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 811-10153
Oppenheimer Select Managers Series - Jennison Growth Fund
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: November 30
Date of reporting period: December 1, 2002 - May 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS May 31, 2003 / Unaudited
Market Value
Shares See Note 1
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Common Stocks--96.2%
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Consumer Discretionary--21.4%
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Automobiles--1.2%
Harley-Davidson, Inc. 3,400 $143,344
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Hotels, Restaurants & Leisure--2.9%
Marriott International,
Inc., Cl. A 3,400 132,940
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Starbucks Corp. 1 8,700 214,377
-----------
347,317
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Internet & Catalog Retail--0.8%
eBay, Inc. 1 900 91,539
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Media--6.5%
Clear Channel
Communications, Inc. 1 2,400 97,680
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New York Times Co.,
Cl. A 2,000 95,800
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Omnicom Group, Inc. 900 62,829
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Univision Communications,
Inc., Cl. A 1 5,700 170,145
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Viacom, Inc., Cl. B 1 7,700 350,504
-----------
776,958
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Multiline Retail--5.5%
Kohl's Corp. 1 6,300 329,805
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Wal-Mart Stores, Inc. 6,200 326,182
-----------
655,987
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Specialty Retail--4.5%
Bed Bath &
Beyond, Inc. 1 6,200 259,408
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Lowe's Cos., Inc. 2,300 97,198
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Tiffany & Co. 5,300 173,628
-----------
530,234
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Consumer Staples--4.6%
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Beverages--1.6%
Anheuser-Busch
Cos., Inc. 3,500 184,205
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Food & Staples Retailing--0.8%
Walgreen Co. 300 9,237
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Whole Foods
Market, Inc. 1 1,600 87,280
-----------
96,517
Market Value
Shares See Note 1
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Household Products--1.5%
Procter & Gamble
Corp. (The) 2,000 $183,640
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Personal Products--0.7%
Avon Products, Inc. 1,400 85,316
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Energy--4.9%
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Energy Equipment & Services--2.9%
BJ Services Co. 1 1,400 56,994
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Schlumberger Ltd. 6,000 291,720
-----------
348,714
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Oil & Gas--2.0%
TotalFinaElf SA,
Sponsored ADR 3,200 235,360
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Financials--12.8%
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Commercial Banks--1.4%
Bank One Corp. 4,500 168,120
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Diversified Financial Services--7.4%
American Express Co. 7,400 308,284
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Citigroup, Inc. 4,300 176,386
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Goldman Sachs
Group, Inc. (The) 2,900 236,350
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Merrill Lynch &
Co., Inc. 3,700 160,210
-----------
881,230
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Insurance--4.0%
American International
Group, Inc. 5,300 306,764
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XL Capital Ltd., Cl. A 2,000 174,100
-----------
480,864
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Health Care--19.1%
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Biotechnology--7.6%
Amgen, Inc. 1 6,500 420,615
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Genentech, Inc. 1 3,400 212,874
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Gilead Sciences, Inc. 1 2,900 153,004
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Medimmune, Inc. 1 3,300 116,985
-----------
903,478
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Health Care Equipment & Supplies--1.0%
Medtronic, Inc. 2,400 116,952
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Pharmaceuticals--10.5%
Abbott Laboratories 6,300 280,665
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Allergan, Inc. 1,800 129,798
4 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
Market Value
Shares See Note 1
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Pharmaceuticals Continued
AstraZeneca plc,
Sponsored ADR 2,700 $111,348
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Forest Laboratories,
Inc. 1 3,100 156,550
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Johnson & Johnson 4,000 217,400
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Pfizer, Inc. 6,940 215,279
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Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 2,900 146,998
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1,258,038
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Industrials--4.5%
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Aerospace & Defense--0.7%
Lockheed Martin Corp. 1,200 55,704
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Northrop Grumman
Corp 300 26,385
-----------
82,089
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Commercial Services & Supplies--1.7%
First Data Corp. 3,300 136,686
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Paychex, Inc. 1,900 57,988
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194,674
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Industrial Conglomerates--2.1%
3M Co. 2,000 252,940
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Information Technology--26.8%
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Communications Equipment--4.9%
Cisco Systems, Inc. 1 21,100 343,508
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Nokia Corp., Sponsored
ADR, A Shares 13,300 239,932
-----------
583,440
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Computers & Peripherals--5.7%
Dell Computer Corp. 1 8,500 265,965
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Hewlett-Packard Co. 12,900 251,550
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International Business
Machines Corp. 1,900 167,276
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684,791
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Electronic Equipment & Instruments--0.1%
Agilent Technologies,
Inc. 1 600 10,878
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Semiconductors & Semiconductor Equipment--11.7%
Analog Devices, Inc. 1 1,700 65,535
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Applied Materials, Inc. 1 10,300 160,268
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Intel Corp. 15,300 318,852
Market Value
Shares See Note 1
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Semiconductors & Semiconductor Equipment Continued
KLA-Tencor Corp. 1 3,400 $157,182
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Novellus Systems, Inc. 1 4,900 169,785
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STMicroelectronics NV,
NY Registered Shares 6,700 152,827
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Texas Instruments, Inc. 9,000 184,500
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Xilinx, Inc. 1 6,000 179,220
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1,388,169
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Software--4.4%
Microsoft Corp. 13,500 332,235
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SAP AG (Systeme,
Anwendungen, Produkte
in der Datenverarbeitung),
Sponsored ADR 6,600 187,968
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520,203
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Telecommunication Services--2.1%
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Wireless Telecommunication Services--2.1%
Vodafone Group plc,
Sponsored ADR 1 11,300 247,583
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Total Common Stocks
(Cost $10,666,076) 11,452,580
Principal
Amount
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Joint Repurchase Agreements--3.1%
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Undivided interest of 0.11% in joint
repurchase agreement (Market Value
$348,378,000) with Banc One Capital
Markets, Inc., 1.23%, dated 5/30/03, to
be repurchased at $373,038 on 6/2/03,
collateralized by U.S. Treasury Bonds,
3.375%, 4/30/04, with a value of
$355,526,284
(Cost $373,000) $373,000 373,000
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Total Investments,
at Value
(Cost $11,039,076) 99.3% 11,825,580
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Other Assets Net
of Liabilities 0.7 86,963
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Net Assets 100.0% $11,912,543
====================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
5 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
May 31, 2003
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Assets
Investments, at value (cost $11,039,076)--see accompanying statement $11,825,580
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Receivables and other assets:
Investments sold 126,401
Shares of beneficial interest sold 44,583
Interest and dividends 15,813
Other 564
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Total assets 12,012,941
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Liabilities
Payables and other liabilities:
Investments purchased 74,724
Legal, auditing and other professional fees 9,446
Shares of beneficial interest redeemed 7,040
Distribution and service plan fees 3,118
Transfer and shareholder servicing agent fees 3,070
Shareholder reports 1,233
Trustees' compensation 111
Other 1,656
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Total liabilities 100,398
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Net Assets $11,912,543
===========
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Composition of Net Assets
Paid-in capital $14,343,655
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Accumulated net investment loss (38,314)
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Accumulated net realized loss on investment transactions (3,179,302)
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Net unrealized appreciation on investments 786,504
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Net Assets $11,912,543
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6 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
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Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$5,577,281 and 839,551 shares of beneficial interest outstanding) $6.64
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $7.05
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Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $1,735,066 and 265,943 shares of beneficial interest
outstanding) $6.52
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Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $2,756,737 and 422,789 shares of beneficial interest
outstanding) $6.52
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Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $1,842,792 and 279,502 shares of beneficial interest
outstanding) $6.59
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Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $667 and 100 shares of beneficial interest
outstanding) $6.67
See accompanying Notes to Financial Statements.
7 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended May 31, 2003
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Investment Income
Dividends (net of foreign withholding taxes of $1,255) $ 47,959
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Interest 2,973
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Total investment income 50,932
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Expenses
Management fees 46,828
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Distribution and service plan fees:
Class A 2,857
Class B 7,016
Class C 10,865
Class N 3,575
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Transfer and shareholder servicing agent fees:
Class A 11,618
Class B 7,696
Class C 6,191
Class N 7,550
Class Y 8
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Legal, auditing and other professional fees 8,187
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Shareholder reports 5,371
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Trustees' compensation 2,397
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Custodian fees and expenses 248
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Other 1,508
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Total expenses 121,915
Less voluntary reimbursement of expenses (14,629)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class A (2,875)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class B (6,227)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class C (2,365)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class N (6,565)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class Y (8)
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Net expenses 89,246
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Net Investment Loss (38,314)
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Realized and Unrealized Gain (Loss)
Net realized loss on investments (605,124)
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Net change in unrealized appreciation on investments 1,008,934
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Net realized and unrealized gain 403,810
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Net Increase in Net Assets Resulting from Operations $ 365,496
===========
See accompanying Notes to Financial Statements.
8 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
May 31, 2003 November 30,
(Unaudited) 2002
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Operations
Net investment loss $ (38,314) $ (65,535)
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Net realized loss (605,124) (1,915,309)
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Net change in unrealized appreciation (depreciation) 1,008,934 (167,888)
--------------------------
Net increase (decrease) in net assets resulting from operations 365,496 (2,148,732)
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Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest transactions:
Class A 443,970 1,078,766
Class B 378,671 1,055,537
Class C 494,260 1,628,681
Class N 445,368 1,252,822
Class Y -- --
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Net Assets
Total increase 2,127,765 2,867,074
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Beginning of period 9,784,778 6,917,704
--------------------------
End of period [including accumulated net investment loss of
$38,314 for the six months ended May 31, 2003] $11,912,543 $ 9,784,778
==========================
See accompanying Notes to Financial Statements.
9 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
FINANCIAL HIGHLIGHTS
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class A (Unaudited) 2002 2001 1
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Per Share Operating Data
Net asset value, beginning of period $6.49 $8.56 $10.00
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Income (loss) from investment operations:
Net investment loss (.01) (.04) (.03)
Net realized and unrealized gain (loss) .16 (2.03) (1.41)
--------------------------------
Total from investment operations .15 (2.07) (1.44)
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Net asset value, end of period $6.64 $6.49 $8.56
================================
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Total Return, at Net Asset Value 2 2.31% (24.18)% (14.40)%
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Ratios/Supplemental Data
Net assets, end of period (in thousands) $5,577 $4,981 $5,234
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Average net assets (in thousands) $4,869 $4,862 $4,683
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Ratios to average net assets: 3
Net investment loss (0.47)% (0.59)% (0.50)%
Expenses, gross 1.91% 1.89% 1.44%
Expenses, net 1.49% 4,5 1.39% 4,5 1.44% 6
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Portfolio turnover rate 26% 77% 56%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
6. Voluntary reimbursement of expenses less than 0.01%.
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class B (Unaudited) 2002 2001 1
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Per Share Operating Data
Net asset value, beginning of period $6.40 $8.50 $10.00
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Income (loss) from investment operations:
Net investment loss (.03) (.02) (.06)
Net realized and unrealized gain (loss) .15 (2.08) (1.44)
----------------------------------
Total from investment operations .12 (2.10) (1.50)
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Net asset value, end of period $6.52 $6.40 $8.50
==================================
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Total Return, at Net Asset Value 2 1.88% (24.71)% (15.00)%
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Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,735 $1,296 $354
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Average net assets (in thousands) $1,409 $620 $221
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Ratios to average net assets: 3
Net investment loss (1.21)% (1.29)% (1.37)%
Expenses, gross 3.41% 3.08% 2.45%
Expenses, net 2.22% 4,5 2.51% 4,5 2.24% 4
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Portfolio turnover rate 26% 77% 56%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class C (Unaudited) 2002 2001 1
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Per Share Operating Data
Net asset value, beginning of period $6.40 $8.49 $10.00
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Income (loss) from investment operations:
Net investment loss (.03) (.06) (.02)
Net realized and unrealized gain (loss) .15 (2.03) (1.49)
----------------------------------
Total from investment operations .12 (2.09) (1.51)
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Net asset value, end of period $6.52 $6.40 $8.49
==================================
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Total Return, at Net Asset Value 2 1.88% (24.62)% (15.10)%
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Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,757 $2,194 $968
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Average net assets (in thousands) $2,182 $1,528 $232
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Ratios to average net assets: 3
Net investment loss (1.22)% (1.32)% (1.31)%
Expenses, gross 2.88% 2.86% 2.46%
Expenses, net 2.36% 4,5 2.31% 4,5 2.10% 4
- ------------------------------------------------------------------------------
Portfolio turnover rate 26% 77% 56%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class N (Unaudited) 2002 2001 1
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Per Share Operating Data
Net asset value, beginning of period $6.45 $ 8.52 $9.45
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.02) (.05) (.02)
Net realized and unrealized gain (loss) .16 (2.02) (.91)
------------------------------------
Total from investment operations .14 (2.07) (.93)
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Net asset value, end of period $6.59 $ 6.45 $8.52
====================================
- --------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 2.17% (24.30)% (9.84)%
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,843 $1,313 $361
- --------------------------------------------------------------------------------
Average net assets (in thousands) $1,437 $1,031 $122
- --------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.71)% (0.82)% (0.90)%
Expenses, gross 2.86% 2.56% 1.98%
Expenses, net 1.64% 4,5 2.01% 4,5 1.71% 4
- --------------------------------------------------------------------------------
Portfolio turnover rate 26% 77% 56%
1. For the period from March 1, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class Y (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.51 $8.57 $10.00
- -------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.01) (.03) (.03)
Net realized and unrealized gain (loss) .17 (2.03) (1.40)
----------------------------------
Total from investment operations .16 (2.06) (1.43)
- -------------------------------------------------------------------------------
Net asset value, end of period $6.67 $6.51 $8.57
==================================
- -------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 2.46% (24.04)% (14.30)%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1 $1 $1
- -------------------------------------------------------------------------------
Average net assets (in thousands) $1 $1 $1
- -------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.20)% (0.41)% (0.38)%
Expenses, gross 2.91% 88.09% 501.48%
Expenses, net 1.01% 4,5 1.43% 4,5 1.25% 4,5
- -------------------------------------------------------------------------------
Portfolio turnover rate 26% 77% 56%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Select Managers Jennison Growth Fund (the Fund), a series of
Oppenheimer Select Managers, 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 long-term growth of capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The Manager has
entered into a sub-advisory agreement with Jennison Associates LLC (the
Sub-Advisor).
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.
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.
15 | OPPENHEIMER SELECT MANAGERS JENNISON 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 May 31, 2003, the Fund had available for federal income tax purposes
an estimated unused capital loss carryforward of $3,156,234. 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 May 31, 2003, the Fund did not use carryforward to offset capital
gains realized. During the year ended November 30, 2002, the Fund did not use
carryforward to offset capital gains realized.
As of November 30, 2002, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
Expiring
----------------------
2009 $ 637,074
2010 1,804,042
----------
Total $2,441,116
==========
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 May 31, 2003 and the
year ended November 30, 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
16 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
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 May 31, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Class A
Sold 111,325 $ 678,736 215,428 $1,516,617
Redeemed (38,911) (234,766) (59,923) (437,851)
----------------------------------------------------
Net increase 72,414 $ 443,970 155,505 $1,078,766
====================================================
- --------------------------------------------------------------------------------
Class B
Sold 71,263 $ 425,048 178,140 $1,172,929
Redeemed (7,809) (46,377) (17,259) (117,392)
----------------------------------------------------
Net increase 63,454 $ 378,671 160,881 $1,055,537
====================================================
- --------------------------------------------------------------------------------
Class C
Sold 118,613 $ 724,816 261,409 $1,843,044
Redeemed (38,855) (230,556) (32,313) (214,363)
----------------------------------------------------
Net increase 79,758 $494,260 229,096 $1,628,681
====================================================
- --------------------------------------------------------------------------------
Class N
Sold 98,161 $ 578,375 193,853 $1,476,441
Redeemed (22,153) (133,007) (32,720) (223,619)
----------------------------------------------------
Net increase 76,008 $ 445,368 161,133 $1,252,822
====================================================
- --------------------------------------------------------------------------------
Class Y
Sold -- $ -- -- $ --
Redeemed -- -- -- --
----------------------------------------------------
Net increase (decrease) -- $ -- -- $ --
====================================================
17 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
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 May 31, 2003, were
$4,434,467 and $2,497,041, 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 0.95% of the first $300 million of average annual net assets of
the Fund and 0.90% of average annual net assets in excess of $300 million. The
Manager has voluntarily undertaken to assume certain Fund expenses. The Manager
reserves the right to amend or terminate that expense assumption at any time.
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager retains Jennison Associates LLC (the Sub-Advisor)
to provide the day-to-day portfolio management of the Fund. For the six months
ended May 31, 2003, the Manager paid $21,386 to the Sub-Advisor for services to
the Fund.
- --------------------------------------------------------------------------------
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.
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
- ---------------------------------------------------------------------------------------------------
May 31, 2003 $16,861 $5,657 $547 $15,119 $5,293 $3,790
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.
18 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
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
- -----------------------------------------------------------------------------
May 31, 2003 $-- $1,032 $163 $786
- --------------------------------------------------------------------------------
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 May 31, 2003, payments
under the Class A Plan totaled $2,857, all of which were paid by the
Distributor to recipients, and included $290 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 May 31,
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 $ 7,016 $6,494 $100,696 5.80%
Class C Plan 10,865 6,506 65,513 2.38
Class N Plan 3,575 2,863 63,125 3.43
- --------------------------------------------------------------------------------
5. Borrowing and Lending Arrangements
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
19 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
5. Borrowing and Lending Arrangements Continued
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 May 31, 2003.
- --------------------------------------------------------------------------------
6. Fund Reorganization
In April, 2003, the Board of Trustees approved the reorganization of
Oppenheimer Select Managers Jennison Growth Fund with and into Oppenheimer
Growth Fund. Shareholders of Oppenheimer Select Managers Jennison Growth Fund
will be asked to approve a reorganization whereby shareholders would receive
shares of Oppenheimer Growth Fund. If shareholder approval is received, it is
expected that the reorganization will occur during the fourth quarter of
calendar 2003.
20 | OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
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 May 31, 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)