-----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, JlvRB2VQgTezonhseQrNsc+jD2AKOH0MMmibXjQOKHTo0vP6RPmcLp883xBAA1MA YEcFUw18rDUXIbpeYttSYA== 0000935069-04-000631.txt : 20040427 0000935069-04-000631.hdr.sgml : 20040427 20040427171345 ACCESSION NUMBER: 0000935069-04-000631 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040427 EFFECTIVENESS DATE: 20040427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER CAPITAL APPRECIATION FUND CENTRAL INDEX KEY: 0000319767 IRS NUMBER: 133054122 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03105 FILM NUMBER: 04757737 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 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER TARGET FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER TARGET FUND INC DATE OF NAME CHANGE: 19870616 N-CSRS 1 rs0320_10888.txt RS0320_10888 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 811-3105 Oppenheimer Capital Appreciation 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: August 31 Date of reporting period: September 1, 2003 - February 29, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS February 29, 2004 / Unaudited - -------------------------------------------------------------------------------- MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ COMMON STOCKS--96.2% - ------------------------------------------------------ CONSUMER DISCRETIONARY--19.3% - ------------------------------------------------------ HOTELS, RESTAURANTS & LEISURE--4.1% Carnival Corp. 3,164,900 $ 140,426,613 - ------------------------------------------------------ International Game Technology 1,145,500 44,949,420 - ------------------------------------------------------ Royal Caribbean Cruises Ltd. 3,319,900 146,905,575 - ------------------------------------------------------ Starwood Hotels & Resorts Worldwide, Inc. 491,800 19,185,118 ------------------ 351,466,726 - ------------------------------------------------------ HOUSEHOLD DURABLES--0.5% Ethan Allen Interiors, Inc. 815,470 35,448,481 - ------------------------------------------------------ Tupperware Corp. 487,100 9,303,610 ------------------ 44,752,091 - ------------------------------------------------------ MEDIA--11.7% Clear Channel Communications, Inc. 2,325,530 100,090,811 - ------------------------------------------------------ Comcast Corp., Cl. A Special, Non-Vtg. 1 7,828,350 228,744,387 - ------------------------------------------------------ Cox Communications, Inc., Cl. A 1 673,200 21,811,680 - ------------------------------------------------------ Liberty Media Corp., Cl. A 1 1,272,300 14,504,220 - ------------------------------------------------------ New York Times Co. (The), Cl. A 893,300 40,770,212 - ------------------------------------------------------ News Corp. Ltd. (The), Sponsored ADR 2,992,200 112,057,890 - ------------------------------------------------------ Omnicom Group, Inc. 461,500 37,750,700 - ------------------------------------------------------ Time Warner, Inc. 1 9,999,400 172,489,650 - ------------------------------------------------------ Univision Communications, Inc., Cl. A 1 1,911,396 68,103,039 - ------------------------------------------------------ Viacom, Inc., Cl. B 5,471,000 210,414,660 ------------------ 1,006,737,249 MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ MULTILINE RETAIL--1.7% Federated Department Stores, Inc. 751,500 $ 39,356,055 - ------------------------------------------------------ Target Corp. 2,289,100 100,628,836 ------------------ 139,984,891 - ------------------------------------------------------ SPECIALTY RETAIL--1.3% Gap, Inc. (The) 2,841,300 59,099,040 - ------------------------------------------------------ Petco Animal Supplies, Inc. 1 274,800 8,925,504 - ------------------------------------------------------ PetsMart, Inc. 1,149,500 31,197,430 - ------------------------------------------------------ Weight Watchers International, Inc. 1 350,500 13,150,760 ------------------ 112,372,734 - ------------------------------------------------------ CONSUMER STAPLES--7.2% - ------------------------------------------------------ BEVERAGES--3.7% Anheuser-Busch Cos., Inc. 2,698,900 143,635,458 - ------------------------------------------------------ Coca-Cola Co. (The) 751,300 37,534,948 - ------------------------------------------------------ PepsiCo, Inc. 2,558,100 132,765,390 ------------------ 313,935,796 - ------------------------------------------------------ FOOD & STAPLES RETAILING--1.5% Costco Wholesale Corp. 1 1,110,100 43,216,193 - ------------------------------------------------------ Wal-Mart Stores, Inc. 1,481,400 88,232,184 ------------------ 131,448,377 - ------------------------------------------------------ FOOD PRODUCTS--0.1% Archer-Daniels- Midland Co. 379,000 6,518,800 - ------------------------------------------------------ HOUSEHOLD PRODUCTS--1.2% Clorox Co. (The) 649,300 31,854,658 - ------------------------------------------------------ Procter & Gamble Corp. (The) 681,600 69,870,816 ------------------ 101,725,474 - ------------------------------------------------------ PERSONAL PRODUCTS--0.5% Estee Lauder Cos., Inc. (The), Cl. A 1,030,760 43,910,376 9 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ TOBACCO--0.2% Altria Group, Inc. 301,900 $ 17,374,345 - ------------------------------------------------------ ENERGY--6.0% - ------------------------------------------------------ ENERGY EQUIPMENT & SERVICES--1.9% BJ Services Co. 1 1,130,300 48,930,687 - ------------------------------------------------------ Halliburton Co. 863,900 27,610,244 - ------------------------------------------------------ Noble Corp. 1 551,110 22,375,066 - ------------------------------------------------------ Rowan Cos., Inc. 1 787,500 18,506,250 - ------------------------------------------------------ Schlumberger Ltd. 694,000 44,756,060 ------------------ 162,178,307 - ------------------------------------------------------ OIL & GAS--4.1% Amerada Hess Corp. 743,700 47,857,095 - ------------------------------------------------------ BP plc, ADR 434,000 21,352,800 - ------------------------------------------------------ Burlington Resources, Inc. 562,500 32,928,750 - ------------------------------------------------------ Encana Corp. 1,062,780 45,814,194 - ------------------------------------------------------ Exxon Mobil Corp. 3,619,700 152,642,749 - ------------------------------------------------------ TotalFinaElf SA, Sponsored ADR 1 586,600 53,961,334 ------------------ 354,556,922 - ------------------------------------------------------ FINANCIALS--12.7% - ------------------------------------------------------ COMMERCIAL BANKS--2.0% Bank of America Corp. 1,043,700 85,499,904 - ------------------------------------------------------ Bank One Corp. 1,682,000 90,794,360 ------------------ 176,294,264 - ------------------------------------------------------ DIVERSIFIED FINANCIAL SERVICES--8.3% American Express Co. 2,334,400 124,703,648 - ------------------------------------------------------ Ameritrade Holding Corp. 1 644,700 10,495,716 - ------------------------------------------------------ Bear Stearns Cos., Inc. (The) 499,300 43,858,512 - ------------------------------------------------------ Citigroup, Inc. 4,332,000 217,726,320 - ------------------------------------------------------ J.P. Morgan Chase & Co. 1,322,200 54,236,644 - ------------------------------------------------------ Merrill Lynch & Co., Inc. 929,300 56,882,453 - ------------------------------------------------------ Morgan Stanley 2,616,300 156,350,088 MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ DIVERSIFIED FINANCIAL SERVICES Continued Schwab (Charles) Corp. 3,926,200 $ 48,056,688 ------------------ 712,310,069 - ------------------------------------------------------ INSURANCE--1.9% American International Group, Inc. 1,516,300 112,206,200 - ------------------------------------------------------ XL Capital Ltd., Cl. A 652,700 50,035,982 ------------------ 162,242,182 - ------------------------------------------------------ REAL ESTATE--0.5% Host Marriott Corp. 1 3,240,600 39,405,696 - ------------------------------------------------------ HEALTH CARE--13.1% - ------------------------------------------------------ BIOTECHNOLOGY--3.5% Amgen, Inc. 1 1,169,500 74,298,335 - ------------------------------------------------------ Biogen Idec, Inc. 1 1,110,000 61,549,500 - ------------------------------------------------------ Celgene Corp. 1 744,300 30,508,857 - ------------------------------------------------------ Digene Corp. 1 494,500 18,791,000 - ------------------------------------------------------ Gen-Probe, Inc. 1 227,100 7,764,549 - ------------------------------------------------------ Gilead Sciences, Inc. 1 1,055,000 57,191,550 - ------------------------------------------------------ Invitrogen Corp. 1 285,700 21,056,090 - ------------------------------------------------------ MedImmune, Inc. 1 523,200 13,441,008 - ------------------------------------------------------ Serono SA, ADR 1 1,114,800 18,750,936 ------------------ 303,351,825 - ------------------------------------------------------ HEALTH CARE EQUIPMENT & SUPPLIES--3.2% Applera Corp./ Applied Biosystems Group 815,680 18,597,504 - ------------------------------------------------------ Medtronic, Inc. 3,299,700 154,755,930 - ------------------------------------------------------ Millipore Corp. 1 1,172,600 61,385,610 - ------------------------------------------------------ Nektar Therapeutics 1 537,500 10,239,375 - ------------------------------------------------------ Varian Medical Systems, Inc. 1 341,500 28,597,210 ------------------ 273,575,629 - ------------------------------------------------------ HEALTH CARE PROVIDERS & SERVICES--1.0% Aetna, Inc. 1,077,800 87,075,462 10 | OPPENHEIMER CAPITAL APPRECIATION FUND MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ PHARMACEUTICALS--5.4% Bristol-Myers Squibb Co. 1,348,600 $ 37,518,052 - ------------------------------------------------------ Dr. Reddy's Laboratories Ltd., Sponsored ADR 637,100 16,214,195 - ------------------------------------------------------ Medicis Pharmaceutical Corp., Cl. A 330,800 13,023,596 - ------------------------------------------------------ Perrigo Co. 900,510 17,595,965 - ------------------------------------------------------ Pfizer, Inc. 4,713,700 172,757,105 - ------------------------------------------------------ Roche Holdings AG 1 470,000 48,478,406 - ------------------------------------------------------ Teva Pharmaceutical Industries Ltd., Sponsored ADR 2,407,875 156,511,875 ------------------ 462,099,194 - ------------------------------------------------------ INDUSTRIALS--11.0% - ------------------------------------------------------ AEROSPACE & DEFENSE--2.9% Honeywell International, Inc. 1,684,100 59,027,705 - ------------------------------------------------------ L-3 Communications Holdings, Inc. 1 602,900 32,267,208 - ------------------------------------------------------ Lockheed Martin Corp. 1,274,700 58,993,116 - ------------------------------------------------------ Northrop Grumman Corp. 414,600 41,920,206 - ------------------------------------------------------ United Technologies Corp. 619,000 57,016,090 ------------------ 249,224,325 - ------------------------------------------------------ AIR FREIGHT & LOGISTICS--0.7% Expeditors International of Washington, Inc. 810,000 31,217,400 - ------------------------------------------------------ United Parcel Service, Inc., Cl. B 455,600 32,179,028 ------------------ 63,396,428 - ------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES--1.0% Dun & Bradstreet Corp. 1 528,800 28,142,736 MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ COMMERCIAL SERVICES & SUPPLIES Continued Waste Management, Inc. 1,953,000 $ 55,660,500 ------------------ 83,803,236 - ------------------------------------------------------ INDUSTRIAL CONGLOMERATES--4.7% 3M Co. 341,700 26,659,434 - ------------------------------------------------------ General Electric Co. 10,175,900 330,920,268 - ------------------------------------------------------ Tyco International Ltd. 1,547,200 44,203,504 ------------------ 401,783,206 - ------------------------------------------------------ MACHINERY--1.1% Danaher Corp. 288,000 25,813,440 - ------------------------------------------------------ Dover Corp. 436,200 17,094,678 - ------------------------------------------------------ Ingersoll-Rand Co., Cl. A 744,500 49,494,360 ------------------ 92,402,478 - ------------------------------------------------------ ROAD & RAIL--0.6% Canadian National Railway Co. 417,400 24,718,428 - ------------------------------------------------------ Norfolk Southern Corp. 1,161,400 25,736,624 ------------------ 50,455,052 - ------------------------------------------------------ INFORMATION TECHNOLOGY--23.8% - ------------------------------------------------------ COMMUNICATIONS EQUIPMENT--5.1% 3Com Corp. 1 1,444,500 10,111,500 - ------------------------------------------------------ Alcatel SA 1 1,624,487 26,279,894 - ------------------------------------------------------ Cisco Systems, Inc. 1 7,531,300 173,973,030 - ------------------------------------------------------ Lucent Technologies, Inc. 1 6,973,400 29,218,546 - ------------------------------------------------------ Motorola, Inc. 2,535,500 46,779,975 - ------------------------------------------------------ Nokia Oyj, Sponsored ADR 1 6,773,800 147,465,626 ------------------ 433,828,571 - ------------------------------------------------------ COMPUTERS & PERIPHERALS--3.4% Dell, Inc. 1 2,585,800 84,426,370 - ------------------------------------------------------ EMC Corp. 1 715,500 10,245,960 - ------------------------------------------------------ Hewlett-Packard Co. 788,000 17,895,480 11 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ COMPUTERS & PERIPHERALS Continued International Business Machines Corp. 1,571,500 $ 151,649,750 - ------------------------------------------------------ SanDisk Corp. 1 1,046,400 26,536,704 - ------------------------------------------------------ Seagate Technology International, Inc. (Escrow Shares) 1,2,3 1,000,000 -- ------------------ 290,754,264 - ------------------------------------------------------ ELECTRONIC EQUIPMENT & INSTRUMENTS--2.2% Agilent Technologies, Inc. 1 1,638,200 56,010,058 - ------------------------------------------------------ PerkinElmer, Inc. 1,169,200 24,366,128 - ------------------------------------------------------ Sanmina-SCI Corp. 1 2,058,500 26,122,365 - ------------------------------------------------------ Tektronix, Inc. 1,337,400 42,863,670 - ------------------------------------------------------ Vishay Intertechnology, Inc. 1 1,908,300 42,955,833 ------------------ 192,318,054 - ------------------------------------------------------ INTERNET SOFTWARE & SERVICES--1.3% Yahoo!, Inc. 1 2,561,800 113,743,920 - ------------------------------------------------------ IT SERVICES--0.5% Infosys Technologies Ltd. 418,900 46,968,474 - ------------------------------------------------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.8% Analog Devices, Inc. 630,800 31,476,920 - ------------------------------------------------------ Applied Materials, Inc. 1 899,300 19,101,132 - ------------------------------------------------------ ASML Holding NV 1 1,420,000 25,929,200 - ------------------------------------------------------ ATI Technologies, Inc. 1 435,600 6,782,292 - ------------------------------------------------------ Cypress Semiconductor Corp. 1 3,625,800 78,244,764 - ------------------------------------------------------ Intel Corp. 6,017,700 175,897,371 - ------------------------------------------------------ LSI Logic Corp. 1 1,618,900 16,350,890 - ------------------------------------------------------ STMicroelectronics NV 1 878,500 22,709,225 - ------------------------------------------------------ Taiwan Semiconductor Manufacturing Co. Ltd., ADR 1 3,865,844 40,166,119 MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued Texas Instruments, Inc. 2,681,400 $ 82,184,910 ------------------ 498,842,823 - ------------------------------------------------------ SOFTWARE--5.5% Adobe Systems, Inc. 2,044,100 76,122,284 - ------------------------------------------------------ Cadence Design Systems, Inc. 1 2,196,000 33,884,280 - ------------------------------------------------------ Intuit, Inc. 1 380,300 16,870,108 - ------------------------------------------------------ Microsoft Corp. 10,513,300 278,602,450 - ------------------------------------------------------ Network Associates, Inc. 1 847,400 14,863,396 - ------------------------------------------------------ Novell, Inc. 1 1,012,100 10,303,178 - ------------------------------------------------------ Veritas Software Corp. 1 1,219,700 37,103,274 ------------------ 467,748,970 - ------------------------------------------------------ MATERIALS--1.9% - ------------------------------------------------------ CHEMICALS--1.9% Air Products & Chemicals, Inc. 936,100 45,157,464 - ------------------------------------------------------ Dow Chemical Co. 698,300 30,355,101 - ------------------------------------------------------ Ecolab, Inc. 644,000 17,587,640 - ------------------------------------------------------ Praxair, Inc. 1,957,600 71,100,032 ------------------ 164,200,237 - ------------------------------------------------------ TELECOMMUNICATION SERVICES--0.5% - ------------------------------------------------------ DIVERSIFIED TELECOMMUNICATION SERVICES--0.5% Telefonos de Mexico SA, Sponsored ADR 1,234,400 41,932,568 - ------------------------------------------------------ UTILITIES--0.7% - ------------------------------------------------------ GAS UTILITIES--0.6% Kinder Morgan Management LLC 1,246,216 53,736,834 - ------------------------------------------------------ WATER UTILITIES--0.1% Aqua America, Inc. 253,218 5,472,042 ------------------ Total Common Stocks (Cost $7,440,410,276) 8,253,927,891 12 | OPPENHEIMER CAPITAL APPRECIATION FUND MARKET VALUE SHARES SEE NOTE 1 - ------------------------------------------------------ OTHER SECURITIES--0.4% - ------------------------------------------------------ Nasdaq-100 Unit Investment Trust (Cost $28,087,898) 1,014,300 $ 37,082,808 PRINCIPAL AMOUNT - ------------------------------------------------------ SHORT-TERM NOTES--1.3% - ------------------------------------------------------ Old Line Funding Corp.: 1.03%, 3/2/04 $47,965,000 47,963,628 1.03%, 3/17/04 25,130,000 25,118,496 - ------------------------------------------------------ Yorktown Capital LLC, 1.03%, 3/22/04 40,000,000 39,975,967 ------------------ Total Short-Term Notes (Cost $113,058,091) 113,058,091 - ------------------------------------------------------ JOINT REPURCHASE AGREEMENTS--2.3% - ------------------------------------------------------ Undivided interest of 52.53% in joint repurchase agreement (Principal Amount/Market Value $371,932,000) with Zion Bank/Capital Markets Group, 0.98%, dated 2/27/04, to be repurchased at $195,393,956 on 3/1/04, collateralized by U.S. Treasury Bonds, 1.75%-- 11.25%, 12/15/04--2/15/15, with a value of $328,930,645 and U.S. Treasury Nts., 6%, 8/15/04, with a value of $50,875,180 (Cost $195,378,000) 195,378,000 195,378,000 - ------------------------------------------------------ TOTAL INVESTMENTS, AT VALUE (COST $7,776,934,265) 100.2% 8,599,446,790 - ------------------------------------------------------ LIABILITIES IN EXCESS OF OTHER ASSETS (0.2) (15,071,751) ------------------------------ NET ASSETS 100.0% $8,584,375,039 ============================== FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Identifies issues considered to be illiquid. See Note 6 of Notes to Financial Statements. 3. Received as the result of issuer reorganization. Currently has minimal market value. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 13 | OPPENHEIMER CAPITAL APPRECIATION FUND - ------------------------------------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES Unaudited - ------------------------------------------------------------------------------ February 29, 2004 - ------------------------------------------------------------------------------ ASSETS - ------------------------------------------------------------------------------ Investments, at value (cost $7,776,934,265)-- see accompanying statement $8,599,446,790 - ------------------------------------------------------------------------------ Cash 383,908 - ------------------------------------------------------------------------------ Receivables and other assets: Shares of beneficial interest sold 34,356,502 Investments sold 25,316,845 Interest and dividends 9,158,860 Other 129,811 ----------------- Total assets 8,668,792,716 - ------------------------------------------------------------------------------ LIABILITIES - ------------------------------------------------------------------------------ Payables and other liabilities: Investments purchased 57,392,334 Shares of beneficial interest redeemed 16,286,203 Foreign capital gains tax 3,828,958 Distribution and service plan fees 2,857,803 Transfer and shareholder servicing agent fees 1,792,830 Trustees' compensation 1,085,219 Shareholder communications 1,044,097 Other 130,233 ----------------- Total liabilities 84,417,677 - ------------------------------------------------------------------------------ NET ASSETS $8,584,375,039 ================= - ------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------ Par value of shares of beneficial interest $ 220,227 - ------------------------------------------------------------------------------ Additional paid-in capital 8,688,697,851 - ------------------------------------------------------------------------------ Accumulated net investment loss (7,334,332) - ------------------------------------------------------------------------------ Accumulated net realized loss on investments and foreign currency transactions (915,892,274) - ------------------------------------------------------------------------------ Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 818,683,567 ----------------- NET ASSETS $8,584,375,039 ================= 14 | OPPENHEIMER CAPITAL APPRECIATION FUND - ------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $5,153,085,294 and 130,361,459 shares of beneficial interest outstanding) $39.53 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $41.94 - ------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,232,459,901 and 33,486,528 shares of beneficial interest outstanding) $36.80 - ------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $652,482,704 and 17,921,739 shares of beneficial interest outstanding) $36.41 - ------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $160,556,848 and 4,093,578 shares of beneficial interest outstanding) $39.22 - ------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,385,790,292 and 34,363,286 shares of beneficial interest outstanding) $40.33 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 15 | OPPENHEIMER CAPITAL APPRECIATION FUND - ------------------------------------------------------------ STATEMENT OF OPERATIONS Unaudited - ------------------------------------------------------------ For the Six Months Ended February 29, 2004 - ------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $289,263) $ 39,608,806 - ------------------------------------------------------------------------------- Interest 2,368,978 -------------- Total investment income 41,977,784 - ------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------- Management fees 22,457,943 - ------------------------------------------------------------------------------- Distribution and service plan fees: Class A 5,703,348 Class B 5,852,305 Class C 2,970,177 Class N 329,414 - ------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 6,340,444 Class B 2,273,128 Class C 839,862 Class N 264,845 Class Y 892,048 - ------------------------------------------------------------------------------- Shareholder communications: Class A 251,579 Class B 110,341 Class C 39,327 Class N 6,138 - ------------------------------------------------------------------------------- Trustees' compensation 188,758 - ------------------------------------------------------------------------------- Custodian fees and expenses 61,582 - ------------------------------------------------------------------------------- Other 139,262 -------------- Total expenses 48,720,501 Less reduction to custodian expenses (6,178) Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (86,176) Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (214,562) Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (18,316) Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (31,686) -------------- Net expenses 48,363,583 - ------------------------------------------------------------------------------- NET INVESTMENT LOSS (6,385,799) 16 | OPPENHEIMER CAPITAL APPRECIATION FUND - ------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN Net realized gain on: Investments (net of foreign capital gains tax of $1,415,481) $164,704,193 Foreign currency transactions 1,800,784 -------------- Net realized gain 166,504,977 - ------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments (net of foreign capital gains tax of $3,828,958) 700,143,637 Translation of assets and liabilities denominated in foreign currencies 1,229,817 -------------- Net change in unrealized appreciation 701,373,454 - ------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $861,492,632 ============== SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 17 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, (UNAUDITED) 2003 - -------------------------------------------------------------------------------- OPERATIONS - -------------------------------------------------------------------------------- Net investment loss $ (6,385,799) $ (14,584,020) - -------------------------------------------------------------------------------- Net realized gain (loss) 166,504,977 (737,292,237) - -------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 701,373,454 1,676,110,664 ---------------------------------- Net increase in net assets resulting from operations 861,492,632 924,234,407 - -------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A 346,625,389 504,686,099 Class B (6,112,381) (50,319,183) Class C 49,325,094 24,021,003 Class N 35,191,443 25,028,168 Class Y 91,659,425 142,226,078 - -------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------- Total increase 1,378,181,602 1,569,876,572 - -------------------------------------------------------------------------------- Beginning of period 7,206,193,437 5,636,316,865 ---------------------------------- End of period (including accumulated net investment loss of $7,334,332 and $948,533, respectively) $8,584,375,039 $7,206,193,437 ================================== SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 18 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, CLASS A (UNAUDITED) 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 35.39 $ 30.72 $ 41.11 $ 62.12 $ 44.73 $ 32.53 - -------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.02) (.05) (.09) .10 (.02) (.04) Net realized and unrealized gain (loss) 4.16 4.72 (9.31) (15.86) 20.63 14.87 --------------------------------------------------------------------------- Total from investment operations 4.14 4.67 (9.40) (15.76) 20.61 14.83 - -------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- -- (.09) Distributions from net realized gain -- -- (.99) (5.25) (3.22) (2.54) --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.99) (5.25) (3.22) (2.63) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $39.53 $35.39 $30.72 $41.11 $62.12 $44.73 =========================================================================== - -------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 11.70% 15.20% (23.48)% (26.38)% 48.01% 47.36% - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $5,153,085 $4,288,332 $3,219,391 $3,055,197 $3,648,961 $2,071,317 - -------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $4,729,420 $3,655,594 $3,204,793 $3,255,995 $2,898,088 $1,788,774 - -------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income (loss) (0.03)% (0.11)% (0.15)% 0.28% 0.00% (0.05)% Total expenses 1.10% 3,4 1.17% 3 1.22% 3,4 1.03% 3 1.06% 3 1.04% 3 - -------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 22% 42% 28% 46% 44% 59%
1. Assumes an 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 19 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, CLASS B (UNAUDITED) 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 33.09 $ 28.95 $ 39.09 $ 59.80 $ 43.48 $ 31.85 - ------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.16) (.31) (.26) (.07) (.20) (.21) Net realized and unrealized gain (loss) 3.87 4.45 (8.89) (15.39) 19.74 14.38 -------------------------------------------------------------------------- Total from investment operations 3.71 4.14 (9.15) (15.46) 19.54 14.17 - -------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- -- -- Distributions from net realized gain -- -- (.99) (5.25) (3.22) (2.54) -------------------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.99) (5.25) (3.22) (2.54) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $36.80 $33.09 $28.95 $39.09 $59.80 $43.48 ========================================================================== - ------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 11.21% 14.30% (24.07)% (26.95)% 46.88% 46.20% - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $1,232,460 $1,114,052 $1,029,322 $1,242,098 $1,333,387 $531,625 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $1,175,572 $1,001,311 $1,221,005 $1,265,753 $ 922,480 $372,157 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment loss (0.89)% (0.89)% (0.92)% (0.48)% (0.76)% (0.86)% Total expenses 1.99% 2.10% 1.99% 1.80% 1.83% 1.84% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 1.95% 1.96% N/A 3,4 N/A 3 N/A 3 N/A 3 - ------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 22% 42% 28% 46% 44% 59%
1. Assumes an 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 20 | OPPENHEIMER CAPITAL APPRECIATION FUND
SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, CLASS C (UNAUDITED) 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 32.72 $ 28.63 $ 38.64 $ 59.19 $ 43.06 $ 31.57 - ------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.08) (.23) (.11) (.01) (.18) (.23) Net realized and unrealized gain (loss) 3.77 4.32 (8.91) (15.29) 19.53 14.26 -------------------------------------------------------------------------- Total from investment operations 3.69 4.09 (9.02) (15.30) 19.35 14.03 - ------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to \ shareholders: Dividends from net investment income -- -- -- -- -- -- Distributions from net realized gain -- -- (.99) (5.25) (3.22) (2.54) -------------------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.99) (5.25) (3.22) (2.54) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $36.41 $32.72 $28.63 $38.64 $59.19 $43.06 ========================================================================== - ------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 11.28% 14.28% (24.01)% (26.95)% 46.89% 46.16% - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $652,483 $540,118 $450,989 $426,476 $402,442 $165,231 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $596,912 $463,768 $477,369 $400,009 $278,800 $126,443 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment loss (0.80)% (0.89)% (0.87)% (0.48)% (0.76)% (0.86)% Total expenses 1.87% 3,4 1.96% 3 1.94% 3,4 1.80% 3 1.83% 3 1.85% 3 - ------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 22% 42% 28% 46% 44% 59%
1. Assumes an 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 21 | OPPENHEIMER CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS Continued
SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, CLASS N (UNAUDITED) 2003 2002 2001 1 - ----------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 35.17 $ 30.60 $ 41.05 $ 45.58 - ----------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.06) (.10) (.07) 2 (.01) Net realized and unrealized gain (loss) 4.11 4.67 (9.39) 2 (4.52) ------------------------------------------------ Total from investment operations 4.05 4.57 (9.46) (4.53) - ----------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- Distributions from net realized gain -- -- (.99) -- ------------------------------------------------ Total dividends and/or distributions to shareholders -- -- (.99) -- - ----------------------------------------------------------------------------------------------- Net asset value, end of period $39.22 $35.17 $30.60 $41.05 ================================================ - ----------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 11.51% 14.94% (23.67)% (9.94)% - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $160,557 $111,374 $72,178 $6,791 - ----------------------------------------------------------------------------------------------- Average net assets (in thousands) $132,554 $ 86,761 $38,232 $3,173 - ----------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (0.37)% (0.35)% (0.37)% (0.11)% Total expenses 1.49% 1.46% 1.46% 1.36% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses 1.44% 1.42% N/A 5,6 N/A 5 - ----------------------------------------------------------------------------------------------- Portfolio turnover rate 22% 42% 28% 46%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 4. Annualized for periods of less than one full year. 5. Reduction to custodian expenses less than 0.01%. 6. Voluntary waiver of transfer agent fees less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 22 | OPPENHEIMER CAPITAL APPRECIATION FUND
SIX MONTHS YEAR ENDED ENDED FEBRUARY 29, 2004 AUGUST 31, CLASS Y (UNAUDITED) 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 36.04 $ 31.16 $ 41.55 $ 62.51 $ 44.81 $ 32.56 - ------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .02 .01 .02 1 .27 .13 .13 Net realized and unrealized gain (loss) 4.27 4.87 (9.42) 1 (15.98) 20.79 14.85 -------------------------------------------------------------------------- Total from investment operations 4.29 4.88 (9.40) (15.71) 20.92 14.98 - ------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- -- -- (.19) Distributions from net realized gain -- -- (.99) (5.25) (3.22) (2.54) - ------------------------------------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders -- -- (.99) (5.25) (3.22) (2.73) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $40.33 $36.04 $31.16 $41.55 $62.51 $44.81 ========================================================================== - ------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 11.90% 15.66% (23.23)% (26.12)% 48.64% 47.90% - ------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $1,385,790 $1,152,318 $864,437 $ 974,820 $1,295,087 $420,455 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $1,276,355 $ 930,500 $968,867 $1,095,575 $ 855,270 $307,498 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 0.35% 0.29% 0.17% 0.66% 0.45% 0.30% Total expenses 0.72% 4 0.78% 4,5 0.89% 4 0.66% 4 0.64% 4 0.68% 4 - ------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 22% 42% 28% 46% 44% 59%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an 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. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Voluntary waiver of transfer agent fees less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Capital Appreciation Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment objective is to seek capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The 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 with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ by minor amounts due to each class having its own expenses directly attributable to that class. Classes A, B, C and N have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective foreign exchanges will be fair valued. 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. 24 | OPPENHEIMER CAPITAL APPRECIATION FUND 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. As of February 29, 2004, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of $872,073,769 expiring by 2011. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended February 29, 2004 and the year ended August 31, 2003, the Fund used $166,504,977 and $0, respectively, of carryforward to offset capital gains realized. As of August 31, 2003, the Fund had available for federal income tax purposes post-October losses of $602,003,735 and unused capital loss carryforwards as follows: EXPIRING ---------------------- 2010 $ 61,636,235 2011 374,938,776 ------------ Total $436,575,011 ============ Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized. 25 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the six months ended February 29, 2004, the Fund's projected benefit obligations were increased by $70,823 and payments of $73,625 were made to retired trustees, resulting in an accumulated liability of $945,766 as of February 29, 2004. 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. - -------------------------------------------------------------------------------- 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, if applicable, 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. 26 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows: SIX MONTHS ENDED FEBRUARY 29, 2004 YEAR ENDED AUGUST 31, 2003 SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------- CLASS A Sold 22,734,690 $ 859,118,752 45,225,452 $1,394,693,911 Redeemed (13,545,758) (512,493,363) (28,851,156) (890,007,812) ----------------------------------------------------------------- Net increase 9,188,932 $ 346,625,389 16,374,296 $ 504,686,099 ================================================================= - -------------------------------------------------------------------------------- CLASS B Sold 3,528,975 $ 124,241,467 6,747,394 $ 197,106,768 Redeemed (3,708,765) (130,353,848) (8,635,132) (247,425,951) ----------------------------------------------------------------- Net decrease (179,790) $ (6,112,381) (1,887,738) $ (50,319,183) ================================================================= - -------------------------------------------------------------------------------- CLASS C Sold 2,943,917 $ 102,688,241 4,972,919 $ 143,578,548 Redeemed (1,529,078) (53,363,147) (4,220,870) (119,557,545) ----------------------------------------------------------------- Net increase 1,414,839 $ 49,325,094 752,049 $ 24,021,003 ================================================================= - -------------------------------------------------------------------------------- CLASS N Sold 1,469,921 $ 55,634,041 1,644,398 $ 50,946,387 Redeemed (542,677) (20,442,598) (836,639) (25,918,219) ----------------------------------------------------------------- Net increase 927,244 $ 35,191,443 807,759 $ 25,028,168 ================================================================= - -------------------------------------------------------------------------------- CLASS Y Sold 4,097,897 $ 156,945,379 9,921,935 $ 316,008,775 Redeemed (1,711,729) (65,285,954) (5,689,335) (173,782,697) ----------------------------------------------------------------- Net increase 2,386,168 $ 91,659,425 4,232,600 $ 142,226,078 ================================================================= - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended February 29, 2004, were $2,330,419,527 and $1,640,874,055, respectively. - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Effective January 1, 2004, management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee at an annual rate of 0.75% of the first $200 million of average annual net assets of the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million, 0.60% of the next $700 million, 0.58% of the next $1.0 billion, 0.56% of the next $2.0 billion, 0.54% of the next $2.0 billion, 0.52% of the next $2.0 billion, and 0.50% of average annual net assets over $8.5 billion. Prior to January 1, 2004, the annual advisory fee rate was 0.75% of the first $200 million of aggregate net assets, 0.72% 27 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million, 0.60% of the next $700 million, 0.58% of the next $1.0 billion, 0.56% of the next $2.0 billion, 0.54% of the next $4.0 billion, and 0.52% of aggregate net assets over $8.5 billion. Effective July 1, 2003 the Manager has voluntarily undertaken to waive fees or reimburse expenses of Class Y shares so that "Total Annual Operating Expenses" of Class Y shares do not exceed 0.75% of average daily net assets. The Manager may amend or withdraw these waivers and reimbursements at any time without notice to shareholders. - -------------------------------------------------------------------------------- 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 six months ended February 29, 2004, the Fund paid $10,170,511 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 Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. - -------------------------------------------------------------------------------- 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. The Distributor currently uses the fees it receives from the Fund to pay brokers, dealers and other financial institutions for personal services and account maintenance services they provide for their customers who hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. Fees incurred by the Fund under the plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- 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 to compensate the Distributor for its services in connection with the distribution of these shares and servicing accounts. 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 0.25% per year on Class N shares. The Distributor also receives a service fee of up to 0.25% per year under each plan. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees 28 | OPPENHEIMER CAPITAL APPRECIATION FUND must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. The Distributor's aggregate uncompensated expenses under the plan at February 29, 2004 for Class B, Class C and Class N shares was $25,245,991, $8,420,332 and $1,719,542, respectively. Fees incurred by the Fund under the plans are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- SALES CHARGES. Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR - --------------------------------------------------------------------------------------------- February 29, 2004 $1,154,726 $47,961 $1,168,281 $46,120 $47,797
- -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY CONTRACTS A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign transaction. Contracts closed or settled with the same broker are recorded as net realized gains or losses. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of February 29, 2004, the Fund had no outstanding foreign currency contracts. 29 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. ILLIQUID SECURITIES As of February 29, 2004, investments in securities included issues that are illiquid. A security may 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 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. The aggregate value of illiquid securities subject to this limitation as of February 29, 2004 was zero. - -------------------------------------------------------------------------------- 7. 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 (the SEC) 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. The SEC's order requires the Fund's Board of Trustees to adopt operating policies and procedures to administer interfund borrowing and lending. 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 six months ended or at February 29, 2004. 30 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- 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. 31 | OPPENHEIMER CAPITAL APPRECIATION FUND ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the registrant 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 applicable to semiannual reports. ITEM 5. NOT APPLICABLE ITEM 6. RESERVED ITEM 7. NOT APPLICABLE ITEM 8. NOT APPLICABLE ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS At a meeting of the Board of Trustees of the registrant held on February 18, 2004, the Board adopted (1) a policy that, should the Board determine that a vacancy exists or is likely to exist on the Board, the Governance Committee of the Board, which is comprised entirely of independent trustees, shall consider any candidates for Board membership recommended by the registrant's security holders and (2) a policy that security holders wishing to submit a nominee for election to the Board may do so by mailing their submission to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the Chair of the Governance Committee. Prior to February 18, 2004, the Board did not have a formalized policy with respect to consideration of security holder nominees or a procedure by which security holders may make their submissions. In addition to security holder nominees, the Governance Committee may also consider nominees recommended by independent Board members or recommended by any other Board members and is authorized under its Charter, upon Board approval, to retain an executive search firm to assist in screening potential candidates. Upon Board approval, the Governance Committee may also obtain legal, financial, or other external counsel that may be necessary or desirable in the screening process. ITEM 10. 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 February 29, 2004, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to provide reasonable assurances 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 over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.CODE ETH 2 ex99_code-320.txt EX99_CODE-320 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. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. - -------- 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. 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 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 - ----------------- 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. 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 EX-99.CERT 3 ex99_302cert-320.txt EX99_302CERT-320 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 Capital Appreciation 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 c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half- year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 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 control over financial reporting. Date: 4/13/04 /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 Capital Appreciation 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 c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half- year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 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 control over financial reporting. Date: 4/13/04 /s/Brian W. Wixted ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 4 ex99_906cert-320.txt EX99_906CERT-320 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 Capital Appreciation 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 February 29, 2004 (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 Capital Appreciation Fund Oppenheimer Capital Appreciation Fund /s/John V. Murphy /s/Brian W. Wixted - ---------------------------- ---------------------------- John V. Murphy Brian W. Wixted Date: 4/13/04 Date: 4/13/04 -----END PRIVACY-ENHANCED MESSAGE-----