-----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, S1udIwJ5TcsBj2QXyz94E5/MPmoJBsmDs3dR1AKuvaXasxkhdtwovW57p5MFvxer EgGiuGg3cnIZkFG48F7Iyg== 0000935069-05-000966.txt : 20050426 0000935069-05-000966.hdr.sgml : 20050426 20050426153351 ACCESSION NUMBER: 0000935069-05-000966 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050228 FILED AS OF DATE: 20050426 DATE AS OF CHANGE: 20050426 EFFECTIVENESS DATE: 20050426 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: 05772934 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 rs320_15520ncsr.txt RS320_15520NCSR.TXT 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, 2004 - FEBRUARY 28, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOP TEN COMMON STOCK INDUSTRIES - -------------------------------------------------------------------------------- Media 11.0% - -------------------------------------------------------------------------------- Pharmaceuticals 8.3 - -------------------------------------------------------------------------------- Diversified Financial Services 8.0 - -------------------------------------------------------------------------------- Software 7.3 - -------------------------------------------------------------------------------- Industrial Conglomerates 5.9 - -------------------------------------------------------------------------------- Health Care Equipment & Supplies 4.6 - -------------------------------------------------------------------------------- Oil & Gas 4.3 - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 4.2 - -------------------------------------------------------------------------------- Computers & Peripherals 3.7 - -------------------------------------------------------------------------------- Communications Equipment 3.7 Portfolio holdings and allocations are subject to change. Percentages are as of February 28, 2005, and are based on net assets. TOP TEN COMMON STOCK HOLDINGS - -------------------------------------------------------------------------------- General Electric Co. 4.9% - -------------------------------------------------------------------------------- Microsoft Corp. 3.5 - -------------------------------------------------------------------------------- Comcast Corp., CI. A Special, Non-Vtg. 3.2 - -------------------------------------------------------------------------------- Exxon Mobil Corp. 2.6 - -------------------------------------------------------------------------------- Citigroup, Inc. 2.3 - -------------------------------------------------------------------------------- Johnson & Johnson 2.3 - -------------------------------------------------------------------------------- International Business Machines Corp. 2.2 - -------------------------------------------------------------------------------- Viacom, Inc., CI. B 2.1 - -------------------------------------------------------------------------------- Medtronic, Inc. 2.1 - -------------------------------------------------------------------------------- Time Warner, Inc. 2.0 Portfolio holdings and allocations are subject to change. Percentages are as of February 28, 2005, and are based on net assets. For more current Fund holdings, please visit www.oppenheimerfunds.com. - -------------------------------------------------------------------------------- 9 | OPPENHEIMER CAPITAL APPRECIATION FUND TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] SECTOR ALLOCATION Information Technology 22.9% Consumer Discretionary 18.7 Health Care 17.1 Industrials 13.7 Financials 11.0 Consumer Staples 6.9 Energy 5.5 Materials 3.0 Telecommunication Services 1.2 Portfolio holdings and allocations are subject to change. Percentages are as of February 28, 2005, and are based on total market value of common stocks. - -------------------------------------------------------------------------------- 10 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES - -------------------------------------------------------------------------------- Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized. The Fund's total returns shown do not reflect the deduction of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. The Fund's investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. CLASS A shares of the Fund were first publicly offered on 1/22/81. Class A returns include the current maximum initial sales charge of 5.75%. CLASS B shares of the Fund were first publicly offered on 11/1/95. Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the "since inception" return for Class B uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.75% asset-based sales charge. CLASS C shares of the Fund were first publicly offered on 12/1/93. Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge. CLASS Y shares of the Fund were first publicly offered on 11/3/97. Class Y shares are offered only to certain institutional investors under special agreements with the Distributor. 11 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES - -------------------------------------------------------------------------------- An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 12 | OPPENHEIMER CAPITAL APPRECIATION FUND FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended February 28, 2005. ACTUAL EXPENSES. The "actual" lines of the table provide information about actual account values and actual expenses. You may use the information on this line for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the "actual" line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions 13 | OPPENHEIMER CAPITAL APPRECIATION FUND FUND EXPENSES - -------------------------------------------------------------------------------- described in the Statement of Additional Information). Therefore, the "hypothetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. - -------------------------------------------------------------------------------- BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (9/1/04) (2/28/05) FEBRUARY 28, 2005 - -------------------------------------------------------------------------------- Class A Actual $ 1,000.00 $ 1,077.70 $ 5.47 - -------------------------------------------------------------------------------- Class A Hypothetical 1,000.00 1,019.54 5.32 - -------------------------------------------------------------------------------- Class B Actual 1,000.00 1,072.90 9.91 - -------------------------------------------------------------------------------- Class B Hypothetical 1,000.00 1,015.27 9.64 - -------------------------------------------------------------------------------- Class C Actual 1,000.00 1,073.40 9.50 - -------------------------------------------------------------------------------- Class C Hypothetical 1,000.00 1,015.67 9.24 - -------------------------------------------------------------------------------- Class N Actual 1,000.00 1,075.80 7.33 - -------------------------------------------------------------------------------- Class N Hypothetical 1,000.00 1,017.75 7.13 - -------------------------------------------------------------------------------- Class Y Actual 1,000.00 1,079.70 3.56 - -------------------------------------------------------------------------------- Class Y Hypothetical 1,000.00 1,021.37 3.46 Hypothetical assumes 5% annual return before expenses. Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended February 28, 2005 are as follows: CLASS EXPENSE RATIOS - -------------------------- Class A 1.06% - -------------------------- Class B 1.92 - -------------------------- Class C 1.84 - -------------------------- Class N 1.42 - -------------------------- Class Y 0.69 The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund's Transfer Agent that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements. - -------------------------------------------------------------------------------- 14 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF INVESTMENTS February 28, 2005 / Unaudited - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMON STOCKS--96.0% - -------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--18.0% - -------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--2.2% Carnival Corp. 1,429,000 $ 77,709,020 - -------------------------------------------------------------------------------- McDonald's Corp. 1,324,900 43,827,692 - -------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd. 1,423,600 67,265,100 -------------- 188,801,812 - -------------------------------------------------------------------------------- MEDIA--11.0% Clear Channel Communications, Inc. 1,918,730 63,855,334 - -------------------------------------------------------------------------------- Comcast Corp., Cl. A Special, Non-Vtg. 1 8,786,125 279,925,943 - -------------------------------------------------------------------------------- News Corp., Inc., Cl. B 5,681,400 97,776,894 - -------------------------------------------------------------------------------- Omnicom Group, Inc. 213,200 19,416,124 - -------------------------------------------------------------------------------- Time Warner, Inc. 1 10,053,500 173,221,805 - -------------------------------------------------------------------------------- Univision Communications, Inc., Cl. A 1 1,911,496 50,444,379 - -------------------------------------------------------------------------------- Viacom, Inc., Cl. B 5,196,400 181,354,360 - -------------------------------------------------------------------------------- Walt Disney Co. (The) 3,156,300 88,187,022 -------------- 954,181,861 - -------------------------------------------------------------------------------- MULTILINE RETAIL--1.9% Federated Department Stores, Inc. 917,100 51,770,295 - -------------------------------------------------------------------------------- J.C. Penney Co., Inc. (Holding Co.) 1,105,500 49,183,695 - -------------------------------------------------------------------------------- Target Corp. 1,223,280 62,167,090 -------------- 163,121,080 - -------------------------------------------------------------------------------- SPECIALTY RETAIL--2.9% Best Buy Co., Inc. 1,181,800 63,840,836 - -------------------------------------------------------------------------------- Gap, Inc. (The) 2,035,900 43,425,747 - -------------------------------------------------------------------------------- Home Depot, Inc. 1,729,400 69,210,588 - -------------------------------------------------------------------------------- Lowe's Cos., Inc. 774,100 45,501,598 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- SPECIALTY RETAIL Continued Williams-Sonoma, Inc. 1 977,000 $ 33,892,130 -------------- 255,870,899 - -------------------------------------------------------------------------------- CONSUMER STAPLES--6.6% - -------------------------------------------------------------------------------- BEVERAGES--2.2% Anheuser-Busch Cos., Inc. 901,200 42,761,940 - -------------------------------------------------------------------------------- PepsiCo, Inc. 2,724,510 146,742,109 -------------- 189,504,049 - -------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--2.4% Costco Wholesale Corp. 997,288 46,463,648 - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 3,109,600 160,486,456 -------------- 206,950,104 - -------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--1.5% Procter & Gamble Co. (The) 2,538,500 134,768,965 - -------------------------------------------------------------------------------- PERSONAL PRODUCTS--0.5% Estee Lauder Cos., Inc. (The), Cl. A 1,014,560 44,620,349 - -------------------------------------------------------------------------------- ENERGY--5.3% - -------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--1.0% Schlumberger Ltd. 1,134,400 85,590,480 - -------------------------------------------------------------------------------- OIL & GAS--4.3% Amerada Hess Corp. 229,800 23,071,920 - -------------------------------------------------------------------------------- Burlington Resources, Inc. 597,300 29,643,999 - -------------------------------------------------------------------------------- Devon Energy Corp. 460,100 21,528,079 - -------------------------------------------------------------------------------- Exxon Mobil Corp. 3,519,600 222,825,876 - -------------------------------------------------------------------------------- Kinder Morgan Management LLC 1,113,348 47,784,896 - -------------------------------------------------------------------------------- Murphy Oil Corp. 303,100 30,322,124 -------------- 375,176,894 - -------------------------------------------------------------------------------- FINANCIALS--10.6% - -------------------------------------------------------------------------------- COMMERCIAL BANKS--0.6% Bank of America Corp. 1,124,900 52,476,585 15 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--8.0% American Express Co. 1,904,840 $ 103,147,086 - -------------------------------------------------------------------------------- Bear Stearns Cos., Inc. (The) 484,700 48,227,650 - -------------------------------------------------------------------------------- Citigroup, Inc. 4,254,400 203,019,968 - -------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 509,600 55,444,480 - -------------------------------------------------------------------------------- JPMorgan Chase & Co. 2,075,120 75,845,636 - -------------------------------------------------------------------------------- MBNA Corp. 1,697,300 43,060,501 - -------------------------------------------------------------------------------- Morgan Stanley 2,947,300 166,434,031 -------------- 695,179,352 - -------------------------------------------------------------------------------- INSURANCE--2.0% American International Group, Inc. 1,658,400 110,781,120 - -------------------------------------------------------------------------------- Prudential Financial, Inc. 1,078,500 61,474,500 -------------- 172,255,620 - -------------------------------------------------------------------------------- HEALTH CARE--16.4% - -------------------------------------------------------------------------------- BIOTECHNOLOGY--3.1% Amgen, Inc. 1 1,852,700 114,144,847 - -------------------------------------------------------------------------------- Applera Corp./ Applied Biosystems Group 606,780 12,463,261 - -------------------------------------------------------------------------------- Genentech, Inc. 1 1,494,800 70,554,560 - -------------------------------------------------------------------------------- Gilead Sciences, Inc. 1 2,010,500 69,462,775 -------------- 266,625,443 - -------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--4.6% Medtronic, Inc. 3,457,795 180,220,275 - -------------------------------------------------------------------------------- Millipore Corp. 1 1,572,600 71,175,876 - -------------------------------------------------------------------------------- PerkinElmer, Inc. 1,793,300 39,775,394 - -------------------------------------------------------------------------------- Stryker Corp. 1,257,000 62,422,620 - -------------------------------------------------------------------------------- Varian Medical Systems, Inc. 1 676,000 24,288,680 - -------------------------------------------------------------------------------- Waters Corp. 1 512,400 25,030,740 -------------- 402,913,585 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--0.4% Laboratory Corp. of America Holdings 1 338,600 $ 16,215,554 - -------------------------------------------------------------------------------- Medco Health Solutions, Inc. 1 102,500 4,553,050 - -------------------------------------------------------------------------------- Pharmaceutical Product Development, Inc. 1 36,390 1,552,034 - -------------------------------------------------------------------------------- Quest Diagnostics, Inc. 92,500 9,194,500 -------------- 31,515,138 - -------------------------------------------------------------------------------- PHARMACEUTICALS--8.3% Abbott Laboratories 1,128,800 51,913,512 - -------------------------------------------------------------------------------- Eli Lilly & Co. 1,432,800 80,236,800 - -------------------------------------------------------------------------------- Johnson & Johnson 3,011,600 197,560,960 - -------------------------------------------------------------------------------- Merck & Co., Inc. 1,747,721 55,402,756 - -------------------------------------------------------------------------------- Novartis AG 2,183,070 109,491,844 - -------------------------------------------------------------------------------- Pfizer, Inc. 4,290,789 112,804,843 - -------------------------------------------------------------------------------- Roche Holdings AG 200,284 21,125,185 - -------------------------------------------------------------------------------- Teva Pharmaceutical Industries Ltd., Sponsored ADR 3,101,950 93,399,715 -------------- 721,935,615 - -------------------------------------------------------------------------------- INDUSTRIALS--13.2% - -------------------------------------------------------------------------------- AEROSPACE & DEFENSE--3.3% Empresa Brasileira de Aeronautica SA, ADR 1,428,400 48,222,784 - -------------------------------------------------------------------------------- Honeywell International, Inc. 1,085,300 41,208,841 - -------------------------------------------------------------------------------- L-3 Communications Holdings, Inc. 560,900 40,440,890 - -------------------------------------------------------------------------------- Lockheed Martin Corp. 1,210,500 71,685,810 - -------------------------------------------------------------------------------- Northrop Grumman Corp. 406,900 21,525,010 - -------------------------------------------------------------------------------- United Technologies Corp. 679,900 67,908,412 -------------- 290,991,747 16 | OPPENHEIMER CAPITAL APPRECIATION FUND VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--1.9% Expeditors International of Washington, Inc. 769,106 $ 42,693,074 - -------------------------------------------------------------------------------- FedEx Corp. 533,400 52,155,852 - -------------------------------------------------------------------------------- United Parcel Service, Inc., Cl. B 931,400 72,174,186 -------------- 167,023,112 - -------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.9% Manpower, Inc. 413,600 18,074,320 - -------------------------------------------------------------------------------- Waste Management, Inc. 2,024,200 59,187,608 -------------- 77,261,928 - -------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--5.9% General Electric Co. 12,207,900 429,718,080 - -------------------------------------------------------------------------------- Tyco International Ltd. 2,380,000 79,682,400 -------------- 509,400,480 - -------------------------------------------------------------------------------- MACHINERY--1.2% Ingersoll-Rand Co., Cl. A 806,600 67,956,050 - -------------------------------------------------------------------------------- Parker-Hannifin Corp. 499,600 32,873,680 -------------- 100,829,730 - -------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--21.9% - -------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--3.7% Cisco Systems, Inc. 1 9,057,040 157,773,637 - -------------------------------------------------------------------------------- Lucent Technologies, Inc. 1 9,054,500 27,797,315 - -------------------------------------------------------------------------------- Motorola, Inc. 3,087,800 48,354,948 - -------------------------------------------------------------------------------- Nokia Corp., Sponsored ADR 4,453,100 71,873,034 - -------------------------------------------------------------------------------- Telefonaktiebolaget LM Ericsson, Sponsored ADR 1 424,900 12,453,819 -------------- 318,252,753 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--3.7% Dell, Inc. 1 2,081,700 $ 83,455,353 - -------------------------------------------------------------------------------- EMC Corp. 1 1,086,700 13,757,622 - -------------------------------------------------------------------------------- International Business Machines Corp. 2,071,200 191,751,696 - -------------------------------------------------------------------------------- Sun Microsystems, Inc. 1 6,948,900 29,324,358 -------------- 318,289,029 - -------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--1.5% Agilent Technologies, Inc. 1 2,147,500 51,540,000 - -------------------------------------------------------------------------------- Ingram Micro, Inc., Cl. A 1 1,834,200 32,868,864 - -------------------------------------------------------------------------------- Tektronix, Inc. 1,536,500 44,435,580 -------------- 128,844,444 - -------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.3% VeriSign, Inc. 1 454,600 12,465,132 - -------------------------------------------------------------------------------- Yahoo!, Inc. 1 3,156,200 101,850,574 -------------- 114,315,706 - -------------------------------------------------------------------------------- IT SERVICES--0.2% Accenture Ltd., Cl. A 1 870,800 22,248,940 - -------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.2% Altera Corp. 1 658,300 13,653,142 - -------------------------------------------------------------------------------- Analog Devices, Inc. 1,105,640 40,599,101 - -------------------------------------------------------------------------------- Broadcom Corp., Cl. A 1 2,390,300 77,087,175 - -------------------------------------------------------------------------------- Fairchild Semiconductor International, Inc., Cl. A 1 492,000 8,127,840 - -------------------------------------------------------------------------------- Intel Corp. 6,613,640 158,595,087 - -------------------------------------------------------------------------------- Texas Instruments, Inc. 2,616,500 69,258,755 -------------- 367,321,100 - -------------------------------------------------------------------------------- SOFTWARE--7.3% Adobe Systems, Inc. 1,332,434 82,277,800 - -------------------------------------------------------------------------------- Autodesk, Inc. 936,900 27,844,668 17 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- SOFTWARE Continued Cadence Design Systems, Inc. 1 2,081,700 $ 28,685,826 - -------------------------------------------------------------------------------- Citrix Systems, Inc. 1 1,729,180 38,906,550 - -------------------------------------------------------------------------------- Mercury Interactive Corp. 1 1,088,100 49,922,028 - -------------------------------------------------------------------------------- Microsoft Corp. 12,223,511 307,788,007 - -------------------------------------------------------------------------------- Novell, Inc. 1 1,416,900 7,424,556 - -------------------------------------------------------------------------------- SAP AG, Sponsored ADR 2,268,700 91,995,784 -------------- 634,845,219 - -------------------------------------------------------------------------------- MATERIALS--2.9% - -------------------------------------------------------------------------------- CHEMICALS--2.9% Air Products & Chemicals, Inc. 1,136,600 71,173,892 - -------------------------------------------------------------------------------- E.I. DuPont de Nemours & Co. 1,702,500 90,743,250 - -------------------------------------------------------------------------------- Praxair, Inc. 2,002,100 89,754,143 -------------- 251,671,285 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--1.1% - -------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--1.1% Sprint Corp. 2,194,200 51,958,656 - -------------------------------------------------------------------------------- Telefonos de Mexico SA de CV, Sponsored ADR 1,130,800 44,338,668 -------------- 96,297,324 -------------- Total Common Stocks (Cost $7,687,899,616) 8,339,080,628 UNITS - -------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - -------------------------------------------------------------------------------- Lucent Technologies, Inc. Wts., Exp. 12/10/07 1 (Cost $0) 257,278 228,977 PRINCIPAL AMOUNT - -------------------------------------------------------------------------------- SHORT-TERM NOTES--2.6% - -------------------------------------------------------------------------------- Barton Capital Corp., 2.60%, 3/1/05 2 $ 42,243,000 42,243,000 - -------------------------------------------------------------------------------- Gemini Securitization Corp., 2.60%, 3/29/05 2 25,000,000 24,949,444 PRINCIPAL VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------- SHORT-TERM NOTES Continued - -------------------------------------------------------------------------------- Old Line Funding Corp.: 2.43%, 3/2/05 2 $ 5,624,000 $ 5,623,620 2.46%, 3/4/05 2 30,239,000 30,232,801 - -------------------------------------------------------------------------------- Sheffield Receivables Corp., 2.61%, 3/28/05 2 50,000,000 49,902,125 - -------------------------------------------------------------------------------- Windmill Funding Corp.: 2.46%, 3/3/05 2 50,000,000 49,993,167 2.60%, 3/1/05 2 25,000,000 25,000,000 -------------- Total Short-Term Notes (Cost $227,944,157) 227,944,157 - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--1.3% - -------------------------------------------------------------------------------- Undivided interest of 26.79% in joint repurchase agreement (Principal Amount/ Value $400,778,000, with a maturity value of $400,806,722) with DB Alex Brown LLC, 2.58%, dated 2/28/05, to be repurchased at $107,364,694 on 3/1/05, collateralized by U.S. Treasury Bonds, 2.25%, 2/15/07, with a value of $199,398,266 and U.S. Treasury Nts., 4.875%, 2/15/12, with a value of $209,440,000 (Cost $107,357,000) 107,357,000 107,357,000 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $8,023,200,773) 99.9% 8,674,610,762 - -------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 0.1 9,648,558 ------------------------------ NET ASSETS 100.0% $8,684,259,320 ============================== FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $227,944,157, or 2.62% of the Fund's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 18 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
February 28, 2005 - ---------------------------------------------------------------------------------------------------------- ASSETS - ---------------------------------------------------------------------------------------------------------- Investments, at value (cost $8,023,200,773)--see accompanying statement of investments $ 8,674,610,762 - ---------------------------------------------------------------------------------------------------------- Cash 1,545,344 - ---------------------------------------------------------------------------------------------------------- Receivables and other assets: Shares of beneficial interest sold 13,086,103 Interest and dividends 12,398,398 Investments sold 8,809,451 Other 207,564 ---------------- Total assets 8,710,657,622 - ---------------------------------------------------------------------------------------------------------- LIABILITIES - ---------------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 14,436,625 Investments purchased 5,154,883 Distribution and service plan fees 3,004,535 Transfer and shareholder servicing agent fees 1,700,642 Trustees' compensation 1,215,118 Shareholder communications 746,055 Other 140,444 ---------------- Total liabilities 26,398,302 - ---------------------------------------------------------------------------------------------------------- NET ASSETS $ 8,684,259,320 ================ - ---------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ---------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 217,849 - ---------------------------------------------------------------------------------------------------------- Additional paid-in capital 8,547,189,688 - ---------------------------------------------------------------------------------------------------------- Accumulated net investment income 42,963,046 - ---------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (557,535,435) - ---------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 651,424,172 ---------------- NET ASSETS $ 8,684,259,320 ================
19 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued - -------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ---------------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $5,596,110,827 and 138,208,253 shares of beneficial interest outstanding) $ 40.49 Maximum offering price per share (net asset value plus sales charge of 5.75%of offering price) $ 42.96 - ---------------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,122,586,543 and 30,043,851 shares of beneficial interest outstanding) $ 37.36 - ---------------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $688,963,812 and 18,619,107 shares of beneficial interest outstanding) $ 37.00 - ---------------------------------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $220,572,761 and 5,509,658 shares of beneficial interest outstanding) $ 40.03 - ---------------------------------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,056,025,377 and 25,468,805 shares of beneficial interest outstanding) $ 41.46
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 20 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF OPERATIONS Unaudited - -------------------------------------------------------------------------------- For the Six Months Ended February 28, 2005 - -------------------------------------------------------------------------------- INVESTMENT INCOME - -------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $248,475) $ 92,730,636 - -------------------------------------------------------------------------------- Interest 3,702,364 --------------- Total investment income 96,433,000 - -------------------------------------------------------------------------------- EXPENSES - -------------------------------------------------------------------------------- Management fees 24,801,011 - -------------------------------------------------------------------------------- Distribution and service plan fees: Class A 6,693,968 Class B 5,584,584 Class C 3,335,168 Class N 513,352 - -------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 6,657,734 Class B 1,787,443 Class C 829,834 Class N 364,152 Class Y 816,243 - -------------------------------------------------------------------------------- Shareholder communications: Class A 331,372 Class B 251,576 Class C 78,436 Class N 6,599 - -------------------------------------------------------------------------------- Trustees' compensation 174,557 - -------------------------------------------------------------------------------- Custodian fees and expenses 65,918 - -------------------------------------------------------------------------------- Other 91,851 --------------- Total expenses 52,383,798 Less reduction to custodian expenses (11,691) Less payments and waivers of expenses (42,529) --------------- Net expenses 52,329,578 - -------------------------------------------------------------------------------- NET INVESTMENT INCOME 44,103,422 21 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENT OF OPERATIONS Unaudited / Continued - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN - -------------------------------------------------------------------------------- Net realized gain on: Investments $ 208,869,146 Foreign currency transactions 6,736,042 --------------- Net realized gain 215,605,188 - -------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments 411,947,584 Translation of assets and liabilities denominated in foreign currencies 6,149,417 --------------- Net change in unrealized appreciation 418,097,001 - -------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 677,805,611 =============== SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 22 | OPPENHEIMER CAPITAL APPRECIATION FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, (UNAUDITED) 2004 - --------------------------------------------------------------------------------------------------------------- OPERATIONS - --------------------------------------------------------------------------------------------------------------- Net investment income (loss) $ 44,103,422 $ (3,605,969) - --------------------------------------------------------------------------------------------------------------- Net realized gain 215,605,188 304,533,281 - --------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 418,097,001 116,017,058 ------------------------------------ Net increase in net assets resulting from operations 677,805,611 416,944,370 - --------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - --------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A (38,902,675) 678,678,523 Class B (61,140,793) (70,119,032) Class C 3,179,203 71,136,610 Class N 14,923,866 74,734,764 Class Y (455,353,347) 166,178,783 - --------------------------------------------------------------------------------------------------------------- NET ASSETS - --------------------------------------------------------------------------------------------------------------- Total increase 140,511,865 1,337,554,018 - --------------------------------------------------------------------------------------------------------------- Beginning of period 8,543,747,455 7,206,193,437 ------------------------------------ End of period (including accumulated net investment income (loss) of $42,963,046 and $(1,140,376), respectively) $ 8,684,259,320 $ 8,543,747,455 ====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 | OPPENHEIMER CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, CLASS A (UNAUDITED) 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 37.57 $ 35.39 $ 30.72 $ 41.11 $ 62.12 $ 44.73 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .22 1 .01 (.05) (.09) .10 (.02) Net realized and unrealized gain (loss) 2.70 2.17 4.72 (9.31) (15.86) 20.63 ----------------------------------------------------------------------------------------- Total from investment operations 2.92 2.18 4.67 (9.40) (15.76) 20.61 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- (.99) (5.25) (3.22) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 40.49 $ 37.57 $ 35.39 $ 30.72 $ 41.11 $ 62.12 ========================================================================================= - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 7.77% 6.16% 15.20% (23.48)% (26.38)% 48.01% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $5,596,111 $5,218,310 $4,288,332 $3,219,391 $ 3,055,197 $ 3,648,961 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $5,566,901 $4,971,315 $3,655,594 $3,204,793 $ 3,255,995 $ 2,898,088 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) 1.11% 0.09% (0.11)% (0.15)% 0.28% 0.00% Total expenses 1.06% 4 1.09% 4,5 1.17% 4 1.22% 4,5 1.03% 4 1.06% 4 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 20% 45% 42% 28% 46% 44%
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. 24 | OPPENHEIMER CAPITAL APPRECIATION FUND
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, CLASS B (UNAUDITED) 2004 2003 2002 2001 2000 - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 34.82 $ 33.09 $ 28.95 $ 39.09 $ 59.80 $ 43.48 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .04 1 (.36) (.31) (.26) (.07) (.20) Net realized and unrealized gain (loss) 2.50 2.09 4.45 (8.89) (15.39) 19.74 ---------------------------------------------------------------------------------------- Total from investment operations 2.54 1.73 4.14 (9.15) (15.46) 19.54 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- (.99) (5.25) (3.22) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 37.36 $ 34.82 $ 33.09 $ 28.95 $ 39.09 $ 59.80 ======================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 7.29% 5.23% 14.30% (24.07)% (26.95)% 46.88% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $1,122,586 $1,104,348 $1,114,052 $1,029,322 $ 1,242,098 $ 1,333,387 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $1,129,597 $1,169,402 $1,001,311 $1,221,005 $ 1,265,753 $ 922,480 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income (loss) 0.24% (0.81)% (0.89)% (0.92)% (0.48)% (0.76)% Total expenses 1.93% 1.99% 2.10% 1.99% 1.80% 1.83% Expenses after payments and waivers and reduction to custodian expenses 1.92% 1.97% 1.96% N/A 4,5 N/A 4 N/A 4 - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 20% 45% 42% 28% 46% 44%
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. 25 | OPPENHEIMER CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, CLASS C (UNAUDITED) 2004 2003 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 34.47 $ 32.72 $ 28.63 $ 38.64 $ 59.19 $ 43.06 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .06 1 (.16) (.23) (.11) (.01) (.18) Net realized and unrealized gain (loss) 2.47 1.91 4.32 (8.91) (15.29) 19.53 ----------------------------------------------------------------------------------------- Total from investment operations 2.53 1.75 4.09 (9.02) (15.30) 19.35 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- (.99) (5.25) (3.22) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 37.00 $ 34.47 $ 32.72 $ 28.63 $ 38.64 $ 59.19 ========================================================================================= - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 7.34% 5.35% 14.28% (24.01)% (26.95)% 46.89% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 688,964 $ 638,676 $ 540,118 $ 450,989 $ 426,476 $ 402,442 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 674,471 $ 623,172 $ 463,768 $ 477,369 $ 400,009 $ 278,800 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income (loss) 0.33% (0.69)% (0.89)% (0.87)% (0.48)% (0.76)% Total expenses 1.84% 4 1.87% 4,5 1.96% 4 1.94% 4,5 1.80% 4 1.83% 4 - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 20% 45% 42% 28% 46% 44%
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. 26 | OPPENHEIMER CAPITAL APPRECIATION FUND
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, CLASS N (UNAUDITED) 2004 2003 2002 2001 1 - --------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - --------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 37.21 $ 35.17 $ 30.60 $ 41.05 $ 45.58 - --------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .15 2 (.08) (.10) (.07) 2 (.01) Net realized and unrealized gain (loss) 2.67 2.12 4.67 (9.39) 2 (4.52) ------------------------------------------------------------------------- Total from investment operations 2.82 2.04 4.57 (9.46) (4.53) - --------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- (.99) -- - --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 40.03 $ 37.21 $ 35.17 $ 30.60 $ 41.05 ========================================================================= - --------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 7.58% 5.80% 14.94% (23.67)% (9.94)% - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - --------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 220,573 $ 190,696 $ 111,374 $ 72,178 $ 6,791 - --------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 207,718 $ 154,605 $ 86,761 $ 38,232 $ 3,173 - --------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income (loss) 0.75% (0.25)% (0.35)% (0.37)% (0.11)% Total expenses 1.43% 1.46% 1.46% 1.46% 1.36% Expenses after payments and waivers and reduction to custodian expenses 1.42% 1.44% 1.42% N/A 5,6 N/A 5 - --------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 20% 45% 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. 27 | OPPENHEIMER CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2005 AUGUST 31, CLASS Y (UNAUDITED) 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 38.40 $ 36.04 $ 31.16 $ 41.55 $ 62.51 $ 44.81 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .31 1 .09 .01 .02 1 .27 .13 Net realized and unrealized gain (loss) 2.75 2.27 4.87 (9.42) 1 (15.98) 20.79 ------------------------------------------------------------------------------------------ Total from investment operations 3.06 2.36 4.88 (9.40) (15.71) 20.92 - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- -- (.99) (5.25) (3.22) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 41.46 $ 38.40 $ 36.04 $ 31.16 $ 41.55 $ 62.51 ========================================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 7.97% 6.55% 15.66% (23.23)% (26.12)% 48.64% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $1,056,025 $1,391,718 $1,152,318 $ 864,437 $ 974,820 $ 1,295,087 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $1,335,424 $1,327,404 $ 930,500 $ 968,867 $ 1,095,575 $ 855,270 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 1.55% 0.47% 0.29% 0.17% 0.66% 0.45% Total expenses 0.69% 4 0.71% 4 0.78% 4,5 0.89% 4 0.66% 4 0.64% 4 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 20% 45% 42% 28% 46% 44%
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. 28 | 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, however, the institutional investor may impose charges on those accounts. 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 due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class 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. The Fund calculates the net asset value of its shares as of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. 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. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities will be valued at the mean between the "bid" and "asked" prices. 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. Foreign and domestic 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 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 29 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Foreign exchange rates may be valued primarily using dealer supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. 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. 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. 30 | OPPENHEIMER CAPITAL APPRECIATION FUND Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. As of February 28, 2005, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $517,556,145 expiring by 2013. 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. As of February 28, 2005, it is estimated that the Fund will utilize $215,605,188 of capital loss carryforward to offset realized capital gains. During the year ended August 31, 2004, the Fund did not utilize any capital loss carryforward to offset realized capital gains. As of August 31, 2004, the Fund had available for federal income tax purposes and unused capital loss carryforwards as follows: EXPIRING ------------------------ 2010 $ 61,636,235 2011 374,938,776 2012 296,586,322 --------------- Total $ 733,161,333 =============== - -------------------------------------------------------------------------------- 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 28, 2005, the Fund's projected benefit obligations were increased by $51,093 and payments of $68,159 were made to retired trustees, resulting in an accumulated liability of $1,001,055 as of February 28, 2005. 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. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. 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. 31 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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. - -------------------------------------------------------------------------------- CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts at a rate equal to the Federal Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED FEBRUARY 28, 2005 YEAR ENDED AUGUST 31, 2004 SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------- CLASS A Sold 22,572,398 $ 893,127,329 44,049,927 $ 1,683,774,151 Redeemed (23,259,284) (932,030,004) (26,327,315) (1,005,095,628) -------------------------------------------------------------- Net increase (decrease) (686,886) $ (38,902,675) 17,722,612 $ 678,678,523 ==============================================================
32 | OPPENHEIMER CAPITAL APPRECIATION FUND
SIX MONTHS ENDED FEBRUARY 28, 2005 YEAR ENDED AUGUST 31, 2004 SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------- CLASS B Sold 2,437,828 $ 89,274,372 6,370,743 $ 226,256,788 Redeemed (4,111,694) (150,415,165) (8,319,344) (296,375,820) -------------------------------------------------------------- Net decrease (1,673,866) $ (61,140,793) (1,948,601) $ (70,119,032) ============================================================== - -------------------------------------------------------------------------------------------- CLASS C Sold 2,394,720 $ 86,911,397 5,516,439 $ 193,981,052 Redeemed (2,306,223) (83,732,194) (3,492,729) (122,844,442) -------------------------------------------------------------- Net increase 88,497 $ 3,179,203 2,023,710 $ 71,136,610 ============================================================== - -------------------------------------------------------------------------------------------- CLASS N Sold 1,541,229 $ 60,629,602 3,052,463 $ 116,239,098 Redeemed (1,156,257) (45,705,736) (1,094,111) (41,504,334) -------------------------------------------------------------- Net increase 384,972 $ 14,923,866 1,958,352 $ 74,734,764 ============================================================== - -------------------------------------------------------------------------------------------- CLASS Y Sold 3,800,003 $ 153,873,824 9,392,719 $ 365,551,482 Redeemed (14,572,778) (609,227,171) (5,128,257) (199,372,699) -------------------------------------------------------------- Net increase (decrease) (10,772,775) $ (455,353,347) 4,264,462 $ 166,178,783 ==============================================================
- -------------------------------------------------------------------------------- 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 28, 2005, were $1,710,978,524 and $2,216,605,524, respectively. - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee at an annual rate of 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. - -------------------------------------------------------------------------------- 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 28, 2005, the Fund paid $10,513,419 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $10,000 per annum 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. 33 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued 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 all of those fees to pay dealers, brokers, banks and other financial institutions quarterly for providing personal services and maintenance of accounts of their customers that 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 those 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 and 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 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 28, 2005 for Class B, Class C and Class N shares were $18,623,725, $9,198,160 and $2,314,318, 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 28, 2005 $ 1,337,260 $ 32,050 $ 1,187,661 $ 63,889 $ 91,400
34 | OPPENHEIMER CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. During the six months ended February 28, 2005, OFS waived $32,049 and $10,480 for Class B and Class N shares, respectively. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- 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 28, 2005, the Fund had no outstanding foreign currency contracts. - -------------------------------------------------------------------------------- 6. LITIGATION A consolidated amended complaint has been filed as putative derivative and class actions against the Manager, OFS and the Distributor (collectively, the "Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal Defendants") including the Fund, 30 present and former Directors or Trustees and 8 present and former officers of the funds. This complaint, initially filed in the U.S. District Court for the Southern District of New York on January 10, 2005 and amended on March 4, 2005, consolidates into a single action and amends six individual previously-filed putative derivative and class action complaints. Like those prior complaints, the complaint alleges that the Manager charged excessive fees for distribution and other costs, improperly used assets of the funds in the form of directed brokerage commissions and 12b-1 fees to pay brokers to promote sales of the funds, and failed to properly disclose the use of assets of the funds to make those payments in violation of the Investment Company Act of 1940 and the Investment Advisers Act of 1940. Also, like those prior complaints, the complaint further alleges that by permitting and/or participating in those actions, the Directors/Trustees and the Officers breached their fiduciary duties to shareholders of the funds under the Investment Company Act of 1940 and at common law. The complaint seeks unspecified compensatory and punitive damages, rescission of the funds' investment advisory 35 | OPPENHEIMER CAPITAL APPRECIATION FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. LITIGATION Continued agreements, an accounting of all fees paid, and an award of attorneys' fees and litigation expenses. The Oppenheimer defendants believe that the allegations contained in the Complaints are without merit and that they, the funds named as Nominal Defendants, and the Directors/Trustees of those funds have meritorious defenses against the claims asserted. The Oppenheimer defendants intend to defend these lawsuits vigorously and to contest any claimed liability. The Oppenheimer defendants believe that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them and that no estimate can yet be made with any degree of certainty as to the amount or range of any potential loss. 36 | OPPENHEIMER CAPITAL APPRECIATION FUND PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS 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 1.800.525.7048, (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 is required to file 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 Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 37 | OPPENHEIMER CAPITAL APPRECIATION FUND ITEM 2. CODE OF ETHICS Not applicable to semiannual reports. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT Not applicable to semiannual reports. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not applicable to semiannual reports. ITEM 5. NOT APPLICABLE ITEM 6. SCHEDULE OF INVESTMENTS Not applicable ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES Not applicable. ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable. ITEM 10. 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 11. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of February 28, 2005, 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 changes in registrant's internal controls over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT APPLICABLE TO SEMIANNUAL REPORTS) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Oppenheimer Capital Appreciation Fund By: ____________________________ John V. Murphy Chief Executive Officer Date: April 11, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: ____________________________ John V. Murphy Chief Executive Officer Date: April 11, 2005 By: ____________________________ Brian W. Wixted Chief Financial Officer Date: April 11, 2005 EX-99.CERT 2 rs320_15520ex99cert.txt RS320_15520EX99CERT.TXT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, JOHN V. MURPHY, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) 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 d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting 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: April 11, 2005 ---------------------------- 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) 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 d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting 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: April 11, 2005 ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 3 rs320_15520ex906cert.txt RS320_15520EX906CERT.TXT EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 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 28, 2005 (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 - -------------------------------------- ------------------------------------- John V. Murphy Brian W. Wixted Date: April 11, 2005 Date: April 11, 2005 -----END PRIVACY-ENHANCED MESSAGE-----