-----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, otl0Wusoy+J6lYMkgJcN23MuI3wSQTuCH16EpOcmYoFM7mOl55LmchVEldQhahSq qASHNagENmJ1aDOBuFI4Nw== 0000950146-95-000075.txt : 19950612 0000950146-95-000075.hdr.sgml : 19950612 ACCESSION NUMBER: 0000950146-95-000075 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 INTEGRITY FUNDS CENTRAL INDEX KEY: 0000701265 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 95518964 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 VALUE STOCK FUND ANNUAL REPORT Oppenheimer Value Stock Fund Annual Report December 31, 1994 [photo depicting man and woman talking] "We want to invest for growth in high-quality companies that pay dividends... but we want their stocks at a good price." [logo] OppenheimerFunds This Fund is for people who seek long-term growth and current income from a fund that looks for good values when buying stocks of well-established companies. How Your Fund Is Managed Oppenheimer Value Stock Fund's basic investment strategy is to "buy low, sell high." The Fund's manager invests in stocks he believes are worth more than they cost, and sells stocks when he thinks they are overvalued. This strategy offers the potential for long-term capital appreciation because the Fund intends to invest in quality, well-established companies, and provide excellent value for your money. Performance Total return at net asset value for the 12 months ended 12/31/94 was 3.28% for Class A shares and 2.50% for Class B shares.(1) Your Fund's average annual total returns at maximum offering price for Class A shares for the 1- and 5-year periods ended 12/31/94 and since inception of the Class on 12/22/86 were -2.66%, 7.47% and 9.07%, respectively. For Class B shares, average annual total returns for the 1-year period ended 12/31/94 and since inception of the Class on 5/1/93 were -2.41% and 2.02%, respectively.(4) Outlook "As we enter 1995, we should see interest rates begin to stabilize. The Fed's actions to date seem to have begun to slow the economy, and there's nothing on the horizon that suggests we'll be dealing with runaway inflation or interest rates any time soon. As a result, we should start to see much calmer investment markets and continued gains in corporate profits, both of which should help value stocks in general and the Fund's performance." David Salerno, Portfolio Manager Concert Capital Management, The Fund's Sub-Advisor December 31, 1994 News Outperformed Averages Total Return for the Year Ended 12/31/94: Oppenheimer Value Stock Fund Class A (at NAV)(1) 3.28% S&P 500(2) 1.31% Lipper Growth & Income Funds Average(3) -0.94% 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. The S&P 500 Index is an unmanaged index of common stocks that is widely recognized as an indicator of overall market performance. The S&P 500 Index includes dividend reinvestments but does not take capital gains distributions into consideration. 3. Source: Lipper Analytical Services. The Lipper total return average for the year ended 12/31/94 was for 348 growth and income funds. The average 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. 4. 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% on 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. Class A and Class B shares were first publicly offered on 12/22/86 and 5/1/93, 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 Value Stock 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 elsewh ere 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. James C. Swain Chairman Oppenheimer Value Stock Fund Jon S. Fossel President Oppenheimer Value Stock Fund James C. Swain Jon S. Fossel January 23, 1995 3 Oppenheimer Value Stock Fund David Salerno Portfolio Manager Q + A An interview with the Fund's managers. The Fund performed well over the past 12 months, compared to both the market as a whole and other funds with similar objectives. What factors contributed most to that performance? Three factors stand out. First, we got some help from the market, particularly in the first six months of the year. That period was highly favorable to the high-quality value stocks in which we invest. As interest rates rose and the market grew more volatile, investors started to concentrate on quality, and our portfolio produced strong relative returns. Second, since June, the market has been leaning away from value stocks and toward growth issues, and we've responded. We've adjusted the portfolio somewhat, concentrating our investments less on cyclical, industrial companies and more on the values to be found in consumer related stocks. Third, one of the distinguishing features of this Fund is that the stocks on which we focus tend not to be heavily traded. You just don't see the huge trading-driven swings in prices you see in many other kinds of stocks. For our shareholders, the ability to invest in value without a lot of volatility is important.(1) How did your broad move to consumer stocks translate into specific buying and selling strategies? We did many things. For example, we took profits in areas that have done very well for the Fund, such as the electrical equipment and metals groups. Over the past several months, we've profitably reduced our positions in AMP, General Electric and General Signal, as well as in commodities producers like Phelps-Dodge and Willamette Industries. We've used the proceeds from those sales to build positions in consumer companies, adding names like Schering-Plough, Pepsico, and Archer-Daniels-Midland. We previously had relatively few holdings in the consumer sector, and we're reversing that now. We believe that these stocks offer better values. How about healthcare stocks? In spite of--or more accurately, because of--the uncertainty surrounding healthcare, these stocks offer very good values today. Many of the stocks of companies we own, including Pfizer and Becton-Dickinson, have performed very well on a price basis, while others, such as Bristol-Myers, have paid extremely attractive yields. Are there any groups you're avoiding? Although we look across the market for value, we aren't emphasizing electric and telephone utilities or energy stocks. We've also been reducing our holdings of property/casualty insurance stocks. Within groups, we constantly seek to upgrade the holdings. For example, in the energy sector, we recently sold USX/Marathon and purchased Kerr-McGee, a company that we feel has a better exploration and production profile. What is your outlook for the Fund? Inflation fears should abate as a result of the Fed's moves to raise interest rates. The stock market should again be able to focus on business profits instead of interest rates. As that happens, value stocks in general and the Fund in particular should benefit. 1. The Fund's portfolio is subject to change. 4 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statement of Investments December 31, 1994 ----------------------------------------------------------------------------------------------------- Face Market Value Amount See Note 1 =================================================================================================================================== Short-Term Notes--9.1% - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals--3.3% - ----------------------------------------------------------------------------------------------------------------------------------- Food Wholesalers--3.3% Pioneer Hi-Bred International, Inc., 5.97%, 1/10/95 $1,880,000 $ 1,877,194 ----------------------------------------------------------------------------------------------------- Tyson Foods, Inc., 6.10%, 1/4/95 1,515,000 1,514,230 ------------ 3,391,424 - ----------------------------------------------------------------------------------------------------------------------------------- Financial--2.9% - ----------------------------------------------------------------------------------------------------------------------------------- Financial Services: Countrywide Funding Corp., 6.30%, 1/6/95 2,000,000 1,998,250 ----------------------------------------------------------------------------------------------------- Miscellaneous--2.9% General Motors Acceptance Corp., 6.05%, 1/9/95 165,000 164,778 ----------------------------------------------------------------------------------------------------- ITT Financial Corp., 5.53%, 1/3/95 710,000 710,000 ----------------------------------------------------------------------------------------------------- PS Colorado Credit Corp., 5.95%, 1/25/95 170,000 169,326 ------------ 3,042,354 - ----------------------------------------------------------------------------------------------------------------------------------- Utilities--2.9% - ----------------------------------------------------------------------------------------------------------------------------------- Electric Companies--1.8% Texas Electric Services Co., 6.20%, 1/5/95 1,920,000 1,918,677 - ----------------------------------------------------------------------------------------------------------------------------------- Telephone--1.1% GTE Norwest, Inc., 5.88%, 1/13/95 1,115,000 1,112,815 ------------ Total Short-Term Notes (Cost $9,465,270) 9,465,270 Shares =================================================================================================================================== Common Stocks--91.2% - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials--10.0% - ----------------------------------------------------------------------------------------------------------------------------------- Aluminum--0.9% Reynolds Metals Co. 19,000 931,000 - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals--2.9% Du Pont (E.I.) De Nemours & Co. 20,500 1,153,125 ----------------------------------------------------------------------------------------------------- Eastman Chemical Co. 37,000 1,868,500 ------------ 3,021,625 - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals: Specialty--2.0% Lubrizol Corp. (The) 33,000 1,117,875 ----------------------------------------------------------------------------------------------------- Nalco Chemical Co. 27,200 911,200 ------------ 2,029,075 - ----------------------------------------------------------------------------------------------------------------------------------- Metal: Miscellaneous--0.7% Phelps Dodge Corp. 11,500 711,563 - ----------------------------------------------------------------------------------------------------------------------------------- Paper and Forest Westvaco Corp. 30,500 1,197,125 ----------------------------------------------------------------------------------------------------- Products--3.5% Weyerhaeuser Co. 49,000 1,837,500 ----------------------------------------------------------------------------------------------------- Willamette Industries, Inc. 13,300 631,750 ------------ 3,666,375 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals--13.8% - ----------------------------------------------------------------------------------------------------------------------------------- Auto Parts: After Market--3.2% Genuine Parts Co. 50,500 1,818,000 ----------------------------------------------------------------------------------------------------- Goodyear Tire & Rubber Co. 43,800 1,472,775 ------------ 3,290,775
5 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statement of Investments (Continued) ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Automobiles--1.6% Ford Motor Co. 57,500 $ 1,610,000 - ----------------------------------------------------------------------------------------------------------------------------------- Hardware and Tools--1.1% Stanley Works (The) 32,000 1,144,000 - ----------------------------------------------------------------------------------------------------------------------------------- Leisure Time--1.0% Eastman Kodak Co. 22,500 1,074,375 - ----------------------------------------------------------------------------------------------------------------------------------- Publishing--3.1% Dun & Bradstreet Corp. (The) 33,500 1,842,500 ----------------------------------------------------------------------------------------------------- McGraw-Hill, Inc. 21,000 1,404,375 ------------ 3,246,875 - ----------------------------------------------------------------------------------------------------------------------------------- Retail Stores: May Department Stores Co. 45,500 1,535,625 Department Stores--1.5% - ----------------------------------------------------------------------------------------------------------------------------------- Retail Stores: General Kmart Corp. 30,500 396,500 ----------------------------------------------------------------------------------------------------- Merchandise Chains--1.2% Penney (J.C.) Co., Inc. 19,000 847,875 ------------ 1,244,375 - ----------------------------------------------------------------------------------------------------------------------------------- Textiles: Apparel V.F. Corp. 23,500 1,142,687 Manufacturers--1.1% - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals--14.7% - ----------------------------------------------------------------------------------------------------------------------------------- Beverages: Alcoholic--1.2% Brown-Forman Corp., Cl. B 40,500 1,235,250 - ----------------------------------------------------------------------------------------------------------------------------------- Beverages: Soft Drinks--1.0% PepsiCo, Inc. 28,000 1,015,000 - ----------------------------------------------------------------------------------------------------------------------------------- Drugs--3.7% Pfizer, Inc. 35,000 2,703,750 ----------------------------------------------------------------------------------------------------- Schering-Plough 15,000 1,110,000 ------------ 3,813,750 - ----------------------------------------------------------------------------------------------------------------------------------- Food Processing--3.7% Archer-Daniels-Midland Co. 51,690 1,066,105 ----------------------------------------------------------------------------------------------------- CPC International, Inc. 31,500 1,677,375 ----------------------------------------------------------------------------------------------------- Pioneer Hi-Bred International, Inc. 33,000 1,138,500 ------------ 3,881,980 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare: Diversified--2.5% Bristol-Myers Squibb Co. 44,000 2,546,500 - ----------------------------------------------------------------------------------------------------------------------------------- Household Products--1.2% Clorox Co. (The) 20,500 1,206,938 - ----------------------------------------------------------------------------------------------------------------------------------- Medical Products--1.4% Becton, Dickinson & Co. 31,000 1,488,000 - ----------------------------------------------------------------------------------------------------------------------------------- Energy--8.6% - ----------------------------------------------------------------------------------------------------------------------------------- Oil: Exploration and Kerr-McGee Corp. 21,000 966,000 Production--0.9% - ----------------------------------------------------------------------------------------------------------------------------------- Oil:Integrated Domestic--0.9% Atlantic Richfield Co. 9,000 915,750 - ----------------------------------------------------------------------------------------------------------------------------------- Oil: Integrated Amoco Corp. 37,300 2,205,363 International--6.8% ----------------------------------------------------------------------------------------------------- Chevron Corp. 48,500 2,164,313 ----------------------------------------------------------------------------------------------------- Mobil Corp. 20,000 1,685,000 ----------------------------------------------------------------------------------------------------- Royal Dutch Petroleum Co. 9,000 967,500 ------------ 7,022,176
6 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial--15.6% - ----------------------------------------------------------------------------------------------------------------------------------- Commercial Services--1.2% Donnelley (R.R.) & Sons Co. 43,500 $ 1,283,250 - ----------------------------------------------------------------------------------------------------------------------------------- Electrical Equipment--7.9% AMP, Inc. 37,400 2,720,850 ----------------------------------------------------------------------------------------------------- General Electric Co. 53,500 2,728,500 ----------------------------------------------------------------------------------------------------- Grainger (W. W.), Inc. 24,000 1,386,000 ----------------------------------------------------------------------------------------------------- Honeywell, Inc. 2,700 85,050 ----------------------------------------------------------------------------------------------------- Hubbell, Inc., Cl. B 23,521 1,252,493 ------------ 8,172,893 - ----------------------------------------------------------------------------------------------------------------------------------- Manufacturing: Dover Corp. 20,000 1,032,500 ----------------------------------------------------------------------------------------------------- Diversified Industrials--4.1% General Signal Corp. 33,600 1,071,000 ----------------------------------------------------------------------------------------------------- Harsco Corp. 20,500 837,938 ----------------------------------------------------------------------------------------------------- Parker-Hannifin Corp. 29,000 1,319,500 ------------ 4,260,938 - ----------------------------------------------------------------------------------------------------------------------------------- Railroads--1.3% Norfolk Southern Corp. 23,000 1,394,375 - ----------------------------------------------------------------------------------------------------------------------------------- Truckers--1.1% Roadway Services, Inc. 20,000 1,135,000 - ----------------------------------------------------------------------------------------------------------------------------------- Financial--11.4% - ----------------------------------------------------------------------------------------------------------------------------------- Financial Services: American Express Co. 55,000 1,622,500 Miscellaneous--1.6% - ----------------------------------------------------------------------------------------------------------------------------------- Insurance: Life--1.0% Jefferson-Pilot Corp. 19,850 1,029,718 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance: Multi-Line--1.0% Unitrin, Inc. 24,500 1,053,500 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance: Property SAFECO Corp. 39,500 2,054,000 And Casualty--2.0% - ----------------------------------------------------------------------------------------------------------------------------------- Major Banks: Regional--4.2% Comerica, Inc. 52,500 1,279,688 ----------------------------------------------------------------------------------------------------- CoreStates Financial Corp. 50,000 1,300,000 ----------------------------------------------------------------------------------------------------- Norwest Corp. 38,000 888,250 ----------------------------------------------------------------------------------------------------- Wachovia Corp. 27,040 872,040 ------------ 4,339,978 - ----------------------------------------------------------------------------------------------------------------------------------- Money Center Banks--1.6% Bank of New York, Inc. 55,500 1,609,500 - ----------------------------------------------------------------------------------------------------------------------------------- Technology--12.6% - ----------------------------------------------------------------------------------------------------------------------------------- Aerospace/Defense--3.3% Boeing Co. (The) 24,000 1,122,000 ----------------------------------------------------------------------------------------------------- Lockheed Corp. 14,500 1,053,063 ----------------------------------------------------------------------------------------------------- Rockwell International Corp. 15,500 554,125 ----------------------------------------------------------------------------------------------------- TRW, Inc. 10,500 693,000 ------------ 3,422,188 - ----------------------------------------------------------------------------------------------------------------------------------- Computer Systems--0.9% International Business Machines Corp. 12,500 918,750 - ----------------------------------------------------------------------------------------------------------------------------------- Electronics: Hewlett-Packard Co. 26,300 2,626,713 Instrumentation--2.5% - ----------------------------------------------------------------------------------------------------------------------------------- Office Equipment and Minnesota Mining & Manufacturing Co. 45,000 2,401,875 ----------------------------------------------------------------------------------------------------- Supplies--5.0% Pitney Bowes, Inc. 47,500 1,508,125 ----------------------------------------------------------------------------------------------------- Xerox Corp. 13,000 1,287,000 ------------ 5,197,000
7 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statement of Investments (Continued) ----------------------------------------------------------------------------------------------------- Market Value Shares See Note 1 - ----------------------------------------------------------------------------------------------------------------------------------- Telecommunications--0.9% Rochester Telephone Corp. 42,200 $ 891,474 - ----------------------------------------------------------------------------------------------------------------------------------- Utilities--4.5% - ----------------------------------------------------------------------------------------------------------------------------------- Electric Companies--2.2% Niagara Mohawk Power Corp. 56,500 805,125 ----------------------------------------------------------------------------------------------------- NIPSCO Industries, Inc. 21,500 639,625 ----------------------------------------------------------------------------------------------------- Scana Corp. 20,000 842,500 ------------ 2,287,250 - ----------------------------------------------------------------------------------------------------------------------------------- Natural Gas--0.7% Consolidated Natural Gas Co. 21,000 745,500 - ----------------------------------------------------------------------------------------------------------------------------------- Telephone--1.6% Ameritech Corp. 23,000 928,625 ----------------------------------------------------------------------------------------------------- Southern New England Telecommunications Corp. 23,000 738,875 ------------ 1,667,500 ------------ Total Common Stocks (Cost $80,096,895) 94,451,721 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $89,562,165) 100.3% 103,916,991 - ----------------------------------------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (0.3) (296,331) ----- ------------ Net Assets 100.0% $103,620,660 ===== ============
See accompanying Notes to Financial Statements. 8 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statement of Assets and Liabilities December 31, 1994 ----------------------------------------------------------------------------------------------------- =================================================================================================================================== Assets Investments, at value (cost $89,562,165)--see accompanying statement $103,916,991 ----------------------------------------------------------------------------------------------------- Cash 4,715 ----------------------------------------------------------------------------------------------------- Receivables: Interest and dividends 286,290 Shares of beneficial interest sold 184,483 ----------------------------------------------------------------------------------------------------- Other 20,975 ------------ Total assets 104,413,454 =================================================================================================================================== Liabilities Payables and other liabilities: Shares of beneficial interest redeemed 322,571 Investments purchased 309,126 Distribution and service plan fees--Note 4 63,552 Dividends 18,262 Deferred trustee fees--Note 5 4,539 Other 74,744 ------------ Total liabilities 792,794 =================================================================================================================================== Net Assets $103,620,660 ============ =================================================================================================================================== Composition of Paid-in capital $ 89,314,351 Net Assets ----------------------------------------------------------------------------------------------------- Undistributed (overdistributed) net investment income (79,874) ----------------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) from investment transactions 31,357 ----------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments--Note 3 14,354,826 ------------ Net assets $103,620,660 ============ =================================================================================================================================== Per Share Class A Shares: Net Asset Value Net asset value and redemption price per share (based on net assets of $92,727,561 and 6,548,260 shares of beneficial interest outstanding) $14.16 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $15.02 ----------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price and offering price per share (based on net assets of $10,893,099 and 772,962 shares of beneficial interest outstanding) $14.09
See accompanying Notes to Financial Statements. 9 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statement of Operations For the Year Ended December 31, 1994 ----------------------------------------------------------------------------------------------------- =================================================================================================================================== Investment Income Dividends $ 2,930,464 ----------------------------------------------------------------------------------------------------- Interest 429,125 ------------ Total income 3,359,589 =================================================================================================================================== Expenses Management fees--Note 4 738,121 ----------------------------------------------------------------------------------------------------- Distribution and service plan fees: Class A--Note 4 221,818 Class B--Note 4 78,251 ----------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees--Note 4 109,435 ----------------------------------------------------------------------------------------------------- Shareholder reports 78,305 ----------------------------------------------------------------------------------------------------- Custodian fees and expenses 24,265 ----------------------------------------------------------------------------------------------------- Legal and auditing fees 18,674 ----------------------------------------------------------------------------------------------------- Trustees' fees and expenses 1,695 ----------------------------------------------------------------------------------------------------- Registration and filing fees--Class B 2,175 ----------------------------------------------------------------------------------------------------- Other 30,856 ------------ Total expenses 1,303,595 =================================================================================================================================== Net Investment Income (Loss) 2,055,994 =================================================================================================================================== Realized and Unrealized Net realized gain (loss) on investments 2,820,946 Gain (Loss) on Investments ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments (1,764,415) ------------ Net realized and unrealized gain (loss) on investments 1,056,531 =================================================================================================================================== Net Increase (Decrease) in Net Assets Resulting From Operations $ 3,112,525 ============
See accompanying Notes to Financial Statements. 10 Oppenheimer Value Stock Fund
----------------------------------------------------------------------------------------------------- Statements of Changes in Net Assets ----------------------------------------------------------------------------------------------------- Year Ended December 31, 1994 1993 =================================================================================================================================== Operations Net investment income (loss) $ 2,055,994 $ 1,598,257 ----------------------------------------------------------------------------------------------------- Net realized gain (loss) on investments 2,820,946 4,772,844 ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments (1,764,415) (52,118) ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,112,525 6,318,983 =================================================================================================================================== Dividends and Dividends from net investment income: Distributions to Class A ($.31 and $.288 per share, respectively) (1,921,684) (1,573,023) Shareholders Class B ($.209 and $.166 per share, respectively) (130,461) (33,142) ----------------------------------------------------------------------------------------------------- Dividends in excess of net investment income: Class A ($.01 per share) (74,310) -- Class B ($.01 per share) (5,047) -- ----------------------------------------------------------------------------------------------------- Distributions from net realized gain on investments: Class A ($.395 and $.76 per share, respectively) (2,490,365) (4,515,011) Class B ($.395 and $.76 per share, respectively) (290,318) (258,413) =================================================================================================================================== Beneficial Interest Net increase (decrease) in net assets resulting from Class A Transactions beneficial interest transactions--Note 2 3,834,762 30,973,434 ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from Class B beneficial interest transactions--Note 2 5,957,338 5,339,170 =================================================================================================================================== Net Assets Total increase (decrease) 7,992,440 36,251,998 ----------------------------------------------------------------------------------------------------- Beginning of period 95,628,220 59,376,222 ------------- ------------- End of period [including undistributed (overdistributed) net investment income of $(79,874) and $225, respectively] $ 103,620,660 $ 95,628,220 ============= =============
See accompanying Notes to Financial Statements. 11 Oppenheimer Value Stock Fund
-------------------------------------------------------------------------------------------------- Financial Highlights -------------------------------------------------------------------------------------------------- Class A Class B ------------------------------------------------------------------------------- ---------------- Year Ended Year Ended December 31, December 31, 1994 1993 1992 1991(3) 1990 1989 1988 1987 1986(2) 1994 1993(1) ================================================================================================================================ Per Share Operating Data: Net asset value, beginning of period $ 14.41 $ 14.19 $ 13.57 $ 11.39 $ 12.08 $ 10.47 $ 9.51 $ 9.98 $ 10.16 $ 14.35 $ 14.60 Income from investment operations: Net investment income .31 .29 .32 .33 .37 .40 .33 .34 .01 .17 .17 Net realized and unrealized gain (loss) on investments .16 .98 .97 2.49 (.57) 1.87 1.15 (.22) (.19) .19 .51 ------- ------- ------- ------- ------- ------- ------- ------ ------- ------- ------- Total income (loss) from investment operations .47 1.27 1.29 2.82 (.20) 2.27 1.48 .12 (.18) .36 .68 - -------------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.31) (.29) (.32) (.33) (.39) (.41) (.33) (.41) -- (.21) (.17) Dividends in excess of net investment income (.01) -- -- -- -- -- -- -- -- (.01) -- Distributions from net realized gain on investments (.40) (.76) (.35) (.31) (.10) (.25) (.19) (.18) -- (.40) (.76) ------- ------- ------- ------- ------- ------- ------- ------ ------- ------- ------- Total dividends and distributions to shareholders (.72) (1.05) (.67) (.64) (.49) (.66) (.52) (.59) -- (.62) (.93) - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 14.16 $ 14.41 $ 14.19 $ 13.57 $ 11.39 $ 12.08 $ 10.47 $ 9.51 $ 9.98 $ 14.09 $ 14.35 ======= ======= ======= ======= ======= ======= ======= ====== ======= ======= ======= ================================================================================================================================ Total Return, at Net Asset Value(4) 3.28% 8.97% 9.61% 25.23% (1.53)% 21.93% 15.61% 1.10% (1.77)% 2.50% 4.63% ================================================================================================================================ Ratios/Supplemental Data: Net assets, end of period (in thousands) $92,728 $90,470 $59,376 $49,381 $40,153 $37,713 $27,434 $19,377 $20,162 $10,893 $5,158 - -------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $90,158 $80,229 $53,485 $45,581 $39,104 $33,742 $24,658 $22,322 $ --(2) $7,834 $2,527 - -------------------------------------------------------------------------------------------------------------------------------- Number of shares outstanding at end of period (in thousands) 6,548 6,280 4,184 3,639 3,526 3,122 2,620 2,039 2,021 773 359 - -------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 2.16% 1.97% 2.34% 2.59% 3.22% 3.51% 3.45% 3.15% --(2) 1.45% .97%(5) Expenses, before voluntary reimbursement 1.27% 1.24% 1.19% 1.31% 1.36% 1.40% 1.21% .70% --(2) 2.01% 2.14%(5) Expenses, net of voluntary reimbursement N/A N/A N/A 1.26% 1.30% 1.30% 1.19% N/A --(2) N/A N/A - -------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate(6) 16.3% 24.3% 12.3% 14.5% 13.5% 14.9% 13.1% 10.8% --(2) 16.3% 24.3% 1. For the period from May 1, 1993 (inception of offering) to December 31, 1993. 2. For the period from December 22, 1986 to December 31, 1986. Ratios during this development period would not be indicative of representative results. 3. On March 28, 1991, Oppenheimer Management Corporation became the investment advisor to the Fund. 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. Purchases and sales of investment securities (excluding short-term securities) for the year ended December 31, 1994 were $20,227,936 and $14,410,677, respectively.
See accompanying Notes to Financial Statements. 12 Oppenheimer Value Stock Fund ----------------------------------------------------------------------------------------------------- Notes to Financial Statements ----------------------------------------------------------------------------------------------------- =================================================================================================================================== 1. Significant Oppenheimer Value Stock Fund (the Fund) is a separate fund of Oppenheimer Integrity Funds, a Accounting 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 Classification of Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. 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 $42,792, a decrease in undistributed net investment income of $430, and an increase in accumulated net realized gain on investments of $43,222. During the year ended December 31, 1994, in accordance with Statement of Position 93-2, undistributed net investment income was decreased by $4,161, accumulated net realized gain on investments was decreased by $8,906, and paid-in capital was increased by $13,067. ----------------------------------------------------------------------------------------------------- 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.
13 Oppenheimer Value Stock Fund ----------------------------------------------------------------------------------------------------- Notes to Financial Statements (Continued) ----------------------------------------------------------------------------------------------------- =================================================================================================================================== 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 Year Ended December 31, 1994 December 31, 1993(1) -------------------------- -------------------------- Shares Amount Shares Amount ----------------------------------------------------------------------------------------------------- Class A: Sold 1,880,960 $ 27,360,226 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 311,720 4,414,279 379,876 5,528,826 Redeemed (1,924,358) (27,939,743) (1,808,202) (14,187,144) ------------ ------------ ------------ ------------ Net increase 268,322 $ 3,834,762 2,096,074 $ 30,973,434 ============ ============ ============ ============ ----------------------------------------------------------------------------------------------------- Class B: Sold 499,617 $ 7,201,783 357,108 $ 5,313,077 Dividends and distributions reinvested 28,292 397,953 18,763 270,609 Redeemed (114,417) (1,642,398) (16,401) (244,516) ------------ ------------ ------------ ------------ Net increase 413,492 $ 5,957,338 359,470 $ 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 December 31, 1994, net unrealized appreciation on investments of $14,354,826 was composed of gross Losses on Investments appreciation of $16,299,468, and gross depreciation of $1,944,642. =================================================================================================================================== 4. Management Fees and Management fees paid to the Manager were in accordance with the investment advisory agreement with Other Transactions the Fund which provides for an annual fee of .75% on the first $100 million of net assets with a With Affiliates 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 year ended December 31, 1994, commissions (sales charges paid by investors) on sales of Class A shares totaled $204,620, of which $135,102 was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. During the period ended December 31, 1994, OFDI received contingent deferred sales charges of $10,493 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 holds 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 on Class B shares sold prior to termination or discontinuance of the plan. During the year ended December 31, 1994, OFDI paid $154,383 and $1,554, respectively, to an affiliated broker/dealer as reimbursement for Class A and Class B personal service and maintenance expenses and retained $73,215 as reimbursement for Class B sales commissions and service fee advances, as well as financing costs.
14 Oppenheimer Value Stock Fund ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- =================================================================================================================================== 5. Deferred Trustee A former trustee elected to defer receipt of fees earned. These deferred fees earn interest at a rate Compensation determined by the current Board of Trustees at the beginning of each calendar year, compounded each quarter-end. As of December 31, 1994, the Fund was incurring interest at a rate of 5.22% per annum. Deferred fees are payable in annual installments, with accrued interest, each April 1 through 1995. =================================================================================================================================== 6. Acquisition of On March 26, 1993, the Fund acquired all of the net assets of Oppenheimer Blue Chip Fund (Blue Chip), Oppenheimer Blue pursuant to an Agreement and Plan of Reorganization approved by the Blue Chip shareholders on Chip Fund 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.
15 Oppenheimer Value Stock Fund ----------------------------------------------------------------------------------------------------- Independent Auditors' Report ----------------------------------------------------------------------------------------------------- =================================================================================================================================== The Board of Trustees and Shareholders of Oppenheimer Value Stock Fund: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Oppenheimer Value Stock Fund as of December 31, 1994, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1994 and 1993 and the financial highlights for the period January 1, 1991 to December 31, 1994. 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. The financial highlights (except for total return) for the period December 22, 1986 to December 31, 1990 were audited by other auditors whose report dated February 4, 1991, expressed an unqualified opinion on those financial highlights. 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 at December 31, 1994 by correspondence with the custodian and brokers; where replies 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, such financial statements and financial highlights present fairly, in all material respects, the financial position of Oppenheimer Value Stock Fund at December 31, 1994, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado January 23, 1995
16 Oppenheimer Value Stock 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 $.395 per share was paid on December 20, 1994, all of 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 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 Value Stock Fund ----------------------------------------------------------------------------------------------------- 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 LLP =================================================================================================================================== Legal Counsel Myer, Swanson, Adams & Wolf, P.C. 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.
18 Oppenheimer Value Stock 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 Fund3 Stock & Bond Funds Main Street Income &Growth Fund Equity Income Fund Total Return Fund Asset Allocation Fund Global Growth &Income Fund BondFunds 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-ExemptFund(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 Oppenheimer Global Bio-Tech Fund and Oppenheimer 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, NY10048-0203. (C)Copyright 1995 Oppenheimer anagement Corporation. All rights reserved. 19 Oppenheimer Value Stock 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 indepen-dent, 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 RA0325.001.0295 [logo] OppenheimerFunds(R) Oppenheimer Funds Distributor, Inc. P.O. Box 5270 Denver, CO 80217-5270 Bulk Rate U.S. Postage PAID Permit No. 469 Denver, CO -----END PRIVACY-ENHANCED MESSAGE-----