-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, kTazm7IPQTm+RJTeTohs83GYecQw8i/UV1P52SkpMP227p+jvDotWI0qb6aUioYW UDXBZ2FPM3G/lC9ra3pTTw== 0000950146-95-000073.txt : 19950612 0000950146-95-000073.hdr.sgml : 19950612 ACCESSION NUMBER: 0000950146-95-000073 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950307 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER TARGET FUND CENTRAL INDEX KEY: 0000319767 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133054122 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03105 FILM NUMBER: 95518954 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CTR SUITE 3400 CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2123230200 MAIL ADDRESS: STREET 1: 2 WORLD TRADE CENTER 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER TARGET FUND INC DATE OF NAME CHANGE: 19870616 N-30D 1 TARGET FUND ANNUAL REPORT Oppenheimer Target Fund Annual Report December 31, 1994 [photo depicting couple building new home] "We have some important financial goals, so we want our investment to increase in value over time." [logo] OppenheimerFunds(R) This Fund is for people who want the potential for solid investment growth over the long term. How Your Fund Is Managed Oppenheimer Target Fund seeks long-term growth by investing in the stocks of companies that the Fund's managers believe have excellent growth potential and are worth more than they cost. So the Fund's shareholders get the potential for long-term appreciation. In today's stock market, the Fund's managers are targeting consumer and industrial companies with strong earnings momentum, as well as companies that have excellent prospects in technology growth areas, such as computer software and networking. The Fund also invests in U.S.-based companies that are believed to have superior growth potential because their products or services are in high demand in foreign countries. Performance Total return at net asset value for the 12 months ended 12/31/94 was 0.46% for Class A shares and -0.50% for Class C shares.(1) The financial markets had a difficult year and, like many mutual funds, your Fund felt the effects. While difficult years are hard to accept, they're an inevitable part of investing. That's why keeping a long-term perspective is crucial to getting the most from your investment and helping you through short-term market fluctuations. Your Fund's average annual total returns at maximum offering price for Class A shares for the 1-, 5-, and 10-year periods ended 12/31/94 and since inception of the Class on 1/22/81 were -5.32%, 8.46%, 10.49% and 15.51%, respectively. For Class C shares, average annual total returns for the 1-year period ended 12/31/94 and since inception of the Class on 12/1/93 were -1.38% and -1.17%, respectively.(3) News Outperformed Average Total Return for the Year Ended 12/31/94: Oppenheimer Target Fund Class A (at NAV)(1) 0.46% Lipper Capital Appreciation Funds Average(2) -3.43% Outlook "In today's challenging markets, we're taking a more cautious approach to portfolio management. There's no easy money to be made, and we're positioning the portfolio more defensively. We're still looking for stocks trading at attractive prices, with exciting earnings potential." Robert Doll, Portfolio Manager December 31, 1994 1. Based on the change in net asset value per share from 12/31/93 to 12/31/94, without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. 2. Source: Lipper Analytical Services. The Lipper total return average for the year ended 12/31/94 was for 141 capital appreciation funds. The average is shown for comparative purposes only. Oppenheimer Target Fund is characterized by Lipper as a capital appreciation fund. Lipper performance does not take sales charges into consideration. 3. Average annual total returns are based on a hypothetical investment held until 12/31/94, after deducting the current maximum initial sales charge of 5.75% for Class A shares. The Fund's maximum sales charge rate for Class A shares was higher during a portion of some of the periods shown, and actual investment results will be different as a result of the change. Total return for Class C shares was based on a hypothetical investment held for that period, after deducting the 1% contingent deferred sales charge for the 1-year calculation. Class A and Class C shares were first publicly offered on 1/22/81 and 12/1/93, respectively. All figures assume reinvestment of dividends and capital gains distributions. Past performance is not indicative of future results. Investment and principal value on an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. 2 Oppenheimer Target Fund Dear OppenheimerFunds Shareholder, The past year has been a difficult period for the stock market, one marked above all by one of the most aggressive series of moves to raise interest rates in the U.S. Federal Reserve's history. As interest rates moved up, bond prices fell and the stock market followed, while investors looked everywhere for answers to questions about directions in inflation, interest rates, and the economy. These questions all concerned one basic issue: Is the bull market in stocks coming to an end? In our view, it is not. While we are not expecting major gains in stock prices in the very near term, we believe that the uncertainties which held the market back in 1994 will recede in 1995 as the fundamental positives in the economy are recognized. The most important of these positives is our belief that the Fed's attempt to preempt possible inflation, while temporarily disconcerting, will likely have its desired effect in 1995. We believe that the economy will begin to slow, and although short-term rates may move up modestly from their present levels, long-term interest rates--the ones that most affect securities prices--should stabilize in their current range. Long-term rates may even begin to decline as overblown concerns about inflation abate. Those concerns are, in fact, already fading. While the prices of some commodities have risen over the past year and U.S. manufacturing capacity utilization and employment rose to their highest levels in years, in today's globally competitive environment, price increases are difficult to pass on to either consumers or businesses. The inflation rate--as measured by the Consumer Price Index--continues to run at less than 3% a year, and there's nothing on the horizon to suggest to us that it will increase substantially anytime soon. Even at their current levels, interest rates remain low relative to recent periods, and in our view, pose no real threat to most companies' earnings or cash flows. During the most recent recession, many businesses learned to operate much more efficiently and took advantage of the extended decline in interest rates to work down their debt loads and strengthen their financial positions. As a result, corporate profits have soared despite higher interest rates. And we believe that business earnings should grow even more as economies in Europe and elsewhere emerge from their recessions, stimulating demand for U.S. companies' goods and services. As profits rise, we expect stocks to become more valuable. Finally, the changing political landscape reflected in results of the mid-term election bodes well for the stock market over time. In addition to limiting the expectation that Congress will pass potentially inflationary government spending proposals, the realignment in Washington has raised the possibility of tax relief in the form of an expanded deduction for individual retirement savings or possibly a reduction in the capital gains tax rate. What specific action, if any, Congress will take on these proposals remains to be seen. But any action to reduce the federal deficit, cut spending, and reduce taxes should be good news for the stock market overall. In light of all these factors, we remain bullish on stocks. As we have noted in previous reports, we're expecting moderate gains in the short-term, in line with increasing corporate earnings. Over time, however, we expect stocks to perform well in both the U.S. and foreign markets. Your portfolio manager discusses the outlook for your Fund on the following pages. We appreciate your confidence, and we look forward to helping you continue to reach your investment goals. Donald W. Spiro President Oppenheimer Target Fund Jon S. Fossel Chairman and CEO Oppenheimer Management Corporation Donald W. Spiro Jon S. Fossel January 23, 1995 3 Oppenheimer Target Fund Q + A An interview with your Fund's manager. The past year was challenging for stocks and stock market funds, yet Target Fund's performance was relatively good. What factors contributed to the Fund's performance? The most important factor in our performance has been the moves we've made to position the portfolio more defensively. In the first six months of the year, we moved out of cyclical stocks and concentrated on financial, technology, and healthcare issues--an approach that was rewarded. Over the last six months, we've concentrated more on consumer and industrial companies with strong earnings power, and moved out of financial and healthcare issues. We're looking for more than just attractive valuations. We're also looking for proven earnings power. And we've increased the Fund's cash position to its highest level in more than four years. How has this defensive strategy affected your day-to-day management of the Fund? In general, we're slower to buy and quicker to sell. We're extremely price-sensitive; we don't want to overpay for any stock. And we're ready to sell any stock that doesn't perform at or above our expectations. In today's markets, this kind of caution is not only warranted, it's the key to good investment performance. Where are you finding the best values today? In consumer cyclicals, we recently bought Brunswick, a well-diversified recreation company positioned to profit from the pickup in power boat and engine sales. On the industrial side, we recently added Georgia Gulf, a well-positioned chemical company. I could add to the list, but those names suggest our general buying emphasis on companies with good near-term profit outlooks that are selling at relatively low prices.(1) Q Why do you adopt a contrarian approach? 1. The Fund's portfolio is subject to change. 4 Oppenheimer Target Fund Aren't companies like these somewhat out of favor? They are, and this contrarian approach is something that sets the Fund apart. We try not to jump on market bandwagons; if you do that, you're almost sure to buy too late and hold too long. Instead, we analyze the companies whose stocks we buy carefully, and try to buy before the market recognizes their potential. How are you funding those purchases? Mainly by selling stocks in the financial and healthcare sectors where we can do so at a profit. We recently sold USF&G, a property and casualty insurer. And we've been reducing our healthcare exposures throughout the year. We still have significant positions in those sectors, but they're much lower than they were a year ago. The international stock markets seem to be primed for strong growth. Is the Fund positioned to participate? While this Fund doesn't invest much of its assets in foreign companies, we do have significant holdings in companies that derive a third to a half of their earnings from sales outside the U.S., which covers a wide range of companies and sectors. Our largest holdings are technology stocks, such as Microsoft, Intel, Compaq, General Electric, Seagate Technologies, and Cabletron Systems. How do you expect to manage the Fund going forward? In the near term, we'll continue to be defensive and maintain our cash position until the markets stabilize. As the business cycle advances, we'll look for stocks with lower valuations. Depending on developments, we may trim our technology positions in favor of more defensive stocks, such as utility and energy issues. These aren't promises or predictions, of course, but they are definitely things we're thinking about. Facing page Top left: Robert Doll, Portfolio Manager and Executive VP, Director of Equity Investments, with his assistant, Pat Andrzejewski Top right: Christina Raulli, Associate International Trader Bottom left: Mark Binning, Securities Coordinator, consults with Lawrence Apolito, VP Equity Trading This page Top: Robert Doll Bottom: The equity trading desk A We try not to jump on market bandwagons; if you do, you're almost sure to buy too late and hold too long. 5 Oppenheimer Target Fund
------------------------------------------------------------------------------------------------------ Statement of Investments December 31, 1994 ------------------------------------------------------------------------------------------------------ Face Market Value Amount See Note 1 - ------------------------------------------------------------------------------------------------------------------------------------ Repurchase Agreements--21.9% Repurchase agreement with First Chicago Capital Markets, 6%, dated 12/30/94, to be repurchased at $66,444,267 on 1/3/95, collateralized by U.S. Treasury Nts., 3.875%--8.875%, 5/31/95--8/31/05, with a value of $63,145,634 and U.S. Treasury Bonds, 10.75%--14.25%, 2/15/02--8/15/05, with a value of $4,638,710 (Cost $66,400,000) $66,400,000 $66,400,000 Shares =================================================================================================================================== Common Stocks--78.2% - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials--2.1% - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals--1.0% Georgia Gulf Corp.(1) 75,000 2,915,625 - ----------------------------------------------------------------------------------------------------------------------------------- Steel--1.1% LTV Corp.(1) 215,000 3,493,750 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals--10.2% - ----------------------------------------------------------------------------------------------------------------------------------- Auto Parts: After Market-0.4% Goodyear Tire & Rubber Co. 40,000 1,345,000 - ----------------------------------------------------------------------------------------------------------------------------------- Broadcast Media--0.6% Multimedia, Inc.(1) 62,500 1,781,250 - ----------------------------------------------------------------------------------------------------------------------------------- Entertainment--0.4% WMS Industries, Inc.(1) 65,000 1,218,750 - ----------------------------------------------------------------------------------------------------------------------------------- Leisure Time--3.1% Acclaim Entertainment, Inc.(1) 25,000 359,375 ----------------------------------------------------------------------------------------------------- Brunswick Corp. 275,000 5,190,625 ----------------------------------------------------------------------------------------------------- Harley-Davidson, Inc. 80,000 2,240,000 ----------------------------------------------------------------------------------------------------- Outboard Marine Corp. 75,000 1,471,875 ------------ 9,261,875 - ----------------------------------------------------------------------------------------------------------------------------------- Restaurants--0.4% Shoney's, Inc.(1) 95,000 1,211,250 - ----------------------------------------------------------------------------------------------------------------------------------- Retail Stores: Bradlees, Inc. 10,000 116,250 ----------------------------------------------------------------------------------------------------- Department Stores--0.5% Dollar General Corp. 50,000 1,500,000 ------------ 1,616,250 - ----------------------------------------------------------------------------------------------------------------------------------- Retail Stores: General Waban, Inc.(1) 90,000 1,597,500 ----------------------------------------------------------------------------------------------------- Merchandise Chains--1.8% Wal-Mart Stores, Inc. 185,000 3,931,250 ------------ 5,528,750 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty--2.0% Home Depot, Inc. (The) 30,000 1,380,000 ----------------------------------------------------------------------------------------------------- Intelligent Electronics, Inc. 73,200 585,600 ----------------------------------------------------------------------------------------------------- Michaels Stores, Inc.(1) 82,900 2,880,775 ----------------------------------------------------------------------------------------------------- Toys 'R' Us, Inc.(1) 40,000 1,220,000 ------------ 6,066,375 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty Apparel--0.7% Gap, Inc. (The) 65,000 1,982,500 - ----------------------------------------------------------------------------------------------------------------------------------- Toys--0.3% Mattel, Inc. 30,000 753,750 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals--19.5% - ----------------------------------------------------------------------------------------------------------------------------------- Beverages: Soft Drinks--2.3% Coca-Cola Co. (The) 100,000 5,150,000 ----------------------------------------------------------------------------------------------------- PepsiCo, Inc. 50,000 1,812,500 ------------ 6,962,500
6 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Drugs--3.2% Merck & Co., Inc. 40,000 $ 1,525,000 ----------------------------------------------------------------------------------------------------- Pfizer, Inc. 35,000 2,703,750 ----------------------------------------------------------------------------------------------------- Schering-Plough Corp. 75,000 5,550,000 ------------ 9,778,750 - ----------------------------------------------------------------------------------------------------------------------------------- Food Processing--0.7% ConAgra, Inc. 45,000 1,406,250 ----------------------------------------------------------------------------------------------------- IBP, Inc. 25,000 756,250 ------------ 2,162,500 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare: Diversified--4.4% Abbott Laboratories 125,000 4,078,125 ----------------------------------------------------------------------------------------------------- American Home Products Corp. 37,400 2,346,850 ----------------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 50,000 2,893,750 ----------------------------------------------------------------------------------------------------- Warner-Lambert Co. 50,000 3,850,000 ------------ 13,168,725 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare: Miscellaneous--3.7% Amgen, Inc.(1) 60,000 3,540,000 ----------------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 100,000 4,125,000 ----------------------------------------------------------------------------------------------------- United Healthcare Corp. 80,000 3,610,000 ------------ 11,275,000 - ----------------------------------------------------------------------------------------------------------------------------------- Hospital Management--0.8% HealthCare COMPARE Corp.(1) 70,000 2,388,750 - ----------------------------------------------------------------------------------------------------------------------------------- Household Products--0.8% Colgate-Palmolive Co. 40,000 2,535,000 - ----------------------------------------------------------------------------------------------------------------------------------- Medical Products--2.4% Cordis Corp.(1) 75,000 4,537,500 ----------------------------------------------------------------------------------------------------- Medtronic, Inc. 50,000 2,781,250 ------------ 7,318,750 - ----------------------------------------------------------------------------------------------------------------------------------- Tobacco--1.2% Philip Morris Cos., Inc. 15,000 862,500 ----------------------------------------------------------------------------------------------------- UST, Inc. 95,000 2,636,250 ------------ 3,498,750 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial--2.9% - ----------------------------------------------------------------------------------------------------------------------------------- Conglomerates--0.8% Canadian Pacific Ltd. 150,000 2,250,000 - ----------------------------------------------------------------------------------------------------------------------------------- Electrical Equipment--1.7% General Electric Co. 100,000 5,100,000 - ----------------------------------------------------------------------------------------------------------------------------------- Manufacturing: Mark IV Industries, Inc. 20,000 395,000 Diversified Industrials--0.1% - ----------------------------------------------------------------------------------------------------------------------------------- Railroads--0.3% Illinois Central Corp. 30,000 922,500 - ----------------------------------------------------------------------------------------------------------------------------------- Financial--23.1% - ----------------------------------------------------------------------------------------------------------------------------------- Commercial Finance--0.3% MBNA Corp. 40,000 935,000
7 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- Statement of Investments (Continued) ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Financial Services: Miscellaneous--9.9% Advanta Corp., Cl. A 175,000 $ 4,593,750 ----------------------------------------------------------------------------------------------------- Bear Stearns Cos., Inc. (The) 90,000 1,383,750 ----------------------------------------------------------------------------------------------------- Countrywide Credit Industries, Inc. 20,000 260,000 ----------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. 15,000 757,500 ----------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. 45,000 3,279,375 ----------------------------------------------------------------------------------------------------- First USA, Inc. 65,000 2,136,875 ----------------------------------------------------------------------------------------------------- Green Tree Financial Corp. 190,000 5,771,250 ----------------------------------------------------------------------------------------------------- PaineWebber Group, Inc. 156,800 2,352,000 ----------------------------------------------------------------------------------------------------- Student Loan Marketing Assn. 75,000 2,437,500 ----------------------------------------------------------------------------------------------------- Sunamerica, Inc. 125,100 4,534,875 ----------------------------------------------------------------------------------------------------- Travelers, Inc. 75,000 2,437,500 ------------ 29,944,375 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance: Life--2.2% AFLAC, Inc. 159,750 5,112,000 ----------------------------------------------------------------------------------------------------- NWNL Companies, Inc. 60,000 1,740,000 ------------ 6,852,000 - ----------------------------------------------------------------------------------------------------------------------------------- Major Banks: Other--1.5% Bank of Boston Corp. 175,000 4,528,125 - ----------------------------------------------------------------------------------------------------------------------------------- Major Banks: Regional--8.1% First Interstate Bancorp 40,000 2,705,000 ----------------------------------------------------------------------------------------------------- KeyCorp 100,000 2,500,000 ----------------------------------------------------------------------------------------------------- Midlantic Corp. 100,000 2,650,000 ----------------------------------------------------------------------------------------------------- NationsBank Corp. 100,000 4,512,500 ----------------------------------------------------------------------------------------------------- Northern Trust Corp. 10,000 350,000 ----------------------------------------------------------------------------------------------------- Shawmut National Corp. 245,000 4,011,875 ----------------------------------------------------------------------------------------------------- Signet Banking Corp. 155,000 4,436,875 ----------------------------------------------------------------------------------------------------- SouthTrust Corp. 157,500 2,835,000 ----------------------------------------------------------------------------------------------------- SunTrust Banks, Inc. 10,000 477,500 ------------ 24,478,750 - ----------------------------------------------------------------------------------------------------------------------------------- Money Center Banks--0.4% Chase Manhattan Corp. 33,500 1,151,563 - ----------------------------------------------------------------------------------------------------------------------------------- Savings and Loans/ California Federal Bank(1) 190,000 2,066,250 Holding Cos.--0.7% - ----------------------------------------------------------------------------------------------------------------------------------- Technology--19.1% - ----------------------------------------------------------------------------------------------------------------------------------- Computer Software Automatic Data Processing, Inc. 35,000 2,047,500 ----------------------------------------------------------------------------------------------------- And Services--6.9% BMC Software, Inc.(1) 100,000 5,687,500 ----------------------------------------------------------------------------------------------------- Computer Associates International, Inc. 65,000 3,152,500 ----------------------------------------------------------------------------------------------------- Computer Sciences Corp.(1) 23,100 1,178,100 ----------------------------------------------------------------------------------------------------- General Motors Corp., Cl. E 25,000 962,500 ----------------------------------------------------------------------------------------------------- Microsoft Corp.(1) 100,000 6,112,500 ----------------------------------------------------------------------------------------------------- Novell, Inc.(1) 35,000 599,375 ----------------------------------------------------------------------------------------------------- Sybase, Inc.(1) 20,000 1,040,000 ------------ 20,779,975
8 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Computer Systems--7.0% 3Com Corp.(1) 100,000 $ 5,156,250 ----------------------------------------------------------------------------------------------------- American Power Conversion Corp.(1) 115,000 1,883,125 ----------------------------------------------------------------------------------------------------- Cabletron Systems, Inc.(1) 50,000 2,325,000 ----------------------------------------------------------------------------------------------------- Compaq Computer Corp.(1) 90,000 3,555,000 ----------------------------------------------------------------------------------------------------- Quantum Corp.(1) 94,000 1,421,750 ----------------------------------------------------------------------------------------------------- Seagate Technology(1) 20,000 480,000 ----------------------------------------------------------------------------------------------------- Western Digital Corp.(1) 375,000 6,281,250 ------------ 21,102,375 - ----------------------------------------------------------------------------------------------------------------------------------- Electronics: Linear Technology Corp. 60,000 2,970,000 Instrumentation--1.0% - ----------------------------------------------------------------------------------------------------------------------------------- Electronics: Intel Corp. 125,000 7,984,375 ----------------------------------------------------------------------------------------------------- Semiconductors--2.9% Novellus Systems, Inc.(1) 7,500 375,000 ------------------------------------------------------------------------------------------------------ VLSI Technology, Inc.(1) 35,000 420,000 ------------ 8,779,375 - ----------------------------------------------------------------------------------------------------------------------------------- Telecommunications--1.3% AT&T Corp. 80,000 4,020,000 - ----------------------------------------------------------------------------------------------------------------------------------- Utilities--1.3% - ----------------------------------------------------------------------------------------------------------------------------------- Electric Companies--0.7% Empresa Nacional de Electricidad SA, Sponsored ADR 50,000 2,025,000 - ----------------------------------------------------------------------------------------------------------------------------------- Telephone--0.6% Telefonos de Mexico SA, Sponsored ADR 50,000 2,050,000 ------------ Total Common Stocks (Cost $185,188,215) 236,614,138 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $251,588,215) 100.1% 303,014,138 - ----------------------------------------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (0.1) (249,914) ---------- ------------ Net Assets 100.0% $302,764,224 ========== ============ 1. Non-income producing security. See accompanying Notes to Financial Statements.
9 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- Statement of Assets and Liabilities December 31, 1994 ----------------------------------------------------------------------------------------------------- =================================================================================================================================== Assets Investments, at value (including repurchase agreements of $66,400,000) (cost $251,588,215)--see accompanying statement $303,014,138 ----------------------------------------------------------------------------------------------------- Cash 253,694 ----------------------------------------------------------------------------------------------------- Receivables: Investments sold 2,200,708 Interest and dividends 440,133 Shares of beneficial interest sold 133,504 ----------------------------------------------------------------------------------------------------- Other 243,911 ------------ Total assets 306,286,088 =================================================================================================================================== Liabilities Payables and other liabilities: Investments purchased 1,852,737 Shares of beneficial interest redeemed 982,557 Dividends and distributions 146,484 Distribution and service plan fees--Note 4 130,930 Other 409,156 ------------ Total liabilities 3,521,864 =================================================================================================================================== Net Assets $302,764,224 ============ =================================================================================================================================== Composition of Paid-in capital $248,122,703 ----------------------------------------------------------------------------------------------------- Net Assets Undistributed (overdistributed) net investment income (69,749) ----------------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) from investment transactions 3,285,347 ----------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments--Note 3 51,425,923 ------------ Net assets $302,764,224 ============ =================================================================================================================================== Net Asset Value Class A Shares: Per Share Net asset value and redemption price per share (based on net assets of $301,698,437 and 13,330,877 shares of beneficial interest outstanding) $22.63 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $24.01 ----------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price and offering price per share (based on net assets of $1,065,787 and 47,375 shares of beneficial interest outstanding) $22.50
See accompanying Notes to Financial Statements. 10 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- Statement of Operations For the Year Ended December 31, 1994 ----------------------------------------------------------------------------------------------------- =================================================================================================================================== Investment Income Interest $ 1,583,627 ----------------------------------------------------------------------------------------------------- Dividends 4,540,238 ------------- Total income 6,123,865 =================================================================================================================================== Expenses Management fees--Note 4 2,475,491 ----------------------------------------------------------------------------------------------------- Distribution and service plan fees: Class A--Note 4 325,662 Class C--Note 4 4,640 ----------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees--Note 4 334,992 ----------------------------------------------------------------------------------------------------- Shareholder reports 324,811 ----------------------------------------------------------------------------------------------------- Trustees' fees and expenses 104,631 ----------------------------------------------------------------------------------------------------- Custodian fees and expenses 51,086 ----------------------------------------------------------------------------------------------------- Legal and auditing fees 41,829 ----------------------------------------------------------------------------------------------------- Registration and filing fees: Class A 826 Class C 375 ----------------------------------------------------------------------------------------------------- Other 119,641 ------------- Total expenses 3,783,984 =================================================================================================================================== Net Investment Income (Loss) 2,339,881 =================================================================================================================================== Realized and Unrealized Net realized gain (loss) on investments 38,815,275 Gain (Loss) on Investments ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments (40,560,449) ------------- Net realized and unrealized gain (loss) on investments (1,745,174) =================================================================================================================================== Net Increase (Decrease) in Net Assets Resulting From Operations $ 594,707 =============
See accompanying Notes to Financial Statements. 11 Oppenheimer Target Fund
----------------------------------------------------------------------------------------------------- Statements of Changes in Net Assets ----------------------------------------------------------------------------------------------------- Year Ended December 31, 1994 1993 =================================================================================================================================== Operations Net investment income (loss) $ 2,339,881 $ 1,811,132 ----------------------------------------------------------------------------------------------------- Net realized gain (loss) on investments 38,815,275 7,582,007 ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments (40,560,449) 3,927,425 ------------ ------------ Net increase (decrease) in net assets resulting from operations 594,707 13,320,564 =================================================================================================================================== Dividends and Dividends from net investment income: Distributions to Class A ($.201 and $.12 per share, respectively) (2,361,728) (1,693,272) Shareholders Class C ($.085 and $.101 per share, respectively) (2,907) (180) ----------------------------------------------------------------------------------------------------- Distributions from net realized gain on investments: Class A ($2.982 and $.398 per share, respectively) (35,048,552) (5,616,693) Class C ($2.982 and $.398 per share, respectively) (102,047) (123) =================================================================================================================================== Beneficial Interest Net increase (decrease) in net assets resulting from Transactions Class A beneficial interest transactions--Note 2 (30,283,681) (38,460,852) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from Class C beneficial interest transactions--Note 2 1,154,378 8,135 =================================================================================================================================== Net Assets Total increase (decrease) (66,049,830) (32,442,421) ----------------------------------------------------------------------------------------------------- Beginning of period 368,814,054 401,256,475 ------------ ------------ End of period [including undistributed (overdistributed) net investment income of $(69,749) and $10,407, respectively] $302,764,224 $368,814,054 ============ ============
See accompanying Notes to Financial Statements. 12 Oppenheimer Target Fund
-------------------------------------------------------------------------------------------------- Financial Highlights -------------------------------------------------------------------------------------------------- Class A Class C ------------------------------------------------------------------------------------------- --------------- Year Ended Year Ended December 31, December 31, 1994 1993 1992 1991(3) 1990 1989 1988 1987 1986(2) 1985(2) 1994(3) 1993(1) ================================================================================================================================ Per Share Operating Data: Net asset value, beginning of period $ 25.72 $ 25.25 $ 23.76 $ 17.47 $ 18.26 $ 16.04 $ 12.38 $ 20.49 $ 19.30 $ 15.16 $ 25.72 $25.92 - -------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .20 .13 .16 .27 .39 .59 .27 .17 .11 .41 -- (.01) Net realized and unrealized gain (loss) on investments (.11) .86 2.28 6.87 (.78) 2.34 3.74 (3.68) 1.46 4.05 (.15) .31 ------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- ------ Total income (loss) from investment operations .09 .99 2.44 7.14 (.39) 2.93 4.01 (3.51) 1.57 4.46 (.15) .30 - -------------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.20) (.12) (.17) (.18) (.40) (.62) (.26) (.31) (.38) (.32) (.09) (.10) Distributions from net realized gain on investments (2.98) (.40) (.78) (.67) -- (.09) (.09) (4.29) -- -- (2.98) (.40) ------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- ------ Total dividends and distributions to shareholders (3.18) (.52) (.95) (.85) (.40) (.71) (.35) (4.60) (.38) (.32) (3.07) (.50) - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 22.63 $ 25.72 $ 25.25 $ 23.76 $ 17.47 $ 18.26 $ 16.04 $ 12.38 $ 20.49 $ 19.30 $ 22.50 $25.72 ======= ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ====== ================================================================================================================================ Total Return, at Net Asset Value(4) .46% 3.93% 10.27% 41.33% (2.13)% 18.31% 32.39% (17.95)% 8.28% 29.85% (.50)% 2.11% ================================================================================================================================ Ratios/Supplemental Data: Net assets, end of period (in thousands) $301,698 $368,806 $401,256 $369,351 $52,526 $66,050 $68,031 $60,888 $111,417 $118,244 $1,066 $8 - -------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $325,003 $383,875 $362,295 $209,596 $56,208 $70,874 $68,068 $107,475 $128,757 $130,925 $ 467 $6 - -------------------------------------------------------------------------------------------------------------------------------- Number of shares outstanding at end of period (in thousands) 13,331 14,339 15,892 15,546 3,007 3,616 4,242 4,918 5,437 6,127 47 -- - -------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income (loss) .72% .47% .69% 1.25% 2.08% 2.93% 1.64% .60% .36% 1.87% (.02)% (.07)%(5) Expenses 1.16% 1.07% 1.09% 1.17% 1.33% 1.27% 1.29% 1.16% 1.16% 1.17% 2.18% 2.18%(5) - -------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate(6) 34.7% 22.9% 42.3% 65.6% 51.2% 68.3% 108.4% 95.1 69.9% 118.8% 34.7% 22.9% 1. For the period from December 1, 1993 (inception of offering) to December 31, 1993. 2. During 1986 and 1985, the Fund had average monthly debt outstanding of $688,172 and $663,262, respectively; the average monthly number of shares outstanding for the years ended December 31, 1986 and 1985 was 5,799,198 and 7,715,542, respectively, and the average monthly debt per share was $.12 and $.09 for 1986 and 1985, respectively. The amount of debt outstanding at December 31, 1985 was $7,000,000. 3. Per share amounts calculated based on the weighted average number of shares outstanding during the year. 4. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. 5. Annualized. 6. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchase and sales of investment securities (excluding short-term securities) for the year ended December 31, 1994 were $100,706,246 and $210,599,293, respectively. See accompanying Notes to Financial Statements.
13 Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ Notes to Financial Statements ------------------------------------------------------------------------------------------------------ ================================================================================================================================ 1. Significant Oppenheimer Target Fund (the Fund) is registered under the Investment Company Act of 1940, as Accounting Policies amended, as a diversified, open-end management investment company. The Fund's investment advisor is Oppenheimer Management Corporation (the Manager). The Fund offers both Class A and Class C shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge. Both classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own distribution and/or service plan, expenses directly attributable to a particular class and exclusive voting rights with respect to matters affecting a single class. The following is a summary of significant accounting policies consistently followed by the Fund. ------------------------------------------------------------------------------------------------------ Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York time) on each trading day. Listed and unlisted securities for which such information is regularly reported are valued at the last sale price of the day or, in the absence of sales, at values based on the closing bid or asked price or the last sale price on the prior trading day. Short-term debt securities having a remaining maturity of 60 days or less are valued at cost (or last determined market value) adjusted for amortization to maturity of any premium or discount. Securities for which market quotes are not readily available are valued under procedures established by the Board of Trustees to determine fair value in good faith. ------------------------------------------------------------------------------------------------------ Repurchase Agreements. The Fund requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. ------------------------------------------------------------------------------------------------------ Allocation of Income, Expenses and Gains and Losses. Income, expenses (other than those attributable to a specific class) and gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. ------------------------------------------------------------------------------------------------------ Federal Income Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers, to shareholders. Therefore, no federal income tax provision is required. ------------------------------------------------------------------------------------------------------ Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. The accumulated liability for the Fund's projected benefit obligations was $99,350 at December 31, 1994. No payments have been made under the plan. ------------------------------------------------------------------------------------------------------ Distributions to Shareholders. Dividends and distributions to shareholders are recorded on the ex-dividend date. ------------------------------------------------------------------------------------------------------ Change in Accounting Classification of Distributions to Shareholders. The character of the distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gain (loss) was recorded by the Fund. Effective January 1, 1994, the Fund adopted Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies. As a result, the Fund changed the classification of distributions to shareholders to better disclose the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, subsequent to December 31, 1993, amounts have been reclassified to reflect a decrease in paid-in capital of $115,983, a decrease in undistributed net investment income of $55,402, and an increase in accumulated net realized gain on investments of $171,385.
14 Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------ ================================================================================================================================ 1. Significant Other. Investment transactions are accounted for on the date the investments are purchased or sold Accounting Policies (trade date) and dividend income is recorded on the ex-dividend date. Realized gains and losses on (continued) investments and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. ================================================================================================================================ 2. Shares of The Fund has authorized an unlimited number of no par value shares of beneficial interest. Beneficial Interest Transactions in shares of beneficial interest were as follows:
Year Ended December 31, 1994 Year Ended December 31, 1993(1) ---------------------------- ------------------------------- Shares Amount Shares Amount ------------------------------------------------------------------------------------------------------ Class A: Sold 1,091,689 $ 27,823,899 2,339,461 $ 58,420,529 Dividends and distributions reinvested 1,592,900 35,776,790 264,070 6,749,613 Redeemed (3,693,115) (93,884,370) (4,156,612) (103,630,994) ---------- ------------- ---------- ------------- Net decrease (1,008,526) $ (30,283,681) (1,553,081) $ (38,460,852) ========== ============= ========== ============= ------------------------------------------------------------------------------------------------------ Class C: Sold 65,435 $ 1,619,304 310 $ 8,000 Dividends and distributions reinvested 4,518 100,882 5 135 Redeemed (22,893) (565,808) -- -- ---------- ------------- ---------- ------------- Net increase 47,060 $ 1,154,378 315 $8,135 ========== ============= ========== ============= 1. For the year ended December 31, 1993 for Class A shares and for the period from December 1, 1993 (inception of offering) to December 31, 1993 for Class C shares. ================================================================================================================================ 3. Unrealized Gains and At December 31, 1994, net unrealized appreciation on investments of $51,425,923 was composed of gross Losses on Investments appreciation of $60,340,978, and gross depreciation of $8,915,055. ================================================================================================================================ 4. Management Fees Prior to July 1, 1994, management fees paid to the Manager were in accordance with the investment And Other Transactions advisory agreement with the Fund which provided for an annual fee of .80% on the first $200 million With Affiliates of net assets, .75% on the next $200 million, .69% on the next $200 million, .66% on the next $200 million and .60% on net assets in excess of $800 million. Under the terms of the agreement, the annual fees on the first and second $200 million of net assets decreased to .75% and .72%, respectively, on July 1, 1994. The Manager has agreed to reimburse the Fund if aggregate expenses (with specified exceptions) exceed the most stringent applicable regulatory limit on Fund expenses. For the year ended December 31, 1994, commissions (sales charges paid by investors) on sales of Class A shares totaled $351,806, of which $141,646 was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. During the year ended December 31, 1994, OFDI received contingent deferred sales charges of $1,185 upon redemption of Class C shares, as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares. Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs of providing such services are allocated ratably to these companies. Under separate approved plans, each class may expend up to .25% of its net assets annually to reimburse OFDI for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Fund (prior to July 1, 1994, reimbursements were made with respect to shares sold subsequent to March 31, 1991 for Class A), including amounts paid to brokers, dealers, banks and other institutions. In addition, Class C shares are subject to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for sales commissions paid from its own resources at the time of sale and associated financing costs. In the event of termination or discontinuance of the Class C plan, the Board of Trustees may allow the Fund to continue payment of the asset-based charge to OFDI for distribution expenses incurred on Class C shares sold prior to termination or discontinuance of the plan. During the year ended December 31, 1994, OFDI paid $33,166 to an affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses and retained $4,642 as reimbursement for Class C sales commissions and service fee advances, as well as financing costs
15 Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ Independent Auditors' Report ------------------------------------------------------------------------------------------------------ ================================================================================================================================ The Board of Trustees and Shareholders of Oppenheimer Target Fund: We have audited the accompanying statements of investments and assets and liabilities of Oppenheimer Target Fund as of December 31, 1994, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the ten-year period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1994, by correspondence with the custodian and brokers; and where confirmations were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Target Fund as of December 31, 1994, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the ten-year period then ended, in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP Denver, Colorado January 23, 1995
16 Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ Federal Income Tax Information (Unaudited) ------------------------------------------------------------------------------------------------------ ================================================================================================================================ In early 1995, shareholders will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 1994. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. A distribution of $2.982 per share was paid on December 19, 1994, which was designated as a "capital gain distribution" for federal income tax purposes. Whether received in stock or cash, the capital gain distribution should be treated by shareholders as a gain from the sale of capital assets held for more than one year (long-term capital gains). Dividends paid by the Fund during the fiscal year ended December 31, 1994 which are not designated as capital gain distributions should be multiplied by 100% to arrive at the net amount eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.
17 Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ Oppenheimer Target Fund ------------------------------------------------------------------------------------------------------ ================================================================================================================================ Officers and Trustees Leon Levy, Chairman of the Board of Trustees Leo Cherne, Trustee Robert G. Galli, Trustee Benjamin Lipstein, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Sidney M. Robbins, Trustee Donald W. Spiro, Trustee and President Pauline Trigere, Trustee Clayton K. Yeutter, Trustee Robert C. Doll, Jr., Vice President George C. Bowen, Treasurer Robert J. Bishop, Assistant Treasurer Scott Farrar, Assistant Treasurer Andrew J. Donohue, Secretary Robert G. Zack, Assistant Secretary ================================================================================================================================ Investment Advisor Oppenheimer Management Corporation ================================================================================================================================ Distributor Oppenheimer Funds Distributor, Inc. ================================================================================================================================ Transfer and Shareholder Oppenheimer Shareholder Services Servicing Agent ================================================================================================================================ Custodian of The Bank of New York Portfolio Securities ================================================================================================================================ Independent Auditors KPMG Peat Marwick LLP ================================================================================================================================ Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein This is a copy of a report to shareholders of Oppenheimer Target Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer Target Fund. For material information concerning the Fund, see the Prospectus.
18 Oppenheimer Target Fund OppenheimerFunds Family OppenheimerFunds offers over 35 funds designed to fit virtually every investment goal. Whether you're investing for retirement, your children's education or tax-free income, we have the funds to help you seek your objective. When you invest with OppenheimerFunds, you can feel comfortable knowing that you are investing with a respected financial institution with over 30 years of experience in helping people just like you reach their financial goals. And you're investing with a leader in global, growth stock and flexible fixed income investments--with over 1.8 million shareholder accounts and more than $29 billion under Oppenheimer's management and that of our affiliates. As an OppenheimerFunds shareholder, you can easily exchange shares of eligible funds of the same class by mail or by telephone for a small administrative fee.(1) For more information on OppenheimerFunds, please contact your financial advisor or call us at 1-800-525-7048 for a prospectus. You may also write us at the address shown on the back cover. As always, please read the prospectus carefully before you invest. Stock Funds Discovery Fund Global Fund Global Emerging Growth Fund(2) Oppenheimer Fund Time Fund Value Stock Fund Target Fund Gold & Special Minerals Fund Growth Fund(3) Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund Total Return Fund Asset Allocation Fund Global Growth & Income Fund Bond Funds High Yield Fund Strategic Short-Term Income Fund Champion High Yield Fund Investment Grade Bond Fund Strategic Income & Growth Fund Mortgage Income Fund Strategic Income Fund U.S. Government Trust Strategic Diversified Income Fund Limited-Term Government Fund Strategic Investment Grade Bond Fund Tax-Exempt Funds New York Tax-Exempt Fund(4) New Jersey Tax-Exempt Fund(4) California Tax-Exempt Fund(4) Tax-Free Bond Fund Pennsylvania Tax-Exempt Fund(4) Insured Tax-Exempt Bond Fund Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund Money Market Funds Money Market Fund Cash Reserves 1. The fee is waived for PhoneLink exchanges between existing accounts. Exchange privileges are subject to change or termination. 2. Formerly Global Bio-Tech Fund and Global Environment Fund. 3. Formerly Special Fund. 4. Available only to residents of those states. OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center, New York, NY 10048-0203. (Copyright) Copyright 1995 Oppenheimer Management Corporation. All rights reserved. 19 Oppenheimer Target Fund "How may I help you?" As an OppenheimerFunds shareholder, some special privileges are available to you. Whether it's automatic investment plans, informative newsletters and hotlines, or ready account access, you can benefit from services designed to make investing simple. And when you need help, our Customer Service Representatives are only a toll-free phone call away. They can provide information about your account and handle administrative requests. You can reach them at our General Information number. When you want to make a transaction, you can do it easily by calling our toll-free Telephone Transactions number. And, by enrolling in AccountLink, a convenient service that "links" your OppenheimerFunds accounts and your bank checking or savings account, you can use the Telephone Transactions number to make investments. For added convenience, you can get automated information with OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week. PhoneLink gives you access to a variety of fund, account, and market information. It also gives you the ability to make transactions using your touch-tone phone. Of course, you can always speak with a Customer Service Representative during business hours. You can count on us whenever you need assistance. That's why the International Customer Service Association, an independent, non-profit organization made up of over 3,200 customer service management professionals from around the country, honored the OppenheimerFunds' transfer agent, Oppenheimer Shareholder Services, with their Award of Excellence in 1993. So call us today--we're here to help. Information General Information Monday-Friday 8:30 a.m.-8 p.m. ET Saturday 10 a.m.-2 p.m. ET 1-800-525-7048 Telephone Transactions Monday-Friday 8:30 a.m.-8 p.m. ET 1-800-852-8457 Jennifer Leonard, Customer Service Representative Oppenheimer Shareholder Services PhoneLink 24 hours a day, automated information and transactions 1-800-533-3310 Telecommunications Device for the Deaf (TDD) Monday-Friday 8:30 a.m.-8 p.m. ET 1-800-843-4461 OppenheimerFunds Information Hotline 24 hours a day, timely and insightful messages on the economy and issues that affect your investments 1-800-835-3104 RA0320.001.0295 [logo] OppenheimerFunds Oppenheimer Funds Distributor, Inc. P.O. Box 5270 Denver, CO 80217-5270 Bulk Rate U.S. Postage PAID Permit No. 314 Farmingdale, NY -----END PRIVACY-ENHANCED MESSAGE-----