-----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, TaG17hidEE8byYLmjYzmWCJ1HQAJb71szQGV2h8mVAVGG47CueXW0Ioqz8uq8Yxn 1rcXSYNX2bVMfyuefJOn8A== 0000912057-95-007509.txt : 19950908 0000912057-95-007509.hdr.sgml : 19950908 ACCESSION NUMBER: 0000912057-95-007509 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950907 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER ASSET ALLOCATION FUND CENTRAL INDEX KEY: 0000729968 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133395850 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03864 FILM NUMBER: 95570802 BUSINESS ADDRESS: STREET 1: 2 WORLD TRADE CENTER 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 2123230234 MAIL ADDRESS: STREET 2: 2 WORLD TRADE CENTER 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER RETIREMENT FUND DATE OF NAME CHANGE: 19870503 FORMER COMPANY: FORMER CONFORMED NAME: OMC GROWTH & INCOME TRUST DATE OF NAME CHANGE: 19840826 N-30D 1 N-30D OPPENHEIMER ASSET ALLOCATION FUND SEMIANNUAL REPORT JUNE 30, 1995 [PHOTO] "We need the COMFORT that comes from diversifying in different types of investments... but we want it from one fund." [OPPENHEIMER-FUNDS LOGO] This Fund is for people who want ONE investment to do it ALL--strategically allocating their money across stocks, bonds, and money market securities. NEWS "OVERALL, THE FUND HAS BEEN A STRONG AND STEADY PERFORMER." - --MORNINGSTAR MUTUAL FUNDS 3/31/95 How Your Fund is Managed Oppenheimer Asset Allocation Fund uses a combination of investment styles to seek high total return while managing risk. The Fund seeks to achieve its goals by investing in a combination of stocks, bonds and money market instruments--strategically allocated to take advantage of current economic conditions. Investing in stocks offers the best potential for long-term growth. The Fund's managers invest in established U.S. and international companies that they believe have excellent potential for appreciation. The Fund's diversified fixed income and money market investments seek high yields which can act as a cushion against fluctuations in the value of the stocks in the Fund's portfolio. Performance Total return at net asset value for the 6 months ended 6/30/95 was 13.59% for Class A shares and 13.03% for Class C 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 6/30/95 and since inception of the Class on 4/24/87 were 9.86%, 8.83% and 8.30%, respectively. For Class C shares, average annual total returns for the 1-year period ended 6/30/95 and since inception of the Class on 12/1/93 were 14.55% and 7.81%, respectively.(2) Outlook "Stocks should continue to provide long-term returns approaching their historical averages. We expect to participate in those gains and to rely on the bonds and cash in our portfolio to help temper short-term volatility." RICHARD RUBINSTEIN, PORTFOLIO MANAGER JUNE 30, 1995 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. 1. Based on the change in net asset value per share for the period shown, without deducting any sales charges. Such performance would have been lower if sales charges were taken into account. 2. Class A returns show results of hypothetical investments on 6/30/94, 6/30/90 and 4/24/87 (inception of class), after deducting the current maximum initial sales charge of 5.75%. The Fund's maximum sales charge rate for Class A shares was higher during a portion of some of the periods shown, and actual investment results will be different as a result of the change. Class C returns show results of hypothetical investments on 6/30/94 and 12/1/93 (inception of class), with the 1% contingent deferred sales charge deducted for the 1-year result. An explanation of the different performance calculations is in the Fund's prospectus. 2 Oppenheimer Asset Allocation Fund [PHOTO] Donald W. Spiro President Oppenheimer Asset Allocation Fund [PHOTO] Jon S. Fossel Chairman and CEO Oppenheimer Management Corporation Dear OppenheimerFunds Shareholder, In the first six months of 1995, the stock and bond markets have improved significantly. The Federal Reserve's seven interest rate hikes between February 1994 and February 1995 appear to have achieved their intended effect, as the rate of economic growth has slowed throughout the year. This economic outlook of sustainable, healthy growth with low inflation, falling interest rates, and talk of deficit reduction inspired investors' confidence in the stock market. As a result, the Dow Jones Industrial Average hit record highs repeatedly in the first half of the year. The stock market has been strong for other reasons as well. Overall, corporate America has done an excellent job of restructuring, and has become more productive and profitable. Combined with continued investment in technology and increased competitiveness abroad as a result of a weaker dollar, these events resulted in spectacular first quarter earnings reports. While the market's rise this year has been dramatic, it has caused our equity investment team to become slightly more cautious. Because the market has already registered significant gains this year, the stock market is starting to see signs of short-term volatility, and your Fund's managers want to protect the gains the Fund has made. Still, the market's expansion has been fueled by underlying fundamental strengths. So, while we are cautious, we believe it has room to continue. Congress's continuing emphasis on deficit reduction, plus Washington's commitment to correcting our trade imbalance, should benefit the market--in addition to attracting foreign investments to U.S. stocks, creating even greater demand and possibly pushing their prices up further. Should the economy slow more than anticipated, however, we would expect to see earnings slow eventually, which could cause the market to hesitate. In this event, smaller companies and international stocks could begin to outperform the large, globally-oriented companies that have led the market so far this year. However, until your Fund's managers see signs of either increased inflation or recession on the horizon, they remain constructive on the market in general and will view any volatility in the near term as a time to search for buying opportunities. At OppenheimerFunds, our approach to the stock market is to invest with a long-term view, to participate in upswings while remaining prudent, and, finally, to know when to become more defensive to protect the gains we have made. Your portfolio manager discusses the outlook for your Fund on the following pages. Thank you for your confidence in OppenheimerFunds, and we look forward to helping you continue to reach your investment goals in the future. /s/ Donald W. Spiro /s/ Jon S. Fossel Donald W. Spiro Jon S. Fossel July 24, 1995 3 Oppenheimer Asset Allocation Fund Q + A [PHOTO] [PHOTO] An Interview with your Fund's Manager. Q What's your strategy with regard to industry sectors? WHAT FACTORS ARE BEHIND THE STRONG STOCK AND BOND MARKETS WE'VE SEEN SO FAR THIS YEAR? Primarily, it's been the drop in interest rates. Lower rates drove the bond market higher and also eliminated the drag on stocks. Additionally, corporate earnings have been near record highs for over two years now, due primarily to improved productivity and cost savings from restructurings. But even with [PHOTO] strong earnings, the market had been relatively flat until this year as a result of the Federal Reserve's policy to increase interest rates. During the first half of 1995, we started to see evidence that the economy was genuinely slowing, and that allowed the Fed to stop raising rates. So with earnings still strong, this year's stock market benefited from the double-barreled effect. HAS MARKET ACTIVITY ALTERED YOUR CURRENT ASSET ALLOCATION? Not really. The Asset Allocation Fund was designed to try to generate attractive returns while managing risk. To do this, we take advantage of what has historically been a lack of correlation of returns between equities, fixed income and cash. Today we're holding around 55% equities, 37% bonds, and 8% cash.(1) WHEN SELECTING STOCKS, WHAT HAS YOUR STRATEGY BEEN WITH REGARD TO INDUSTRY SECTORS? We're strong believers in the theory that broad diversification can offer consistent results. But we view diversification not so much by industry sector as by investment style. Because the market is difficult to predict, our investment approach allows us to be involved in a wide cross section of stocks so that part of our portfolio should be growing at all times. We buy stocks that fit into value, growth and contrarian classifications for their capital appreciation potential, and further diversify into high yield 1. The Fund's portfolio is subject to change. 4 Oppenheimer Asset Allocation Fund FACING PAGE Top left: Richard Rubinstein, Portfolio Manager Top right: The equity trading desk Bottom: Mark Binning, Securities Coordinator, consults with Lawrence Apolito, VP Equity Trading THIS PAGE Top: Richard Rubinstein Bottom: Robert Doll, Executive VP, Director of Equity Investments A We believe that broad DIVERSIFICATION can offer consistent results. and international stocks to reduce overall risk. Over the last six months, there has been little change in the percentage of the portfolio's exposure to these styles. HAVE YOUR FIXED INCOME INVESTMENTS CHANGED AS A RESULT OF THE BOND RALLY? In bonds, as in stocks, we emphasize a low-risk approach through broad diversification, and are fortunate to be able to draw on Oppenheimer Management's tremendous fixed income expertise in this arena. We invest in a number of different bond categories, and are currently using a combination of U.S. government, foreign government and high yield corporate bonds. While each category has certain inherent risks and rewards, when used together, bad [PHOTO] performance in one sector can be offset by good performance in another and provide potentially high returns. During the first half of '95, we've reduced our bond positions modestly, in part to capture currency gains from the weak dollar but also because cash is providing very attractive relative returns in the current market. WHAT DO YOU EXPECT TO SEE FROM THE MARKETS AND THE FUND GOING FORWARD? Corporate earnings have been so good for so long--at least 2 1/2 years--that it's only natural that we will get an eventual slowdown. So, for the stock market to continue to move higher, one of two things would have to happen. First, interest rates would continue to come down. And [PHOTO] though they are already low, we believe this is a possibility. We expect that along with a slowing economy, inflation will remain subdued--leaving the Federal Reserve room to cut rates to stimulate the economy if necessary. Lower rates would also benefit bond prices, because as rates decline, prices generally increase. The second potential catalyst is for federal action to reduce the deficit. Even if any budgetary programs passed into law are modest, the market will likely view it as favorable. In our view, stocks should continue to provide long-term returns approaching their historical averages. We expect to participate in those gains and to rely on the bonds and cash in our portfolio to help temper short-term volatility. 5 Oppenheimer Asset Allocation Fund --------------------------------------------------- STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED) ---------------------------------------------------
FACE MARKET VALUE AMOUNT(1) SEE NOTE 1 - ----------------------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS--0.6% - ----------------------------------------------------------------------------------------------------------------------------- GOVERNMENT AGENCY--0.5% - ----------------------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED--0.2% Federal National Mortgage Assn., 11%, 11/1/14 $ 16,479 $ 18,369 -------------------------------------------------------------------------------------------- Federal National Mortgage Assn., 11.50%, 7/1/11 225,695 253,604 -------------------------------------------------------------------------------------------- Federal National Mortgage Assn., 11.75%, 1/1/16 281,315 318,504 ----------- 590,477 - ----------------------------------------------------------------------------------------------------------------------------- GNMA/GUARANTEED--0.3% Government National Mortgage Assn., 9%, 11/15/08-5/15/09 642,277 676,070 - ----------------------------------------------------------------------------------------------------------------------------- PRIVATE--0.1% - ----------------------------------------------------------------------------------------------------------------------------- MULTI-FAMILY--0.1% Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 406,693 365,579 ---------- Total Mortgage-Backed Obligations (Cost $1,511,300) 1,632,126 - ----------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--15.9% - ----------------------------------------------------------------------------------------------------------------------------- TREASURY--15.9% - ---------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Nts.: 6.75%, 5/31/97 3,000,000 3,050,625 7.875%, 1/15/98 1,600,000 1,675,000 7.875%, 6/30/96 8,500,000 8,675,313 8.25%, 7/15/98 16,000,000 17,024,990 8.75%, 10/15/97 350,000 371,438 8.875%, 11/15/98 950,000 1,034,015 9.25%, 1/15/96 825,000 840,210 9.25%, 8/15/98 9,450,000 10,330,031 ---------- Total U.S. Government Obligations (Cost $41,134,761) 43,001,622 - ----------------------------------------------------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--6.7% - ----------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas, Series I, 6.063%, 4/1/01(2) (3) 1,438,700 895,974 -------------------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 5%, 3/31/23(4) 2,500,000 1,196,875 -------------------------------------------------------------------------------------------- Argentina (Republic of) Past Due Interest Bonds, 7.313%, 3/31/05(2) 3,000,000 1,850,625 -------------------------------------------------------------------------------------------- Canada (Government of) Bonds, 9.75%, 12/1/01(CAD) 6,000,000 4,823,361 -------------------------------------------------------------------------------------------- Canada (Government of) Bonds, 9.75%, 6/1/01(CAD) 2,000,000 1,600,756 -------------------------------------------------------------------------------------------- Queensland Treasury Corp. Gtd. Exchangeable Nts., 10.50%, 5/15/03 (AUD) 5,000,000 3,800,130 -------------------------------------------------------------------------------------------- Sweden (Kingdom of) Bonds, 11%, 1/21/99 (SEK) 7,500,000 1,044,114 -------------------------------------------------------------------------------------------- Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 (AUD) 3,000,000 2,030,800 -------------------------------------------------------------------------------------------- Venezuela (Republic of) Front-Loaded Interest Reduction Bonds, Series A, 7.313%, 3/31/07(2) 1,500,000 740,625 ----------- Total Foreign Government Obligations (Cost $18,580,998) 17,983,260 - ----------------------------------------------------------------------------------------------------------------------------- NON-CONVERTIBLE CORPORATE BONDS AND NOTES--11.7% - ----------------------------------------------------------------------------------------------------------------------------- BASIC MATERIALS--1.1% - ----------------------------------------------------------------------------------------------------------------------------- CHEMICALS--0.2% Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 567,674 - ----------------------------------------------------------------------------------------------------------------------------- METALS--0.5% Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 400,000 414,000 -------------------------------------------------------------------------------------------- Inland Steel Industries, Inc., 12.75% Nts., 12/15/02 400,000 448,500 -------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 537,500 ----------- 1,400,000
6 Oppenheimer Asset Allocation Fund
FACE MARKET VALUE AMOUNT(1) SEE NOTE 1 - ----------------------------------------------------------------------------------------------------------------------------- PAPER--0.4% Gaylord Container Corp., 0%/12.75% Sr. Sub. Disc. Debs., 5/15/05(5) $ 600,000 $ 588,000 ------------------------------------------------------------------------------------------------- Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 500,000 540,000 ----------- 1,128,000 - ----------------------------------------------------------------------------------------------------------------------------- CONSUMER CYCLICALS--5.4% - ------------------------------------------------------------------------------------------------------------------------------ AUTOS & HOUSING--1.0% Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 900,000 913,500 ------------------------------------------------------------------------------------------------- Auburn Hills Trust, 12% Gtd. Exchangeable Certificates, 5/1/20(6) 800,000 1,187,725 ------------------------------------------------------------------------------------------------- Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 725,000 638,000 ----------- 2,739,225 - ----------------------------------------------------------------------------------------------------------------------------- LEISURE & Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., ENTERTAINMENT--0.4% Series B, 5/27/98 1,000,000 745,000 ------------------------------------------------------------------------------------------------- Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 400,000 423,000 ----------- 1,168,000 - ----------------------------------------------------------------------------------------------------------------------------- MEDIA--3.1% Adelphia Communications Corp., 12.50% Sr. Nts., 5/15/02 1,000,000 995,000 ------------------------------------------------------------------------------------------------- Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 1,000,000 1,041,250 ------------------------------------------------------------------------------------------------- Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 524,375 ------------------------------------------------------------------------------------------------- Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 1,000,000 1,035,000 ------------------------------------------------------------------------------------------------- News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,083,176 ------------------------------------------------------------------------------------------------- Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(5) 1,000,000 711,250 ------------------------------------------------------------------------------------------------- SCI Television, Inc., 11% Sr. Nts., Series 1, 6/30/05 500,000 521,250 ------------------------------------------------------------------------------------------------- Time Warner, Inc., 7.95% Nts., 2/1/00 1,000,000 1,031,961 ------------------------------------------------------------------------------------------------- TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,100,000 1,272,122 ----------- 8,215,384 - ----------------------------------------------------------------------------------------------------------------------------- RETAIL: GENERAL--0.9% Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 500,000 522,500 ------------------------------------------------------------------------------------------------- Southland Corp., 4.50% Second Priority Sr. Sub. Debs., Series A, 6/15/04 1,550,000 1,088,875 ------------------------------------------------------------------------------------------------- Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 900,000 904,500 ----------- 2,515,875 - ----------------------------------------------------------------------------------------------------------------------------- CONSUMER NON-CYCLICALS--1.0% - ----------------------------------------------------------------------------------------------------------------------------- FOOD--0.8% Di Giorgio Corp., 12% Sr. Nts., 2/15/03 750,000 558,750 ------------------------------------------------------------------------------------------------- Grand Union Co., 12% Sr. Nts., 9/1/04 1,137,000 1,108,575 ------------------------------------------------------------------------------------------------- Ralph's Grocery Co., 11% Sr. Sub. Nts., 6/15/05 500,000 487,500 ----------- 2,154,825 - ----------------------------------------------------------------------------------------------------------------------------- HEALTHCARE/SUPPLIES Multicare Cos., Inc. (The), 12.50% Sr. Sub. Nts., 7/1/02 345,000 388,125 & SERVICES--0.2% - ----------------------------------------------------------------------------------------------------------------------------- ENERGY--1.3% - ----------------------------------------------------------------------------------------------------------------------------- ENERGY SERVICES Maxus Energy Corp., 11.50% Debs., 11/15/15 1,000,000 990,000 ------------------------------------------------------------------------------------------------- & PRODUCERS--1.1% OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 750,000 847,500 ------------------------------------------------------------------------------------------------- Rowan Cos., Inc., 11.875% Sr. Nts., 12/1/01 1,000,000 1,075,000 ----------- 2,912,500 - ----------------------------------------------------------------------------------------------------------------------------- OIL-INTEGRATED--0.2% Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99 400,000 441,000
7 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------
FACE MARKET VALUE AMOUNT(1) SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL--1.1% - -------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL--0.7% GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 $750,000 $633,750 --------------------------------------------------------------------------------------------- GPA Holland BV, 9.75% Medium-Term Nts., Series B, 6/10/96 1,000,000 973,750 --------------------------------------------------------------------------------------------- Tiphook Financial Corp., 7.125% Gtd. Nts., 5/1/98 418,000 336,490 ----------- 1,943,990 - -------------------------------------------------------------------------------------------------------------------------------- INSURANCE--0.4% Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 921,474 - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL--1.1% - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL MATERIALS--0.6% Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 500,000 517,500 --------------------------------------------------------------------------------------------- Owens-Illinois, Inc., 11% Sr. Debs., 12/1/03 650,000 719,875 --------------------------------------------------------------------------------------------- USG Corp., 10.25% Sr. Sec. Nts., 12/15/02 424,000 430,360 ----------- 1,667,735 - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL SERVICES--0.3% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,000,000 892,500 - -------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING--0.2% MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96 500,000 503,750 - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY--0.3% - -------------------------------------------------------------------------------------------------------------------------------- AEROSPACE/DEFENSE--0.1% Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97(2) 400,000 446,532 - -------------------------------------------------------------------------------------------------------------------------------- TELECOMMUNICATIONS- Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 473,750 TECHNOLOGY--0.2% - -------------------------------------------------------------------------------------------------------------------------------- UTILITIES--0.4% - -------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.4% First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 1,000,000 1,032,444 ---------- Total Non-Convertible Corporate Bonds and Notes (Cost $31,134,900) 31,512,783 - -------------------------------------------------------------------------------------------------------------------------------- CONVERTIBLE CORPORATE BONDS AND NOTES--0.5% - -------------------------------------------------------------------------------------------------------------------------------- MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03 (Cost $1,534,001) 1,650,000 1,402,500 SHARES - -------------------------------------------------------------------------------------------------------------------------------- COMMON STOCK--54.3% - -------------------------------------------------------------------------------------------------------------------------------- BASIC MATERIALS--4.4% - -------------------------------------------------------------------------------------------------------------------------------- CHEMICALS--2.1% ARCO Chemical Co. 24,300 1,102,613 --------------------------------------------------------------------------------------------- Bayer AG, Sponsored ADR 90,000 2,236,797 --------------------------------------------------------------------------------------------- IMC Global, Inc.(7) 19,200 1,039,200 --------------------------------------------------------------------------------------------- Praxair, Inc. 49,700 1,242,500 ----------- 5,621,110 - -------------------------------------------------------------------------------------------------------------------------------- GOLD--0.3% Santa Fe Pacific Gold Corp.(7) 73,000 885,125 - -------------------------------------------------------------------------------------------------------------------------------- METALS--1.3% Brush Wellman, Inc. 103,300 2,208,037 --------------------------------------------------------------------------------------------- Inland Steel Industries, Inc.(7) 43,000 1,311,500 ----------- 3,519,537 - -------------------------------------------------------------------------------------------------------------------------------- PAPER--0.7% Georgia-Pacific Corp. 13,900 1,205,825 --------------------------------------------------------------------------------------------- Louisiana-Pacific Corp. 29,300 769,125 ----------- 1,974,950 - -------------------------------------------------------------------------------------------------------------------------------- CONSUMER CYCLICALS--7.2% - -------------------------------------------------------------------------------------------------------------------------------- AUTOS & HOUSING--0.7% Fiat SpA(8) 320,000 1,127,915 --------------------------------------------------------------------------------------------- General Motors Corp. 18,000 843,750 ----------- 1,971,665
8 Oppenheimer Asset Allocation Fund
MARKET VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- LEISURE & ENTERTAINMENT--3.2% AMR Corp.(7)(8) 14,000 $ 1,044,750 --------------------------------------------------------------------------------------------- Brunswick Corp. 40,000 680,000 --------------------------------------------------------------------------------------------- Cracker Barrel Old Country Store, Inc. 45,700 942,560 --------------------------------------------------------------------------------------------- Eastman Kodak Co.(7) 21,900 1,327,688 --------------------------------------------------------------------------------------------- International Game Technology 59,700 917,887 --------------------------------------------------------------------------------------------- King World Productions, Inc.(7) 45,100 1,826,550 --------------------------------------------------------------------------------------------- Mattel, Inc.(7) 78,750 2,047,500 ----------- 8,786,935 - -------------------------------------------------------------------------------------------------------------------------------- MEDIA--1.3% Comcast Corp., Cl. A Special(7) 110,000 2,041,875 --------------------------------------------------------------------------------------------- Time Warner, Inc.(7) 34,000 1,398,250 ----------- 3,440,125 - -------------------------------------------------------------------------------------------------------------------------------- RETAIL: GENERAL--1.2% Authentic Fitness Corp.(8) 69,600 1,165,800 --------------------------------------------------------------------------------------------- Cone Mills Corp.(8) 94,800 1,220,550 --------------------------------------------------------------------------------------------- Price/Costco, Inc.(8) 50,400 819,000 ----------- 3,205,350 - -------------------------------------------------------------------------------------------------------------------------------- RETAIL: SPECIALTY--0.8% CML Group, Inc. 69,000 543,375 --------------------------------------------------------------------------------------------- Toys 'R' Us, Inc.(8) 27,300 798,525 --------------------------------------------------------------------------------------------- Venture Stores, Inc. 88,000 869,000 ----------- 2,210,900 - -------------------------------------------------------------------------------------------------------------------------------- CONSUMER NON-CYCLICALS--10.6% - -------------------------------------------------------------------------------------------------------------------------------- BEVERAGES--1.2% Guinness PLC 160,000 1,203,993 --------------------------------------------------------------------------------------------- Whitman Corp. 104,300 2,020,813 ----------- 3,224,806 - -------------------------------------------------------------------------------------------------------------------------------- FOOD--0.8% Chiquita Brands International, Inc. 2,472 34,608 --------------------------------------------------------------------------------------------- Nestle SA, Sponsored ADR 20,000 1,040,694 --------------------------------------------------------------------------------------------- Sara Lee Corp. 40,000 1,140,000 ----------- 2,215,302 - -------------------------------------------------------------------------------------------------------------------------------- HEALTHCARE/DRUGS--4.0% Abbott Laboratories(7) 5,200 210,600 --------------------------------------------------------------------------------------------- Amgen, Inc.(7)(8) 8,300 667,631 --------------------------------------------------------------------------------------------- Astra AB Free, Series A 37,250 1,148,460 --------------------------------------------------------------------------------------------- Biosys, Inc.(8) 74,400 139,500 --------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co.(7) 33,000 2,248,125 --------------------------------------------------------------------------------------------- Chiron Corp.(7)(8) 3,914 254,410 --------------------------------------------------------------------------------------------- Ciba-Geigy AG 2,125 1,556,702 --------------------------------------------------------------------------------------------- Genzyme Corp.(7)(8) 28,100 1,124,000 --------------------------------------------------------------------------------------------- Lilly (Eli) & Co.(7) 4,500 353,250 --------------------------------------------------------------------------------------------- Medeva PLC 294,818 1,172,565 --------------------------------------------------------------------------------------------- NBTY, Inc.(8) 100,000 650,000 --------------------------------------------------------------------------------------------- Schering AG 18,250 1,275,014 ----------- 10,800,257
9 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- HEALTHCARE/SUPPLIES & Manor Care, Inc.(7) 40,000 $1,165,000 --------------------------------------------------------------------------------------------- SERVICES--3.4% Medtronic, Inc.(7) 19,200 1,480,800 --------------------------------------------------------------------------------------------- Nellcor, Inc.(7)(8) 28,000 1,260,000 --------------------------------------------------------------------------------------------- NovaCare, Inc.(8) 79,700 647,563 --------------------------------------------------------------------------------------------- Pyxis Corp.(7)(8) 34,000 769,250 --------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 75,000 2,296,875 --------------------------------------------------------------------------------------------- Value Health, Inc.(8) 20,400 657,900 --------------------------------------------------------------------------------------------- Wellpoint Health Networks, Inc., Cl. A(7)(8) 31,800 898,350 ----------- 9,175,738 - -------------------------------------------------------------------------------------------------------------------------------- HOUSEHOLD GOODS--0.3% Procter & Gamble Co. 10,000 718,750 - -------------------------------------------------------------------------------------------------------------------------------- TOBACCO--0.9% Philip Morris Cos., Inc.(7) 22,000 1,636,250 --------------------------------------------------------------------------------------------- RJR Nabisco Holdings Corp. 28,000 780,500 ----------- 2,416,750 - -------------------------------------------------------------------------------------------------------------------------------- ENERGY--2.7% - -------------------------------------------------------------------------------------------------------------------------------- ENERGY SERVICES & Landmark Graphics Corp.(7)(8) 36,900 940,950 PRODUCERS--0.3% - -------------------------------------------------------------------------------------------------------------------------------- OIL-INTEGRATED--2.4% Ashland Coal, Inc. 42,400 1,134,200 --------------------------------------------------------------------------------------------- Ashland, Inc. 20,000 702,500 --------------------------------------------------------------------------------------------- Atlantic Richfield Co. 10,900 1,196,275 --------------------------------------------------------------------------------------------- Royal Dutch Petroleum Co. 7,000 853,125 --------------------------------------------------------------------------------------------- Saga Petroleum AS, Cl. B 70,000 925,385 --------------------------------------------------------------------------------------------- Unocal Corp. 62,000 1,712,750 --------- 6,524,235 - -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL--6.9% - -------------------------------------------------------------------------------------------------------------------------------- BANKS--3.3% Banco Frances del Rio de la Plata SA 105,000 635,450 --------------------------------------------------------------------------------------------- Bankers Trust New York Corp.(7) 20,800 1,289,600 --------------------------------------------------------------------------------------------- Chemical Banking Corp.(7) 60,500 2,858,625 --------------------------------------------------------------------------------------------- Deutsche Bank, Sponsored ADR 22,500 1,092,388 --------------------------------------------------------------------------------------------- NationsBank Corp. 58,700 3,147,788 ----------- 9,023,851 - -------------------------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL--1.9% American Express Co. 28,000 983,500 --------------------------------------------------------------------------------------------- CMAC Investment Corp. 28,500 1,236,188 --------------------------------------------------------------------------------------------- H & R Block, Inc. 20,000 822,500 --------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc.(7) 37,000 1,942,500 ----------- 4,984,688 - -------------------------------------------------------------------------------------------------------------------------------- INSURANCE--1.7% Aetna Life & Casualty Co.(7) 16,800 1,056,300 --------------------------------------------------------------------------------------------- American International Group, Inc.(7) 10,400 1,185,600 --------------------------------------------------------------------------------------------- American Re Corp. 40,000 1,490,000 --------------------------------------------------------------------------------------------- Bankers Life Holding Corp. 45,800 870,200 ----------- 4,602,100
10 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL--6.0% - -------------------------------------------------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--0.5% General Electric Co. 26,400 $ 1,488,300 - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL MATERIALS--1.3% Corning, Inc. 28,600 936,650 --------------------------------------------------------------------------------------------- Owens-Corning Fiberglass Corp.(8) 68,000 2,507,500 ----------- 3,444,150 - -------------------------------------------------------------------------------------------------------------------------------- INDUSTRIAL SERVICES--0.5% Huarte SA 88,350 795,289 --------------------------------------------------------------------------------------------- Waste Management International PLC, Sponsored ADR(7)(8) 45,400 431,300 ----------- 1,226,589 - -------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING--1.8% Jardine Matheson Holdings Ltd. 70,936 521,380 --------------------------------------------------------------------------------------------- Mannesmann AG 7,412 2,262,496 --------------------------------------------------------------------------------------------- Pacific Dunlop Ltd. 233,000 488,866 --------------------------------------------------------------------------------------------- Tenneco, Inc. 33,000 1,518,000 ----------- 4,790,742 - -------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION--1.9% Burlington Northern, Inc.(7) 33,900 2,148,413 --------------------------------------------------------------------------------------------- Consolidated Freightways, Inc. 52,000 1,150,500 --------------------------------------------------------------------------------------------- Stolt-Nielsen SA 65,000 1,868,750 ----------- 5,167,663 - -------------------------------------------------------------------------------------------------------------------------------- TECHNOLOGY--13.8% - -------------------------------------------------------------------------------------------------------------------------------- AEROSPACE/DEFENSE--1.1% General Dynamics Corp.(7) 24,300 1,078,313 --------------------------------------------------------------------------------------------- McDonnell Douglas Corp.(7) 24,000 1,842,000 ----------- 2,920,313 - -------------------------------------------------------------------------------------------------------------------------------- COMPUTER HARDWARE--1.9% Bay Networks, Inc.(8) 26,120 1,080,715 --------------------------------------------------------------------------------------------- Sun Microsystems, Inc.(7)(8) 27,500 1,333,750 --------------------------------------------------------------------------------------------- Tandem Computers, Inc.(7)(8) 85,000 1,370,625 --------------------------------------------------------------------------------------------- Xerox Corp.(7) 11,100 1,301,475 ----------- 5,086,565 - -------------------------------------------------------------------------------------------------------------------------------- COMPUTER SOFTWARE--4.8% BMC Software, Inc.(7)(8) 18,200 1,405,950 --------------------------------------------------------------------------------------------- Computer Associates International, Inc. 26,800 1,815,700 --------------------------------------------------------------------------------------------- Delrina Corp.(8) 68,200 937,750 --------------------------------------------------------------------------------------------- Electronic Arts, Inc.(7)(8) 56,700 1,537,988 --------------------------------------------------------------------------------------------- Marcam Corp.(8) 74,300 1,012,338 --------------------------------------------------------------------------------------------- Microsoft Corp.(7)(8) 16,400 1,482,150 --------------------------------------------------------------------------------------------- Nintendo Co. Ltd. 35,000 2,007,656 --------------------------------------------------------------------------------------------- Novell, Inc.(8) 57,900 1,154,381 --------------------------------------------------------------------------------------------- Symantec Corp.(7)(8) 55,000 1,588,125 ----------- 12,942,038
11 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- ELECTRONICS--3.5% Advanced Micro Devices, Inc.(7) 27,226 $990,346 --------------------------------------------------------------------------------------------- General Motors Corp., Cl. H 23,100 912,450 --------------------------------------------------------------------------------------------- Hewlett-Packard Co.(7) 16,600 1,236,700 --------------------------------------------------------------------------------------------- Intel Corp.(7) 80,000 5,065,000 --------------------------------------------------------------------------------------------- Kyocera Corp. 9,000 739,929 --------------------------------------------------------------------------------------------- Philips Electronics NV 16,000 676,940 ----------- 9,621,365 - -------------------------------------------------------------------------------------------------------------------------------- TELECOMMUNICATIONS- Airtouch Communications, Inc.(7)(8) 36,500 1,040,250 --------------------------------------------------------------------------------------------- TECHNOLOGY--2.5% AT&T Corp. 22,700 1,205,938 --------------------------------------------------------------------------------------------- ECI Telecommunications Ltd. 62,000 848,625 --------------------------------------------------------------------------------------------- MCI Communications Corp. 116,800 2,569,600 --------------------------------------------------------------------------------------------- Rogers Cantel Mobile Communications, Inc., Sub. Cl. B(8) 43,200 1,026,000 --------------------------------------------------------------------------------------------- Technology Resources Industries Berhad(8) 20,000 57,424 ----------- 6,747,837 - -------------------------------------------------------------------------------------------------------------------------------- UTILITIES--2.7% - -------------------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.9% Central Puerto SA, ADR(9) 2,000 38,012 --------------------------------------------------------------------------------------------- Korea Electric Power Co.(8) 25,000 936,367 --------------------------------------------------------------------------------------------- Verbund Oest Electriz 19,000 1,393,709 ----------- 2,368,088 - -------------------------------------------------------------------------------------------------------------------------------- GAS UTILITIES--0.5% Hong Kong & China Gas 743,040 1,185,982 - -------------------------------------------------------------------------------------------------------------------------------- TELEPHONE UTILITIES--1.3% BCE, Inc. 34,000 1,092,250 --------------------------------------------------------------------------------------------- US West, Inc. 60,300 2,509,988 ----------- 3,602,238 --------------------------------------------------------------------------------------------- Total Common Stocks (Cost $109,194,681) 146,834,994
12 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) --------------------------------------------------
MARKET VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------------------------------------------------- PREFERRED STOCKS--1.7% - -------------------------------------------------------------------------------------------------------------------------------- Alumax, Inc., $4.00 Cv., Series A 7,333 $ 985,372 --------------------------------------------------------------------------------------------- Chiquita Brands International, Inc., $1.32 Depositary Shares 50,000 700,000 --------------------------------------------------------------------------------------------- Cyprus Amax Minerals Co., $4.00 Cv., Series A 17,666 1,104,125 --------------------------------------------------------------------------------------------- Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C 29,000 1,696,500 ----------- Total Preferred Stocks (Cost $3,556,659) 4,485,997 FACE AMOUNT(1) - -------------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--8.3% - -------------------------------------------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 6.125%, dated 6/30/95, to be repurchased at $22,311,382 on 7/3/95, collateralized by U.S. Treasury Bonds, 11.25%, 2/15/15, with a value of $2,274,987, U.S. Treasury Nts., 4.75%--7.875%, 3/31/96--8/15/01, with a value of $14,881,160, and U.S. Treasury Bills maturing 9/28/95--12/14/95, with a value of $5,612,138 (Cost $22,300,000) $22,300,000 22,300,000 ------------------------ Total Investments, at Value (Cost $228,947,300) 99.7% 269,153,282 - -------------------------------------------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.3 695,531 - -------------------------------------------------------------------------------------------------------------------------------- Net Assets 100.0% $269,848,813 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- 1. Face amount is reported in local currency. Foreign currency abbreviations are as follows: AUD--Australian Dollar CAD--Canadian Dollar SEK--Swedish Krona 2. Represents the current interest rate for a variable rate security. 3. Interest or dividend is paid in kind. 4. Represents the current interest rate for an increasing rate security. 5. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date. 6. Variable rate obligation maturing in more than one year. The interest rate is the effective rate on June 30, 1995 and may change as the credit rating changes.
13 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) -------------------------------------------------- 7. A sufficient amount of liquid assets has been designated to cover outstanding call options, as follows:
MARKET SHARES SUBJECT EXPIRATION EXERCISE PREMIUM VALUE TO CALL DATE PRICE RECEIVED SEE NOTE 1 - ------------------------------------------------------------------------------------------------------------------- AMR Corp. 2,800 1/96 $ 80 $ 13,300 $ 11,550 AMR Corp. 2,800 8/95 65 9,716 29,400 Abbott Laboratories 5,200 8/95 35 13,819 33,150 Advanced Micro Devices, Inc. 5,400 1/96 45 11,313 10,800 Aetna Life & Casualty Co. 3,200 7/95 55 6,303 25,200 Airtouch Communications, Inc. 7,200 7/95 30 9,684 2,315 American International Group, Inc. 2,000 2/96 120 15,439 12,500 Amgen, Inc. 3,400 7/95 65 10,098 51,850 Amgen, Inc. 4,900 7/95 80 10,878 10,413 BMC Software, Inc. 5,500 8/95 65 36,271 73,563 Bankers Trust New York Corp. 4,100 1/96 70 11,152 7,688 Bankers Trust New York Corp. 5,200 7/95 65 8,619 3,575 Bankers Trust New York Corp. 5,200 7/95 70 5,044 2,600 Bristol-Myers Squibb Co. 6,600 9/95 65 6,402 27,225 Burlington Northern, Inc. 6,600 7/95 55 14,652 56,100 Chemical Banking Corp. 12,000 12/95 50 30,923 24,750 Chiron Corp. 1,900 7/95 70 8,493 1,188 Comcast Corp., Cl. A Special 20,000 7/95 18 19,399 28,750 Eastman Kodak Co. 4,200 7/95 55 4,074 24,675 Electronic Arts, Inc. 12,200 9/95 25 36,233 47,275 General Dynamics Corp. 3,000 8/95 45 10,785 4,125 Genzyme Corp. 3,700 10/95 45 12,376 7,169 Hewlett-Packard Co. 3,000 11/95 80 13,410 10,125 IMC Global, Inc. 4,800 7/95 50 19,055 19,800 Inland Steel Industries, Inc. 7,600 9/95 35 9,272 3,325 Intel Corp. 16,000 7/95 43 23,759 344,000 King World Productions, Inc. 9,000 8/95 40 15,474 28,121 King World Productions, Inc. 9,000 11/95 45 26,729 19,125 Landmark Graphics Corp. 7,200 10/95 25 15,083 18,000 Lilly (Eli) & Co. 4,500 7/95 70 15,614 39,938 Manor Care, Inc. 8,000 1/96 35 8,840 7,000 Manor Care, Inc. 8,000 7/95 30 13,260 4,000 Mattel, Inc. 15,600 10/95 25 17,081 37,050 McDonnell Douglas Corp. 2,000 8/95 45 20,189 64,000 McDonnell Douglas Corp. 6,600 11/95 65 21,251 91,575 Medtronic, Inc. 3,800 8/95 60 11,761 65,550 Merrill Lynch & Co., Inc. 8,000 1/96 55 29,759 30,000 Merrill Lynch & Co., Inc. 8,000 7/95 35 31,134 141,000 Merrill Lynch & Co., Inc. 8,000 7/95 40 13,791 102,000 Merrill Lynch & Co., Inc. 8,000 7/95 45 6,800 61,000 Microsoft Corp. 2,800 7/95 70 5,866 56,350 Microsoft Corp. 3,600 10/95 80 20,591 50,400 Nellcor, Inc. 5,600 7/95 35 13,328 53,900 Nellcor, Inc. 5,600 7/95 40 7,182 28,000 Nellcor, Inc. 5,600 10/95 45 15,931 18,200 Philip Morris Cos., Inc. 4,400 9/95 65 9,768 46,750 Pyxis Corp. 9,600 7/95 25 20,711 600 Santa Fe Pacific Gold Corp. 14,600 12/95 15 14,162 10,038 Sun Microsystems, Inc. 12,000 7/95 40 25,077 103,435 Sun Microsystems, Inc. 5,400 10/95 45 11,650 35,100 Sun Microsystems, Inc. 5,400 10/95 55 16,037 13,500 Symantec Corp. 11,000 1/96 35 20,294 20,625 Symantec Corp. 11,000 7/95 20 31,668 94,875 Tandem Computers, Inc. 16,500 7/95 20 14,025 1,375 Time Warner, Inc. 6,800 12/95 45 12,546 9,350 Waste Management International PLC, Sponsored ADR 11,000 9/95 13 9,350 2,750 Wellpoint Health Networks, Inc.,Cl. A 6,400 7/95 35 17,807 533 Xerox Corp. 2,200 7/95 110 5,434 16,500 ---------- ---------- $ 888,662 $2,143,751 ---------- ---------- ---------- ---------- 8. Non-income producing security. 9. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $38,012 or .01% of the Fund's net assets, at June 30, 1995.
See accompanying Notes to Financial Statements. 14 Oppenheimer Asset Allocation Fund --------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED) ---------------------------------------------------------------
ASSETS Investments, at value (cost $228,947,300)--see accompanying statement $ 269,153,282 ------------------------------------------------------------------------------------------ Cash 116,629 ------------------------------------------------------------------------------------------ Receivables: Interest and dividends 2,323,099 Investments sold and options written 1,824,244 Shares of beneficial interest sold 91,876 ------------------------------------------------------------------------------------------ Other 29,682 ------------------------------------------------------------------------------------------ Total assets 273,538,812 ------------------------------------------------------------------------------------------ LIABILITIES Options written, at value (premiums received $888,662)-- see accompanying statement--Note 4 2,143,751 ------------------------------------------------------------------------------------------ Payables and other liabilities: Shares of beneficial interest redeemed 586,063 Investments purchased 416,744 Distribution and service plan fees--Note 5 122,334 Trustees' fees 23,061 Transfer and shareholder servicing agent fees 15,807 Other 382,239 ------------------------------------------------------------------------------------------ Total liabilities 3,689,999 ------------------------------------------------------------------------------------------ NET ASSETS $ 269,848,813 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS Paid-in capital $ 228,405,060 ------------------------------------------------------------------------------------------ Undistributed net investment income 664,721 ------------------------------------------------------------------------------------------ Accumulated net realized gain from investment and written option transactions 1,829,443 ------------------------------------------------------------------------------------------ Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 38,949,589 ------------------------------------------------------------------------------------------ Net assets $ 269,848,813 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ NET ASSET VALUE Class A Shares: PER SHARE Net asset value and redemption price per share (based on net assets of $258,367,506 and 20,062,782 shares of beneficial interest outstanding) $12.88 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $13.67 ------------------------------------------------------------------------------------------ Class C Shares: Net asset value, redemption price and offering price per share (based on net assets of $11,481,307 and 894,879 shares of beneficial interest outstanding) $12.83
See accompanying Notes to Financial Statements. 15 Oppenheimer Asset Allocation Fund -------------------------------------------------- STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED) --------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest (net of foreign withholding taxes of $828) $5,500,267 ------------------------------------------------------------------------------------------ Dividends (net of foreign withholding taxes of $51,357) 1,387,824 ------------------------------------------------------------------------------------------ Total income 6,888,091 ------------------------------------------------------------------------------------------ EXPENSES Management fees--Note 5 950,422 ------------------------------------------------------------------------------------------ Distribution and service plan fees: Class A--Note 5 221,959 Class C--Note 5 50,867 ------------------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees--Note 5 117,953 ------------------------------------------------------------------------------------------ Shareholder reports 32,509 ------------------------------------------------------------------------------------------ Custodian fees and expenses 32,469 ------------------------------------------------------------------------------------------ Trustees' fees and expenses 27,334 ------------------------------------------------------------------------------------------ Legal and auditing fees 16,973 ------------------------------------------------------------------------------------------ Registration and filing fees--Class C 387 ------------------------------------------------------------------------------------------ Other 20,771 ------------- Total expenses 1,471,644 ------------------------------------------------------------------------------------------ NET INVESTMENT INCOME 5,416,447 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED Net realized gain (loss) on: GAIN (LOSS) ON INVESTMENTS, Investments 2,258,170 OPTIONS WRITTEN AND Closing and expiration of option contracts written--Note 4 362,608 FOREIGN CURRENCY Foreign currency transactions (601,954) TRANSACTIONS ------------- Net realized gain 2,018,824 ------------------------------------------------------------------------------------------ Net change in unrealized appreciation or depreciation on: Investments and options written 23,605,751 Translation of assets and liabilities denominated in foreign currencies 1,637,898 ------------- Net change 25,243,649 ------------- Net realized and unrealized gain on investments, options written and foreign currency transactions 27,262,473 - ----------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $32,678,920 ------------- -------------
See accompanying Notes to Financial Statements. 16 Oppenheimer Asset Allocation Fund ----------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -----------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1995 DECEMBER 31, (UNAUDITED) 1994 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $5,416,447 $10,887,916 ----------------------------------------------------------------------------------------------------- Net realized gain on investments, options written and foreign currency transactions 2,018,824 16,983,602 ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on investments, options written and translation of assets and liabilities denominated in foreign currencies 25,243,649 (32,351,338) ----------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 32,678,920 (4,479,820) - ----------------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND Dividends from net investment income: DISTRIBUTIONS TO Class A ($.20 and $.532 per share, respectively) (4,008,174) (10,574,115) SHAREHOLDERS Class C ($.154 and $.443 per share, respectively) (133,442) (258,031) ----------------------------------------------------------------------------------------------------- Distributions from net realized gain on investments, options written and foreign currency transactions: Class A ($.787 per share) -- (15,027,395) Class C ($.787 per share) -- (578,336) - ----------------------------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST Net decrease in net assets resulting from TRANSACTIONS Class A beneficial interest transactions--Note 2 (6,863,647) (10,144,316) ----------------------------------------------------------------------------------------------------- Net increase in net assets resulting from Class C beneficial interest transactions--Note 2 1,222,284 9,705,207 ----------------------------------------------------------------------------------------------------- NET ASSETS Total increase (decrease) 22,895,941 (31,356,806) ----------------------------------------------------------------------------------------------------- Beginning of period 246,952,872 278,309,678 ----------- ------------ End of period [including undistributed (overdistributed) net investment income of $664,721 and ($610,110), respectively] $269,848,813 $246,952,872 ----------- ------------ ----------- ------------
See accompanying Notes to Financial Statements. 17 Oppenheimer Asset Allocation Fund -------------------- FINANCIAL HIGHLIGHTS --------------------
CLASS A CLASS C ---------------------------------------------------------------------------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED 1995 DECEMBER 31, 1995 DECEMBER 31, (UNAUDITED) 1994 1993 1992 1991(2) 1990 (UNAUDITED) 1994 1993(1) - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $11.52 $13.05 $11.63 $11.22 $10.19 $10.67 $11.49 $13.05 $12.86 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .26 .54 .44 .39 .40 .53 0.20 .44 (.97) Net realized and unrealized gain (loss) on investments, options written and foreign currency transactions 1.30 (.75) 1.43 .44 1.06 (.43) 1.29 (.77) 1.29 - ---------------------------------------------------------------------------------------------------------------------------------- Total income (loss) from investment operations 1.56 (.21) 1.87 .83 1.46 .10 1.49 (.33) .32 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.20) (.53) (.44) (.42) (.43) (.52) (.15) (.44) (.12) Distributions from net realized gain on investments, options written and foreign currency transactions -- (.79) (.01) -- -- (.06) -- (.79) (.01) - ---------------------------------------------------------------------------------------------------------------------------------- Total dividends and distributions to shareholders (.20) (1.32) (.45) (.42) (.43) (.58) (.15) (1.23) (.13) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $12.88 $11.52 $13.05 $11.63 $11.22 $10.19 $12.83 $11.49 $13.05 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE(3) 13.59% (1.59)% 16.30% 7.54% 14.67% 0.93% 13.03% (2.50)% 2.51% - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $258,368 $237,771 $277,914 $266,713 $276,800 $83,292 $11,481 $9,182 $396 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $248,113 $260,767 $272,303 $269,096 $192,870 $82,490 $9,883 $5,601 $194 - ---------------------------------------------------------------------------------------------------------------------------------- Number of shares outstanding at end of period (in thousands) 20,063 20,633 21,302 22,938 24,666 8,171 895 799 30 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 4.27%(4) 4.10% 3.58% 3.41% 3.78% 5.14% 3.39%(4) 3.30% 2.19%(4) Expenses 1.12%(4) 1.09% 1.14% 1.17% 1.27% 1.36% 1.99%(4) 2.00% 2.50%(4) - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate(5) 11.0% 31.5% 32.7% 60.3% 102.0% 71.3% 11.0% 31.5% 32.7% 1. For the period from December 1, 1993 (inception of offering) to December 31, 1993. 2. Per share amounts calculated based on the weighted average number of shares outstanding during the year. 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. Total returns are not annualized for periods of less than one full year. 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 period ended June 30, 1995 were $27,032,187 and $45,860,528, respectively.
See accompanying Notes to Financial Statements. 18 Oppenheimer Asset Allocation Fund ------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) ------------------------------------------- - ------------------------------------------------------------------------------- 1. SIGNIFICANT Oppenheimer Asset Allocation Fund (the Fund) is ACCOUNTING POLICIES registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment advisor is Oppenheimer Management Corporation (the Manager). The Fund offers both Class A and Class C shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge. Both classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own distribution and/or service plan, expenses directly attributable to a particular class and exclusive voting rights with respect to matters affecting a single class. The following is a summary of significant accounting policies consistently followed by the Fund. ------------------------------------------------------ INVESTMENT VALUATION. Portfolio securities are valued at the close of the New York Stock Exchange 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. Long-term and short-term "non-money market" debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities which cannot be valued by the approved portfolio pricing service are valued using dealer-supplied valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current market value, or under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. Short-term "money market type" 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. Options are valued based upon the last sale price on the principal exchange on which the option is traded or, in the absence of any transactions that day, the value is based upon the last sale price on the prior trading date if it is within the spread between the closing bid and asked prices. If the last sale price is outside the spread, the closing bid or asked price closest to the last reported sale price is used. ------------------------------------------------------ FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of securities and investment income are translated at the rate of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's results of operations. ------------------------------------------------------ REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. ------------------------------------------------------ ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class) and gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. ------------------------------------------------------ FEDERAL 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 or excise tax provision is required. ------------------------------------------------------ TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the six months ended June 30, 1995, a provision of $704 was made for the Fund's projected benefit obligations, and a payment of $2,026 was made to a retired trustee, resulting in an accumulated liability of $109,652 at June 30, 1995. 19 Oppenheimer Asset Allocation Fund ------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) ------------------------------------------------------- - ------------------------------------------------------------------------------ 1. SIGNIFICANT DISTRIBUTIONS TO SHAREHOLDERS. Dividends and ACCOUNTING POLICIES distributions to shareholders are recorded on the (CONTINUED) ex-dividend date. ------------------------------------------------------ CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of paydown gains and losses and the recognition of certain foreign currency gains (losses) as ordinary income (loss) for 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. ------------------------------------------------------ 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. Discount on securities purchased is amortized over the life of the respective securities, in accordance with federal income tax requirements. Realized gains and losses on investments and options written and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. - ------------------------------------------------------------------------------ 2. SHARES OF The Fund has authorized an unlimited number of no BENEFICIAL INTEREST par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended June 30, 1995 Year Ended December 31, 1994 -------------------------------- ------------------------------ Shares Amount Shares Amount ----------- ------------ ----------- ------------ Class A: Sold 607,059 $7,388,560 1,464,805 $18,650,065 Dividends and distributions reinvested 282,807 3,565,784 1,895,898 22,211,167 Redeemed (1,459,706) (17,817,991) (4,030,121) (51,005,547) ----------- ------------ ----------- ------------- Net decrease (569,840) $(6,863,647) (669,418) $(10,144,315) ----------- ------------ ----------- ------------- ----------- ------------ ----------- ------------- Class C: Sold 250,307 $3,064,163 757,806 $9,618,332 Dividends and distributions reinvested 9,983 125,603 62,679 725,448 Redeemed (164,391) (1,967,482) (51,824) (638,573) ----------- ------------ ----------- ------------- Net increase 95,899 $1,222,284 768,661 $9,705,207 ----------- ------------ ----------- ------------- ----------- ------------ ----------- -------------
- ------------------------------------------------------------------------------ 3. UNREALIZED GAINS At June 30, 1995, net unrealized appreciation on AND LOSSES ON investments and options written of $38,950,893 was INVESTMENTS AND composed of gross appreciation of $46,862,433, and OPTIONS WRITTEN gross depreciation of $7,911,540. 20 Oppenheimer Asset Allocation Fund - ------------------------------------------------------------------------------ 4. OPTION ACTIVITY The Fund may buy and sell put and call options, or write covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. In this report, securities designated to cover outstanding call options are noted in the Statement of Investments. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a footnote to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the six months ended June 30, 1995 was as follows:
CALL OPTIONS ---------------------------- NUMBER AMOUNT OF OPTIONS OF PREMIUMS ------------------------------------------------------------------------- Options outstanding at December 31, 1994 2,308 $640,077 ------------------------------------------------------------------------- Options written 4,528 1,068,013 ------------------------------------------------------------------------- Options closed or expired (2,038) (505,933) ------------------------------------------------------------------------- Options exercised (761) (313,495) ------------------------------------------------------------------------- Options outstanding at June 30, 1995 4,037 $888,662 ------------------------------------------------------------------------- -------------------------------------------------------------------------
- ------------------------------------------------------------------------------ 5. MANAGEMENT FEES AND Management fees paid to the Manager are in OTHER TRANSACTIONS accordance with the investment advisory agreement WITH AFFILIATES with the Fund which provide for a fee of .75% on the first $200 million of average annual net assets, .72% on the next $200 million with a reduction of .03% on each $200 million thereafter, to .60% on net assets in excess of $800 million. The Manager has agreed to reimburse the Fund if aggregate expenses (with specified exceptions) exceed the most stringent state regulatory limit on Fund expenses. For the six months ended June 30, 1995, commissions (sales charges paid by investors) on sales of Class A shares totaled $169,920, of which $68,086 was retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer. Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class C shares totaled $24,013, of which $1,625 was paid to an affiliated broker/dealer. During the six months ended June 30, 1995, OFDI received contingent deferred sales charges of $2,716 upon redemption of Class C shares, as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares. Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs of providing such services are allocated ratably to these companies. Under separate approved plans, each class may expend up to .25% of its net assets annually to reimburse OFDI for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Fund, including amounts paid to brokers, dealers, banks and other institutions. In addition, Class C shares are subject to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for sales commissions paid from its own resources at the time of sale and associated financing costs. In the event of termination or discontinuance of the Class C plan, the Board of Trustees may allow the Fund to continue payment of the asset-based sales charge to OFDI for distribution expenses incurred on Class C shares sold prior to termination or discontinuance of the plan. During the six months ended June 30, 1995, OFDI paid $38,584 and $2,027 to an affiliated broker/dealer as reimbursement for Class A and Class C personal service and maintenance expenses, respectively, and retained $38,435 as reimbursement for Class C sales commissions and service fee advances, as well as financing costs. 21 Oppenheimer Asset Allocation Fund ---------------------------------- OPPENHEIMER ASSET ALLOCATION FUND ---------------------------------- - ------------------------------------------------------------------------------ OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees Leo Cherne, Trustee Robert G. Galli, Trustee Benjamin Lipstein, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Sidney M. Robbins, Trustee Donald W. Spiro, Trustee and President Pauline Trigere, Trustee Clayton K. Yeutter, Trustee Richard H. Rubinstein, Vice President George C. Bowen, Treasurer Robert J. Bishop, Assistant Treasurer Scott Farrar, Assistant Treasurer Andrew J. Donohue, Secretary Robert G. Zack, Assistant Secretary - ------------------------------------------------------------------------------ INVESTMENT ADVISOR Oppenheimer Management Corporation - ------------------------------------------------------------------------------ DISTRIBUTOR Oppenheimer Funds Distributor, Inc. - ------------------------------------------------------------------------------ TRANSFER AND Oppenheimer Shareholder Services SHAREHOLDER SERVICING AGENT - ------------------------------------------------------------------------------ CUSTODIAN OF The Bank of New York PORTFOLIO SECURITIES - ------------------------------------------------------------------------------ INDEPENDENT AUDITORS KPMG Peat Marwick LLP - ------------------------------------------------------------------------------ LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein 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 Asset Allocation Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer Asset Allocation Fund. For material information concerning the Fund, see the Prospectus. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested. 22 Oppenheimer Asset Allocation Fund ------------------------- OPPENHEIMERFUNDS FAMILY ------------------------- - ------------------------------------------------------------------------------- OppenheimerFunds offers over 30 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 2.6 million shareholder accounts and more than $35 billion under Oppenheimer's management and that of our affiliates. At OppenheimerFunds, we don't charge a fee to exchange shares of eligible funds of the same class. And you can exchange shares easily by mail or by telephone.(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 Target Fund Value Stock Fund Growth Fund(3) Gold & Special Minerals Fund - ---------------------------------------------------------------------------------------------------- STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund Total Return Fund Asset Allocation Fund Global Growth & Income Fund - ---------------------------------------------------------------------------------------------------- BOND FUNDS High Yield Fund Strategic Short-Term Income Fund Champion High Yield Fund International Bond Fund Strategic Income & Growth Fund Bond Fund(4) Strategic Income Fund U.S. Government Trust Strategic Investment Grade Bond Fund Limited-Term Government Fund - ---------------------------------------------------------------------------------------------------- TAX-EXEMPT FUNDS New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5) California Tax-Exempt Fund(5) Tax-Free Bond Fund Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund - ---------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS Money Market Fund Cash Reserves 1. Exchange privileges are subject to change or termination. 2. Formerly Global Bio-Tech Fund. 3. Formerly Special Fund. 4. Formerly Investment Grade Bond Fund. 5. Available only to residents of certain states. OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center, New York, NY 10048-0203. -C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
23 Oppenheimer Asset Allocation Fund 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 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 OPPENHEIMER-FUNDS INFORMATION HOTLINE 24 hours a day, timely and insightful messages on the economy and issues that affect your investments 1-800-835-3104 RS0240.001.0695 August 31, 1995 "How may I help you?" As an OppenheimerFunds shareholder, you have some special privileges. 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 informa- [PHOTO] Jennifer Leonard, Customer Service Representative Oppenheimer Shareholder Services tion. Of course, you can always speak with a Customer Service Representative during the General Information hours shown at the left. You can count on us whenever you need assistance. That's why the International Customer Service Association, an independent, nonprofit 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. - ------------------------------------------------------------------------------- [OPPENHEIMERFUNDS LOGO] -------------- Oppenheimer Funds Distributor, Inc. Bulk Rate P.O. Box 5270 U.S. Postage Denver, CO 80217-5270 PAID Permit No. 469 Denver, CO -------------- -----END PRIVACY-ENHANCED MESSAGE-----