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 - Salomon Brothers All Cap 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: 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
- --------------------------------------------------------------------------------
Common Stocks--92.8%
- --------------------------------------------------------------------------------
Consumer Discretionary--21.1%
- --------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--1.7%
Extended Stay
America, Inc. 1 8,500 $ 104,550
- --------------------------------------------------------------------------------
McDonald's Corp. 1 17,100 320,283
-----------
424,833
- --------------------------------------------------------------------------------
Household Durables--0.6%
Fleetwood
Enterprises, Inc. 1 11,300 86,106
- --------------------------------------------------------------------------------
Sony Corp. 2,200 58,492
-----------
144,598
- --------------------------------------------------------------------------------
Leisure Equipment & Products--2.6%
Eastman Kodak Co. 7,500 229,800
- --------------------------------------------------------------------------------
Hasbro, Inc. 25,900 414,659
-----------
644,459
- --------------------------------------------------------------------------------
Media--12.2%
AOL Time Warner,
Inc. 1 32,400 493,128
- --------------------------------------------------------------------------------
Comcast Corp.,
Cl. A Special,
Non-Vtg. 1 20,400 587,928
- --------------------------------------------------------------------------------
Disney (Walt) Co. 18,500 363,525
- --------------------------------------------------------------------------------
Liberty Media Corp.,
Cl. A 1 51,000 596,701
- --------------------------------------------------------------------------------
Metro-Goldwyn-
Mayer, Inc. 1 21,400 267,072
- --------------------------------------------------------------------------------
News Corp. Ltd.
(The), Sponsored
ADR 9,700 298,469
- --------------------------------------------------------------------------------
News Corp. Ltd.
(The), Sponsored
ADR, Preference 15,700 400,507
-----------
3,007,330
- --------------------------------------------------------------------------------
Multiline Retail--2.4%
Costco Wholesale
Corp. 1 15,900 589,095
- --------------------------------------------------------------------------------
Specialty Retail--1.6%
Gap, Inc. (The) 6,800 115,600
- --------------------------------------------------------------------------------
Home Depot, Inc. 8,300 269,667
-----------
385,267
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Consumer Staples--1.2%
- --------------------------------------------------------------------------------
Food & Staples Retailing--0.7%
Safeway, Inc. 1 9,800 $184,632
- --------------------------------------------------------------------------------
Food Products--0.5%
Archer-Daniels-
Midland Co. 9,700 116,109
- --------------------------------------------------------------------------------
Energy--4.7%
- --------------------------------------------------------------------------------
Energy Equipment & Services--1.6%
GlobalSantaFe Corp. 7,700 191,576
- --------------------------------------------------------------------------------
Schlumberger Ltd. 4,100 199,342
-----------
390,918
- --------------------------------------------------------------------------------
Oil & Gas--3.1%
Amerada Hess Corp. 1,600 78,400
- --------------------------------------------------------------------------------
Anadarko Petroleum
Corp. 5,500 271,040
- --------------------------------------------------------------------------------
ChevronTexaco
Corp. 6,000 425,640
-----------
775,080
- --------------------------------------------------------------------------------
Financials--13.7%
- --------------------------------------------------------------------------------
Commercial Banks--0.9%
Bank One Corp. 5,900 220,424
- --------------------------------------------------------------------------------
Diversified Financial Services--5.1%
American Express Co. 10,600 441,596
- --------------------------------------------------------------------------------
Countrywide
Financial Corp. 8,200 603,930
- --------------------------------------------------------------------------------
State Street Corp. 5,700 218,367
-----------
1,263,893
- --------------------------------------------------------------------------------
Insurance--7.7%
AMBAC Financial
Group, Inc. 5,400 360,234
- --------------------------------------------------------------------------------
Chubb Corp. 6,000 384,180
- --------------------------------------------------------------------------------
Hartford Financial
Services Group, Inc. 5,000 233,200
- --------------------------------------------------------------------------------
MBIA, Inc. 4,600 230,230
- --------------------------------------------------------------------------------
MGIC Investment
Corp. 6,000 324,120
- --------------------------------------------------------------------------------
Radian Group, Inc. 6,500 261,755
- --------------------------------------------------------------------------------
UnumProvident
Corp. 8,000 103,200
-----------
1,896,919
4 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Health Care--13.9%
- --------------------------------------------------------------------------------
Biotechnology--2.7%
Aphton Corp. 1 8,600 $60,200
- --------------------------------------------------------------------------------
Enzo Biochem, Inc. 1 13,000 330,460
- --------------------------------------------------------------------------------
Wyeth 6,500 285,025
-----------
675,685
- --------------------------------------------------------------------------------
Health Care Providers & Services--0.7%
IMS Health, Inc. 4,800 85,632
- --------------------------------------------------------------------------------
McKesson Corp. 1,500 45,480
- --------------------------------------------------------------------------------
NDCHealth Corp. 1,900 38,912
-----------
170,024
- --------------------------------------------------------------------------------
Pharmaceuticals--10.5%
Abbott Laboratories 11,000 490,050
- --------------------------------------------------------------------------------
Bristol-Myers
Squibb Co. 17,000 435,200
- --------------------------------------------------------------------------------
Elan Corp. plc, ADR 1 55,000 336,600
- --------------------------------------------------------------------------------
Johnson & Johnson 5,400 293,490
- --------------------------------------------------------------------------------
Merck & Co., Inc. 3,900 216,762
- --------------------------------------------------------------------------------
Novartis AG, ADR 12,700 508,000
- --------------------------------------------------------------------------------
Pfizer, Inc. 9,500 294,690
-----------
2,574,792
- --------------------------------------------------------------------------------
Industrials--6.5%
- --------------------------------------------------------------------------------
Aerospace & Defense--2.5%
Goodrich Corp. 5,700 104,139
- --------------------------------------------------------------------------------
Honeywell
International, Inc. 10,000 262,000
- --------------------------------------------------------------------------------
Raytheon Co. 7,700 246,708
-----------
612,847
- --------------------------------------------------------------------------------
Commercial Services & Supplies--2.4%
Sabre Holdings Corp. 6,800 168,164
- --------------------------------------------------------------------------------
Waste
Management, Inc. 1 17,100 435,537
-----------
603,701
- --------------------------------------------------------------------------------
Machinery--1.6%
Caterpillar, Inc. 2,400 125,160
- --------------------------------------------------------------------------------
Deere & Co. 2,800 122,276
- --------------------------------------------------------------------------------
Ingersoll-Rand Co.,
Cl. A 3,100 135,780
-----------
383,216
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Information Technology--21.0%
- --------------------------------------------------------------------------------
Communications Equipment--6.7%
3Com Corp. 1 84,000 $411,600
- --------------------------------------------------------------------------------
Lucent
Technologies, Inc. 1 131,300 290,173
- --------------------------------------------------------------------------------
Motorola, Inc. 35,000 298,200
- --------------------------------------------------------------------------------
Nokia Corp.,
Sponsored ADR,
A Shares 20,900 377,036
- --------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
Sponsored ADR 1 26,760 278,304
-----------
1,655,313
- --------------------------------------------------------------------------------
Computers & Peripherals--3.2%
Electronics for
Imaging, Inc. 1 8,000 158,960
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 16,300 317,850
- --------------------------------------------------------------------------------
Maxtor Corp. 1 40,000 300,800
-----------
777,610
- --------------------------------------------------------------------------------
Electronic Equipment & Instruments--2.8%
Agilent Technologies,
Inc. 1 15,900 288,267
- --------------------------------------------------------------------------------
Solectron Corp. 1 100,000 400,000
-----------
688,267
- --------------------------------------------------------------------------------
Internet Software & Services--1.3%
RealNetworks, Inc. 1 40,000 318,000
- --------------------------------------------------------------------------------
IT Services--1.6%
Unisys Corp. 1 35,000 395,150
- --------------------------------------------------------------------------------
Office Electronics--0.1%
Ikon Office
Solutions, Inc. 2,900 25,462
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--3.6%
Intel Corp. 14,000 291,760
- --------------------------------------------------------------------------------
Lattice
Semiconductor
Corp. 1 22,000 200,200
- --------------------------------------------------------------------------------
LSI Logic Corp. 1 23,500 150,400
- --------------------------------------------------------------------------------
Taiwan
Semiconductor
Manufacturing Co.
Ltd., ADR 1 25,400 257,556
-----------
899,916
5 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Software--1.7%
Micromuse, Inc. 1 26,000 $246,740
- --------------------------------------------------------------------------------
Transaction Systems
Architects, Inc.,
Cl. A 1 20,000 179,800
-----------
426,540
- --------------------------------------------------------------------------------
Materials--6.3%
- --------------------------------------------------------------------------------
Chemicals--2.8%
Cabot Corp. 9,700 284,986
- --------------------------------------------------------------------------------
Dow Chemical Co. 7,600 241,680
- --------------------------------------------------------------------------------
Engelhard Corp. 4,700 118,205
- --------------------------------------------------------------------------------
IMC Global, Inc. 5,900 51,566
-----------
696,437
- --------------------------------------------------------------------------------
Metals & Mining--2.0%
Alcoa, Inc. 15,000 369,150
- --------------------------------------------------------------------------------
Allegheny
Technologies, Inc. 7,000 46,060
- --------------------------------------------------------------------------------
Brush Engineered
Materials, Inc. 1 5,300 42,718
- --------------------------------------------------------------------------------
Newmont Mining
Corp. (Holding Co.) 800 23,728
-----------
481,656
- --------------------------------------------------------------------------------
Paper & Forest Products--1.5%
Weyerhaeuser Co. 7,300 367,774
- --------------------------------------------------------------------------------
Telecommunication Services--4.4%
- --------------------------------------------------------------------------------
Diversified Telecommunication Services--2.6%
Nippon Telegraph
& Telephone Corp.,
ADR 13,000 234,780
- --------------------------------------------------------------------------------
SBC
Communications,
Inc. 16,000 407,360
-----------
642,140
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Wireless Telecommunication Services--1.8%
Vodafone Group plc,
Sponsored ADR 1 20,900 $457,919
-----------
Total Common Stocks
(Cost $23,033,052) 22,896,006
Principal
Amount
- --------------------------------------------------------------------------------
Joint Repurchase Agreements--7.1%
Undivided interest of 0.50%
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 $1,738,178
on 6/2/03, collateralized by
U.S. Treasury Bonds, 3.375%,
4/30/04, with a value
of $355,526,284
(Cost $1,738,000) $1,738,000 1,738,000
- --------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $24,771,052) 99.9% 24,634,006
- --------------------------------------------------------------------------------
Other Assets
Net of Liabilities 0.1 30,725
---------------------
Net Assets 100.0% $24,664,731
=====================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
6 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
May 31, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $24,771,052)--
see accompanying statement $ 24,634,006
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 164,918
Interest and dividends 34,555
Shares of beneficial interest sold 29,468
Other 986
---------------
Total assets 24,863,933
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased 143,031
Shares of beneficial interest redeemed 29,218
Legal, auditing and other professional fees 9,215
Distribution and service plan fees 7,544
Transfer and shareholder servicing agent fees 6,490
Shareholder reports 2,141
Trustees' compensation 117
Other 1,446
---------------
Total liabilities 199,202
- --------------------------------------------------------------------------------
Net Assets $24,664,731
===============
- --------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $ 27,788,077
- --------------------------------------------------------------------------------
Accumulated net investment loss (50,929)
- --------------------------------------------------------------------------------
Accumulated net realized loss
on investment transactions (2,935,371)
- --------------------------------------------------------------------------------
Net unrealized depreciation on investments (137,046)
---------------
Net Assets $24,664,731
===============
7 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$6,055,618 and 712,420 shares of beneficial interest outstanding) $8.50
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $9.02
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $4,369,530 and 522,468 shares of beneficial interest outstanding) $8.36
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $7,138,785 and 854,311 shares of beneficial interest outstanding) $8.36
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$7,099,943 and 842,340 shares of beneficial interest outstanding) $8.43
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $855 and 100 shares of beneficial interest outstanding) $8.55
See accompanying Notes to Financial Statements.
8 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended May 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $2,779) $ 147,906
- --------------------------------------------------------------------------------
Interest 22,245
-----------
Total investment income 170,151
- --------------------------------------------------------------------------------
Expenses
Management fees 118,487
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 6,925
Class B 18,949
Class C 31,327
Class N 14,726
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 25,677
Class B 13,638
Class C 17,226
Class N 13,270
Class Y 9
- --------------------------------------------------------------------------------
Shareholder reports 6,672
- --------------------------------------------------------------------------------
Trustees' compensation 2,573
- --------------------------------------------------------------------------------
Custodian fees and expenses 917
- --------------------------------------------------------------------------------
Other 10,039
-----------
Total expenses 280,435
Less voluntary reimbursement of expenses (24,006)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class A (17,051)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class B (8,223)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class C (6,627)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class N (3,443)
Less voluntary waiver of transfer and shareholder servicing agent
fees--Class Y (5)
-----------
Net expenses 221,080
- --------------------------------------------------------------------------------
Net Investment Loss (50,929)
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (466,178)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 1,752,811
-----------
Net realized and unrealized gain 1,286,633
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $1,235,704
===========
See accompanying Notes to Financial Statements.
9 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
May 31, 2003 November 30,
(Unaudited) 2002
- --------------------------------------------------------------------------------
Operations
Net investment loss $ (50,929) $ (180,398)
- --------------------------------------------------------------------------------
Net realized loss (466,178) (2,085,193)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,752,811 (1,552,271)
--------------------------
Net increase (decrease) in net assets resulting
from operations 1,235,704 (3,817,862)
- --------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A -- (82,700)
Class B -- (14,442)
Class C -- (28,229)
Class N -- (8,740)
Class Y -- (11)
- --------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A (970,582) 143,096
Class B (152,738) 2,802,559
Class C (69,501) 4,079,221
Class N 951,381 5,419,588
Class Y -- --
- --------------------------------------------------------------------------------
Net Assets
Total increase 994,264 8,492,480
- --------------------------------------------------------------------------------
Beginning of period 23,670,467 15,177,987
--------------------------
End of period [including accumulated
net investment loss of
$50,929 for the six months
ended May 31, 2003] $24,664,731 $23,670,467
==========================
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
FINANCIAL HIGHLIGHTS
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class A (Unaudited) 2002 2001 1
- -----------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.05 $ 9.25 $10.00
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 2 (.06) .08
Net realized and unrealized gain (loss) .45 (1.05) (.83)
---------------------------------------
Total from investment operations .45 (1.11) (.75)
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.09) --
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $8.50 $8.05 $9.25
=======================================
- -----------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 5.59% (12.17)% (7.50)%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $6,056 $6,775 $8,717
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,608 $9,404 $6,384
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.01)% (0.52)% 1.57%
Expenses, gross 2.46% 1.85% 1.59%
Expenses, net 1.63% 5,6 1.59% 5,6 1.59% 7
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 139% 55%
1. For the period from February 16, 2001 (inception of offering) to November 30,
2001.
2. Less than $0.005 per share.
3. 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.
4. Annualized for periods of less than one full year.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary reimbursement of expenses.
7. Voluntary reimbursement of expenses less than 0.01%.
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class B (Unaudited) 2002 2001 1
- ------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 7.96 $ 9.18 $10.00
- ------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.07) .04
Net realized and unrealized gain (loss) .43 (1.09) (.86)
---------------------------------------
Total from investment operations .40 (1.16) (.82)
- ------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.06) --
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $8.36 $7.96 $9.18
=======================================
- ------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.03% 12.75% (8.20)%
- ------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $4,370 $4,325 $2,071
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,800 $3,416 $1,075
- ------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.82)% (1.21)% 1.06%
Expenses, gross 3.01% 2.75% 2.54%
Expenses, net 2.36% 4,5 2.44% 4,5 2.39% 5
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 139% 55%
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 waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class C (Unaudited) 2002 2001 1
- -----------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 7.95 $ 9.18 $10.00
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.07) .03
Net realized and unrealized gain (loss) .44 (1.09) (.85)
---------------------------------------
Total from investment operations .41 (1.16) (.82)
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.07) --
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $8.36 $7.95 $9.18
=======================================
- -----------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.16% (12.78)% (8.20)%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,139 $6,872 $3,729
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,284 $5,788 $1,427
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.82)% (1.21)% 1.17%
Expenses, gross 2.84% 2.72% 2.55%
Expenses, net 2.41% 4,5 2.41% 4,5 2.38% 5
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 139% 55%
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 waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class N (Unaudited) 2002 2001 1
- -----------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.00 $9.21 $9.84
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) .02 .03
Net realized and unrealized gain (loss) .45 (1.14) (.66)
---------------------------------------
Total from investment operations .43 (1.12) (.63)
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.09) --
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $8.43 $8.00 $9.21
=======================================
- -----------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.38% (12.30)% (6.40)%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,100 $5,698 $660
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,914 $3,055 $158
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.32)% (0.66)% 2.08%
Expenses, gross 2.24% 2.23% 2.07%
Expenses, net 1.90% 4,5 1.98% 4,5 1.89% 5
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 139% 55%
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 waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
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 $ 8.10 $ 9.26 $10.00
- -------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income -- 2 .01 .12
Net realized and unrealized gain (loss) .45 (1.06) (.86)
-----------------------------------------
Total from investment operations .45 (1.05) (.74)
- -------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.11) --
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $8.55 $8.10 $9.26
=========================================
- -------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 5.56% (11.52)% (7.40)%
- -------------------------------------------------------------------------------------------------
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: 4
Net investment income 0.00% 0.10% 1.52%
Expenses, gross 3.09% 87.59% 501.53%
Expenses, net 1.87% 5,6 1.12% 5,6 1.30% 5,6
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 139% 55%
1. For the period from February 16, 2001 (inception of offering) to November 30,
2001.
2. Less than $0.005 per share.
3. 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.
4. Annualized for periods of less than one full year.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Select Managers Salomon Brothers All Cap Fund (the Fund), a series
of Oppenheimer Select Managers, is a non-diversified, 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 Manager
has entered into a sub-advisory agreement with Salomon Brothers Asset
Management, Inc. (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).
- --------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
16 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 $2,935,370. 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
an unused capital loss carryforward as follows:
Expiring
----------------------
2009 $ 167,424
2010 2,019,897
----------
Total $2,187,321
==========
- --------------------------------------------------------------------------------
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 primarily because of the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes. The
character of dividends and distributions
17 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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.
The tax character of distributions paid during the six months ended May 31,
2003 and the year ended November 30, 2002 was as follows:
Six Months Ended Year Ended
May 31, 2003 November 30, 2002
----------------------------------------------------------
Distributions paid from:
Ordinary income $-- $134,122
- --------------------------------------------------------------------------------
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 May 31, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------
Class A
Sold 124,858 $ 924,205 629,798 $ 5,376,405
Dividends and/or
distributions reinvested -- -- 4,288 39,537
Redeemed (253,741) (1,894,787) (735,506) (5,272,846)
-----------------------------------------------------------
Net increase (decrease) (128,883) $ (970,582) (101,420) $ 143,096
===========================================================
- ---------------------------------------------------------------------------------------
Class B
Sold 89,342 $ 653,373 412,196 $ 3,515,598
Dividends and/or
distributions reinvested -- -- 1,486 13,648
Redeemed (110,542) (806,111) (95,522) (726,687)
-----------------------------------------------------------
Net increase (decrease) (21,200) $ (152,738) 318,160 $ 2,802,559
===========================================================
18 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
Six Months Ended May 31, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------
Class C
Sold 164,708 $ 1,203,281 680,933 $ 5,766,521
Dividends and/or
distributions reinvested -- -- 2,928 26,858
Redeemed (175,005) (1,272,782) (225,394) (1,714,158)
-----------------------------------------------------------
Net increase (decrease) (10,297) $ (69,501) 458,467 $ 4,079,221
===========================================================
- ---------------------------------------------------------------------------------------
Class N
Sold 280,050 $ 2,063,298 781,100 $ 6,523,549
Dividends and/or
distributions reinvested -- -- 951 8,731
Redeemed (150,099) (1,111,917) (141,274) (1,112,692)
-----------------------------------------------------------
Net increase 129,951 $ 951,381 640,777 $ 5,419,588
===========================================================
- ---------------------------------------------------------------------------------------
Class Y
Sold -- $ -- -- $ --
Dividends and/or
distributions reinvested -- -- -- --
Redeemed -- -- -- --
-----------------------------------------------------------
Net increase (decrease) -- $ -- -- $ --
===========================================================
- --------------------------------------------------------------------------------
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
$2,463,872 and $2,374,266, 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 1.10% of the first $100 million of average annual net assets of
the Fund and 1.00% of average annual net assets in excess of $100 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 Salomon Brothers Asset Management, Inc.
(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 $63,386 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.
19 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
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 $15,637 $284,034 $2,504 $19,184 $9,819 $14,037
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
- --------------------------------------------------------------------------------
May 31, 2003 $-- $6,611 $1,431 $5,350
- --------------------------------------------------------------------------------
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 $6,925, all of which were paid by the
Distributor to recipients, and included $560 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.
20 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP FUND
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 $18,949 $16,317 $179,677 4.11%
Class C Plan 31,327 17,317 134,135 1.88
Class N Plan 14,726 5,568 192,222 2.71
- --------------------------------------------------------------------------------
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 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 Salomon Brothers All Cap Fund with and into
Oppenheimer Value Fund. Shareholders of Oppenheimer Select Managers Salomon
Brothers All Cap Fund will be asked to approve a reorganization whereby
shareholders would receive shares of Oppenheimer Value Fund. If shareholder
approval is received, it is expected that the reorganization will occur during
the fourth quarter of calendar 2003.
21 | OPPENHEIMER SELECT MANAGERS SALOMON BROTHERS ALL CAP 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)