------------------- RETAIL: SPECIALTY--8.6% AmeriSource Health Corp.(2) 74,300 1,694,969 - --------------------------------------------------------------------------------------------------------------- Bed Bath & Beyond, Inc. 165,000 4,001,250 - --------------------------------------------------------------------------------------------------------------- CUC International, Inc.(2) 140,000 5,880,000 - --------------------------------------------------------------------------------------------------------------- General Nutrition Cos., Inc.(2) 181,200 6,364,650 - --------------------------------------------------------------------------------------------------------------- Home Depot, Inc. (The) 70,000 2,843,750 - --------------------------------------------------------------------------------------------------------------- Micro Warehouse, Inc.(2) 130,000 5,980,000 - --------------------------------------------------------------------------------------------------------------- Nike, Inc., Cl. B 105,000 8,820,000 - --------------------------------------------------------------------------------------------------------------- Office Depot, Inc.(2) 150,000 4,218,750 - --------------------------------------------------------------------------------------------------------------- OfficeMax, Inc.(2) 81,000 2,257,875 - --------------------------------------------------------------------------------------------------------------- Staples, Inc.(2) 105,000 3,031,875 - --------------------------------------------------------------------------------------------------------------- Tommy Hilfiger Corp.(2) 273,000 7,644,000 - --------------------------------------------------------------------------------------------------------------- Toys 'R' Us, Inc.(2) 20,000 585,000 - --------------------------------------------------------------------------------------------------------------- Viking Office Products, Inc.(2) 155,000 5,676,875 ----------- 58,998,994 - --------------------------------------------------------------------------------------------------------------- CONSUMER NON-CYCLICALS--15.8% - --------------------------------------------------------------------------------------------------------------- BEVERAGES--2.0% Canandaigua Wine Co., Inc., Cl. A(2) 120,000 5,370,000 - --------------------------------------------------------------------------------------------------------------- Coca-Cola Co. (The) 100,000 6,375,000 - --------------------------------------------------------------------------------------------------------------- PepsiCo, Inc. 50,000 2,281,250 ----------- 14,026,250 - --------------------------------------------------------------------------------------------------------------- FOOD--1.2% IBP, Inc. 160,000 6,960,000 - --------------------------------------------------------------------------------------------------------------- Smithfield Foods, Inc. 40,000 852,500 ----------- 7,812,500 - --------------------------------------------------------------------------------------------------------------- HEALTHCARE/DRUGS--5.9% Abbott Laboratories 145,000 5,872,500 - --------------------------------------------------------------------------------------------------------------- American Home Products Corp. 10,000 773,750 - --------------------------------------------------------------------------------------------------------------- Amgen, Inc.(2) 25,000 2,010,937 - --------------------------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 50,000 3,406,250 - --------------------------------------------------------------------------------------------------------------- Elan Corp. PLC, ADR(2) 110,000 4,482,500 - --------------------------------------------------------------------------------------------------------------- Merck & Co., Inc. 26,000 1,274,000 - --------------------------------------------------------------------------------------------------------------- Pfizer, Inc. 85,000 7,851,875 - --------------------------------------------------------------------------------------------------------------- R.P. Scherer Corp.(2) 190,000 8,027,500 - --------------------------------------------------------------------------------------------------------------- Schering-Plough Corp. 150,000 6,618,750 ----------- 40,318,062
7 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (Unaudited) (Continued) - -------------------------------------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - ----------------------------------------------------------------------------------------------------------------- HEALTHCARE/SUPPLIES & SERVICES--4.5% Collagen Corp. 42,500 $ 727,813 - ---------------------------------------------------------------------------------------------------------------- Cordis Corp.(2) 75,000 5,006,250 - ---------------------------------------------------------------------------------------------------------------- Health Care & Retirement Corp.(2) 60,000 1,755,000 - ---------------------------------------------------------------------------------------------------------------- HealthCare COMPARE Corp.(2) 100,000 3,000,000 - ---------------------------------------------------------------------------------------------------------------- Horizon Healthcare Corp.(2) 65,000 1,161,875 - ---------------------------------------------------------------------------------------------------------------- Integrated Health Services, Inc. 40,000 1,200,000 - ---------------------------------------------------------------------------------------------------------------- Lincare Holdings, Inc.(2) 101,000 2,682,812 - ---------------------------------------------------------------------------------------------------------------- Medtronic, Inc. 60,000 4,627,500 - ---------------------------------------------------------------------------------------------------------------- Oxford Health Plans, Inc.(2) 50,000 2,362,500 - ---------------------------------------------------------------------------------------------------------------- PacifiCare Health Systems, Inc.(2) 31,900 1,626,900 - ---------------------------------------------------------------------------------------------------------------- Pyxis Corp.(2) 140,000 3,167,500 - ---------------------------------------------------------------------------------------------------------------- Quorum Health Group, Inc.(2) 120,000 2,430,000 - ---------------------------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 45,000 1,378,125 ------------ 31,126,275 - ---------------------------------------------------------------------------------------------------------------- HOUSEHOLD GOODS--0.7% Colgate-Palmolive Co. 68,800 5,031,000 - ---------------------------------------------------------------------------------------------------------------- TOBACCO--1.5% Philip Morris Cos., Inc. 70,000 5,206,250 - ---------------------------------------------------------------------------------------------------------------- UST, Inc. 175,000 5,206,250 ------------ 10,412,500 - ---------------------------------------------------------------------------------------------------------------- FINANCIAL--10.4% - ---------------------------------------------------------------------------------------------------------------- BANKS--3.5% Bank of Boston Corp. 125,000 4,687,500 - ---------------------------------------------------------------------------------------------------------------- First Interstate Bancorp 40,000 3,210,000 - ---------------------------------------------------------------------------------------------------------------- Midlantic Corp. 100,000 4,000,000 - ---------------------------------------------------------------------------------------------------------------- NationsBank Corp. 90,000 4,826,250 - ---------------------------------------------------------------------------------------------------------------- Northern Trust Corp. 10,000 402,500 - ---------------------------------------------------------------------------------------------------------------- Shawmut National Corp. 100,000 3,187,500 - ---------------------------------------------------------------------------------------------------------------- SouthTrust Corp. 130,000 3,006,250 - ---------------------------------------------------------------------------------------------------------------- SunTrust Banks, Inc. 10,000 582,500 ------------ 23,902,500 - ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL--4.9% Advanta Corp., Cl. A 175,000 7,295,312 - ---------------------------------------------------------------------------------------------------------------- Advanta Corp., Cl. B 70,000 2,642,500 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. 15,000 1,031,250 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. 25,000 2,359,375 - ---------------------------------------------------------------------------------------------------------------- First USA, Inc. 190,000 8,431,250 - ---------------------------------------------------------------------------------------------------------------- Green Tree Financial Corp. 235,000 10,428,125 - ---------------------------------------------------------------------------------------------------------------- Travelers, Inc. 36,000 1,575,000 --------------- 33,762,812 - ---------------------------------------------------------------------------------------------------------------- INSURANCE--2.0% AFLAC, Inc. 150,000 6,562,500 - ---------------------------------------------------------------------------------------------------------------- Reliastar Financial Corp. 60,000 2,295,000 - ---------------------------------------------------------------------------------------------------------------- SunAmerica, Inc. 100,000 5,100,000 --------------- 13,957,500
8 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (Unaudited) (Continued) - -------------------------------------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- INDUSTRIAL--8.0% - ---------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--1.9% Emerson Electric Co. 21,000 $1,501,500 - ---------------------------------------------------------------------------------------------------------------- General Electric Co. 75,000 4,228,125 - ---------------------------------------------------------------------------------------------------------------- Molex, Inc., Cl. A 193,750 7,071,875 ------------ 12,801,500 - ---------------------------------------------------------------------------------------------------------------- INDUSTRIAL MATERIALS--0.2% Ball Corp. 40,000 1,395,000 - ---------------------------------------------------------------------------------------------------------------- INDUSTRIAL SERVICES--4.6% Cintas Corp. 140,000 4,970,000 - ---------------------------------------------------------------------------------------------------------------- Danka Business System PLC, Sponsored ADR 95,000 2,297,812 - ---------------------------------------------------------------------------------------------------------------- First Data Corp. 170,000 9,668,750 - ---------------------------------------------------------------------------------------------------------------- Loewen Group, Inc. 100,000 3,562,500 - ---------------------------------------------------------------------------------------------------------------- Manpower, Inc. 125,000 3,187,500 - ---------------------------------------------------------------------------------------------------------------- Reynolds & Reynolds Co., Cl. A 110,000 3,245,000 - ---------------------------------------------------------------------------------------------------------------- Sensormatic Electronics Corp. 130,000 4,615,000 ------------ 31,546,562 - ---------------------------------------------------------------------------------------------------------------- MANUFACTURING--0.1% Mark IV Industries, Inc. 21,000 451,500 - ---------------------------------------------------------------------------------------------------------------- O.T.F. Equities, Inc.(2) 400,000 -- ------------ 451,500 - ---------------------------------------------------------------------------------------------------------------- TRANSPORTATION--1.2% Canadian Pacific Ltd. 325,000 5,646,875 - ----------------------------------------------------------------------------------------------------------------- Illinois Central Corp. 88,100 3,039,450 ------------ 8,686,325 - ---------------------------------------------------------------------------------------------------------------- TECHNOLOGY--20.6% - ---------------------------------------------------------------------------------------------------------------- COMPUTER HARDWARE--5.7% 3Com Corp.(2) 65,000 4,355,000 - ---------------------------------------------------------------------------------------------------------------- Adaptec, Inc.(2) 105,000 3,885,000 - ---------------------------------------------------------------------------------------------------------------- Andrew Corp.(2) 110,000 6,366,250 - ---------------------------------------------------------------------------------------------------------------- Cabletron Systems, Inc.(2) 100,000 5,325,000 - ---------------------------------------------------------------------------------------------------------------- Compaq Computer Corp.(2) 75,000 3,403,125 - ---------------------------------------------------------------------------------------------------------------- Digital Equipment Corp.(2) 30,000 1,222,500 - ---------------------------------------------------------------------------------------------------------------- EMC Corp.(2) 350,000 8,487,500 - ---------------------------------------------------------------------------------------------------------------- Quantum Corp.(2) 158,000 3,614,250 - ---------------------------------------------------------------------------------------------------------------- Seagate Technology, Inc.(2) 20,000 785,000 - ---------------------------------------------------------------------------------------------------------------- Western Digital Corp.(2) 114,300 1,985,963 ------------ 39,429,588 - ---------------------------------------------------------------------------------------------------------------- COMPUTER SOFTWARE--7.4% Acclaim Entertainment, Inc.(2) 25,000 460,938 - ---------------------------------------------------------------------------------------------------------------- Adobe Systems, Inc. 15,000 870,000 - ---------------------------------------------------------------------------------------------------------------- Automatic Data Processing, Inc. 35,000 2,200,625 - ---------------------------------------------------------------------------------------------------------------- BMC Software, Inc.(2) 100,000 7,725,000 - ---------------------------------------------------------------------------------------------------------------- Cerner Corp. 5,000 306,250 - ---------------------------------------------------------------------------------------------------------------- Computer Associates International, Inc. 50,000 3,387,500 - ---------------------------------------------------------------------------------------------------------------- Compuware Corp.(2) 111,000 3,413,250 - ---------------------------------------------------------------------------------------------------------------- First Financial Management Corp. 30,000 2,565,000
9 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (Unaudited) (Continued) - -------------------------------------------------------------------------------
FACE MARKET VALUE AMOUNT SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------ COMPUTER SOFTWARE (continued) Informix Corp.(2) $410,000 $ 10,403,750 - ---------------------------------------------------------------------------------------------------------------- Microsoft Corp.(2) 100,000 9,037,500 - ---------------------------------------------------------------------------------------------------------------- Oracle Systems Corp.(2) 260,900 10,077,262 ------------------------------- 50,447,075 - ---------------------------------------------------------------------------------------------------------------- ELECTRONICS--4.3% Arrow Electronics, Inc. 16,000 796,000 - ---------------------------------------------------------------------------------------------------------------- Checkpoint Systems, Inc. 112,000 2,492,000 - ---------------------------------------------------------------------------------------------------------------- Cypress Semiconductor Corp. 30,000 1,215,000 - ---------------------------------------------------------------------------------------------------------------- General Instrument Corp.(2) 60,000 2,302,500 - ---------------------------------------------------------------------------------------------------------------- Intel Corp. 160,000 10,130,000 - ---------------------------------------------------------------------------------------------------------------- Linear Technology Corp. 45,000 2,970,000 - ---------------------------------------------------------------------------------------------------------------- Novellus Systems, Inc.(2) 20,000 1,355,000 - ---------------------------------------------------------------------------------------------------------------- Philips Electronics N.V. 68,000 2,907,000 - ---------------------------------------------------------------------------------------------------------------- Teradyne, Inc.(2) 70,000 4,576,250 - ---------------------------------------------------------------------------------------------------------------- VLSI Technology, Inc.(2) 35,000 1,054,375 ------------ 29,798,125 - ---------------------------------------------------------------------------------------------------------------- TELECOMMUNICATIONS- - ---------------------------------------------------------------------------------------------------------------- TECHNOLOGY--3.2% ALC Communications Corp.(2) 100,000 4,512,500 - ---------------------------------------------------------------------------------------------------------------- AT&T Corp. 50,000 2,656,250 - ---------------------------------------------------------------------------------------------------------------- DSC Communications Corp.(2) 60,000 2,790,000 - ---------------------------------------------------------------------------------------------------------------- Tellabs, Inc.(2) 140,000 6,737,500 - ---------------------------------------------------------------------------------------------------------------- U.S. Long Distance Corp. 50,000 812,500 - ---------------------------------------------------------------------------------------------------------------- WorldCom, Inc.(2) 151,774 4,097,898 ------------ 21,606,648 - ---------------------------------------------------------------------------------------------------------------- UTILITIES--0.3% - ---------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.3% Empresa Nacional de Electricidad SA, Sponsored ADR 45,000 2,216,250 ------------ Total Common Stocks (Cost $374,385,177) 527,953,445 Units UNITS - ---------------------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - ---------------------------------------------------------------------------------------------------------------- Windmere Corp. Wts., Exp. 1/98 (Cost $0) 7,094 --
10 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS (Unaudited) (Continued) - -------------------------------------------------------------------------------
FACE MARKET VALUE AMOUNT SEE NOTE 1 - ----------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--22.8% - ----------------------------------------------------------------------------------------------------------------- Repurchase agreement with The First Boston Corp., 5.95%, dated 6/30/95, to be repurchased at $7,753,843 on 7/3/95, collateralized by U.S. Treasury Bills maturing 12/14/95, with a value of $7,909,869 $ 7,750,000 $ 7,750,000 - ----------------------------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 6.125%, dated 6/30/95, to be repurchased at $148,672,846 on 7/3/95, collateralized by U.S. Treasury Bonds, 11.25%, 2/15/15, with a value of $15,159,471, U.S. Treasury Nts., 4.75%-7.875%, 3/31/96-8/15/01, with a value of $99,161,243, and U.S. Treasury Bills maturing 9/28/95-12/14/95, with a value of $37,396,722 148,597,000 148,597,000 - ----------------------------------------------------------------------------------------------------------------- TOTAL REPURCHASE AGREEMENTS (Cost $156,347,000) 156,347,000 - ----------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (Cost $534,455,927) 100.4% 688,763,945 - ----------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (2,462,384) -------------- ------------ NET ASSETS 100.0% $686,301,561 -------------- ------------ -------------- ------------ 1. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $1,793,500 or 0.3% of the Fund's net assets, at June 30, 1995. 2. Non-income producing security.
See accompanying Notes to Financial Statements. 11 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (Unaudited) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (including repurchase agreements of $156,347,000) (cost $534,455,927)--see accompanying statement $688,763,945 - ------------------------------------------------------------------------------------------------------------------------------ Cash 2,183 - ------------------------------------------------------------------------------------------------------------------------------ Receivables: Investments sold 3,261,781 Interest and dividends 494,713 Shares of beneficial interest sold 4,017,241 Other 133,706 ------------ Total assets 696,673,569 - ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payables and other liabilities: Investments purchased 6,496,644 Shares of beneficial interest redeemed 3,106,679 Distribution and service plan fees--Note 4 144,962 Trustees' fees 120,840 Transfer and shareholder servicing agent fees 64,900 Other 437,983 ------------ Total liabilities 10,372,008 - ------------------------------------------------------------------------------------------------------------------------------ NET ASSETS $686,301,561 ------------ ------------ - ------------------------------------------------------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS Paid-in capital $502,174,062 - ------------------------------------------------------------------------------------------------------------------------------ Undistributed net investment income 2,261,507 - ------------------------------------------------------------------------------------------------------------------------------ Accumulated net realized gain from investment transactions 27,557,974 - ------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation on investments--Note 3 154,308,018 - ------------------------------------------------------------------------------------------------------------------------------ Net assets $686,301,561 ------------ ------------ NET ASSET VALUE PER SHARE Class A Shares: Net asset value and redemption price per share (based on net assets of $682,737,269 and 24,765,670 shares of beneficial interest outstanding) $27.57 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $29.25 - ------------------------------------------------------------------------------------------------------------------------------ Class C Shares: Net asset value, redemption price and offering price per share (based on net assets of $3,564,292 and 130,732 shares of beneficial interest outstanding) $27.26
See accompanying Notes to Financial Statements. 12 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995 (Unaudited) - ------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 2,439,462 -------------------------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $10,987) 1,868,964 ----------- Total income 4,308,426 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees--Note 4 1,273,766 -------------------------------------------------------------------------------------------------------- Distribution and service plan fees: Class A--Note 4 255,050 Class C--Note 4 10,401 -------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees--Note 4 218,986 -------------------------------------------------------------------------------------------------------- Shareholder reports 124,462 -------------------------------------------------------------------------------------------------------- Legal and auditing fees 52,402 -------------------------------------------------------------------------------------------------------- Custodian fees and expenses 23,288 -------------------------------------------------------------------------------------------------------- Registration and filing fees: Class A 541 Class C 681 -------------------------------------------------------------------------------------------------------- Other 17,593 ----------- Total expenses 1,977,170 -------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 2,331,256 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on investments 24,272,627 -------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments 35,813,697 ----------- Net realized and unrealized gain on investments 60,086,324 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $62,417,580 -----------
See accompanying Notes to Financial Statements. 13 Oppenheimer Target Fund - ------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1995 DECEMBER 31, (UNAUDITED) 1994 --------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,331,256 $ 2,339,881 --------------------------------------------------------------------------------------------------------- Net realized gain on investments 24,272,627 38,815,275 --------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments 35,813,697 (40,560,449) ------------------------------- Net increase in net assets resulting from operations 62,417,580 594,707 --------------------------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income: Class A ($.201 per share) -- (2,361,728) class C ($.085 per share) -- (2,907) --------------------------------------------------------------------------------------------------------- Distributions from net realized gain on investments: Class A ($2.982 per share) -- (35,048,552) Class C ($2.982 per share) -- (102,047) --------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from Class A beneficial interest transactions--Note 2 and 5 319,039,263 (30,283,681) Net increase in net assets resulting from Class C beneficial interest transactions--Note 2 2,080,494 1,154,378 --------------------------------------------------------------------------------------------------------- NET ASSETS Total increase (decrease) 383,537,337 (66,049,830) --------------------------------------------------------------------------------------------------------- Beginning of period 302,764,224 368,814,054 ------------------------------- End of period [including undistributed (overdistributed) net investment income of $2,261,507 and $(69,749), respectively] $686,301,561 $302,764,224 ------------------------------- -------------------------------
See accompanying Notes to Financial Statements. 14 Oppenheimer Target Fund FINANCIAL HIGHLIGHTS
CLASS A ------------------------------------------------------------------------------ SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, 1995 ------------------------------------------------------------- (UNAUDITED) 1994 1993 1992 1991(2) 1990 -------------- ------------- --------- --------- --------- --------- - ------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA: Net asset value, beginning of period $ 22.63 $ 25.72 $ 25.25 $ 23.76 $ 17.47 $ 18.26 -------------- ------------- --------- --------- --------- --------- Income (loss) from investment operations: Net investment income (loss) .10 .20 .13 .16 .27 .39 Net realized and unrealized gain (loss) on investments 4.84 (.11) .86 2.28 6.87 (.78) -------------- ------------- --------- --------- --------- --------- Total income (loss) from investment operations 4.94 .09 .99 2.44 7.14 (.39) -------------- ------------- --------- --------- --------- --------- Dividends and distributions to shareholders: Dividends from net investment income -- (.20) (.12) (.17) (.18) (.40) Distributions from net realized gain on investments -- (2.98) (.40) (.78) (.67) -- -------------- ------------- --------- --------- --------- --------- Total dividends and distributions to shareholders -- (3.18) (.52) (.95) (.85) (.40) -------------- ------------- --------- --------- --------- --------- Net asset value, end of period $ 27.57 $ 22.63 $ 25.72 $ 25.25 $ 23.76 $ 17.47 -------------- ------------- --------- --------- --------- --------- -------------- ------------- --------- --------- --------- --------- - ------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE(3) 21.83% .46% 3.93% 10.27% 41.33% (2.13)% - ------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $682,737 $301,698 $368,806 $401,256 $369,351 $ 52,526 -------------- ------------- --------- --------- --------- --------- Average net assets (in thousands) $349,023 $325,003 $383,875 $362,295 $209,596 $ 56,208 -------------- ------------- --------- --------- --------- --------- Number of shares outstanding at end of period (in thousands) 24,766 13,331 14,339 15,892 15,546 3,007 -------------- ------------- --------- --------- --------- --------- Ratios to average net assets: Net investment income 1.34%(4) .72% .47% .69% 1.25% 2.08% Expenses 1.13%(4) 1.16% 1.07% 1.09% 1.17% 1.33% -------------- ------------- --------- --------- --------- --------- Portfolio turnover rate(5) 42.3% 34.7% 22.9% 42.3% 65.6% 51.2% CLASS C ---------------------------------------- SIX MONTHS ENDED JUNE YEAR ENDED DECEMBER 31, 30, 1995 ------------------------ (UNAUDITED) 1994(2) 1993(1) ------------- --------- ------------ - ---------------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $ 22.50 $ 25.72 $ 25.92 ------------- --------- ------------ Income (loss) from investment operations: Net investment income (loss) .08 -- (.01) Net realized and unrealized gain (loss) on investments 4.68 (.15) .31 ------------- --------- ------------ Total income (loss) from investment operations 4.76 (.15) .30 ------------- --------- ------------ Dividends and distributions to shareholders: Dividends from net investment income -- (.09) (.10) Distributions from net realized gain on investments -- (2.98) (.40) ------------- --------- ------------ Total dividends and distributions to shareholders -- (3.07) (.50) ------------- --------- ------------ Net asset value, end of period $ 27.26 $ 22.50 $ 25.72 ------------- --------- ------------ ------------- --------- ------------ - ---------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE(3) 21.16% (.50)% 2.11% - ---------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $ 3,564 $ 1,066 $ 8 ------------- --------- ------------ Average net assets (in thousands) $ 2,108 $ 467 $ 6 ------------- --------- ------------ Number of shares outstanding at end of period (in thousands) 131 47 -- ------------- --------- ------------ Ratios to average net assets: Net investment income .45%(4) (.02)% (.07)%(4) Expenses 2.02%(4) 2.18% 2.18%(4) ------------- --------- ------------ Portfolio turnover rate(5) 42.3% 34.7% 22.9% 1. For the period from December 1, 1993 (inception of offering) to December 31, 1993. 2. Per share amounts calculated based on the weighted average number of shares outstanding during the period. 3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. 4. Annualized. 5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the period ended June 30, 1995 were $104,546,864 and $119,843,084, respectively. See accompanying Notes to Financial Statements.
15 Oppenheimer Target Fund - ------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) - ------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING Oppenheimer Target Fund (the Fund) is POLICIES registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment advisor is Oppenheimer Management Corporation (the Manager). The Fund offers both Class A and Class C shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge. Both classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own distribution and/or service plan, expenses directly attributable to a particular class and exclusive voting rights with respect to matters affecting a single class. The following is a summary of significant accounting policies consistently followed by the Fund. ---------------------------------------------- INVESTMENT VALUATION. Portfolio securities are valued at the close of the New York Stock Exchange on each trading day. Listed and unlisted securities for which such information is regularly reported are valued at the last sale price of the day or, in the absence of sales, at values based on the closing bid or asked price or the last sale price on the prior trading day. Long-term and short-term "non-money market" debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities which cannot be valued by the approved portfolio pricing service are valued using dealer-supplied valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current market value, or under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. Short-term "money market type" debt securities having a remaining maturity of 60 days or less are valued at cost (or last determined market value) adjusted for amortization to maturity of any premium or discount. ---------------------------------------------- REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. ---------------------------------------------- ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class) and gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. ---------------------------------------------- FEDERAL TAXES. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers, to shareholders. Therefore, no federal income or excise tax provision is required. ---------------------------------------------- TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the six months ended June 30, 1995, a provision of $12,193 was made for the Fund's projected benefit obligations, and a payment of $2,026 was made to a retired trustee, resulting in an accumulated liability of $109,517 at June 30, 1995. ---------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are recorded on the ex-dividend date. ---------------------------------------------- CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. The character of the distributions made during the 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 dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gain (loss) was recorded by the Fund. ---------------------------------------------- OTHER. Investment transactions are accounted for on the date the investments are purchased or sold (trade date) and dividend income is recorded on the ex-dividend date. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. 16 Oppenheimer Target Fund - -------------------------------------------------------------------------------- 2. SHARES OF The Fund has authorized an unlimited BENEFICIAL INTEREST number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, 1994 ------------------------------ ---------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ -------------------------------------------------------------------------------------------------- Class A: Sold 1,366,709 $ 34,221,421 1,091,689 $ 27,823,899 Dividends and distributions reinvested -- -- 1,592,900 35,776,790 Issued in connection with the acquisition of Oppenheimer Time Fund--Note 5 11,277,345 315,314,574 Redeemed (1,209,261) (30,496,732) (3,693,115) (93,884,370) ---------- ------------ ---------- ------------ Net increase (decrease) 11,434,793 $319,039,263 (1,008,526) $(30,283,681) ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------ ----------------------------------------------------------------------------------------------- Class C: Sold 102,454 $ 2,547,998 65,435 $ 1,619,304 Dividends and distributions reinvested -- -- 4,518 100,882 Redeemed (19,097) (467,504) (22,893) (565,808) ---------- ------------ ---------- ------------ Net increase 83,357 $ 2,080,494 47,060 $ 1,154,378 ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
- -------------------------------------------------------------------------------- 3. UNREALIZED GAINS AND At June 30, 1995, net unrealized LOSSES ON INVESTMENTS appreciation on investments of $154,308,018 was composed of gross appreciation of $161,460,470, and gross depreciation of $7,152,452. - -------------------------------------------------------------------------------- 4. MANAGEMENT FEES AND OTHER Management fees paid to the Manager were TRANSACTIONS WITH AFFILIATES in accordance with the investment advisory agreement with the Fund which provides for a fee of .75% on the first $200 million of average annual net assets, .72% on the next $200 million, .69% on the next $200 million, .66% on the next $200 million and .60% on net assets in excess of $800 million. The Manager has agreed to reimburse the Fund if aggregate expenses (with specified exceptions) exceed the most stringent state regulatory limit on Fund expenses. For the six months ended June 30, 1995, commissions (sales charges paid by investors) on sales of Class A shares totaled $228,199, of which $78,591 was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class C shares totaled $15,545, of which $212 was paid to an affiliated broker/dealer. During the six months ended June 30, 1995, OFDI received contingent deferred sales charges of $935 upon redemption of Class C shares, as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares. Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs of providing such services are allocated ratably to these companies. Under separate approved plans, each class may expend up to .25% of its net assets annually to reimburse OFDI for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Fund, including amounts paid to brokers, dealers, banks and other institutions. In addition, Class C shares are subject to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for sales commissions paid from its own resources at the time of sale and associated financing costs. In the event of termination or discontinuance of the Class C plan, the Board of Trustees may allow the Fund to continue payment of the asset-based sales charge to OFDI for distribution expenses incurred on Class C shares sold prior to termination or discontinuance of the plan. During the six months ended June 30, 1995, OFDI paid $20,149 to an affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses and retained $9,631 as reimbursement for Class C sales commissions and service fee advances, as well as financing costs. - -------------------------------------------------------------------------------- 5. ACQUISITION OF On June 23, 1995, the Fund acquired all OPPENHEIMER TIME FUND of the net assets of Oppenheimer Time Fund, pursuant to an Agreement and Plan of Reorganization approved by the Oppenheimer Time Fund shareholders on June 20, 1995. The Fund issued 11,277,345 shares of beneficial interest (Class A), valued at $315,314,574 in exchange for the net assets, resulting in combined Class A net assets of $686,360,280 on June 23, 1995. The exchange qualifies as a tax-free reorganization for federal income tax purposes. 17 Oppenheimer Target Fund - ----------------------- OPPENHEIMER TARGET FUND - ----------------------- - -------------------------------------------------------------------------------- OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees Leo Cherne, Trustee Robert G. Galli, Trustee Benjamin Lipstein, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Sidney M. Robbins, Trustee Donald W. Spiro, Trustee and President Pauline Trigere, Trustee Clayton K. Yeutter, Trustee Robert C. Doll, Jr., Vice President George C. Bowen, Treasurer Robert J. Bishop, Assistant Treasurer Scott Farrar, Assistant Treasurer Andrew J. Donohue, Secretary Robert G. Zack, Assistant Secretary - -------------------------------------------------------------------------------- INVESTMENT ADVISOR Oppenheimer Management Corporation - -------------------------------------------------------------------------------- DISTRIBUTOR Oppenheimer Funds Distributor, Inc. - -------------------------------------------------------------------------------- TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services SERVICING AGENT - -------------------------------------------------------------------------------- CUSTODIAN OF The Bank of New York PORTFOLIO SECURITIES - -------------------------------------------------------------------------------- INDEPENDENT AUDITORS KPMG Peat Marwick LLP - -------------------------------------------------------------------------------- LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein The financial statements included herein have been taken from the records of the Fund without examination by the independent auditors. This is a copy of a report to shareholders of Oppenheimer Target Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer Target Fund. For material information concerning the Fund, see the Prospectus. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested. 18 Oppenheimer Target Fund - ----------------------- OPPENHEIMERFUNDS FAMILY - ----------------------- - ------------------------------------------------------------------------------- OppenheimerFunds offers over 30 funds designed to fit virtually every investment goal. Whether you're investing for retirement, your children's education or tax-free income, we have the funds to help you seek your objective. When you invest with OppenheimerFunds, you can feel comfortable knowing that you are investing with a respected financial institution with over 30 years of experience in helping people just like you reach their financial goals. And you're investing with a leader in global, growth stock and flexible fixed income investments--with over 2.6 million shareholder accounts and more than $35 billion under Oppenheimer's management and that of our affiliates. At OppenheimerFunds, we don't charge a fee to exchange shares of eligible funds of the same class. And you can exchange shares easily by mail or by telephone.(1) For more information on OppenheimerFunds, please contact your financial advisor or call us at 1-800-525-7048 for a prospectus. You may also write us at the address shown on the back cover. As always, please read the prospectus carefully before you invest. - ------------------------------------------------------------------------------------------ STOCK FUNDS Discovery Fund Global Fund Global Emerging Growth Fund(2) Oppenheimer Fund Target Fund Value Stock Fund Growth Fund(3) Gold & Special Minerals Fund - ------------------------------------------------------------------------------------------ STOCK & BOND Main Street Income & Growth Fund Equity Income Fund FUNDS Total Return Fund Asset Allocation Fund Global Growth & Income Fund - ------------------------------------------------------------------------------------------ BOND FUNDS High Yield Fund Strategic Short-Term Income Fund Champion High Yield Fund International Bond Fund Strategic Income & Growth Fund Bond Fund(4) Strategic Income Fund U.S. Government Trust Strategic Investment Grade Bond Fund Limited-Term Government Fund - ------------------------------------------------------------------------------------------ TAX-EXEMPT New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5) FUNDS California Tax-Exempt Fund(5) Tax-Free Bond Fund Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund - ------------------------------------------------------------------------------------------ MONEY MARKET Money Market Fund Cash Reserves FUNDS
1. Exchange privileges are subject to change or termination. 2. Formerly Global Bio-Tech Fund. 3. Formerly Special Fund. 4. Formerly Investment Grade Bond Fund. 5. Available only to residents of certain states. OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center, New York, NY 10048-0203. -C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved. 19 Oppenheimer Target Fund INFORMATION GENERAL INFORMATION Monday-Friday 8:30 a.m.-8 p.m. ET Saturday 10 a.m.-2 p.m. ET 1-800-525-7048 TELEPHONE TRANSACTIONS Monday-Friday 8:30 a.m.-8 p.m. ET 1-800-852-8457 PHONELINK 24 hours a day, automated information and transactions 1-800-533-3310 TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD) Monday-Friday 8:30 a.m.-8 p.m. ET 1-800-843-4461 OPPENHEIMERFUNDS INFORMATION HOTLINE 24 hours a day, timely and insightful messages on the economy and issues that affect your investments 1-800-835-3104 RS0320.001.0695 August 31, 1995 "How may I help you?" As an OppenheimerFunds shareholder, you have some special privileges. Whether it's automatic investment plans, informative newsletters and hotlines, or ready account access, you can benefit from services designed to make investing simple. And when you need help, our Customer Service Representatives are only a toll-free phone call away. They can provide information about your account and handle administrative requests. You can reach them at our General Information number. When you want to make a transaction, you can do it easily by calling our toll-free Telephone Transactions number. And, by enrolling in AccountLink, a convenient service that "links" your OppenheimerFunds accounts and your bank checking or savings account, you can use the Telephone Transactions number to make investments. For added convenience, you can get automated information with OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week. PhoneLink gives you access to a variety of fund, account, and market information. Of course, you can always speak with a Customer Service Representative during the General Information hours shown at the left. [photo] Jennifer Leonard, Customer Service Representative Oppenheimer Shareholder Services You can count on us whenever you need assistance. That's why the International Customer Service Association, an independent, nonprofit organization made up of over 3,200 customer service management professionals from around the country, honored the OppenheimerFunds' transfer agent, Oppenheimer Shareholder Services, with their Award of Excellence in 1993. So call us today--we're here to help. - -------------------------------------------------------------------------------- -------------- [Logo] Bulk Rate OPPENHEIMER FUNDS DISTRIBUTOR, INC. U.S. Postage P.O. Box 5270 PAID Denver, CO 80217-5270 Permit No. 469 Denver, CO -------------- -----END PRIVACY-ENHANCED MESSAGE-----