-----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, eo73wtu67CE0TvO5X/n0gc93UYS83z9xcxFqDEBGK9pXtKp94UgTbIC0gNwfptmc TJY+IkbRugRQzFve8VIkTQ== 0000950123-94-001467.txt : 19940906 0000950123-94-001467.hdr.sgml : 19940906 ACCESSION NUMBER: 0000950123-94-001467 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940902 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTEGRITY FUNDS CENTRAL INDEX KEY: 0000701265 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 042912220 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03420 FILM NUMBER: 94547849 BUSINESS ADDRESS: STREET 1: 3410 S GALENA CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 SOUTH GALENA STREET 3RD FL CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL INTEGRITY FUNDS DATE OF NAME CHANGE: 19910329 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL LIQUID ASSETS TRUST DATE OF NAME CHANGE: 19880403 N-30D 1 OPPENHEIMER VALUE STOCK FUND. SEMI-ANNUAL REPORT 1 OPPENHEIMER VALUE STOCK FUND SEMI-ANNUAL REPORT JUNE 30, 1994 (OPPENHEIMERFUNDS(R) LOGO) [PHOTO #1 -- SEE EDGAR APPENDIX] "I WANT HER TO HAVE EVERYTHING MY PARENTS GAVE ME. "THIS FUND GIVES US THE POTENTIAL FOR THE KIND OF LONG-TERM GROWTH WE NEED." 2 FUND FACTS IN THIS REPORT: ANSWERS TO TWO TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS. * DID THE FEDERAL RESERVE'S MOVES TO RAISE SHORT-TERM INTEREST RATES AFFECT THE FUND'S INVESTMENT STRATEGY? * WHERE ARE THE BEST INVESTMENT OPPORTUNITIES LIKELY TO BE FOUND GOING FORWARD? FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT OPPENHEIMER VALUE STOCK FUND - ------------------------------------------------------------------------------- 1 The Fund's objective is to seek long-term growth of capital and income, primarily through investments in the stocks of well-established companies. - ------------------------------------------------------------------------------- 2 Total return at net asset value for Class A shares for the 6-month period ended June 30, 1994 was -0.59%. Total return at net asset value for Class B shares for the same period was -0.92%.(1) - ------------------------------------------------------------------------------- 3 Average annual total returns for Class A shares for the 1- and 5-year periods ended June 30, 1994 and since inception on December 22, 1986 were -2.83%, 8.66%, and 9.15%, respectively. For Class B shares, average annual total returns for the 1-year period ended June 30, 1994 and since inception on May 1, 1993 were -2.73% and -0.28%, respectively.(2) - ------------------------------------------------------------------------------- 4 Your Fund's managers use a value investment strategy, purchasing stocks that they believe are priced significantly below their normal levels and selling stocks that they believe have reached or exceeded normal valuations. - ------------------------------------------------------------------------------- 5 The Fund's top five stock holdings on June 30, 1994 were:(3) AMP, INC. GENERAL ELECTRIC CO. MINNESOTA MINING & MANUFACTURING CO. PFIZER, INC. BRISTOL-MYERS SQUIBB CO. - ------------------------------------------------------------------------------- 6 Our outlook for Value Stock Fund remains Positive. We believe the U.S. economy is growing at a moderate pace and inflation will remain subdued. This should translate into good performance for the U.S. stock market." Portfolio Manager David Salerno, Concert Capital Management, Inc., the Fund's Sub-Advisor (1) Based on the change in net asset value per share for the periods shown, without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. (2) Average annual total returns are based on a hypothetical investment held until 6/30/94, after deducting the maximum initial sales charge of 5.75% for Class A shares and the contingent deferred sales charge of 5% (1-year) and 4% (since inception) for Class B shares. The Fund's maximum sales charge rate for Class A shares was lower during a portion of some of the periods shown, and actual investment results will be different as a result of the change. (3) The Fund's portfolio is subject to change. All figures assume reinvestment of dividends and capital gains distributions. Past performance is not indicative of future results. Investment return 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 Value Stock Fund 3 REPORT TO SHAREHOLDERS ABOVE-AVERAGE TOTAL RETURN Total return for 1-year period ended June 30, 1994 - ---------------------------------------- Oppenheimer 3.09% Value Stock Fund A(5) (at NAV) - ---------------------------------------- Oppenheimer 2.27% Value Stock Fund B(5) (at NAV) - ---------------------------------------- Lipper growth 2.01% & income funds average(4)
We are pleased to bring you the semi-annual report for Oppenheimer Value Stock Fund. The past six months have been challenging for U.S. investors. From February through mid-May, the Federal Reserve Board raised short-term interest rates four times and the financial markets interpreted these moves as a sign that inflation would return; thus, they reacted strongly. Throughout the spring, the stock market experienced volatility as conflicting economic reports caused investor anxiety. However, recent data seems to indicate inflation is not increasing and the U.S. economy continues to grow at a modest pace. Your Fund weathered the period, outperforming the average growth fund for the year ended June 30, 1994.(4) Fund managers delivered these returns by sticking to a value strategy--purchasing stocks whose prices appeared to have dropped below normal valuations and selling stocks they believed had reached or exceeded normal value. In addition, your managers invested in quality companies whose stocks tend to perform well in an uncertain economy. Fund managers found value opportunities in the financial services sector and bought stocks of companies performing well in the current volatile environment. They purchased stock in Bank of New York, and they added to the Fund's holdings in SAFECO, a property/casualty insurer and American Express. Your managers also found opportunities in the agricultural sector. Following last year's floods, U.S. farmers are expected to increase plantings; therefore, your managers invested in Pioneer Hi-Bred International, the nation's leading supplier of seed corn to farmers, and Archer-Daniels-Midland, a grain processing company. In addition, telecommunications companies provided growth opportunities for the Fund. One new investment is Rochester Telephone, a provider of local telephone service in twenty-one states with strong positions in the cellular and long-distance businesses. The sector also provided opportunities for your managers to sell stocks they believed were overvalued. They sold the Fund's holdings in Bell Atlantic as the excitement surrounding the information "superhighway" drove the stock price to unrealistic levels. Our outlook for Value Stock Fund is positive. Although stock prices may experience short-term price fluctuations, the U.S. economy should continue to grow at a slow, sustainable pace, with low inflation--the conditions which have led to strong stock market performance in the past. Thank you for your continued trust in Oppenheimer Value Stock Fund. We look forward to serving your investment needs in the years to come. /s/ JAMES C. SWAIN /s/ JON S. FOSSEL - ---------------------------------- ------------------------------- James C. Swain Jon S. Fossel Chairman, Oppenheimer Integrity Funds Chairman, Oppenheimer Integrity Funds for Oppenheimer Value Stock Fund for Oppenheimer Value Stock Fund
July 22, 1994 (4) Source: Lipper Analytical Services, an independent mutual fund monitoring service, 6/30/94. The Lipper total return average for the 1-year period ended June 30, 1994 was for 305 growth and income funds. The average includes reinvestment of dividends and capital gains distributions, and is shown for comparative purposes only. Oppenheimer Value Stock Fund is characterized by Lipper as a growth and income fund. Lipper performance does not take sales charges into consideration. (5) See footnote 1, page 2. 3 Oppenheimer Value Stock Fund 4 STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
FACE MARKET VALUE AMOUNT SEE NOTE 1 ===================================================================================================================== SHORT-TERM NOTES--10.5% - --------------------------------------------------------------------------------------------------------------------- Detroit Edison Co., 4.55%, 7/7/94 $1,775,000 $ 1,773,654 ------------------------------------------------------------------------------------ Indiana Michigan Power Co., 4.50%, 7/8/94 1,725,000 1,723,491 ------------------------------------------------------------------------------------ Mattel Inc., 4.43%, 7/1/94 1,590,000 1,590,000 ------------------------------------------------------------------------------------ Texas Utilities Electric Co., 4.50%, 7/6/94 1,985,000 1,983,759 ------------------------------------------------------------------------------------ TJX Cos., Inc., 4.43%, 7/5/94 1,150,000 1,149,434 ------------------------------------------------------------------------------------ Western Resources Inc., 4.50%, 7/14/94 1,945,000 1,941,839 ------------ Total Short-Term Notes (Cost $10,155,224) 10,162,177 SHARES ===================================================================================================================== COMMON STOCKS--89.6% - --------------------------------------------------------------------------------------------------------------------- BASIC MATERIALS--9.4% - --------------------------------------------------------------------------------------------------------------------- ALUMINUM--0.9% Reynolds Metals Co. 19,000 912,000 - --------------------------------------------------------------------------------------------------------------------- CHEMICALS--3.0% Du Pont (E.I.) De Nemours & Co. 21,500 1,255,062 ------------------------------------------------------------------------------------ Eastman Chemical Co. 35,000 1,671,250 ------------ 2,926,312 - --------------------------------------------------------------------------------------------------------------------- CHEMICALS: SPECIALITY--1.8% Lubrizol Corp. (The) 25,000 856,250 ------------------------------------------------------------------------------------ Nalco Chemical Co. 27,200 867,000 ------------ 1,723,250 - --------------------------------------------------------------------------------------------------------------------- METAL: MISCELLANEOUS--0.8% Phelps Dodge Corp. 14,000 798,000 - --------------------------------------------------------------------------------------------------------------------- PAPER AND FOREST Westvaco Corp. 30,000 922,500 PRODUCTS--2.9% ------------------------------------------------------------------------------------ Weyerhaeuser Co. 29,600 1,184,000 ------------------------------------------------------------------------------------ Willamette Industries, Inc. 15,300 654,075 ------------ 2,760,575 - --------------------------------------------------------------------------------------------------------------------- CONSUMER CYCLICALS--14.9% - --------------------------------------------------------------------------------------------------------------------- AUTOMOBILES--1.7% Ford Motor Co. 27,500 1,622,500 - --------------------------------------------------------------------------------------------------------------------- AUTO PARTS: AFTER MARKET--3.2% Genuine Parts Co. 49,500 1,788,187 ------------------------------------------------------------------------------------ Goodyear Tire & Rubber Co. 37,500 1,350,000 ------------ 3,138,187 - --------------------------------------------------------------------------------------------------------------------- HARDWARE AND TOOLS--1.2% Stanley Works (The) 28,900 1,163,225 - --------------------------------------------------------------------------------------------------------------------- LEISURE TIME--1.1% Eastman Kodak Co. 21,000 1,010,625 - --------------------------------------------------------------------------------------------------------------------- PUBLISHING--3.1% Dun & Bradstreet Corp. (The) 30,000 1,665,000 ------------------------------------------------------------------------------------ McGraw-Hill, Inc. 20,500 1,363,250 ------------ 3,028,250
4 Oppenheimer Value Stock Fund 5
MARKET VALUE SHARES SEE NOTE 1 - --------------------------------------------------------------------------------------------------------------------- RETAIL STORES: DEPARTMENT May Department Stores Co. 44,000 $1,727,000 STORES--1.8% - --------------------------------------------------------------------------------------------------------------------- RETAIL STORES: GENERAL K Mart Corp. 30,500 472,750 MERCHANDISE CHAINS--1.5% ------------------------------------------------------------------------------------ Penney (J.C.) Co., Inc. 19,000 1,030,750 ------------ 1,503,500 - --------------------------------------------------------------------------------------------------------------------- RETAIL: SPECIALTY--0.2% Rite Aid Corp. 8,500 172,125 - --------------------------------------------------------------------------------------------------------------------- TEXTILES: APPAREL V.F. Corp. 23,000 1,092,500 MANUFACTURERS--1.1% - --------------------------------------------------------------------------------------------------------------------- CONSUMER NON-CYCLICALS--12.0% - --------------------------------------------------------------------------------------------------------------------- BEVERAGES: ALCOHOLIC--1.2% Brown-Forman Corp., Cl.B 42,200 1,192,150 - --------------------------------------------------------------------------------------------------------------------- DRUGS--2.3% Pfizer, Inc. 35,000 2,209,375 - --------------------------------------------------------------------------------------------------------------------- FOOD PROCESSING--4.0% Archer-Daniels-Midland Co. 27,500 639,375 ------------------------------------------------------------------------------------ CPC International, Inc. 31,500 1,519,875 ------------------------------------------------------------------------------------ Gerber Products Co. 17,500 892,500 ------------------------------------------------------------------------------------ Pioneer Hi-Bred International, Inc. 25,500 835,125 ------------ 3,886,875 - --------------------------------------------------------------------------------------------------------------------- HEALTHCARE: DIVERSIFIED--2.2% Bristol-Myers Squibb Co. 40,000 2,145,000 - --------------------------------------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--0.9% Clorox Co. (The) 18,300 894,412 - --------------------------------------------------------------------------------------------------------------------- MEDICAL PRODUCTS--1.4% Becton, Dickinson & Co. 33,000 1,348,875 - --------------------------------------------------------------------------------------------------------------------- ENERGY--8.1% - --------------------------------------------------------------------------------------------------------------------- OIL: INTEGRATED DOMESTIC--1.3% Atlantic Richfield Co. 9,000 919,125 ------------------------------------------------------------------------------------ USX-Marathon Group 18,500 309,875 ------------ 1,229,000 - --------------------------------------------------------------------------------------------------------------------- OIL: INTEGRATED Amoco Corp. 37,500 2,137,500 INTERNATIONAL--6.8% ------------------------------------------------------------------------------------ Chevron Corp. 45,000 1,884,375 ------------------------------------------------------------------------------------ Mobil Corp. 20,000 1,632,500 ------------------------------------------------------------------------------------ Royal Dutch Petroleum Co. 9,000 941,625 ------------ 6,596,000 - --------------------------------------------------------------------------------------------------------------------- FINANCIAL--11.8% - --------------------------------------------------------------------------------------------------------------------- FINANCIAL SERVICES: American Express Co. 45,500 1,171,625 MISCELLANEOUS--1.3% ------------------------------------------------------------------------------------ Lehman Brothers Holdings, Inc. 8,800 133,100 ------------ 1,304,725 - --------------------------------------------------------------------------------------------------------------------- INSURANCE: LIFE--1.0% Jefferson-Pilot Corp. 19,850 967,688 - --------------------------------------------------------------------------------------------------------------------- INSURANCE: MULTI-LINE--1.0% Unitrin, Inc. 24,000 960,000 - --------------------------------------------------------------------------------------------------------------------- INSURANCE: PROPERTY SAFECO Corp. 36,000 2,002,500 AND CASUALTY--2.1%
5 Oppenheimer Value Stock Fund 6 STATEMENT OF INVESTMENT (Unaudited)(Continued)
MARKET VALUE SHARES SEE NOTE 1 - --------------------------------------------------------------------------------------------------------------------- MAJOR BANKS: REGIONAL--4.8% Comerica, Inc. 51,500 $1,454,875 ------------------------------------------------------------------------------------ CoreStates Financial Corp. 56,000 1,442,000 ------------------------------------------------------------------------------------ Norwest Corp. 36,500 953,562 ------------------------------------------------------------------------------------ Wachovia Corp. 26,540 879,138 ------------ 4,729,575 - --------------------------------------------------------------------------------------------------------------------- MONEY CENTER BANKS--1.6% Bank of New York, Inc. 52,500 1,515,937 - --------------------------------------------------------------------------------------------------------------------- INDUSTRIAL--15.6% - --------------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES--0.9% Donnelley (R.R.) & Sons Co. 32,000 888,000 - --------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--8.5% AMP, Inc. 41,500 2,873,875 ------------------------------------------------------------------------------------ General Electric Co. 61,000 2,844,125 ------------------------------------------------------------------------------------ Grainger (W.W.), Inc. 21,300 1,360,537 ------------------------------------------------------------------------------------ Hubbell, Inc., Cl.B 21,721 1,205,516 ------------ 8,284,053 - --------------------------------------------------------------------------------------------------------------------- MANUFACTURING: DIVERSIFIED Crane Co. 9,000 237,375 INDUSTRIALS--4.8% ------------------------------------------------------------------------------------ Dover Corp. 18,500 1,089,188 ------------------------------------------------------------------------------------ General Signal Corp. 37,500 1,237,500 ------------------------------------------------------------------------------------ Harsco Corp. 22,500 922,500 ------------------------------------------------------------------------------------ Parker-Hannifin Corp. 27,500 1,172,187 ------------ 4,658,750 - --------------------------------------------------------------------------------------------------------------------- RAILROADS--1.4% Norfolk Southern Corp. 22,000 1,386,000 - --------------------------------------------------------------------------------------------------------------------- TECHNOLOGY--12.1% - --------------------------------------------------------------------------------------------------------------------- AEROSPACE/DEFENSE--3.7% Boeing Co. (The) 20,500 948,125 ------------------------------------------------------------------------------------ Lockheed Corp. 21,500 1,405,562 ------------------------------------------------------------------------------------ Rockwell International Corp. 15,500 579,313 ------------------------------------------------------------------------------------ TRW, Inc. 10,500 677,250 ------------ 3,610,250 - --------------------------------------------------------------------------------------------------------------------- COMPUTER SYSTEMS--0.8% International Business Machines Corp. 12,500 734,375 - --------------------------------------------------------------------------------------------------------------------- ELECTRONICS: Hewlett-Packard Co. 26,300 1,982,362 INSTRUMENTATION--2.0% - --------------------------------------------------------------------------------------------------------------------- OFFICE EQUIPMENT AND Minnesota Mining and Manufacturing Co. 45,000 2,227,500 SUPPLIES--5.6% ------------------------------------------------------------------------------------ Pitney Bowes, Inc. 53,000 2,027,250 ------------------------------------------------------------------------------------ Xerox Corp. 12,500 1,221,875 ------------ 5,476,625
6 Oppenheimer Value Stock Fund 7
MARKET VALUE SHARES SEE NOTE 1 - --------------------------------------------------------------------------------------------------------------------- UTILITIES--5.7% - --------------------------------------------------------------------------------------------------------------------- ELECTRIC COS.--2.3% Niagara Mohawk Power Corp. 56,500 $ 854,562 ------------------------------------------------------------------------------------ NIPSCO Industries, Inc. 23,500 693,250 ------------------------------------------------------------------------------------ SCANA Corp. 16,000 686,000 ------------ 2,233,812 - --------------------------------------------------------------------------------------------------------------------- NATURAL GAS--0.8% Consolidated Natural Gas Co. 20,500 773,875 - --------------------------------------------------------------------------------------------------------------------- TELEPHONE --2.6% Ameritech Corp. 23,000 879,753 ------------------------------------------------------------------------------------ Rochester Telephone Corp. 42,200 954,775 ------------------------------------------------------------------------------------ Southern New England Telecommunications Corp. 23,000 701,500 ------------ 2,536,028 ------------ Total Common Stocks (Cost $74,025,176) 87,124,291 - --------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $84,180,400) 100.1% 97,286,468 - --------------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (104,690) ------ ------------ NET ASSETS 100.0% $97,181,778 ====== ============
See accompanying Notes to Financial Statements. 7 Oppenheimer Value Stock Fund 8 STATEMENT OF ASSETS AND LIABILITIES June 30, 1994 (Unaudited) ===================================================================================================================== ASSETS Investments, at value (cost $84,180,400)--see accompanying statement $97,286,468 ------------------------------------------------------------------------------------ Receivables: Dividends and interest 218,160 Shares of beneficial interest sold 54,210 Investments sold 53,388 ------------------------------------------------------------------------------------ Other 16,954 ----------- Total assets 97,629,180 ===================================================================================================================== LIABILITIES Bank overdraft 41,341 ------------------------------------------------------------------------------------ Payables and other liabilities: Shares of beneficial interest redeemed 146,281 Investments purchased 60,947 Distribution and service plan fees--Note 4 59,654 Deferred trustee fees--Note 5 4,762 Other 134,417 ----------- Total liabilities 447,402 ===================================================================================================================== NET ASSETS $97,181,778 ----------- ===================================================================================================================== COMPOSITION OF Paid-in capital 82,444,918 NET ASSETS ------------------------------------------------------------------------------------ Undistributed net investment income 89,044 ------------------------------------------------------------------------------------ Accumulated net realized gain from investment transactions 1,541,748 ------------------------------------------------------------------------------------ Net unrealized appreciation on investments--Note 3 13,106,068 Net assets $97,181,778 =========== ===================================================================================================================== NET ASSET VALUE Class A Shares: PER SHARE Net asset value and redemption price per share (based on net assets of $89,456,917 and 6,298,434 shares of beneficial interest outstanding) $14.20 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $15.07 ------------------------------------------------------------------------------------ Class B Shares: Net asset value, redemption price and offering price per share (based on net assets of $7,724,861 and 546,342 shares of beneficial interest outstanding) $14.14
See accompanying Notes to Financial Statements. 8 Oppenheimer Value Stock Fund 9 STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1994 (Unaudited) ===================================================================================================================== INVESTMENT INCOME Dividends $1,423,751 ------------------------------------------------------------------------------------ Interest 186,736 ----------- Total income 1,610,487 ===================================================================================================================== EXPENSES Management fees--Note 4 361,204 ------------------------------------------------------------------------------------ Distribution and service plan fees: Class A--Note 4 110,294 Class B--Note 4 30,481 ------------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees--Note 4 92,722 ------------------------------------------------------------------------------------ Shareholder reports 48,789 ------------------------------------------------------------------------------------ Custodian fees and expenses 11,236 ------------------------------------------------------------------------------------ Legal and auditing fees 10,970 ------------------------------------------------------------------------------------ Trustees' fees and expenses 5,364 ------------------------------------------------------------------------------------ Registration and filing fees: Class A 43 Class B 1,146 ------------------------------------------------------------------------------------ Other 23,841 ----------- Total expenses 696,090 ===================================================================================================================== NET INVESTMENT INCOME 914,397 ===================================================================================================================== REALIZED AND UNREALIZED Net realized gain on investments 1,541,748 GAIN (LOSS) ON INVESTMENTS ------------------------------------------------------------------------------------ Net change in unrealized appreciation or depreciation on investments (3,013,173) ----------- Net realized and unrealized loss on investments (1,471,425) ===================================================================================================================== NET DECREASE IN NET ASSETS RESULTING FORM OPERATIONS $ (557,028) ===========
See accompanying Notes to Financial Statements. 9 Oppenheimer Value Stock Fund 10 STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended Year Ended June 30, 1994 December 31, (Unaudited) 1993 ===================================================================================================================== OPERATIONS Net investment income $ 914,397 $ 1,598,257 ------------------------------------------------------------------------------------ Net realized gain on investments 1,541,748 4,772,844 ------------------------------------------------------------------------------------ Net change in unrealized appreciation or depreciation on investments (3,013,173) (52,118) ---------- ----------- Net increase (decrease) in net assets resulting from operations (557,028) 6,318,983 ===================================================================================================================== DIVIDENDS AND Dividends from net investment income: DISTRIBUTIONS TO Class A ($.126 and $.288 per share, SHAREHOLDERS respectively) (788,559) (1,573,023) Class B ($.079 and $.166 per share, respectively) (36,589) (33,142) ------------------------------------------------------------------------------------ Distributions from net realized gain on investments: Class A ($.76 per share) -- (4,515,011) Class B ($.76 per share) -- (258,413) ===================================================================================================================== BENEFICIAL INTEREST Net increase in net assets resulting from Class A TRANSACTIONS beneficial interest transactions--Note 2 267,221 30,973,434 ------------------------------------------------------------------------------------ Net increase in net assets resulting from Class B beneficial interest transactions--Note 2 2,668,513 5,339,170 ===================================================================================================================== NET ASSETS Total increase 1,553,558 36,251,998 ------------------------------------------------------------------------------------ Beginning of period 95,628,220 59,376,222 ----------- ----------- End of period (including undistributed net investment income of $89,785 and $225, respectively) $97,181,778 $95,628,220 =========== ===========
See accompanying Notes to Financial Statements. 10 Oppenheimer Value Stock Fund 11 Financial Highlights
CLASS A CLASS B ------------------------------------------------------------- --------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED PERIOD ENDED JUNE 30, 1994 DECEMBER 31, JUNE 30, 1994 DECEMBER 31, (UNAUDITED) 1993 1992 1991(2) 1990 1989 (UNAUDITED) 1993(1) ================================================================================================================================ PER SHARE OPERATING DATA: Net asset value, beginning of period $14.41 $14.19 $13.57 $11.39 $12.08 $10.47 $14.35 $14.60 - -------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income .14 .29 .32 .33 .37 .40 .05 .17 Net realized and unrealized gain (loss) on investments (.22) .98 .97 2.49 (.57) 1.87 (.18) .51 ------- ------- ------- ------- ------- ------- ------- ------- Total income (loss) from investment operations (.08) 1.27 1.29 2.82 (.20) 2.27 (.13) .68 - -------------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.13) (.29) (.32) (.33) (.39) (.41) (.08) (.17) Distributions from net realized gain on investments -- (.76) (.35) (.31) (.10) (.25) -- (.76) ------- ------- ------- ------- ------- ------- ------- ------- Total dividends and distributions to shareholders (.13) (1.05) (.67) (.64) (.49) (.66) (.08) (.93) - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $14.20 $14.41 $14.19 $13.57 $11.39 $12.08 $14.14 $14.35 ------- ------- ------- -------- ------- ------- ------- ------- ================================================================================================================================ TOTAL RETURN, AT NET ASSET VALUE(3) (.59)% 8.97% 9.61% 25.23% (1.53)% 21.93% (.92)% 4.63% ================================================================================================================================ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period, (in thousands) $89,457 $90,470 $59,376 $49,381 $40,153 $37,713 $7,725 $5,158 - -------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $90,054 $80,299 $53,485 $45,581 $39,104 $33,742 $6,149 $2,527 - -------------------------------------------------------------------------------------------------------------------------------- Number of shares outstanding at end of period (in thousands) 6,298 6,280 4,184 3,639 3,526 3,122 546 359 - -------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 1.97%(4) 1.97% 2.34% 2.59% 3.22% 3.51% 1.20%(4) .97%(4) Expenses, before voluntary reimbursement 1.41%(4) 1.24% 1.19% 1.31% 1.36% 1.40% 2.19%(4) 2.14%(4) Expenses, net of voluntary reimbursement N/A N/A N/A 1.26% 1.30% 1.30% N/A N/A - -------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate(5) 9.19% 24.3% 12.3% 14.5% 13.5% 14.9% 9.19% 24.3%
(1) For the period from May 1, 1993 (inception of offering) to December 31, 1993. (2) On March 28, 1991, Oppenheimer Management Corporation became the investment advisor to the Fund. (3) Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. (4) Annualized. (5) The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the six months ended June 30, 1994 were $11,004,217 and $7,909,461, respectively. See accompanying Notes to Financial Statements. 11 Oppenheimer Value Stock Fund 12 NOTES TO FINANCIAL STATEMENTS (Unaudited) ================================================================================================================================= 1. SIGNIFICANT ACCOUNTING Oppenheimer Value Stock Fund (the Fund) is a separate fund of Oppenheimer Integrity Funds, a POLICIES diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment advisor is Oppenheimer Management Corporation (the Manager). The Fund offers both Class A and Class B shares. Class A shares are sold with a front- end sales charge. Class B 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. 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. ------------------------------------------------------------------------------------------------ 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. ------------------------------------------------------------------------------------------------ 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. ------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are recorded on the ex-dividend date. ------------------------------------------------------------------------------------------------ CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. 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 $42,792, a decrease in undistributed net investment income of $430, and an increase in undistributed capital gain on investments of $43,222. ------------------------------------------------------------------------------------------------ OTHER. Investment transactions are accounted for on the date the investments are purchased or sold (trade date) and dividend income is recorded on the ex-dividend date. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes.
12 Oppenheimer Value Stock Fund 13 ============================================================================================================================= 2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial interest of BENEFICIAL INTEREST each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1994 (UNAUDITED) DECEMBER 31, 1993(1) ------------------------- ----------------------------- SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------ Class A: Sold 354,692 $5,108,514 2,167,501 $19,481,793 Issued in connection with the acquisition of Oppenheimer Blue Chip Fund--Note 6 -- -- 1,356,899 20,149,959 Dividends and distributions reinvested 54,394 776,700 379,876 5,528,826 Redeemed (390,590) (5,617,994) (1,808,202) (14,187,144) -------- ---------- ---------- ----------- Net increase 18,496 $267,220 2,096,074 $30,973,434 ======== ========== ========== =========== ------------------------------------------------------------------------------------------------ Class B: Sold 224,546 $3,204,583 357,108 $ 5,313,077 Dividends and distributions reinvested 2,375 33,731 18,763 270,609 Redeemed (40,049) (569,801) (16,401) (244,516) -------- ---------- ---------- ----------- Net increase 186,872 $2,668,513 359,470 $ 5,339,170 ======== ========== ========== ===========
1. For the year ended December 31, 1993 for Class A shares and for the period from May 1, 1993 (inception of offering) to December 31, 1993 for Class B shares. ============================================================================================================================= 3. UNREALIZED GAINS AND At June 30, 1994, net unrealized appreciation on investments of $13,106,068 was composed of LOSSES ON INVESTMENTS gross appreciation of $15,228,373, and gross depreciation of $2,122,305. ============================================================================================================================= 4. MANAGEMENT FEES Management fees paid to the Manager were in accordance with the investment advisory agreement AND OTHER TRANSACTIONS with the Fund which provides for an annual fee of .75% on the first $100 million of net assets WITH AFFILIATES with a reduction of .03% on each $200 million thereafter, to .66% on net assets in excess of $500 million. 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 six months ended June 30, 1994, commissions (sales charges paid by investors) on sales of Class A shares totaled $101,730, of which $70,560 was retained by Oppenheimer Funds Distributor, Inc., (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. During the six months ended June 30, 1994, OFDI received contingent deferred sales charges of $4,051 upon redemption of Class B shares. Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs of providing such services are allocated ratably to these companies. Under separate approved plans, each class may expend up to .25% of its net assets annually to reimburse OFDI for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Fund, including amounts paid to brokers, dealers, banks and other financial institutions. In addition, Class B 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 B plan, the Board of Trustees may allow the Fund to continue payment of the asset-based sales charge to OFDI for distribution expenses incurred in Class B shares sold prior to termination or discontinuance of the plan. During the six months ended June 30, 1994, OFDI paid $78,704 to an affiliated broker/dealer as reimbursement for Class A personal service and maintenance expenses and retained $29,654 as reimbursement for Class B sales commissions and service Fee advances, as well as financing costs. ============================================================================================================================= 5. DEFERRED A former trustee elected to defer receipt of fees earned. These deferred fees earn interest at a TRUSTEE rate determined by the current Board of Trustees at the beginning of each calendar year, COMPENSATION compounded each quarter-end. As of June 30, 1994, the Fund was incurring interest at a rate of 6.01% per annum. Deferred fees are payable in annual installments, with accrued interest, each April 1 through 1995.
13 Oppenheimer Value Stock Fund 14 NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued) ================================================================================================================================= 6. ACQUISITION On March 26, 1993, the Fund acquired all of the net assets of Oppenheimer Blue Chip Fund OF OPPENHEIMER (Blue Chip), Blue Chip Fund pursuant to an Agreement and Plan of Reorganization approved by BLUE CHIP FUND the shareholders on January 28, 1993. The Fund issued 1,356,899 shares of beneficial interest, valued at $20,149,959, in exchange for the net assets, resulting in combined net assets of $83,976,756 on March 26, 1993. The net assets acquired included net unrealized appreciation of $2,523,063. The exchange was tax-free.
14 Oppenheimer Value Stock Fund 15 OPPENHEIMER VALUE STOCK FUND A SERIES OF OPPENHEIMER INTEGRITY FUNDS ================================================================================================================================= OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee and President Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Andrew J. Donohue, Vice President David B. Salerno, Vice President George C. Bowen, Vice President, Secretary and Treasurer Robert J. Bishop, Assistant Treasurer Scott Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary ================================================================================================================================= INVESTMENT ADVISOR Oppenheimer Management Corporation ================================================================================================================================= SUB-ADVISOR Concert Capital Management, Inc. ================================================================================================================================= DISTRIBUTOR Oppenheimer Funds Distributor, Inc. ================================================================================================================================= TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services SERVICING AGENT ================================================================================================================================= CUSTODIAN OF The Bank of New York PORTFOLIO SECURITIES ================================================================================================================================= INDEPENDENT AUDITORS Deloitte & Touche ================================================================================================================================= LEGAL COUNSEL Myer, Swanson & Adams, P.C. The financial statements included herein have been taken from the records of the Fund without examination by the independent auditors. This is a copy of a report to shareholders of Oppenheimer Value Stock Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer Value Stock Fund. For material information concerning the Fund, see the Prospectus.
15 Oppenheimer Value Stock Fund 16 "HOW MAY I HELP YOU?" [PHOTO #2 -- SEE EDGAR APPENDIX] "Just as OppenheimerFunds offers over 30 different mutual funds designed to help meet virtually every investment need, Oppenheimer Shareholder Services offers a variety of services to satisfy your individual needs. Whenever you require help, we're only a toll- free phone call away. "For personalized assistance and account information, call our General Information number to speak with our knowledgeable Customer Service Representatives and get the help you need. "When you want to make account transactions, it's easy for you to redeem shares, exchange shares, or conduct AccountLink transactions, simply by calling our Telephone Transactions number. "And for added convenience, OppenheimerFunds' PhoneLink, an automated voice response system is available 24 hours a day, 7 days a week. PhoneLink gives you access to a variety of fund, account, and market information. You can even make purchases, exchanges and redemptions using your touch-tone phone. Of course, PhoneLink will always give you the option to speak with a Customer Service Representative during the hours shown to the left. "When you invest in OppenheimerFunds, you know you'll receive a high level of customer service. The International Customer Service Association knows it, too, as it awarded Oppenheimer Shareholder Services a 1993 Award of Excellence for consistently demonstrating superior customer service. "Whatever your needs, we're ready to assist you." (1993 AWARD OF EXCELLENCE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION LOGO) GENERAL INFORMATION 1-800-525-7048 Talk to a Customer Service Representative. Monday through Friday from 8:30 a.m. to 8:00 p.m., and Saturday from 10:00 a.m. to 2:00 p.m. ET. TELEPHONE TRANSACTIONS 1-800-852-8457 Make account transactions with a Customer Service Representative. Monday through Friday from 8:30 a.m. to 8:00 p.m. ET. PHONELINK 1-800-533-3310 Get automated information or make automated transactions. 24 hours a day, 7 days a week. TELECOMMUNICATION DEVICE FOR THE DEAF 1-800-843-4461 Service for the hearing impaired. Monday through Friday from 8:30 a.m. to 8:00 p.m. ET. OPPENHEIMERFUNDS INFORMATION HOTLINE 1-800-835-3104 Hear timely and insightful messages on the economy and issues that affect your finances. 24 hours a day, 7 days a week. RA220.0794.N (OPPENHEIMERFUNDS(R) LOGO) Oppenheimer Funds Distributor, Inc. P.O. Box 5270 Denver, CO 80217-5270 - --------------- Bulk Rate U.S. Postage PAID Permit No. 314 Farmingdale, NY - --------------- 17 APPENDIX TO ELECTRONIC FORMAT DOCUMENT The front cover of the report in the printed version contains a photo (photo # 1) of a mand and child on beach. The back cover of the report in the printed version contains a photo (photo #2) of Barbara Hennigar, Chief Executive Officer, Oppenheimer Shareholder Services. -----END PRIVACY-ENHANCED MESSAGE-----