-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LBwKalpXww9AfayqbaJygr/6C3jfEI/RH9BAMqrm3ON7iPQ/gpAJPLZKzCOKZ3Gn jvf1Pdxiu+xTerHLKF5GVw== /in/edgar/work/0000950130-00-005876/0000950130-00-005876.txt : 20001110 0000950130-00-005876.hdr.sgml : 20001110 ACCESSION NUMBER: 0000950130-00-005876 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000831 FILED AS OF DATE: 20001109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER ENTERPRISE FUND CENTRAL INDEX KEY: 0000939801 STANDARD INDUSTRIAL CLASSIFICATION: [ ] IRS NUMBER: 133819189 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07265 FILM NUMBER: 756396 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CENTER STREET 2: SUITE 3400 CITY: NEW YORK STATE: NY ZIP: 10048-0203 BUSINESS PHONE: 2123230200 MAIL ADDRESS: STREET 1: TWO WORLD TRADE CENTER STREET 2: SUITE 3400 CITY: NEW YORK STATE: NY ZIP: 10048-0203 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER NEW ENTERPRISE FUND DATE OF NAME CHANGE: 19950901 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER SMALL CAP FUND DATE OF NAME CHANGE: 19950228 N-30D 1 0001.txt N-30D [PHOTO] Annual Report August 31, 2000 Oppenheimer Enterprise Fund [LOGO] OppenheimerFunds(R) The Right Way to Invest REPORT HIGHLIGHTS CONTENTS 1 President's Letter 3 An Interview with Your Fund's Manager 7 Fund Performance 12 Financial Statements 32 Independent Auditors' Report 33 Federal Income Tax Information 34 Officers and Trustees The Fund's $2.5 billion market capitalization limit was lifted, allowing us to pursue exceptional growth opportunities across the investment spectrum. David Hyun was named portfolio manager, having managed almost $6 billion in aggressive growth portfolios. Our technology strategy shifted from consumer-oriented "dot-com" companies to the optics, access technologies, and internet infrastructure sectors.
Average Annual Total Returns For the 1-Year Period Ended 8/31/00* Class A Without With Sales Chg. Sales Chg. - ------------------------- 54.89% 45.98% Class B Without With Sales Chg. Sales Chg. - ------------------------- 53.73% 48.73% Class C Without With Sales Chg. Sales Chg. - ------------------------- 53.83% 52.83% Class Y - ------------------------- 55.58%
*See Notes on page 10 for further details. PRESIDENT'S LETTER [PHOTO] Bridget A. Macaskill President Oppenheimer Enterprise Fund Dear Shareholder, Over the past several decades, our investment teams have learned the importance of avoiding complacency when it comes to nav- igating the financial markets--especially when times are good. Right now, times appear particularly good. The U.S. economy is in its tenth year of expansion. In the bond market, U.S. Treasury issues have been performing favorably over the past year. In addition, despite volatility in the second quarter, the stock mar- ket has been providing attractive returns from a wide spectrum of industry sectors, capitalization ranges and investment styles. We have arrived at this juncture after months of monitoring the rapid pace of global economic growth and its implications for inflation, as well as the Federal Reserve Board's evolving monetary policy. At this point, economic indicators suggest a dampening of short-term inflationary pressures. While recent increases in oil prices are certainly taking their toll, we don't believe this signals a return to 1970's-style inflation. Accordingly, if the Fed continues in its diligence, the economy could main- tain its healthy rate of growth. In the bond market, the achievement of a federal budget surplus has prompted the Treasury to buy back many of its long- term securities. The resulting supply shortage boosted these securities' returns, causing an inversion of the yield curve-- an unusual situation in which shorter term Treasuries yield more than their longer term counterparts. Other bond sectors are offering many opportunities in the form of attractive valuations. Perhaps most important is that we have begun to see encour- aging signs in the stock market. Formerly high-flying Internet stocks have generally come down to earth, and investors have begun to refocus on companies with strong business fundamen- tals and justifiable valuations. Investors have also returned to long-neglected, value-oriented companies. 1 OPPENHEIMER ENTERPRISE FUND PRESIDENT'S LETTER What else do these various trends tell us? They tell us that the ability to discriminate between long-term potential and short-lived fads has become more critical than ever. Trying to generate good long-term performance requires tracking the best companies through intensive research, combined with hard- earned experience. At OppenheimerFunds, our seasoned portfolio management teams fight complacency by remaining constantly aware of the risks that face the economy and financial markets. Virtually any- thing could affect the overall markets--a surge in inflation, a decline in productivity, deteriorating corporate earnings, or even the new Administration's proposals regarding tax reform, health- care and Social Security. However, by remaining vigilant in our quest for fundamentally sound businesses, we believe we can find good investments that can weather market volatility. In this environment, we encourage you to consult your financial advisor and to stay on track with your long-term financial plan. For our part, we will continue to monitor the opportunities and risks ever present in the financial markets. Thank you for your confidence in OppenheimerFunds, The Right Way to Invest. Sincerely, /s/ Bridget A. Macaskill Bridget A. Macaskill September 22, 2000 These general market views represent opinions of OppenheimerFunds, Inc. and are not intended to predict or depict performance of the securities markets or any particular fund. Specific discussion, as it applies to your Fund, is contained in the pages that follow. Stocks and bonds have different types of investment risks; stocks are subject to market volatility and bonds are subject to credit and interest rate risks. 2 OPPENHEIMER ENTERPRISE FUND AN INTERVIEW WITH YOUR FUND'S MANAGER [PHOTO] Portfolio Management Team (l to r) Subrata Ghose David Hyun (Portfolio Manager) How did Oppenheimer Enterprise Fund perform over the last fiscal year? A. The Fund posted decent gains for the one-year that ended August 31, 2000. In addition, we outperformed our benchmark, the Russell 2000 Index, thanks mainly to a focus on smaller technology companies./1/ However, in the second half of the reporting period, technology stocks fell out of favor and small "dot-com" companies were hit especially hard. This affected our returns, as did the Fund's former $2.5 billion market capitalization ceiling. This limitation restricted the Fund to investments in companies with stock market values of $2.5 billion or less. It also forced us to sell successful positions in some fast-growing companies earlier than we would have liked, as they outgrew the market cap limit. The result: The Fund's performance was up for the year, but our returns didn't match the levels achieved over the past few years, nor those we hope to achieve going forward. How have the Fund's investment parameters changed? In the second quarter, the Fund's market capitalization limit was lifted. As a result, we can hold substantial positions in high performing stocks, regardless of how rapidly a company's stock market value expands. We also are no longer limited to investments in small emerging companies, which often experience the greatest share price volatility. Instead, we can invest in fast-growing companies in exciting market sectors across the entire growth cycle. 1. The Fund's Class A shares produced a 54.89% average total return, without considering sales charges, for the one-year period ended August 31, 2000. For the same period, the Russell 2000 Index generated a return of 27.15%. 3 OPPENHEIMER ENTERPRISE FUND AN INTERVIEW WITH YOUR FUND'S MANAGER "The most impressive gains increasingly appear to be going to companies with leading market positions, proven management expertise, and the resources to dominate their industries." Does this change imply a reduced focus on technology stocks? Not at all. The fastest growing companies currently tend to be those in technology. As long as this holds true, technology stocks will make up a large portion of the Fund's portfolio. With our broader investment mandate, however, we are no longer limited to investing in small technology firms. We can invest in companies that dominate their markets. And when we find emerging companies that we believe can achieve leadership positions, we can hold our shares in these organizations with the intent to grow returns with them. In your view, can larger companies deliver returns on par with small-company stocks? Yes. There's nothing that precludes mid-size or larger companies with excellent products, management and strategic execution from rapidly increasing in value. In fact, the most impressive gains increasingly seem to be going to companies with leading market positions, proven management expertise and the resources to dominate their industries. Those are the situations we're aggressively seeking. What adjustments have you made to the Fund's portfolio? Most important is that we have reduced our exposure to consumer-oriented Internet stocks over the past few months. We've used the proceeds to build positions in several business- to-business Internet sectors. We see compelling opportunities in companies that supply equipment, services or infrastructure for business communications and eCommerce. For example, as of August 31, 2000, we held significant positions in JDS Uniphase Corp. and SDL, Inc., both important players in fiber optics; Ariba, Inc., which enables business buyers and suppliers to auto- mate transactions on the Internet; and Network Appliance, Inc., which provides innovative file-service solutions for data-intensive business networks. We also are focusing more on the bio- technology and media sectors, where we see significant invest- ment opportunities./2/ 4 OPPENHEIMER ENTERPRISE FUND
Average Annual Total Returns For the Periods Ended 9/30/00(3) Class A Since 1-Year Inception - ---------------------- 28.49% 34.05% Class B Since 1-Year Inception - ---------------------- 30.34% 34.56% Class C Since 1-Year Inception - ---------------------- 34.40% 34.72% Class Y Since 1-Year Inception - ---------------------- 36.90% 36.99%
How does the Fund distinguish itself from others targeting similar opportunities? Two factors set us apart: the size of our investments and how we manage the Fund day to day. When we identify a high- potential company, we take positions large enough to have a significant impact on our returns. Going forward, we should have meaningful positions in 70 to 80 companies, rather than smaller positions in the 100 to 120 names the Fund previously held. Additionally, we seek to capitalize on market volatility. Specifically, we're highly selective on the front end and, as long as we believe a company has exceptional prospects, we take advantage of short-term price dips to add to our positions. That approach is in line with our objective of seeking aggressive long- term returns. What's your outlook for the Fund, given current valuations of high-growth companies? Many fast-growing companies, both established and emerging, have strong positions in markets whose size and future prof- itability can't be quantified by traditional metrics. Our invest- ment strategy is aggressive, and carries a calculated measure of risk. In our view, the key isn't valuing exceptional-growth companies against traditional yardsticks. Instead, it's identifying companies with the products, market power and earnings fun- damentals to grow into their valuations. The discipline to do that is what makes Oppenheimer Enterprise Fund an important part of The Right Way to Invest. 2. The Fund's portfolio is subject to change. 3. See page 10 for further details. 5 OPPENHEIMER ENTERPRISE FUND AN INTERVIEW WITH YOUR FUND'S MANAGER Sector Allocation/4/ [PIE CHART] . Technology 52.1% . Healthcare 9.7 . Capital Goods 9.4 . Communication Services 8.9 . Consumer Staples 7.8 . Financial 5.1 . Consumer Cyclicals 4.1 . Energy 1.2 . Utilities 1.1 . Basic Materials 0.6
Top Five Common Stock Industries/5/ - ------------------------------------------------------ Computer Software 14.4% - ------------------------------------------------------ Computer Services 11.1 - ------------------------------------------------------ Electronics 11.1 - ------------------------------------------------------ Healthcare/Drugs 9.0 - ------------------------------------------------------ Computer Hardware 6.7 Top Ten Common Stock Holdings/5/ - ------------------------------------------------------ Advent Software, Inc. 2.7% - ------------------------------------------------------ Ariba, Inc. 2.5 - ------------------------------------------------------ Micromuse, Inc. 2.3 - ------------------------------------------------------ Corporate Executive Board Co. 2.3 - ------------------------------------------------------ Cisco Systems, Inc. 2.2 - ------------------------------------------------------ SDL, Inc. 1.8 - ------------------------------------------------------ Investors Financial Services Corp. 1.7 - ------------------------------------------------------ Network Appliance, Inc. 1.6 - ------------------------------------------------------ JDS Uniphase Corp. 1.6 - ------------------------------------------------------ Tycom Ltd. 1.5
4. Portfolio is subject to change. Percentages are as of August 31, 2000, and are based on total market value of the Fund's common stock holdings. 5. Portfolio is subject to change. Percentages are as of August 31, 2000, and are based on net assets. Past performance is not predictive of future performance. 6 OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE How has the Fund performed? Below is a discussion, by the Manager, of the Fund's performance during its fiscal year ended August 31, 2000, followed by a graphical comparison of the Fund's performance to an appropriate broad-based market index and a sector index. Management's discussion of performance. For the fiscal year ended August 31, 2000, Oppenheimer Enterprise Fund posted positive returns, and outperformed its benchmark, the Russell 2000 Index. In the first six months of the period, the Fund significantly outperformed the index, principally reflecting a concentration on small-capitalization and Internet stocks, which led most market sectors during the period. Those gains were partly offset by the broad downturn in the technology sector that began in April 2000. A $2.5 billion market- capitalization limit was in effect from the Fund's inception through mid June, 2000, restricting the size of companies in which the Fund could invest. During the reporting period, the market capitalization ceiling was eliminated, allowing the Fund to invest in aggressive-growth companies of all sizes. The Fund has reduced its holdings in consumer-related Internet stocks, while building positions in business-to-business technology companies. This should allow the Fund to benefit from fast-growing market sectors while limiting portfolio risk. The Fund's portfolio holdings, allocations and strategies are subject to change. Comparing the Fund's performance to the market. The graphs that follow show the performance of a hypothetical $10,000 investment for Class A, B and C shares of the Fund from the commencement date of November 7, 1995, and Class Y shares from the inception date of April 1, 1999, held until its fiscal year-end, August 31, 2000. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares. The graphs reflect the deduction of the maximum initial sales charge on Class A shares and the applicable contingent deferred sales charge on Class B and Class C shares. The Fund's performance is compared to the performance of the Standard & Poor's (S&P) 500 Index and the Russell 2000 Index. The S&P 500 Index is a broad-based index of equity securities widely regarded as a general measure of the performance of the U.S. equity securities market. The Russell 2000 Index is a capitalization-weighted index of 2,000 U.S. issuers whose common stocks are traded on the New York and American Stock Exchanges and NASDAQ, and is widely recognized as a measure of the performance of mid-capitalization stocks. Index performance reflects the reinvestment of dividends but does not consider the effect of capital gains or transaction costs, and none of the data in the graphs that follow shows the effect of taxes. The Fund's performance reflects the effects of Fund business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the securities in the indices shown. 7 OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE Class A Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Enterprise Fund (Class A) S&P 500 Russell 2000 [LINE GRAPH]
Oppenheimer S&P 500 Russell 2000 11/7/95 9425 10000 10000 11/30/95 10848 10401 9954 2/29/96 12743 11064 10524 5/31/96 16136 11627 11758 8/31/96 14590 11391 10888 11/30/96 14185 13297 11598 2/28/97 14423 13957 11846 5/31/97 14201 15050 12577 8/31/97 17199 16019 14041 11/30/97 17746 17088 14313 2/28/98 18993 18840 15394 5/31/98 19919 19663 15249 8/31/98 16227 17320 11317 11/30/98 20007 21135 13366 2/28/99 23832 22563 13217 5/31/99 26670 23799 14839 8/31/99 29588 24215 14527 11/30/99 41178 25550 15460 2/29/2000 58878 25208 19730 5/31/2000 35624 26290 16310 8/31/2000 45826 28163 18471
Average Annual Total Return of Class A Shares of the Fund at 8/31/00(1) 1-Year 45.98% Life 37.17% Class B Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Enterprise Fund (Class B) S&P 500 Russell 2000 [LINE GRAPH]
Oppenheimer S&P 500 Russell 2000 11/7/95 10,000 10,000 10,000 11/30/95 11,500 10,401 9,954 2/29/96 13,490 11,064 10,524 5/31/96 17,060 11,627 11,758 8/31/96 15,390 11,391 10,888 11/30/96 14,940 13,297 11,598 2/28/97 15,151 13,957 11,846 5/31/97 14,893 15,050 12,577 8/31/97 18,011 16,019 14,041 11/30/97 18,538 17,088 14,313 2/28/98 19,806 18,840 15,394 5/31/98 20,743 19,663 15,249 8/31/98 16,853 17,320 11,317 11/30/98 20,755 21,135 13,366 2/28/99 24,680 22,563 13,217 5/31/99 27,568 23,799 14,839 8/31/99 30,527 24,215 14,527 11/30/99 42,413 25,550 15,460 2/29/2000 60,531 25,208 19,730 5/31/2000 36,548 26,290 16,310 8/31/2000 46,729 28,163 18,471
Average Annual Total Return of Class B Shares of the Fund at 8/31/00(1) 1-Year 48.73% Life 37.72% 1. See page 10 for further details. 8 OPPENHEIMER ENTERPRISE FUND Class C Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Enterprise Fund (Class C) S&P 500 Russell 2000 [LINE GRAPH]
Oppenheimer S&P 500 Russell 2000 11/7/95 10,000 10,000 10,000 11/30/95 11,500 10,401 9,954 2/29/96 13,490 11,064 10,524 5/31/96 17,050 11,627 11,758 8/31/96 15,390 11,391 10,888 11/30/96 14,940 13,297 11,598 2/28/97 15,152 13,957 11,846 5/31/97 14,883 15,050 12,577 8/31/97 18,001 16,019 14,041 11/30/97 18,528 17,088 14,313 2/28/98 19,807 18,840 15,394 5/31/98 20,733 19,663 15,249 8/31/98 16,853 17,320 11,317 11/30/98 20,745 21,135 13,366 2/28/99 24,693 22,563 13,217 5/31/99 27,581 23,799 14,839 8/31/99 30,541 24,215 14,527 11/30/99 42,452 25,550 15,460 2/29/2000 60,582 25,208 19,730 5/31/2000 36,586 26,290 16,310 8/31/2000 46,979 28,163 18,471
Average Annual Total Return of Class C Shares of the Fund at 8/31/00/1/ 1-Year 52.83% Life 37.88% Class Y Shares Comparison of Change in Value of $10,000 Hypothetical Investments in: Oppenheimer Enterprise Fund (Class Y) S&P 500 Russell 2000 [LINE GRAPH]
Oppenheimer S&P 500 Russell 2000 4/1/99 10,000 10,000 10,000 5/31/99 10,115 10,548 11,228 8/31/99 11,234 10,732 10,991 11/30/99 15,649 11,324 11,697 2/29/2000 22,406 11,173 14,928 5/31/2000 13,570 11,652 12,341 8/31/2000 17,477 12,482 13,976
Average Annual Total Return of Class Y Shares of the Fund at 8/31/00/1/ 1-Year 55.58% Life 48.31% The performance information for the S&P 500 Index and the Russell 2000 Index begins on 10/31/95 for Class A, B and C, and 3/31/99 for Class Y. Past performance is not predictive of future performance. Graphs are not drawn to the same scale. 9 OPPENHEIMER ENTERPRISE FUND NOTES In reviewing performance and rankings, please remember that past performance does not guarantee future results. Investment return and principal value of 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. The Fund's returns at 9/30/00 include results for periods of exceptional market performance that is not typical of historical results. You should not expect those growth rates to continue. Because of ongoing market volatility, the Fund's performance may be subject to short-term fluctuations and current performance may be less than the results shown. For quarterly updates on the Fund's performance, please contact your financial advisor, call us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com. Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund's total returns shown do not show the effects of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. Class A The inception date of the Fund was 11/7/95. Class A returns include the current maximum initial sales charge of 5.75%. Class B shares of the Fund were first publicly offered on 11/7/95. Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (since inception). Class B shares are subject to an annual 0.75% asset-based sales charge. The ending account value shown in the graph is net of the applicable 2% contingent deferred sales charge. Class C shares of the Fund were first publicly offered on 11/7/95. Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset- based sales charge. Class Y shares of the Fund were first publicly offered on 4/1/99. Class Y shares are offered only to certain institutional investors under special agreement with the Distributor. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 10 OPPENHEIMER ENTERPRISE FUND Financials 11 OPPENHEIMER ENTERPRISE FUND STATEMENT OF INVESTMENTS August 31, 2000
Market Value Shares See Note 1 ==================================================================================== Common Stocks--93.9% - ------------------------------------------------------------------------------------ Basic Materials--0.5% - ------------------------------------------------------------------------------------ Chemicals--0.5% Cabot Microelectronics Corp./1/ 100,000 $ 5,837,500 - ------------------------------------------------------------------------------------ Capital Goods--8.8% - ------------------------------------------------------------------------------------ Electrical Equipment--0.6% Vishay Intertechnology, Inc./1/ 160,000 6,450,000 - ------------------------------------------------------------------------------------ Industrial Services--3.7% Corporate Executive Board Co./1/ 350,000 24,850,000 - ------------------------------------------------------------------------------------ Quanta Services, Inc./1/ 100,000 4,675,000 - ------------------------------------------------------------------------------------ Tetra Tech, Inc /1/ 400,000 10,850,000 ----------- 40,375,000 - ------------------------------------------------------------------------------------ Manufacturing--4.5% Brooks Automation, Inc./1/ 142,500 7,882,031 - ------------------------------------------------------------------------------------ C-MAC Industries, Inc./1/ 81,000 5,806,687 - ------------------------------------------------------------------------------------ Celestica, Inc./1/ 125,000 9,765,625 - ------------------------------------------------------------------------------------ Flextronics International Ltd./1/ 185,000 15,412,812 - ------------------------------------------------------------------------------------ Photon Dynamics, Inc./1/ 97,300 4,567,019 - ------------------------------------------------------------------------------------ PRI Automation, Inc./1/ 120,000 6,195,000 ----------- 49,629,174 - ------------------------------------------------------------------------------------ Communication Services--8.4% - ------------------------------------------------------------------------------------ Telecommunications: Long Distance--4.1% Brocade Communications Systems, Inc./1/ 25,000 5,645,312 - ------------------------------------------------------------------------------------ Corvis Corp./1/ 125,000 12,976,562 - ------------------------------------------------------------------------------------ Efficient Networks, Inc./1/ 116,000 6,233,187 - ------------------------------------------------------------------------------------ Exfo Electro-Optical Engineering, Inc./1/ 13,100 743,425 - ------------------------------------------------------------------------------------ Level 3 Communications, Inc./1/ 90,000 7,851,094 - ------------------------------------------------------------------------------------ Madge Networks NV/1/ 15,500 55,219 - ------------------------------------------------------------------------------------ MRV Communications, Inc./1/ 73,600 5,671,800 - ------------------------------------------------------------------------------------ Triton PCS Holdings, Inc., Cl. A/1/ 98,100 5,432,287 ----------- 44,608,886 - ------------------------------------------------------------------------------------ Telecommunications: Wireless--4.3% AirGate PCS, Inc./1/ 51,800 3,525,637 - ------------------------------------------------------------------------------------ Avici Systems, Inc./1/ 2,200 329,587 - ------------------------------------------------------------------------------------ Chartered Semiconductor Manufacturing Ltd., Sponsored ADR/1/ 80,000 6,790,000 - ------------------------------------------------------------------------------------ Phone.com, Inc./1/ 75,000 6,932,812 - ------------------------------------------------------------------------------------ Proxim, Inc./1/ 170,000 10,210,625 - ------------------------------------------------------------------------------------ Triton Network Systems, Inc./1/ 108,300 2,037,394 - ------------------------------------------------------------------------------------ Tycom Ltd/1/ 400,200 16,658,325 ----------- 46,484,380
12 OPPENHEIMER ENTERPRISE FUND
Market Value Shares See Note 1 Consumer Cyclicals--3.8% Consumer Services--1.5% Getty Images, Inc./1/ 121,900 $ 5,119,800 Heidrick & Struggles International, Inc./1/ 145,800 8,474,625 Lamar Advertising Co., Cl. A/1/ 67,600 3,139,175 ----------- 16,733,600 Media--2.1% Entravision Communications Corp./1/ 550,000 10,896,875 True North Communications, Inc. 150,000 6,956,250 Tweeter Home Entertainment Group, Inc./1/ 154,000 5,534,375 ----------- 23,387,500 Retail: Specialty--0.2% Factory 2-U Stores, Inc./1/ 55,000 1,900,937 Consumer Staples--7.4% Broadcasting--2.5% Clear Channel Communications, Inc./1/ 225,000 16,284,375 New Frontier Media, Inc./1/ 124,600 770,962 Univision Communications, Inc., Cl. A/1/ 225,000 9,928,125 ----------- 26,983,462 Education--1.2% Corinthian Colleges, Inc./1/ 236,100 12,749,400 Entertainment--3.0% California Pizza Kitchen, Inc./1/ 37,500 935,156 Imax Corp./1/ 200,000 5,462,500 Macrovision Corp./1/ 145,400 15,503,275 P.F. Chang's China Bistro, Inc./1/ 350,000 10,478,125 ----------- 32,379,056 Food & Drug Retailers--0.7% NPS Pharmaceuticals, Inc./1/ 172,000 7,611,000 Energy--1.1% Energy Services--1.1% Cal Dive International, Inc./1/ 100,000 5,750,000 Cooper Cameron Corp./1/ 85,000 6,614,062 ----------- 12,364,062 Oil: International--0.0% FX Energy, Inc./1/ 140,000 560,000
13 OPPENHEIMER ENTERPRISE FUND STATEMENT OF INVESTMENTS Continued
Market Value Shares See Note 1 - ------------------------------------------------------------------------------------- Financial--4.8% - ------------------------------------------------------------------------------------- Banks--3.5% Investors Financial Services Corp. 300,000 $18,468,750 - ------------------------------------------------------------------------------------- Knight Trading Group, Inc./1/ 175,000 5,490,625 - ------------------------------------------------------------------------------------- Labranche & Co., Inc./1/ 487,300 14,679,912 ----------- 38,639,287 - ------------------------------------------------------------------------------------- Diversified Financial--0.8% Stilwell Financial, Inc./1/ 175,000 8,465,625 - ------------------------------------------------------------------------------------- Insurance--0.5% Advance Paradigm, Inc./1/ 220,000 5,857,500 - ------------------------------------------------------------------------------------- Healthcare--9.1% - ------------------------------------------------------------------------------------- Healthcare/Drugs--9.0% Abgenix, Inc./1/ 185,600 13,951,900 - ------------------------------------------------------------------------------------- Bruker Daltonics, Inc./1/ 31,800 1,597,950 - ------------------------------------------------------------------------------------- Cubist Pharmaceuticals, Inc./1/ 173,300 10,592,962 - ------------------------------------------------------------------------------------- CV Therapeutics, Inc./1/ 135,200 10,140,000 - ------------------------------------------------------------------------------------- Lynx Therapeutics, Inc./1/ 200,000 6,950,000 - ------------------------------------------------------------------------------------- Millennium Pharmaceuticals, Inc./1/ 80,000 11,450,000 - ------------------------------------------------------------------------------------- Nuerocrine Biosciences, Inc./1/ 307,200 12,710,400 - ------------------------------------------------------------------------------------- Pharmacia Corp. 125,000 7,320,313 - ------------------------------------------------------------------------------------- PRAECIS Pharmaceuticals, Inc./1/ 300,600 13,170,038 - ------------------------------------------------------------------------------------- Syncor International Corp./1/ 271,400 10,856,000 ----------- 98,739,563 - ------------------------------------------------------------------------------------- Healthcare/Supplies & Services--0.1% EP MedSystems, Inc./1/ 174,700 720,638 - ------------------------------------------------------------------------------------- Technology--49.0% - ------------------------------------------------------------------------------------- Computer Hardware--6.7% Cobalt Networks, Inc./1,2/ 250,000 12,406,250 - ------------------------------------------------------------------------------------- Juniper Networks, Inc./1/ 65,000 13,893,750 - ------------------------------------------------------------------------------------- Network Appliance, Inc./1/ 150,000 17,550,000 - ------------------------------------------------------------------------------------- SanDisk Corp./1/ 156,000 13,026,000 - ------------------------------------------------------------------------------------- Sun Microsystems, Inc./1/ 125,000 15,867,188 ----------- 72,743,188 - ------------------------------------------------------------------------------------- Computer Services--11.1% Anicom, Inc./1,2/ 370,200 908,192 - ------------------------------------------------------------------------------------- Applied Micro Circuits Corp./1/ 60,000 12,176,250 - ------------------------------------------------------------------------------------- AppNet, Inc./1/ 132,900 6,570,244 - ------------------------------------------------------------------------------------- Ariba, Inc./1/ 171,300 26,958,338 - ------------------------------------------------------------------------------------- Art Technology Group, Inc./1/ 102,000 10,397,625 - ------------------------------------------------------------------------------------- Digex, Inc./1/ 130,000 11,009,375
14 OPPENHEIMER ENTERPRISE FUND
Market Value Shares See Note 1 Computer Services Continued Eltrax Systems, Inc./1,2/ 165,000 $ 783,750 Foundry Networks, Inc./1/ 65,000 6,049,063 ScreamingMedia, Inc./1,2/ 517,555 4,188,961 Sunrise Telecom, Inc./1/ 13,200 593,175 Sycamore Networks, Inc./1/ 65,000 8,937,500 Turnstone Systems, Inc./1/ 94,000 5,534,250 Vignette Corp./1/ 350,000 13,343,750 WatchGuard Technologies, Inc./1/ 100,000 4,912,500 WebEx Communications, Inc./1/ 64,400 3,566,150 WebTrends Corp./1/ 140,000 5,274,063 ----------- 121,203,186 Computer Software--14.4% Advent Software, Inc./1/ 480,000 29,580,000 Allaire Corp./1/ 170,000 5,769,375 Corio, Inc./1/ 262,100 3,390,919 Informatica Corp./1/ 121,600 12,160,000 Interactive Intelligence, Inc./1/ 188,800 8,366,200 Internet Security Systems, Inc./1/ 78,100 6,326,100 McDATA Corp., Cl. B/1/ 33,700 3,624,856 Micromuse, Inc./1/ 165,400 25,120,125 NetIQ Corp./1/ 250,200 14,136,300 Numerical Technologies, Inc./1/ 96,600 3,779,475 Portal Software, Inc./1/ 120,000 6,630,000 Quest Software, Inc./1/ 116,800 6,029,800 Software.com, Inc./1/ 80,000 11,645,000 SonicWALL, Inc./1/ 90,700 6,904,538 StorageNetworks, Inc./1/ 7,400 751,100 Verity, Inc./1/ 160,000 7,320,000 webMethods, Inc./1/ 52,700 5,661,956 ----------- 157,195,744 Communications Equipment--5.7% Advanced Fibre Communications, Inc./1/ 200,000 10,571,875 Aware, Inc./1/ 125,000 5,601,563 Cisco Systems, Inc./1/ 350,000 24,018,750 Extreme Networks, Inc./1/ 97,200 9,045,675 New Focus, Inc./1/ 90,200 12,453,238 SpeechWorks International, Inc./1/ 9,800 750,925 ----------- 62,442,026
15 OPPENHEIMER ENTERPRISE FUND STATEMENT OF INVESTMENTS Continued
Market Value Shares See Note 1 - -------------------------------------------------------------------------------------------- Electronics--11.1% ACT Manufacturing, Inc./1/ 59,100 $ 3,010,406 - -------------------------------------------------------------------------------------------- Advanced Energy Industries, Inc./1/ 96,300 5,501,138 - -------------------------------------------------------------------------------------------- Applied Materials, Inc./1/ 175,000 15,104,688 - -------------------------------------------------------------------------------------------- ASM International NV/1/ 236,500 5,942,063 - -------------------------------------------------------------------------------------------- Intel Corp. 175,000 13,103,125 - -------------------------------------------------------------------------------------------- Intersil Holding Corp./1/ 148,300 8,008,200 - -------------------------------------------------------------------------------------------- JDS Uniphase Corp./1/ 140,000 17,427,812 - -------------------------------------------------------------------------------------------- Micron Technology, Inc./1/ 190,000 15,532,500 - -------------------------------------------------------------------------------------------- Rambus, Inc./1/ 70,000 5,718,125 - -------------------------------------------------------------------------------------------- SDL, Inc./1/ 50,000 19,865,625 - -------------------------------------------------------------------------------------------- Virata Corp./1/ 170,000 11,687,500 ------------ 120,901,182 - -------------------------------------------------------------------------------------------- Utilities--1.0% - -------------------------------------------------------------------------------------------- Electric Utilities--0.5% Calpine Corp./1/ 59,500 5,890,500 - -------------------------------------------------------------------------------------------- Gas Utilities--0.5% Enron Corp. 65,000 5,516,874 ------------ Total Common Stocks (Cost $681,748,125) 1,026,369,270 ============================================================================================ Preferred Stocks--0.1% PeopleFirst.com, Inc., $2.72 Cv., Series C/1,2/ (Cost $1,000,001) 467,290 1,000,001 Principal Amount ============================================================================================ Convertible Corporate Bonds and Notes--0.3% Kestrel Solutions, Inc., 5.50% Cv. Sub. Nts., 7/15/05/2/ (Cost $3,000,000) $3,000,000 3,315,000 Shares ============================================================================================ Other Securities--3.5% Nasdaq-100 Unit Investment Trust/1/ (Cost $36,589,560) 374,800 38,182,750
16 OPPENHEIMER ENTERPRISE FUND
Principal Market Value Amount See Note 1 Repurchase Agreements--2.0% Repurchase agreement with Banc One Capital Markets, Inc., 6.57%, dated 8/31/00, to be repurchased at $21,592,940 on 9/1/00, collateralized by U.S. Treasury Bonds, 6.25%-12%, 11/15/03-8/15/23, with a value of $9,241,186, U.S. Treasury Nts., 4.25%-7.50%, 12/31/00-2/15/07, with a value of $10,552,659 and U.S. Treasury Bills, 11/30/00, with a value of $2,259,952 (Cost $21,589,000) $21,589,000 $21,589,000 Total Investments, at Value (Cost $743,926,686) 99.8% 1,090,456,021 Other Assets Net of Liabilities 0.2 1,666,052 ----------------------------- Net Assets 100.0% $1,092,122,073 =============================
Footnotes to Statement of Investments 1. Non-income-producing security. 2. Identifies issues considered to be illiquid or restricted--See Note 5 of Notes to Financial Statements. 3. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer, and is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended August 31, 2000. There were no affiliate securities held by the Fund as of August 31, 2000. Transactions during the period in which the issuer was an affiliate are as follows:
Shares Gross Gross Shares August 31,1999 Additions Reductions August 31, 2000 Argosy Education Group, Inc., Series A 400,000 -- 400,000 -- EP MedSystems, Inc. 600,000 300 425,600 174,700 Koala Corp. 205,000 295,000 500,000 -- Silver Diner, Inc. 830,000 -- 830,000 --
See accompanying Notes to Financial Statements. 17 OPPENHEIMER ENTERPRISE FUND STATEMENT OF ASSETS AND LIABILITIES August 31, 2000 Assets Investments, at value (cost $743,926,686)--see accompanying statement $ 1,090,456,021 Receivables and other assets: Investments sold 13,116,281 Shares of beneficial interest sold 896,551 Interest and dividends 20,056 Other 92,102 ---------------- Total assets 1,104,581,011 Liabilities Bank overdraft 133,654 Payables and other liabilities: Investments purchased 9,421,275 Shares of beneficial interest redeemed 1,824,189 Distribution and service plan fees 389,363 Transfer and shareholder servicing agent fees 257,957 Trustees' compensation 84,728 Other 347,772 ---------------- Total liabilities 12,458,938 Net Assets $ 1,092,122,073 ================ Composition of Net Assets Paid-in capital $ 672,587,800 Accumulated net investment loss (68,065) Accumulated net realized gain on investments and foreign currency transactions 73,073,003 Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 346,529,335 ---------------- Net Assets $ 1,092,122,073 ================ Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $624,971,079 and 15,991,746 shares of beneficial interest outstanding) $ 39.08 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 41.46 Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $310,972,061 and 8,276,913 shares of beneficial interest outstanding) $ 37.57 Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $64,522,482 and 1,715,601 shares of beneficial interest outstanding) $ 37.61 Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $91,656,451 and 2,331,166 shares of beneficial interest outstanding) $ 39.32
See accompanying Notes to Financial Statements. 18 OPPENHEIMER ENTERPRISE FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000 =============================================================================== Investment Income Interest $ 8,338,594 - ------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $255) 235,683 -------------- Total income 8,574,277 =============================================================================== Expenses Management fees 6,818,023 - ------------------------------------------------------------------------------- Distribution and service plan fees: Class A 1,347,398 Class B 2,943,776 Class C 608,440 - ------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 1,225,091 Class B 639,308 Class C 132,028 Class Y 111,254 - ------------------------------------------------------------------------------- Shareholder reports 634,357 - ------------------------------------------------------------------------------- Custodian fees and expenses 86,479 - ------------------------------------------------------------------------------- Trustees' compensation 45,719 - ------------------------------------------------------------------------------- Other 113,679 -------------- Total expenses 14,705,552 Less expenses paid indirectly (60,519) -------------- Net expenses 14,645,033 =============================================================================== Net Investment Loss (6,070,756) =============================================================================== Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments 89,181,779 Foreign currency transactions (357,236) -------------- Net realized gain 88,824,543 - ------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 249,951,746 Translation of assets and liabilities denominated in foreign currencies (37,020) -------------- Net change 249,914,726 -------------- Net realized and unrealized gain 338,739,269 =============================================================================== Net Increase in Net Assets Resulting from Operations $ 332,668,513 ==============
See accompanying Notes to Financial Statements. 19 OPPENHEIMER ENTERPRISE FUND STATEMENTS OF CHANGES IN NET ASSETS Year Ended August 31, 2000 1999 ================================================================================================== Operations Net investment loss $ (6,070,756) $ (2,430,150) - -------------------------------------------------------------------------------------------------- Net realized gain 88,824,543 43,152,767 - -------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 249,914,726 102,562,428 ----------------------------------- Net increase in net assets resulting from operations 332,668,513 143,285,045 ================================================================================================== Dividends and/or Distributions to Shareholders Distributions from net realized gain: Class A (23,177,690) (1,824,954) Class B (13,063,885) (1,123,053) Class C (2,677,972) (228,443) Class Y (3,045,611) -- ================================================================================================== Beneficial Interest Transactions Net increase in net assets resulting from beneficial interest transactions: Class A 122,904,996 178,721,558 Class B 29,118,541 97,486,503 Class C 6,569,570 20,439,103 Class Y 47,056,135 32,242,392 ================================================================================================== Net Assets Total increase 496,352,597 468,998,151 - -------------------------------------------------------------------------------------------------- Beginning of period 595,769,476 126,771,325 ----------------------------------- End of period (including accumulated net investment loss of $68,065 and $56,295, respectively) $ 1,092,122,073 $ 595,769,476 ===================================
See accompanying Notes to Financial Statements. 20 OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS Class A Year Ended August 31, 2000 1999 1998 1997 1996/1/ ========================================================================================================================= Per Share Operating Data Net asset value, beginning of period $ 26.37 $ 14.72 $ 16.98 $ 15.48 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.15) (.11) (.14) (.09) (.05) Net realized and unrealized gain (loss) 14.52 12.08 (.75) 2.66 5.53 ------------------------------------------------------------------------ Total income (loss) from investment operations 14.37 11.97 (.89) 2.57 5.48 - ------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain (1.66) (.32) (1.37) (1.07) -- - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 39.08 $ 26.37 $ 14.72 $ 16.98 $ 15.48 ======================================================================== ========================================================================================================================= Total Return, at Net Asset Value/2/ 54.89% 82.34% (5.65)% 17.88% 54.80% ========================================================================================================================= Ratios/Supplemental Data Net assets, end of period (in thousands) $ 624,971 $ 335,682 $ 74,456 $ 52,455 $ 44,421 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 563,739 $ 182,121 $ 72,059 $ 42,895 $ 30,655 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:3 Net investment loss (0.37)% (0.47)% (0.81)% (1.18)% (0.59)% Expenses 1.24% 1.48% 1.48%/4/ 1.50%/4/ 1.66%/4/ - ------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 142% 134% 182% 142% 156%
1. For the period from November 7, 1995 (commencement of operations) to August 31, 1996. 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or commencement of operations), 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. 3. Annualized for periods of less than one full year. 4. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 21 OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS Continued Class B Year Ended August 31, 2000 1999 1998 1997 1996/1/ ======================================================================================================================= Per Share Operating Data Net asset value, beginning of period $ 25.58 $ 14.38 $ 16.75 $ 15.39 $ 10.00 - ----------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.39) (.11) (.15) (.18) (.14) Net realized and unrealized gain (loss) 14.04 11.63 (.85) 2.61 5.53 -------------------------------------------------------------------------- Total income (loss) from investment operations 13.65 11.52 (1.00) 2.43 5.39 - ----------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain (1.66) (.32) (1.37) (1.07) -- - ----------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 37.57 $ 25.58 $ 14.38 $ 16.75 $ 15.39 ========================================================================== Total Return, at Net Asset Value/2/ 53.73% 81.14% (6.43)% 17.03% 53.90% ======================================================================================================================= Ratios/Supplemental Data Net assets, end of period (in thousands) $310,972 $189,699 $43,570 $25,856 $20,606 - ----------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $294,487 $107,124 $39,003 $20,410 $14,123 - ----------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:/3/ Net investment loss (1.13)% (1.22)% (1.58)% (1.96)% (1.37)% Expenses 2.00% 2.23% 2.26%/4/ 2.27%/4/ 2.44%/4/ - ----------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 142% 134% 182% 142% 156%
1. For the period from November 7, 1995 (commencement of operations) to August 31, 1996. 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or commencement of operations), 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. 3. Annualized for periods of less than one full year. 4. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 22 OPPENHEIMER ENTERPRISE FUND Class C Year Ended August 31, 2000 1999 1998 1997 1996/1/ ================================================================================================== Per Share Operating Data Net asset value, beginning of period $25.59 $14.38 $16.74 $15.39 $10.00 - -------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.39) (.10) (.16) (.18) (.14) Net realized and unrealized gain (loss) 14.07 11.63 (.83) 2.60 5.53 --------------------------------------------------------------- Total income (loss) from investment operations 13.68 11.53 (.99) 2.42 5.39 - -------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain (1.66) (.32) (1.37) (1.07) -- - -------------------------------------------------------------------------------------------------- Net asset value, end of period $37.61 $25.59 $14.38 $16.74 $15.39 =============================================================== ================================================================================================== Total Return, at Net Asset Value/2/ 53.83% 81.22% (6.38)% 16.97% 53.90% ================================================================================================== Ratios/Supplemental Data Net assets, end of period (in thousands) $64,522 $39,083 $8,746 $5,653 $4,846 - -------------------------------------------------------------------------------------------------- Average net assets (in thousands) $60,868 $21,790 $7,908 $4,539 $3,472 - -------------------------------------------------------------------------------------------------- Ratios to average net assets:/3/ Net investment loss (1.13)% (1.22)% (1.58)% (1.96)% (1.35)% Expenses 2.00% 2.22% 2.26%/4/ 2.27%/4/ 2.43%/4/ - -------------------------------------------------------------------------------------------------- Portfolio turnover rate 142% 134% 182% 142% 156%
1. For the period from November 7, 1995 (commencement of operations) to August 31, 1996. 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or commencement of operations), 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. 3. Annualized for periods of less than one full year. 4. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 23 OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS Continued
Class Y Year Ended August 31, 2000 1999/1/ ======================================================================================= Per Share Operating Data Net asset value, beginning of period $ 26.41 $ 23.51 - --------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.04) --/2/ Net realized and unrealized gain 14.61 2.90 ------------------------- Total income from investment operations 14.57 2.90 - --------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain (1.66) -- - --------------------------------------------------------------------------------------- Net asset value, end of period $ 39.32 $ 26.41 ========================== ======================================================================================= Total Return, at Net Asset Value/3/ 55.58% 12.34% ======================================================================================= Ratios/Supplemental Data Net assets, end of period (in thousands) $ 91,656 $ 31,306 - --------------------------------------------------------------------------------------- Average net assets (in thousands) $ 80,415 $ 11,731 - --------------------------------------------------------------------------------------- Ratios to average net assets:/4/ Net investment income 0.04% 0.09% Expenses 0.91% 0.96% - --------------------------------------------------------------------------------------- Portfolio turnover rate 142% 134%
1. For the period from April 1, 1999 (inception of offering) to August 31, 1999. 2. Less than $0.005 per share. 3. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or inception of operations), 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 for periods of less than one full year. See accompanying Notes to Financial Statements. 24 OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS ================================================================================ 1. Significant Accounting Policies Oppenheimer Enterprise Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment objective is to seek capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC. All classes of shares have identical rights to earnings, assets and voting privileges, except that each class has its own expenses directly attributable to that class and exclusive voting rights with respect to matters affecting that class. Classes A, B and C have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of 60 days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- 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 foreign securities and investment income are translated at the rates 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 Statement of Operations. 25 OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued ================================================================================ 1. Significant Accounting Policies Continued 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, Gains and Losses. Income, expenses (other than those attributable to a specific class), 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' Compensation. The Fund has adopted an unfunded retirement plan for the Fund's independent Board of Trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended August 31, 2000, a provision of $13,396 was made for the Fund's projected benefit obligations and payments of $1,627 were made to retired trustees, resulting in an accumulated liability of $68,065 as of August 31, 2000. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of annual compensation they are entitled to receive from the Fund. Under the plan, the compensation deferred is periodically adjusted as though an equivalent amount had been invested for the Board of Trustees in shares of one or more Oppenheimer funds selected by the trustee. The amount paid to the Board of Trustees under the plan will be determined based upon the performance of the selected funds. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. 26 OPPENHEIMER ENTERPRISE FUND - -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund. The Fund adjusts the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended August 31, 2000, amounts have been reclassified to reflect an increase in paid-in capital of $8,156,678, a decrease in accumulated net investment loss of $6,058,986, and a decrease in accumulated net realized gain on investments of $14,215,664. This reclassification includes $8,156,678 distributed in connection with Fund share redemptions which increased paid-in capital and reduced accumulated net realized gain. Net assets of the Fund were unaffected by the reclassifications. - -------------------------------------------------------------------------------- Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Other. Investment transactions are accounted for as of trade date and dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend if such information is obtained subsequent to 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. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 27 OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued =============================================================================== 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of no par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Year Ended August 31, 2000 Year Ended August 31, 1999/1/ Shares Amount Shares Amount - ------------------------------------------------------------------------------------------- Class A Sold 5,918,855 $ 223,036,553 8,926,370 $ 206,297,851 Dividends and/or distributions reinvested 568,512 20,864,644 97,571 1,742,570 Redeemed (3,224,369) (120,996,201) (1,354,467) (29,318,863) ---------------------------------------------------------------- Net increase 3,262,998 $ 122,904,996 7,669,474 $ 178,721,558 ================================================================ - ------------------------------------------------------------------------------------------- Class B Sold 1,705,197 $ 59,299,313 4,932,566 $ 109,637,518 Dividends and/or distributions reinvested 343,627 12,191,391 60,658 1,056,668 Redeemed (1,187,431) (42,372,163) (606,628) (13,207,683) ---------------------------------------------------------------- Net increase 861,393 $ 29,118,541 4,386,596 $ 97,486,503 ================================================================ - ------------------------------------------------------------------------------------------- Class C Sold 377,829 $ 13,321,272 1,445,655 $ 30,608,836 Dividends and/or distributions reinvested 71,972 2,555,962 12,525 218,068 Redeemed (261,267) (9,307,664) (539,269) (10,387,801) ---------------------------------------------------------------- Net increase 188,534 $ 6,569,570 918,911 $ 20,439,103 ================================================================ - ------------------------------------------------------------------------------------------- Class Y Sold 4,147,939 $ 162,964,713 1,321,190 $ 35,899,224 Dividends and/or distributions reinvested 82,761 3,045,610 -- -- Redeemed (3,084,977) (118,954,188) (135,747) (3,656,832) ---------------------------------------------------------------- Net increase 1,145,723 $ 47,056,135 1,185,443 $ 32,242,392 ================================================================
1. For the year ended August 31, 1999, for Class A, B and C shares and for the period from April 1, 1999 (inception of offering) to August 31, 1999, for Class Y shares. =============================================================================== 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended August 31, 2000, were $1,469,529,425 and $1,200,678,945, respectively. As of August 31, 2000, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $744,272,909 was: Gross unrealized appreciation $367,528,079 Gross unrealized depreciation (21,344,967) ------------- Net unrealized appreciation $346,183,112 ============= 28 OPPENHEIMER ENTERPRISE FUND ================================================================================ 4. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for an annual fee of 0.75% of the first $200 million of average annual net assets, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million and 0.60% of average annual net assets over $800 million. The Fund's management fee for the year ended August 31, 2000, was an annualized rate of 0.68%, before any waiver by the Manager if applicable. - -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund on an "at-cost" basis. OFS also acts as the transfer and shareholder servicing agent for the other Oppenheimer funds. - -------------------------------------------------------------------------------- Distribution and Service Plan Fees. Under its General Distributor's Agreement with the Manager, the Distributor acts as the Fund's principal underwriter in the continuous public offering of the different classes of shares of the Fund. The compensation paid to (or retained by) the Distributor from the sale of shares or on the redemption of shares is shown in the table below for the period indicated.
Aggregate Class A Commissions Commissions Commissions Front-end Front-end on Class A on Class B on Class C Sales Charges Sales Charges Shares Shares Shares on Class A Retained by Advanced by Advanced by Advanced by Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/ - --------------------------------------------------------------------------------------------------------------------------------- August 31, 2000 $1,323,613 $289,908 $421,613 $1,224,007 $82,028
1. The Distributor advances commission payments to dealers for certain sales of Class A shares and for sales of Class B and Class C shares from its own resources at the time of sale.
Class A Class B Class C Contingent Deferred Contingent Deferred Contingent Deferred Sales Charges Sales Charges Sales Charges Year Ended Retained by Distributor Retained by Distributor Retained by Distributor - ---------------------------------------------------------------------------------------------------------- August 31, 2000 $3,449 $258,615 $22,218
The Fund has adopted a Service Plan for Class A shares and Distribution and Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment Company Act. Under those plans the Fund pays the Distributor for all or a portion of its costs incurred in connection with the distribution and/or servicing of the shares of the particular class. Class A Service Plan Fees. Under the Class A service plan, the Distributor currently uses the fees it receives from the Fund to pay brokers, dealers and other financial institutions. The Class A service plan permits reimbursements to the Distributor at a rate of up to 0.25% of average annual net assets of Class A shares purchased. The Distributor makes payments to plan recipients quarterly at an annual rate not to exceed 0.25% of the average annual net assets consisting of Class A shares of the Fund. For the year ended August 31, 2000, payments under the Class A plan totaled $1,347,398 prior to Manager waivers if applicable, all of which were paid by the Distributor to recipients, and included $61,427 paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent years. 29 OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued ================================================================================ 4. Fees and Other Transactions with Affiliates Continued Class B and Class C Distribution and Service Plan Fees. Under each plan, service fees and distribution fees are computed on the average of the net asset value of shares in the respective class, determined as of the close of each regular business day during the period. The Class B and Class C plans provide for the Distributor to be compensated at a flat rate, whether the Distributor's distribution expenses are more or less than the amounts paid by the Fund under the plan during the period for which the fee is paid. The Distributor retains the asset-based sales charge on Class B shares. The Distributor retains the asset-based sales charge on Class C shares during the first year the shares are outstanding. The asset-based sales charges on Class B and Class C shares allow investors to buy shares without a front-end sales charge while allowing the Distributor to compensate dealers that sell those shares. The Distributor's actual expenses in selling Class B and Class C shares may be more than the payments it receives from the contingent deferred sales charges collected on redeemed shares and asset-based sales charges from the Fund under the plans. If any plan is terminated by the Fund, the Board of Trustees may allow the Fund to continue payments of the asset-based sales charge to the Distributor for distributing shares before the plan was terminated. The plans allow for the carry-forward of distribution expenses, to be recovered from asset-based sales charges in subsequent fiscal periods. DISTRIBUTION FEES PAID TO THE DISTRIBUTOR FOR THE YEAR ENDED AUGUST 31, 2000, WERE AS FOLLOWS:
Distributor's Distributor's Aggregate Unreimbursed Unreimbursed Expenses as % Total Payments Amount Retained Expenses of Net Assets Under Plan by Distributor Under Plan of Class - ------------------------------------------------------------------------------------------------------------- Class B Plan $2,943,776 $2,459,192 $2,270,446 0.73% Class C Plan 608,440 251,485 138,622 0.21 =============================================================================================================
5. Illiquid or Restricted Securities As of August 31, 2000, investments in securities included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale 30 OPPENHEIMER ENTERPRISE FUND to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of August 31, 2000 was $22,602,154, which represents 2.07% of the Fund's net assets, of which $18,378,962 is considered restricted. Information concerning restricted securities is as follows:
Valuation Per Unit as of Security Acquisition Date Cost Per Unit August 31, 2000 - -------------------------------------------------------------------------------------- Stocks and Warrants Cobalt Networks, Inc. 5/4/99 $3.70 $49.63 - -------------------------------------------------------------------------------------- Eltrax Systems, Inc. 3/28/00 11.75 4.75 - -------------------------------------------------------------------------------------- PeopleFirst.com, Inc., $2.72 Cv., Series C 2/9/00 2.14 2.14 - -------------------------------------------------------------------------------------- ScreamingMedia, Inc. 10/5/99 4.15 8.09 ======================================================================================
6. Bank Borrowings The Fund may borrow from a bank for temporary or emergency purposes including, without limitation, funding of shareholder redemptions provided asset coverage for borrowings exceeds 300%. The Fund has entered into an agreement which enables it to participate with other Oppenheimer funds in an unsecured line of credit with a bank, which permits borrowings up to $400 million, collectively. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such loan is executed. The Fund also pays a commitment fee equal to its pro rata share of the average unutilized amount of the credit facility at a rate of 0.08% per annum. The Fund had no borrowings outstanding during the year ended August 31, 2000. 31 OPPENHEIMER ENTERPRISE FUND INDEPENDENT AUDITORS' REPORT ================================================================================ The Board of Trustees and Shareholders of Oppenheimer Enterprise Fund: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Oppenheimer Enterprise Fund as of August 31, 2000, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the four-year period then ended, and the period from November 7, 1995 (commencement of operations) to August 31, 1996. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2000, by correspondence with the custodian and brokers; and where confirmations were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Enterprise Fund as of August 31, 2000, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended and the period from November 7, 1995 (commencement of operations) to August 31, 1996, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Denver, Colorado September 22, 2000 32 OPPENHEIMER ENTERPRISE FUND FEDERAL INCOME TAX INFORMATION Unaudited ================================================================================ In early 2001 shareholders will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2000. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. Distributions of $1.6556 per share were paid to Class A, Class B, Class C and Class Y shareholders, on December 7, 1999, of which $0.4934 was designated as a "capital gain distribution" for federal income tax purposes. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of capital assets held for more than one year (long-term capital gains). Dividends paid by the Fund during the fiscal year ended August 31, 2000, which are not designated as capital gain distributions should be multiplied by 0.67% 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. 33 OPPENHEIMER ENTERPRISE FUND OPPENHEIMER ENTERPRISE FUND ============================================================================== Officers and Trustees Leon Levy, Chairman of the Board of Trustees Donald W Spiro, Vice Chairman of the Board of Trustees Bridget A. Macaskill, Trustee and President Robert G. Galli, Trustee Phillip A. Griffiths, Trustee Benjamin Lipstein, Trustee Elizabeth B. Moynihan, Trustee Kenneth A. Randall, Trustee Edward V. Regan, Trustee Russell S. Reynolds, Jr., Trustee Clayton K. Yeutter, Trustee David Hyun, Vice President Andrew J. Donohue, Secretary Brian W Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary ============================================================================== Investment Advisor OppenheimerFunds, Inc. ============================================================================== Distributor OppenheimerFunds Distributor, Inc. ============================================================================== Transfer and Shareholder OppenheimerFunds Services Servicing Agent ============================================================================== Custodian of The Bank of New York Portfolio Securities ============================================================================== Independent Auditors KPMG LLP ============================================================================== Legal Counsel Mayer, Brown & Platt
For more complete information about Oppenheimer Enterprise Fund, please refer to the Prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds Distributor, Inc. at 1.800.525.7048, or visit the OppenheimerFunds Internet website, at www.oppenheimerfunds.com. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Trade Center, New York, NY 10048-0203 (C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved. 34 OPPENHEIMER ENTERPRISE FUND OPPENHEIMERFUNDS FAMILY ============================================================================================================= Global Equity Developing Markets Fund Global Fund International Small Company Fund Quest Global Value Fund Europe Fund Global Growth & Income Fund International Growth Fund ============================================================================================================= Equity Stock Stock & Bond Emerging Technologies Fund Main Street(R) Growth & Income Fund Enterprise Fund Quest Opportunity Value Fund Discovery Fund Total Return Fund Main Street(R) Small Cap Fund Quest Balanced Value Fund Quest Small Cap Fund/1/ Capital Income Fund MidCap Fund Multiple Strategies Fund Main Street(R) Opportunity Fund Disciplined Allocation Fund2 Growth Fund Convertible Securities Fund Capital Appreciation Fund Large Cap Growth Fund Specialty Disciplined Value Fund2 Real Asset Fund(R) Quest Capital Value Fund Gold & Special Minerals Fund Quest Value Fund Trinity Growth Fund Trinity Core Fund Trinity Value Fund ============================================================================================================= Fixed Income Taxable Municipal International Bond Fund California Municipal Fund3 World Bond Fund2 Main Street(R) California Municipal Fund2,3 High Yield Fund Florida Municipal Fund3 Champion Income Fund New Jersey Municipal Fund3 Strategic Income Fund New York Municipal Fund3 Bond Fund Pennsylvania Municipal Fund3 Senior Floating Rate Fund Municipal Bond Fund U.S. Government Trust Insured Municipal Fund2 Limited-Term Government Intermediate Municipal Fund Fund Rochester Division Rochester Fund Municipals Limited Term New York Municipal Fund ============================================================================================================= Money Market/4/ Money Market Fund Cash Reserves
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on 5/19/00. 2. The Fund's Board has proposed to reorganize the Fund into another Oppenheimer fund subject to shareholder approval. 3. Available to investors only in certain states. 4. An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. 35 OPPENHEIMER ENTERPRISE FUND THIS PAGE INTENTIONALLY LEFT BLANK. INFORMATION AND SERVICES As an Oppenheimer fund shareholder, you can benefit from special services designed to make investing simple. Whether it's automatic investment plans, timely market updates, or immediate account access, you can count on us whenever you need assistance. So call us today, or visit our website--we're here to help. - -------------------------------------------------------------------------------- Internet 24-hr access to account information and transactions/1/ www.oppenheimerfunds.com - -------------------------------------------------------------------------------- General Information Mon-Fri 8am-9pm ET, Sat 10am-4pm ET 1.800.525.7048 - -------------------------------------------------------------------------------- Telephone Transactions Mon-Fri 8am-9pm ET, Sat 10am-4pm ET 1.800.852.8457 - -------------------------------------------------------------------------------- PhoneLink 24-hr automated information and automated transactions 1.800.533.3310 - -------------------------------------------------------------------------------- Telecommunications Device for the Deaf (TDD) Mon-Fri 9am-6:30pm ET 1.800.843.4461 - -------------------------------------------------------------------------------- OppenheimerFunds Market Hotline 24 hours a day, timely and insightful messages on the economy and issues that may affect your investments 1.800.835.3104 - -------------------------------------------------------------------------------- Transfer and Shareholder Servicing Agent OppenheimerFunds Services P O. Box 5270, Denver, CO 80217-5270 - -------------------------------------------------------------------------------- Ticker Symbols Class A: OENAX Class B: OENBX Class C: OENCX Class Y: OENYX - -------------------------------------------------------------------------------- 1. At times this website may be inaccessible or its transaction feature may be unavailable. [LOGO] OppenheimerFunds(R) Distributor, Inc. -----END PRIVACY-ENHANCED MESSAGE-----