UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-10071
Oppenheimer Emerging Growth Fund
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: October 31
Date of reporting period: October 31, 2002 - April 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[GRAPHIC]
April 30, 2003
Oppenheimer
Emerging Growth Fund
Management Commentaries and Semiannual Report
MANAGEMENT COMMENTARIES
Performance Update
Investment Strategy Discussion
Listing of Top Holdings
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
Listing of Investments
Financials
"Oppenheimer Emerging Growth Fund delivered exceptionally strong performance by
focusing on small companies with attractive new products that resulted in
greater-than-average growth. Individual holdings in the areas of health care and
technology generated most of the Fund's returns during the period."
[LOGO]
OppenheimerFunds[R]
The Right Way to Invest
HIGHLIGHTS
Fund Objective
Oppenheimer Emerging Growth Fund seeks capital appreciation.
Fund Highlight
Over the last six months, Oppenheimer Emerging Growth Fund has delivered
exceptionally strong relative performance, outpacing its benchmark, the Russell
2000 Growth Index, by almost 9.0%. 1
MANAGEMENT COMMENTARIES AND ADDITIONAL DISCLOSURES
1 Letter to Shareholders
2 An Interview with Your Fund's Manager
25 Trustees and Officers
28 Privacy Policy Notice
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
7 Statement of Investments
10 Statement of Assets and Liabilities
12 Statement of Operations
13 Statements of Changes in Net Assets
14 Financial Highlights
19 Notes to Financial Statements
Cumulative Total Returns*
For the 6-Month Period Ended 4/30/03
Without With
Sales Chg. Sales Chg.
- ---------------------------------
Class A 16.61% 9.91%
- ---------------------------------
Class B 16.20 11.20
- ---------------------------------
Class C 16.17 15.17
- ---------------------------------
Class N 16.35 15.35
- ---------------------------------
Class Y 17.01
Average Annual Total Returns*
For the 1-Year Period Ended 4/30/03
Without With
Sales Chg. Sales Chg.
- ---------------------------------
Class A -16.54% -21.34%
- ---------------------------------
Class B -17.25 -21.38
- ---------------------------------
Class C -17.22 -18.05
- ---------------------------------
Class N -16.75 -17.58
- ---------------------------------
Class Y -16.00
1. The Fund's performance (Class A shares @ NAV) is compared to the 7.65% six
month return for the Russell 2000 Growth Index, an unmanaged index of small-cap
issuers with above-average growth characteristics, for the period ended 4/30/03.
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.
*See Notes on page 6 for further details.
Not part of the semiannual report to Fund shareholders
LETTER TO SHAREHOLDERS
Dear Shareholder,
It is nearly impossible to reflect on the past six months without thinking about
the war with Iraq. We experienced a range of emotions in the days leading up to
the war and especially as the media brought the war into our homes, as never
before.
At OppenheimerFunds, we face the difficult task of looking beyond the war to
see its long-term impact, together with other factors, on the global economy,
the financial markets and, in the end, your investment with us. It's a
responsibility that we take very seriously and becomes our primary focus during
uncertain times like these.
It is our strong belief that investors can be well served by this
professional insight and by the guidance provided by a financial advisor. In
partnership with OppenheimerFunds, your financial advisor can help you navigate
through this volatile and sometimes unpredictable environment. We encourage you
to continue to work closely with your advisor to develop and implement an
investment plan that fits your goals and risk tolerance.
On our end, we continue to be the home to some of the most experienced and
talented investment professionals in the industry. They remain focused on proven
methods that drive informed, intelligent investment decisions. It is an approach
we are proud of and one that has served investors well in a variety of market
conditions.
We've found that in good times and bad, the fundamental principles of
investing remain key for financial success. These principles-- investing
according to your goals, diversifying your portfolio and benefiting from the
value of professional investment advice--are simple ideas that have proven
themselves over time, and, we believe, will prove themselves again.
We thank you for your continued confidence in OppenheimerFunds and encourage
you to visit our website, www.oppenheimerfunds.com, or speak with your advisor
for up to date information on your investments and the markets.
Sincerely,
/S/ JOHN V. MURPHY
John V. Murphy
May 21, 2003
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict performance of the securities markets or any particular
fund. Specific information that applies to your Fund is contained in the pages
that follow.
PHOTO OF
John V. Murphy
John V. Murphy President
Oppenheimer
Emerging Growth Fund
Not part of the semiannual report to Fund shareholders
1 | OPPENHEIMER EMERGING GROWTH FUND
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q
How would you characterize the Fund's performance during the six-month period
that ended April 30, 2003?
A. The Fund delivered exceptionally strong returns during the period, performing
significantly better than its benchmark, the Russell 2000 Growth Index and most
other small-cap growth funds. 2 We attribute these results to a positive market
environment for growth stocks, particularly the kinds of small-cap growth stocks
on which the Fund concentrates. The magnitude of the Fund's success during the
period also demonstrates the effectiveness of our disciplined, bottom-up
investment approach, which focuses on individual company fundamentals in the
search for attractive investment opportunities.
What made this a positive period for emerging growth stocks?
To a surprising degree, considering the Fund's sharp move from negative to
positive performance, the recent period represented a continuation of the
investment environment that had prevailed during the prior year. Markets
remained volatile, buffeted by conflicting economic and geopolitical forces. On
the positive side, the U.S. economy showed signs of modest growth, while
interest rates remained low and inflation remained in check. On the negative
side, corporate capital spending remained weak, consumer sentiment declined and
uncertainties related to the U.S.-led war in Iraq and the global battle against
terrorism undermined investor confidence.
In light of these uncertainties, traditionally defensive value-oriented
stocks had outperformed their growth-oriented counterparts during most of the
prior year. As a result, by the beginning of the period, price-earnings ratios
for most value-oriented small-cap stocks stood at historically high levels
relative to small-cap growth stocks. At the same time, earnings expectations for
most growth-oriented stocks had finally fallen to
[SIDEBAR]
Portfolio Manager
Laura Granger
2. The Fund's performance (Class A shares @ NAV) is compared to the 7.65%
six-month return for the Russell 2000 Growth Index for the period ended 4/30/03.
Not part of the semiannual report to Fund shareholders
2 | OPPENHEIMER EMERGING GROWTH FUND
realistic levels. By early 2003, for the first time in many months,
growth-oriented companies began to deliver earnings that consistently met or
exceeded expectations. Furthermore, the decisive U.S. move into Iraq in March
ended some of the uncertainties that held stock prices in check, setting the
stage for a growth-led rally in March and April.
How did you manage the Fund in light of these conditions?
We remained firmly committed to the Fund's investment approach, which focuses on
disciplined, issue-by-issue stock analysis in the small-cap growth arena. We
continue to believe that well-managed, financially sound companies, which offer
products and services of emerging importance, will be rewarded by the
marketplace over time. With that in mind, we conduct a time-consuming, hands-on
evaluation of each potential investment's finances, operations, management
quality and competitive environment. We pour over balance sheets, talk to key
company personnel and employ a wide range of other resources to identify the
companies with the greatest opportunities to expand margins, accelerate growth
and emerge as leaders within their respective industries. By identifying and
investing in such companies for the long term, we seek to capture the reward for
our shareholders.
Which industries and individual holdings had the greatest impact on performance?
We realized some of our best returns in the area of health care, particularly
among generic drug manufacturers and distributors, such as Eon Labs, Inc. and
Pharmaceutical Resources, Inc. Expiring patents on several blockbuster drugs,
along with a favorable regulatory environment, opened the door for these
companies to expand their product lines and enter lucrative new markets. The
growing number of new drug approvals also boosted stock prices for biotechnology
holdings with promising drug candidates.
[SIDEBAR]
"We continue to believe that well-managed, financially sound companies, which
offer products and services of emerging importance, will be rewarded by the
marketplace over time."
Not part of the semiannual report to Fund shareholders
3 | OPPENHEIMER EMERGING GROWTH FUND
AN INTERVIEW WITH YOUR FUND'S MANAGER
Technology proved another fruitful area for investment during the period. As
was the case in health care, we targeted companies that appeared likely to
benefit from the introduction of important new products. Several such companies
achieved rapid growth rates despite sluggish U.S. economic conditions.
Of course, not all of the Fund's holdings performed so well. Some of our
holdings in the financial and gaming sectors remained under pressure from the
challenging economic environment. However, the Fund more than made up for
disappointments in these areas with advances in the overwhelming majority of
holdings.
What is your outlook for the future?
We are cautiously optimistic regarding near-term prospects for growth. Recent
economic news appears generally positive, with many sectors showing improvements
in growth rates during the first quarter of 2003, the first such increases in
years. Many companies have issued better-than-expected earnings reports, and
have offered upbeat guidance for the near future. On the other hand, capital
spending remains weak and consumer confidence appears shaky.
We believe that the Fund's recent returns highlight the futility of
attempting to trade the Fund in anticipation of near-term performance.
Investors, who followed the market's trends during the reporting period,
shifting assets in response to changing sentiment, were likely to miss the
Fund's upturn. History shows us that the market's greatest gains often occur
abruptly over brief period of time and without advance warning. That's why the
most effective long-term approach involves consistent diversification among a
group of well-conceived, well-conducted investment strategies.
Average Annual Total Returns with Sales Charge
For the Periods Ended 3/31/03 3
Class A Since
1-Year Inception
- --------------------------
- -32.37% -19.82%
Class B Since
1-Year Inception
- --------------------------
- -32.40% -19.59%
Class C Since
1-Year Inception
- --------------------------
- -29.52% -18.52%
Class N Since
1-Year Inception
- --------------------------
- -29.20% -13.30%
Class Y Since
1-Year Inception
- --------------------------
- -27.83% -17.55%
3. See Notes on page 6 for further details.
Not part of the semiannual report to Fund shareholders
4 | OPPENHEIMER EMERGING GROWTH FUND
[PIE CHART]
Sector Allocation 4
o Information Technology 35.7%
Semiconductor Equipment & Products 10.4
Software 5.8
Internet Software & Services 5.4
Communications Equipment 5.2
Computers & Peripherals 4.1
Electronic Equipment & Instruments 3.7
IT Consulting & Services 1.1
o Health Care 28.1
Biotechnology 9.9
Pharmaceuticals 9.2
Health Care Equipment & Supplies 5.3
Health Care Providers & Services 3.7
o Consumer Discretionary 11.6
o Industrials 9.7
o Financials 8.6
o Energy 4.4
o Consumer Staples 1.4
o Telecommunication Services 0.5
Whatever the Fund's performance over the short term, we remain confident that
our disciplined investment strategy will enable us to continue identifying
companies with exceptional growth potential. That's what makes Oppenheimer
Emerging Growth Fund an effective part of a diversified portfolio, and a
continuing part of The Right Way to Invest.
Top Ten Common Stock Holdings 5
- -------------------------------------------------------------
Eon Labs, Inc. 1.7%
- -------------------------------------------------------------
Taro Pharmaceutical Industries Ltd. 1.7
- -------------------------------------------------------------
Cree, Inc. 1.6
- -------------------------------------------------------------
Corinthian Colleges, Inc. 1.6
- -------------------------------------------------------------
Pharmaceutical Resources, Inc. 1.5
- -------------------------------------------------------------
Penn National Gaming, Inc. 1.5
- -------------------------------------------------------------
Martek Biosciences Corp. 1.5
- -------------------------------------------------------------
Advanced Neuromodulation Systems, Inc. 1.4
- -------------------------------------------------------------
Alliance Gaming Corp. 1.4
- -------------------------------------------------------------
eResearch Technology, Inc. 1.4
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
Top Five Common Stock Industries 5
- -------------------------------------------------------------
Semiconductor Equipment & Products 10.1%
- -------------------------------------------------------------
Biotechnology 9.7
- -------------------------------------------------------------
Pharmaceuticals 9.1
- -------------------------------------------------------------
Commercial Services & Supplies 6.6
- -------------------------------------------------------------
Software 5.7
4. Portfolio's holdings and allocations are subject to change. Percentages are
as of April 30, 2003, and are based on total market value of common stock
holdings.
5. Portfolio's holdings and allocations are subject to change. Percentages are
as of April 30, 2003, and are based on net assets.
Not part of the semiannual report to Fund shareholders
5 | OPPENHEIMER EMERGING GROWTH FUND
NOTES
In reviewing performance, please remember that past performance cannot 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. Because of ongoing market volatility, the
Fund's performance may be subject to substantial fluctuations, and current
performance may be more or less than the results shown. For updates on the
Fund's performance, 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.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction 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. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
Please remember that this Fund has a limited operating history.
Class A shares of the Fund were first publicly offered on 11/1/00. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
Class B shares of the Fund were first publicly offered on
11/1/00. Unless otherwise noted, Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception). Class
B shares are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/00. Unless
otherwise noted, 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 N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 11/1/00. 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.
Not part of the semiannual report to Fund shareholders
6 | OPPENHEIMER EMERGING GROWTH FUND
STATEMENT OF INVESTMENTS APRIL 30, 2003 / UNAUDITED
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Common Stocks--98.0%
- -------------------------------------------------------------------------------
Consumer Discretionary--11.3%
- -------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--4.9%
Alliance Gaming Corp. 1 31,200 $ 498,264
- -------------------------------------------------------------------------------
Cheesecake Factory, Inc. (The) 1 6,600 208,494
- -------------------------------------------------------------------------------
Penn National Gaming, Inc. 1 26,800 523,404
- -------------------------------------------------------------------------------
Ruby Tuesday, Inc. 12,100 238,370
- -------------------------------------------------------------------------------
Station Casinos, Inc. 1 10,800 233,388
---------------
1,701,920
- -------------------------------------------------------------------------------
Leisure Equipment & Products--0.5%
Marvel Enterprises, Inc. 1 10,500 176,820
- -------------------------------------------------------------------------------
Media--0.5%
Radio One, Inc., Cl. D 1 11,800 180,540
- -------------------------------------------------------------------------------
Specialty Retail--4.5%
Aaron Rents, Inc. 21,200 473,820
- -------------------------------------------------------------------------------
Hot Topic, Inc. 1 10,900 266,505
- -------------------------------------------------------------------------------
Select Comfort Corp. 1 13,000 176,670
- -------------------------------------------------------------------------------
Sharper Image Corp. 1 22,300 441,317
- -------------------------------------------------------------------------------
Urban Outfitters, Inc. 1 7,200 214,704
---------------
1,573,016
- -------------------------------------------------------------------------------
Textiles & Apparel--0.9%
Quicksilver, Inc. 1 10,000 326,000
- -------------------------------------------------------------------------------
Consumer Staples--1.4%
- -------------------------------------------------------------------------------
Food & Drug Retailing--1.4%
Central European Distribution Corp. 1 8,600 234,780
- -------------------------------------------------------------------------------
United Natural Foods, Inc. 1 8,600 251,034
---------------
485,814
- -------------------------------------------------------------------------------
Energy--4.3%
- -------------------------------------------------------------------------------
Energy Equipment & Services--3.6%
Patterson-UTI Energy, Inc. 1 10,800 357,372
- -------------------------------------------------------------------------------
Pride International, Inc. 1 10,900 169,168
- -------------------------------------------------------------------------------
Rowan Cos., Inc. 19,100 391,550
- -------------------------------------------------------------------------------
W-H Energy Services, Inc. 1 19,300 347,400
---------------
1,265,490
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Oil & Gas--0.7%
Ultra Petroleum Corp. 1 25,100 $ 251,000
- -------------------------------------------------------------------------------
Financials--8.4%
- -------------------------------------------------------------------------------
Banks--3.0%
Dime Community Bancshares, Inc. 10,800 249,048
- -------------------------------------------------------------------------------
UCBH Holdings, Inc. 16,200 412,128
- -------------------------------------------------------------------------------
W. Holding Co., Inc. 20,600 405,614
---------------
1,066,790
- -------------------------------------------------------------------------------
Diversified Financials--3.0%
American Capital Strategies Ltd. 18,200 441,532
- -------------------------------------------------------------------------------
iDine Rewards Network, Inc. 1 39,200 382,200
- -------------------------------------------------------------------------------
Providian Financial Corp. 1 30,200 222,574
---------------
1,046,306
- -------------------------------------------------------------------------------
Insurance--1.8%
Arch Capital Group Ltd. 1 8,600 299,366
- -------------------------------------------------------------------------------
Hub International Ltd. 21,600 317,736
---------------
617,102
- -------------------------------------------------------------------------------
Real Estate--0.6%
American Mortgage Acceptance Co. 13,400 206,762
- -------------------------------------------------------------------------------
Health Care--27.6%
- -------------------------------------------------------------------------------
Biotechnology--9.7%
Amylin Pharmaceuticals, Inc. 1 20,400 390,660
- -------------------------------------------------------------------------------
BioMarin Pharmaceutical, Inc. 1 33,000 362,340
- -------------------------------------------------------------------------------
Cepheid, Inc. 1 49,200 184,992
- -------------------------------------------------------------------------------
Corixa Corp. 1 31,500 225,855
- -------------------------------------------------------------------------------
Digene Corp. 1 12,900 245,229
- -------------------------------------------------------------------------------
Gen-Probe, Inc. 1 11,900 369,495
- -------------------------------------------------------------------------------
Martek Biosciences Corp. 1 15,100 513,853
- -------------------------------------------------------------------------------
Medicines Co. (The) 1 22,300 458,265
- -------------------------------------------------------------------------------
Nuerocrine Biosciences, Inc. 1 9,800 443,450
- -------------------------------------------------------------------------------
United Therapeutics Corp. 1 10,800 193,849
---------------
3,387,988
7 | OPPENHEIMER EMERGING GROWTH FUND
STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Health Care Equipment & Supplies--5.2%
Advanced Neuromodulation
Systems, Inc. 1 12,100 $ 506,627
- -------------------------------------------------------------------------------
Biosite, Inc. 1 11,100 473,748
- -------------------------------------------------------------------------------
Cyberonics, Inc. 1 7,200 164,376
- -------------------------------------------------------------------------------
Immucor, Inc. 1 8,500 174,505
- -------------------------------------------------------------------------------
Osteotech, Inc. 1 25,000 261,500
- -------------------------------------------------------------------------------
Possis Medical, Inc. 1 12,900 247,680
---------------
1,828,436
- -------------------------------------------------------------------------------
Health Care Providers & Services--3.6%
Andrx Corp. 1 13,700 221,118
- -------------------------------------------------------------------------------
CTI Molecular Imaging, Inc. 1 12,800 235,008
- -------------------------------------------------------------------------------
eResearch Technology, Inc. 1 16,100 479,780
- -------------------------------------------------------------------------------
IMPAC Medical Systems, Inc. 1 17,600 313,632
---------------
1,249,538
- -------------------------------------------------------------------------------
Pharmaceuticals--9.1%
Able Laboratories, Inc. 1 6,500 109,590
- -------------------------------------------------------------------------------
Alteon, Inc. 1 38,300 151,285
- -------------------------------------------------------------------------------
Connetics Corp. 1 20,500 346,245
- -------------------------------------------------------------------------------
Eon Labs, Inc. 1 19,200 588,288
- -------------------------------------------------------------------------------
Inspire Pharmaceuticals, Inc. 1 28,800 420,480
- -------------------------------------------------------------------------------
Kos Pharmaceuticals, Inc. 1 12,900 263,160
- -------------------------------------------------------------------------------
MGI Pharma, Inc. 1 12,000 173,280
- -------------------------------------------------------------------------------
Pharmaceutical Resources, Inc. 1 12,000 527,400
- -------------------------------------------------------------------------------
Taro Pharmaceutical Industries Ltd. 1 12,800 585,729
---------------
3,165,457
- -------------------------------------------------------------------------------
Industrials--9.6%
- -------------------------------------------------------------------------------
Aerospace & Defense--0.6%
Aeroflex, Inc. 1 35,200 189,376
- -------------------------------------------------------------------------------
Airlines--0.6%
JetBlue Airways Corp. 1 7,000 220,010
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Commercial Services & Supplies--6.6%
Corinthian Colleges, Inc. 1 12,300 $ 563,217
- -------------------------------------------------------------------------------
Corporate Executive Board Co. 1 8,100 332,019
- -------------------------------------------------------------------------------
Exult, Inc. 1 32,400 232,956
- -------------------------------------------------------------------------------
FTI Consulting, Inc. 1 10,300 466,075
- -------------------------------------------------------------------------------
Portfolio Recovery Associates, Inc. 1 9,100 248,339
- -------------------------------------------------------------------------------
Stericycle, Inc. 1 6,800 267,172
- -------------------------------------------------------------------------------
University of Phoenix Online 1 4,200 185,388
---------------
2,295,166
- -------------------------------------------------------------------------------
Road & Rail--1.8%
Pacer International, Inc. 1 21,600 343,440
- -------------------------------------------------------------------------------
Yellow Corp. 1 10,800 288,360
---------------
631,800
- -------------------------------------------------------------------------------
Information Technology--34.9%
- -------------------------------------------------------------------------------
Communications Equipment--5.1%
Emulex Corp. 1 13,600 278,664
- -------------------------------------------------------------------------------
Ixia 1 41,500 252,735
- -------------------------------------------------------------------------------
NetScreen Technologies, Inc. 1 21,000 425,880
- -------------------------------------------------------------------------------
Packeteer, Inc. 1 27,000 353,160
- -------------------------------------------------------------------------------
UTStarcom, Inc. 1 22,000 478,962
---------------
1,789,401
- -------------------------------------------------------------------------------
Computers & Peripherals--4.0%
Lexar Media, Inc. 1 83,500 404,975
- -------------------------------------------------------------------------------
Maxtor Corp. 1 50,400 277,200
- -------------------------------------------------------------------------------
Overland Storage, Inc. 1 20,600 364,414
- -------------------------------------------------------------------------------
SanDisk Corp. 1 6,800 164,560
- -------------------------------------------------------------------------------
Synaptics, Inc. 1 24,800 189,968
---------------
1,401,117
- -------------------------------------------------------------------------------
Electronic Equipment & Instruments--3.6%
Innovex, Inc. 1 52,300 452,395
- -------------------------------------------------------------------------------
Kopin Corp. 1 67,000 322,270
- -------------------------------------------------------------------------------
OSI Systems, Inc. 1 13,600 205,768
- -------------------------------------------------------------------------------
Sanmina-SCI Corp. 1 57,300 275,040
---------------
1,255,473
8 | OPPENHEIMER EMERGING GROWTH FUND
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Internet Software & Services--5.3%
Digital Insight Corp. 1 16,900 $ 273,104
- -------------------------------------------------------------------------------
Digital River, Inc. 1 24,300 406,296
- -------------------------------------------------------------------------------
Embarcadero Technologies, Inc. 1 39,100 268,226
- -------------------------------------------------------------------------------
Harris Interactive, Inc. 1 43,300 207,407
- -------------------------------------------------------------------------------
Netease.com, Inc., Sponsored ADR 1 12,900 280,588
- -------------------------------------------------------------------------------
SupportSoft, Inc. 1 71,900 237,270
- -------------------------------------------------------------------------------
VeriSign, Inc. 1 13,200 163,944
---------------
1,836,835
- -------------------------------------------------------------------------------
IT Consulting & Services--1.1%
Cognizant Technology Solutions Corp. 1 22,100 396,916
- -------------------------------------------------------------------------------
Semiconductor Equipment & Products--10.1%
ASM International NV 1 15,800 215,354
- -------------------------------------------------------------------------------
ChipPAC, Inc. 1 67,500 364,500
- -------------------------------------------------------------------------------
Cree, Inc. 1 28,900 576,555
- -------------------------------------------------------------------------------
Integrated Circuit Systems, Inc. 1 10,700 232,404
- -------------------------------------------------------------------------------
Microsemi Corp. 1 33,100 388,263
- -------------------------------------------------------------------------------
MKS Instruments, Inc. 1 17,551 245,012
- -------------------------------------------------------------------------------
O2Micro International Ltd. 1 18,300 213,927
- -------------------------------------------------------------------------------
Power Integrations, Inc. 1 15,000 331,980
- -------------------------------------------------------------------------------
QLogic Corp. 1 4,000 175,960
- -------------------------------------------------------------------------------
Silicon Image, Inc. 1 27,400 163,852
- -------------------------------------------------------------------------------
Silicon Laboratories, Inc. 1 8,100 230,445
- -------------------------------------------------------------------------------
Skyworks Solutions, Inc. 1 29,400 157,290
- -------------------------------------------------------------------------------
Vitesse Semiconductor Corp. 1 80,500 250,435
---------------
3,545,977
- -------------------------------------------------------------------------------
Software--5.7%
Autodesk, Inc. 26,700 415,452
- -------------------------------------------------------------------------------
BEA Systems, Inc. 1 18,100 193,851
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Software Continued
Business Objects SA, Sponsored ADR 1 16,700 $ 362,891
- -------------------------------------------------------------------------------
Group 1 Software, Inc. 1 9,700 167,034
- -------------------------------------------------------------------------------
Hyperion Solutions Corp. 1 9,700 274,316
- -------------------------------------------------------------------------------
NetIQ Corp. 1 27,800 383,084
- -------------------------------------------------------------------------------
Take-Two Interactive Software, Inc. 1 8,100 182,250
---------------
1,978,878
- -------------------------------------------------------------------------------
Telecommunication Services--0.5%
- -------------------------------------------------------------------------------
Wireless Telecommunication Services--0.5%
@Road, Inc. 1 27,000 173,070
---------------
Total Common Stocks (Cost $30,339,234) 34,242,998
Principal
Amount
- -------------------------------------------------------------------------------
Joint Repurchase Agreements--2.8%
Undivided interest of 0.30% in joint
repurchase agreement (Market Value $332,883,000)
with Banc One Capital Markets, Inc., 1.26%,
dated 4/30/03, to be repurchased at $999,035
on 5/1/03, collateralized by U.S. Treasury Nts.,
4.875%--5.875%, 11/15/04--2/15/12, with a value
of $327,261,153 and U.S. Treasury Bonds,
2.125%, 8/31/04, with a value of $12,489,849
(Cost $999,000) $999,000 999,000
- -------------------------------------------------------------------------------
Total Investments, at Value
(Cost $31,338,234) 100.8% 35,241,998
- -------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.8) (285,618)
---------------
Net Assets 100.0% $ 34,956,380
===============
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
9 | OPPENHEIMER EMERGING GROWTH FUND
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES UNAUDITED
April 30, 2003
- -------------------------------------------------------------------------------
Assets
Investments, at value (cost $31,338,234)--see
accompanying statement $ 35,241,998
- -------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 628,762
Shares of beneficial interest sold 250,017
Interest and dividends 2,085
Other 1,194
-------------
Total assets 36,124,056
- -------------------------------------------------------------------------------
Liabilities
Bank overdraft 10,063
- -------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,070,182
Shares of beneficial interest redeemed 35,550
Shareholder reports 14,419
Transfer and shareholder servicing agent fees 7,373
Distribution and service plan fees 5,091
Trustees' compensation 1,342
Other 23,656
-------------
Total liabilities 1,167,676
- -------------------------------------------------------------------------------
Net Assets $34,956,380
=============
- -------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $ 47,985,758
- -------------------------------------------------------------------------------
Accumulated net investment loss (254,386)
- -------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (16,678,756)
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments 3,903,764
-------------
Net Assets $34,956,380
=============
10 | OPPENHEIMER EMERGING GROWTH FUND
- -------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $22,002,589 and 3,229,317 shares
of beneficial interest outstanding) $6.81
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $7.23
- -------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per share
(based on net assets of $7,610,041
and 1,140,483
shares of beneficial interest outstanding) $6.67
- -------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price
per share (based on net assets of $3,492,929 and 522,805
shares of beneficial interest outstanding) $6.68
- -------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $743,440 and
109,965 shares of beneficial interest outstanding) $6.76
- -------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $1,107,381 and 161,002
shares of beneficial interest outstanding) $6.88
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER EMERGING GROWTH FUND
STATEMENT OF OPERATIONS UNAUDITED
For the Six Months Ended April 30, 2003
- -------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $412) $ 38,127
- -------------------------------------------------------------------------------
Interest 5,008
---------------
Total investment income 43,135
- -------------------------------------------------------------------------------
Expenses
Management fees 149,789
- -------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 19,906
Class B 34,668
Class C 18,812
Class N 1,682
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 42,847
Class B 32,598
Class C 13,703
Class N 1,828
Class Y 26
- -------------------------------------------------------------------------------
Shareholder reports 21,026
- -------------------------------------------------------------------------------
Custodian fees and expenses 2,376
- -------------------------------------------------------------------------------
Trustees' compensation 1,164
- -------------------------------------------------------------------------------
Other 4,175
---------------
Total expenses 344,600
Less reduction to custodian expenses (166)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class A (13,569)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class B (24,917)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class C (8,697)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (560)
---------------
Net expenses 296,691
- -------------------------------------------------------------------------------
Net Investment Loss (253,556)
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (1,536,310)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 6,213,824
---------------
Net realized and unrealized gain 4,677,514
- -------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $4,423,958
===============
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER EMERGING GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
April 30, 2003 October 31,
(Unaudited) 2002
- --------------------------------------------------------------------------------
Operations
Net investment loss $ (253,556) $ (564,932)
- -------------------------------------------------------------------------------
Net realized loss (1,536,310) (10,327,183)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) 6,213,824 (4,009,696)
-------------------------------
Net increase (decrease) in net assets
resulting from operations 4,423,958 (14,901,811)
- -------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets
resulting from beneficial interest
transactions:
Class A 33,852 9,052,385
Class B 244,389 5,795,703
Class C (1,951,625) 3,538,108
Class N 55,487 794,048
Class Y 316,791 675,716
- -------------------------------------------------------------------------------
Net Assets
Total increase 3,122,852 4,954,149
- -------------------------------------------------------------------------------
Beginning of period 31,833,528 26,879,379
-------------------------------
End of period [including accumulated
net investment loss of $254,386 and
$830, respectively] $34,956,380 $31,833,528
===============================
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class A (Unaudited) 2002 2001 1
- -------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 5.84 $ 8.45 $10.00
- -------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) (.10) (.03)
Net realized and unrealized gain (loss) 1.01 (2.51) (1.49)
----------------------------------------
Total from investment operations .97 (2.61) (1.52)
- -------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- (.03)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $6.81 $5.84 $8.45
========================================
- -------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 16.61% (30.89)% (15.22)%
- -------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $22,003 $19,310 $20,392
- -------------------------------------------------------------------------------------------
Average net assets (in thousands) $17,976 $24,497 $16,941
- -------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.46)% (1.35)% (0.57)%
Expenses, gross 1.89% 1.85% 1.58%
Expenses, net 1.74% 4,5 1.78% 4,5 1.58% 4
- -------------------------------------------------------------------------------------------
Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (inception of offering) to October 31,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER EMERGING GROWTH FUND
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class B (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 5.74 $ 8.38 $10.00
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.12) (.07)
Net realized and unrealized gain (loss) .99 (2.52) (1.52)
--------------------------------------------
Total from investment operations .93 (2.64) (1.59)
- --------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- (.03)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $6.67 $5.74 $8.38
============================================
- --------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 16.20% (31.50)% (15.96)%
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,610 $6,395 $3,866
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,998 $6,979 $2,256
- --------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (2.12)% (2.22)% (1.78)%
Expenses, gross 3.13% 2.74% 2.47%
Expenses, net 2.41% 4,5 2.67% 4,5 2.47% 4
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (inception of offering) to October 31,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS CONTINUED
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class C (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 5.75 $ 8.39 $10.00
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.07) (.08) (.04)
Net realized and unrealized gain (loss) 1.00 (2.56) (1.54)
--------------------------------------------
Total from investment operations .93 (2.64) (1.58)
- --------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.03)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $6.68 $5.75 $8.39
============================================
- --------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 16.17% (31.47)% (15.88)%
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $3,493 $4,877 $2,356
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,786 $3,061 $1,022
- --------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (2.15)% (2.25)% (1.76)%
Expenses, gross 2.92% 2.72% 2.46%
Expenses, net 2.46% 4,5 2.65% 4,5 2.46% 4
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (inception of offering) to October 31,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER EMERGING GROWTH FUND
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class N (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 5.81 $ 8.43 $ 8.28
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.08) (.05)
Net realized and unrealized gain (loss) 1.01 (2.54) .20
--------------------------------------------
Total from investment operations .95 (2.62) .15
- --------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- --
- --------------------------------------------------------------------------------------------
Net asset value, end of period $6.76 $5.81 $8.43
============================================
- --------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 16.35% (31.08)% 1.81%
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $743 $594 $34
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $679 $412 $16
- --------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.78)% (1.63)% (1.69)%
Expenses, gross 2.23% 2.18% 2.03%
Expenses, net 2.06% 4,5 2.11% 4,5 2.03% 4
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 120% 263% 214%
1. For the period from March 1, 2001 (inception of offering) to October 31,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS CONTINUED
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class Y (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 5.88 $ 8.47 $10.00
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.05) (.08) .02
Net realized and unrealized gain (loss) 1.05 (2.51) (1.51)
--------------------------------------------
Total from investment operations 1.00 (2.59) (1.49)
- --------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.04)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $6.88 $5.88 $ 8.47
============================================
- --------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 17.01% (30.58)% (14.99)%
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,107 $657 $232
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 783 $532 $ 30
- --------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.91)% (0.84)% (0.97)%
Expenses, gross 1.20% 1.48% 3.87%
Expenses, net 1.20% 4 1.29% 4,5 1.28% 4,5
- --------------------------------------------------------------------------------------------
Portfolio turnover rate 120% 263% 214%
1. For the period from November 1, 2000 (inception of offering) to October 31,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Emerging Growth Fund (the Fund) is an open-end management
investment company registered under the Investment Company Act of 1940, as
amended. 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, Class N 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, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. 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 and voting privileges. Earnings, net assets and net asset value per
share may differ by minor amounts due to each class having its own expenses
directly attributable to that class. Classes A, B, C and N 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. Effective May 1, 2003 the Fund will assess a 2% fee
on the proceeds of fund shares that are redeemed (either by selling or
exchanging to another Oppenheimer fund) within 30 days of their purchase. The
fee, which is retained by the Fund, is accounted for as an addition to paid-in
capital.
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 sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
Joint Repurchase Agreements. The Fund, along with other affiliated funds of the
manager, may transfer uninvested cash balances into one or more joint repurchase
agreement accounts. These balances are invested in one or more repurchase
agreements, secured by u.S. Government securities. Securities pledged as
collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal; however,
in the event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
19 | OPPENHEIMER EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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 capital loss carryforwards, if any, to shareholders.
Therefore, no federal income or excise tax provision is required.
As of April 30, 2003, the Fund had available for federal income tax purposes
an estimated unused capital loss carryforward of $16,246,448. This estimated
capital loss carryforward represents the carryforward as of the end of the last
fiscal year, increased for losses deferred under tax accounting rules for the
current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. During the six
months ended April 30, 2003, the Fund did not use carryforward to offset
capital gains realized. During the year ended October 31, 2002, the Fund did
not use carryforward to offset capital gains realized.
As of October 31, 2002, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
Expiring
------------------------------
2009 $ 4,313,838
2010 10,396,300
-------------
Total $14,710,138
=============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded 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 April 30, 2003, the Fund's projected benefit obligations were increased
by $435 and payments of $45 were made to retired trustees, resulting in an
accumulated liability of $1,220 as of April 30, 2003.
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 the annual compensation they are entitled to receive from the
Fund. Under the plan, the compensation deferred is invested by the Fund in the
fund(s) selected by the trustee. 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.
20 | OPPENHEIMER EMERGING GROWTH 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
their 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 net realized
gain was recorded by the Fund.
No distributions were paid during the six months ended April 30, 2003 and
the year ended October 31, 2002.
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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.
- --------------------------------------------------------------------------------
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:
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------
Class A
Sold 1,620,418 $ 10,537,098 3,152,945 $ 26,194,011
Redeemed (1,695,734) (10,503,246) (2,260,696) (17,141,626)
-------------------------------------------------------------
Net increase (decrease) (75,316) $ 33,852 892,249 $ 9,052,385
=============================================================
- -----------------------------------------------------------------------------------------
Class B
Sold 416,869 $ 2,611,838 1,439,747 $ 11,365,085
Redeemed (390,334) (2,367,449) (787,181) (5,569,382)
-------------------------------------------------------------
Net increase 26,535 $ 244,389 652,566 $ 5,795,703
=============================================================
- -----------------------------------------------------------------------------------------
Class C
Sold 244,814 $ 1,512,881 1,063,885 $ 7,600,986
Redeemed (570,570) (3,464,506) (496,262) (4,062,878)
-------------------------------------------------------------
Net increase (decrease) (325,756) $ (1,951,625) 567,623 $ 3,538,108
=============================================================
21 | OPPENHEIMER EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- -----------------------------------------------------------------------------------------
2. Shares of Beneficial Interest Continued
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------
Class N
Sold 96,097 $ 598,629 196,949 $ 1,522,929
Redeemed (88,458) (543,142) (98,624) (728,881)
-------------------------------------------------------------
Net increase 7,639 $ 55,487 98,325 $ 794,048
=============================================================
- -----------------------------------------------------------------------------------------
Class Y
Sold 88,108 $ 563,181 129,755 $ 1,009,456
Redeemed (38,901) (246,390) (45,335) (333,740)
-------------------------------------------------------------
Net increase 49,207 $ 316,791 84,420 $ 675,716
=============================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2003, were
$36,637,981 and $37,280,985, respectively.
- --------------------------------------------------------------------------------
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 a fee at an
annual rate of 1.00% of the first $500 million of average annual net assets;
0.90% of the next $500 million; and 0.85% of average annual net assets over $1
billion.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a $19.75 per account fee.
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may
voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) fees. Under its general distributor's
agreement with the manager, oppenheimerfunds distributor, inc. (The distributor)
acts as the fund's principal underwriter in the continuous public offering of
the different classes of shares of the fund.
22 | OPPENHEIMER EMERGING GROWTH 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 Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
Six Months on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- -----------------------------------------------------------------------------------------------------------------------
April 30, 2003 $40,551 $12,099 $584 $29,178 $5,369 $1,603
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its
own resources at the time of sale.
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Six Months Retained by Retained by Retained by Retained by
Ended Distributor Distributor Distributor Distributor
- -----------------------------------------------------------------------------------------------------
April 30, 2003 $-- $11,283 $305 $3,459
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the six months ended April 30, 2003, payments
under the Class A Plan totaled $19,906, all of which were paid by the
Distributor to recipients, and included $1,557 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.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the six months ended April 30,
2003, were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -------------------------------------------------------------------------------------
Class B Plan $34,668 $28,845 $161,341 2.12%
Class C Plan 18,812 8,602 38,794 1.11
Class N Plan 1,682 1,596 7,904 1.06
23 | OPPENHEIMER EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED
- --------------------------------------------------------------------------------
5. Borrowing and Lending Arrangements
Bank Borrowings. The Fund had the ability to borrow from banks for temporary or
emergency purposes. Asset coverage for borrowings must be at least 300%. The
Fund and other Oppenheimer funds participated in a $400 million unsecured line
of credit from a bank, for liquidity purposes. Under that line of credit, each
fund was charged interest on its borrowings at a rate equal to the Federal
Funds rate plus 0.45%. The Fund paid a commitment fee on its pro rata share of
the average unutilized amount of the credit facility at a rate of 0.08% per
annum. The credit facility was terminated on November 12, 2002, when the Fund
entered into the interfund borrowing and lending arrangements described below.
The Fund had no outstanding borrowings under the credit facility through
November 12, 2002.
- --------------------------------------------------------------------------------
Interfund Borrowing and Lending Arrangements. Commencing November 12, 2002, the
Fund entered into an "interfund borrowing and lending arrangement" with other
funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity
purposes. The arrangement was initiated pursuant to exemptive relief granted by
the Securities and Exchange Commission to allow these affiliated funds to lend
money to, and borrow money from, each other, in an attempt to reduce borrowing
costs below those of bank loan facilities. Under the arrangement the Fund may
lend money to other Oppenheimer funds and may borrow from other Oppenheimer
funds at a rate set by the Fund's Board of Trustees, based upon a
recommendation by the investment manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the six
months ended or at April 30, 2003.
24 | OPPENHEIMER EMERGING GROWTH FUND
OPPENHEIMER EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
Trustees and Officers Clayton K. Yeutter, Chairman and Trustee
Donald W. Spiro, Vice Chairman and Trustee
John V. Murphy, President and Trustee
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Joel W. Motley, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Laura Granger, Vice President
Robert G. Zack, Secretary
Brian W. Wixted, Treasurer
- --------------------------------------------------------------------------------
Investment Advisor OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
- --------------------------------------------------------------------------------
Independent Auditors KPMG LLP
- --------------------------------------------------------------------------------
Legal Counsel Mayer Brown Rowe & Maw
The financial statements included herein have been taken
from the records of the Fund without examination of
those records by the independent auditors.
(COPYRIGHT)Copyright 2003 OppenheimerFunds, Inc. All rights reserved.
Not part of the semiannual report to Fund shareholders
25 | OPPENHEIMER EMERGING GROWTH FUND
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------------------------------
Global Equity Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund, Inc.
International Growth Fund Global Opportunities Fund 1
- -------------------------------------------------------------------------------------------------------
Equity Stock Stock & Bond
Emerging Technologies Fund Quest Opportunity Value Fund
Emerging Growth Fund Total Return Fund, Inc.
Enterprise Fund Quest Balanced Value Fund
Discovery Fund Capital Income Fund
Main Street Small Cap Fund(R) Multiple Strategies Fund
Small Cap Value Fund Disciplined Allocation Fund
MidCap Fund Convertible Securities Fund
Main Street Opportunity Fund(R) Specialty
Growth Fund Real Asset Fund(R)
Capital Appreciation Fund Gold & Special Minerals Fund
Main Street Fund(R)2 Tremont Market Neutral Fund, LLC 3
Value Fund Tremont Opportunity Fund, LLC 3
Quest Capital Value Fund, Inc.
Quest Value Fund, Inc.
Trinity Large Cap Growth Fund
Trinity Core Fund
Trinity Value Fund
- -------------------------------------------------------------------------------------------------------
Income Taxable Rochester Division
International Bond Fund California Municipal Fund 5
High Yield Fund New Jersey Municipal Fund 5
Champion Income Fund AMT-Free New York Municipals 5,6
Strategic Income Fund Municipal Bond Fund
Bond Fund Limited Term Municipal Fund
Total Return Bond Fund Rochester National Municipals
Senior Floating Rate Fund Rochester Fund Municipals
U.S. Government Trust Limited Term New York Municipal Fund
Limited-Term Government Fund Pennsylvania Municipal Fund 5
Capital Preservation Fund 4
- -------------------------------------------------------------------------------------------------------
Select Managers Stock Stock & Bond
Mercury Advisors Focus Growth Fund QM Active Balanced Fund 4
Gartmore Millennium Growth Fund II
Jennison Growth Fund
Salomon Brothers All Cap Fund
Mercury Advisors S&P 500(R) Index Fund 4
- -------------------------------------------------------------------------------------------------------
Money Market 7 Money Market Fund, Inc. Cash Reserves
1. The Fund's name changed from Oppenheimer Global Growth & Income Fund on
6/1/03.
2. The Fund's name changed from Oppenheimer Main Street Growth & Income
Fund(R) on 4/30/03.
3. Special investor qualification and minimum investment requirements apply. See
the prospectus for details.
4. Available only through qualified retirement plans.
5. Available to investors only in certain states.
6. The Fund's name changed from Oppenheimer New York Municipal Fund on 1/22/03.
7. 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.
Not part of the semiannual report to Fund shareholders
26 | OPPENHEIMER EMERGING GROWTH FUND
1.800.CALL OPP PHONELINK
Call 1.800.CALL OPP (1.800.225.5677) for answers to many of your questions. Our
automated speech recognition system provides you access to all the information
and services you need.
With PhoneLink you can:
o Obtain account balances, share price (NAV) and dividends paid
o Verify your most recent transactions
o Buy, redeem or exchange mutual fund shares
o Create custom lists of your accounts, funds or market indices
o Order duplicate statements or Form 1099 DIV
o Obtain market data (closing market information for Dow Jones Industrial
Average, Nasdaq Composite and S&P 500 Index)
o Speak to a Customer Service Representative 1 by saying "Agent"
when prompted
o And more!
Quick list of PhoneLink commands
Say To:
[Account # or Social Security # + PIN] Get dollar and share balances, NAVs,
transaction history or request
transactions
[Fund name, share class] Get current price/dividend information
Balance Hear your balance/list of accounts
History Hear your most recent transactions
Purchase or buy Buy shares
Exchange Exchange shares
Liquidation or redemption Sell shares
Dow Jones or Market Indices Hear closing market information
(Dow Jones Industrial Average, Nasdaq
Composite and S&P 500)
Custom list Create, play or edit custom list of your
accounts, funds or market indices
1. You may speak to a Customer Service Representative during normal business
hours.
Not part of the semiannual report to Fund shareholders
27 | OPPENHEIMER EMERGING GROWTH FUND
PRIVACY POLICY NOTICE
As an Oppenheimer fund shareholder, you are entitled to know how we protect your
personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the
following sources:
o Applications or other forms
o When you create a user ID
and password for online account access
o When you enroll in eDocs Direct, our electronic document delivery service
o Your transactions with us, our affiliates or others
o A software program on our website, often referred to as a "cookie," which
indicates which parts of our site you've visited
If you visit www.oppenheimerfunds.com and do not log on to the secure account
information areas, we do not obtain any personal information about you. When you
do log on to a secure area, we do obtain your user ID and password to identify
you.
We also use this information to provide you with products and services you have
requested, to inform you about products and services that you may be interested
in and to assist you in other ways.
Protection of Information
We do not disclose any nonpublic personal information (such as names on a
customer list) about current or former customers to anyone, except as permitted
by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations,
account statements and other documents reporting activity in your fund accounts.
We may also use details about you and your investments to help us, our financial
service affiliates or firms that jointly market their financial products and
services with ours, to better serve your investment needs or suggest financial
services or educational material that may be of interest to you.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties
(except as permitted by law), unless we first offer you a reasonable opportunity
to refuse or "opt out" of such disclosure.
Security
In the coming months, an Internet browser that supports 128-bit encryption will
be required to view the secure pages of www.oppenheimerfunds.com. These areas
include:
o Account access
o Create a user ID and profile
o User profile
o eDocs Direct, our electronic document delivery service
Not part of the semiannual report to Fund shareholders
28 | OPPENHEIMER EMERGING GROWTH FUND
To find out if your Internet browser supports 128-bit encryption, or for
instructions on how to upgrade your browser, visit the Help section of
www.oppenheimerfunds.com.
Emails and Encryption
As a security measure, we do not include personal or account information in
nonsecure emails, and we advise you not to send such information to us in
nonsecure emails. Instead, you may take advantage of the secure features of our
website to encrypt your email correspondence. To do this, you will need to use
an Internet browser that supports 128-bit encryption. If you are not sure if
your Internet browser supports 128-bit encryption, or need instructions on how
to upgrade your browser, visit the Help section of www.oppenheimerfunds.com for
assistance.
o All transactions, including redemptions, exchanges and purchases are secured
by Secure Socket Layers (SSL) and encryption. SSL is used to establish a
secure connection between your PC and OppenheimerFunds' server. It transmits
information in an encrypted and scrambled format.
o Encryption is achieved through an electronic scrambling technology that uses
a "key" to code and then decode the data. Encryption acts like the cable
converter box you may have on your television set. It scrambles data with
secret code so that no one can make sense of it while it is being
transmitted. When the data reaches its destination, the same software
unscrambles the data.
o You can exit the secure area by either closing your browser, or for added
security, you can use the Log Out of Account Area button before you close
your browser.
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your
personal account information. Our employees and agents have access to that
information only so that they may offer you products or provide services to you,
for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private, and to
prevent unauthorized transactions. If you obtain a user ID and password for your
account, do not allow it to be used by anyone else. Also, take special
precautions when accessing your account on a computer used by others.
- --------------------------------------------------------------------------------
This joint notice describes the privacy policies of Oppenheimer funds,
OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual
Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7)
tax-sheltered custodial accounts. It applies to all Oppenheimer fund accounts
you presently have, or may open in the future, using your Social Security
number--whether or not you remain a shareholder of our funds. If you have any
questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO
80217-5270, email us by clicking on the Contact Us section of our website at
www.oppenheimerfunds.com or call us at 1.800.CALL OPP (1.800.225.5677).
Not part of the semiannual report to Fund shareholders
29 | OPPENHEIMER EMERGING GROWTH FUND
INFORMATION AND SERVICES
GRAPHIC OMITTED
eDocs Direct
Get This Report Online!
You can quickly view, download and print this report at your convenience. It's
EASY, FAST, CONVENIENT, and FREE! With OppenheimerFunds eDocs Direct, you'll
receive email notification when shareholder reports, prospectuses or prospectus
supplements for your fund(s) become available online, instead of receiving them
through the mail. You'll cut down on paper mail and help reduce fund expenses!
Sign up for eDocs Direct today at
www.oppenheimerfunds.com
Internet
24-hr access to account information and transactions 1
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
PhoneLink 1 and General Information
24-hr automated information and automated transactions
Representatives also available Mon-Fri 8am-9pm ET
Sat (January-April) 10am-4pm ET
1.800.CALL OPP (1.800.225.5677)
- --------------------------------------------------------------------------------
Written Correspondence and Transaction Requests
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
For Overnight Delivery
OppenheimerFunds Services
10200 East Girard Avenue,
Building D Denver, CO 80231
- --------------------------------------------------------------------------------
Ticker Symbols
Class A: OEGAX Class B: OEGBX Class C: OEGCX Class N: OEGNX Class Y: OEGYX
1. At times the website or PhoneLink may be inaccessible or their transaction
features may be unavailable.
Not part of the semiannual report to Fund shareholders
[GRAPHIC]
OppenheimerFunds[R]
Distributor, Inc.
RS0721.001.0403 June 27, 2003
ITEM 2. CODE OF ETHICS - NOT REQUIRED
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. RESERVED
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of April 30, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)