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 811-08613
OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
of 2002. As a result of these disappointments, the Fund's technology holdings
delivered weaker total returns than the technology component of the S&P
500/BARRA Growth Index. Relatively weak performance among utilities holdings,
especially Verizon Communications, Inc., which fell roughly 6% after it was
purchased in the reporting period, also hurt the Fund's performance compared to
its benchmark.
While the Fund's disciplined investment approach remained essentially
unchanged, we continued to refine our library of stock ranking models with the
intent of enhancing the effectiveness of our approach during the period. The
Fund's portfolio holdings, allocations and strategies are subject to change.
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each Class of shares of the
Fund held until July 31, 2003. In the case of Class A and Y shares, performance
is measured from inception of the Class on December 17, 1998. In the case of
Class B and C shares, performance is measured from inception of the Class on
March 1, 1999. In the case of Class N shares, performance is measured from
inception of the Class on March 1, 2001. The Fund's performance reflects the
deduction of the maximum initial sales charge on Class A shares and the
applicable contingent deferred sales charge for Class B, Class C and Class N
shares. The graphs assume that all dividends and capital gains distributions
were reinvested in additional shares.
The Fund's performance is compared to the performance of the S&P 500
BARRA/Growth Index, a capitalization-weighted index comprised of stocks of the
S&P 500 Index with higher book-to-price ratios relative to the S&P 500 Index as
a whole. Each company of the S&P 500 Index is assigned to either the Barra/Value
or Barra/Growth index so that the sum of the two indices reflects the total S&P
500 Index. Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments may not be limited to those
investments found in an index.
6 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Large Cap Growth Fund (Class A)
S&P 500 BARRA/Growth Index
[LINE CHART]
Value of Investment S & P 500
Date In Fund Barra Growth Index
12/17/1998 9,425 10,000
01/31/1999 10,650 10,611
04/30/1999 10,405 10,667
07/31/1999 11,244 10,747
10/31/1999 11,564 11,451
01/31/2000 12,640 11,970
04/30/2000 14,054 12,691
07/31/2000 13,901 12,570
10/31/2000 12,612 11,688
01/31/2001 10,801 10,278
04/30/2001 9,300 8,991
07/31/2001 8,814 8,866
10/31/2001 7,573 7,999
01/31/2002 8,245 8,707
04/30/2002 7,707 8,032
07/31/2002 6,662 6,897
10/31/2002 6,642 6,797
01/31/2003 6,342 6,497
04/30/2003 6,807 7,051
07/31/2003 7,180 7,510
Average Annual Total Returns of Class A Shares of the Fund at 7/31/03*
1-Year 1.57% Since Inception -6.92%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Large Cap Growth Fund (Class B)
S&P 500 BARRA/Growth Index
[LINE CHART]
Value of Investment S & P 500
Date In Fund Barra Growth Index
03/01/1999 10,000 10,000
04/30/1999 10,525 10,464
07/31/1999 11,345 10,542
10/31/1999 11,641 11,233
01/31/2000 12,702 11,742
04/30/2000 14,095 12,449
07/31/2000 13,920 12,330
10/31/2000 12,595 11,465
01/31/2001 10,771 10,082
04/30/2001 9,250 8,819
07/31/2001 8,747 8,697
10/31/2001 7,499 7,847
01/31/2002 8,159 8,541
04/30/2002 7,614 7,879
07/31/2002 6,565 6,766
10/31/2002 6,534 6,667
01/31/2003 6,219 6,373
04/30/2003 6,670 6,917
07/31/2003 6,889 7,367
Average Annual Total Returns of Class B Shares of the Fund at 7/31/03*
1-Year 1.87% Since Inception -8.09%
*See Notes on page 10 for further details.
The performance information for the S&P 500 BARRA/Growth Index in the graphs
begins on 12/31/98 for Class A and Class Y, on 2/28/99 for Class B and Class C
and 2/28/01 for Class N shares.
Past performance cannot guarantee future results. Graphs are not drawn to
same scale.
7 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Large Cap Growth Fund (Class C)
S&P 500 BARRA/Growth Index
[LINE CHART]
Value of Investment S & P 500
Date In Fund Barra Growth Index
03/01/1999 10,000 10,000
04/30/1999 10,525 10,464
07/31/1999 11,345 10,542
10/31/1999 11,651 11,233
01/31/2000 12,711 11,742
04/30/2000 14,094 12,449
07/31/2000 13,920 12,330
10/31/2000 12,605 11,465
01/31/2001 10,770 10,082
04/30/2001 9,260 8,819
07/31/2001 8,756 8,697
10/31/2001 7,498 7,847
01/31/2002 8,159 8,541
04/30/2002 7,613 7,879
07/31/2002 6,565 6,766
10/31/2002 6,544 6,667
01/31/2003 6,219 6,373
04/30/2003 6,670 6,917
07/31/2003 7,016 7,367
Average Annual Total Returns of Class C Shares of the Fund at 7/31/03*
1-Year 5.87% Since Inception -7.71%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Large Cap Growth Fund (Class N)
S&P 500 BARRA/Growth Index
[LINE CHART]
Value of Investment S & P 500
Date In Fund Barra Growth Index
03/01/2001 10,000 10,000
04/30/2001 9,945 9,912
07/31/2001 9,413 9,775
10/31/2001 8,084 8,820
01/31/2002 8,793 9,600
04/30/2002 8,217 8,856
07/31/2002 7,099 7,604
10/31/2002 7,076 7,494
01/31/2003 6,744 7,163
04/30/2003 7,243 7,774
07/31/2003 7,619 8,280
Average Annual Total Returns of Class N Shares of the Fund at 7/31/03*
1-Year 6.33% Since Inception -10.64%
*See Notes on page 10 for further details.
8 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Large Cap Growth Fund (Class Y)
S&P 500 BARRA/Growth Index
[LINE CHART]
Value of Investment S & P 500
Date In Fund Barra Growth Index
12/17/1998 10,000 10,000
01/31/1999 11,300 10,611
04/30/1999 11,050 10,667
07/31/1999 11,950 10,747
10/31/1999 12,310 11,451
01/31/2000 13,472 11,970
04/30/2000 14,992 12,691
07/31/2000 14,850 12,570
10/31/2000 13,492 11,688
01/31/2001 11,571 10,278
04/30/2001 9,959 8,991
07/31/2001 9,465 8,866
10/31/2001 8,149 7,999
01/31/2002 8,884 8,707
04/30/2002 8,314 8,032
07/31/2002 7,195 6,897
10/31/2002 7,195 6,797
01/31/2003 6,866 6,497
04/30/2003 7,392 7,051
07/31/2003 7,798 7,510
Average Annual Total Returns of Class Y Shares of the Fund at 7/31/03*
1-Year 8.38% Since Inception -5.24%
The performance information for the S&P 500 BARRA/Growth Index in the graphs
begins on 12/31/98 for Class A and Class Y, on 2/28/99 for Class B and Class C
and 2/28/01 for Class N shares. Past performance cannot guarantee future
results. Graphs are not drawn to same scale.
9 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. The Fund's portfolio managers
are employed by the Fund's sub-advisor, Trinity Investment Management
Corporation, an affiliate of OppenheimerFunds, Inc., the Fund's investment
manager. For more complete information about the Fund, including charges,
expenses and risks, please refer to the prospectus. To obtain a copy, call your
financial advisor, call OppenheimerFunds Distributor, Inc. at 1.800.CALL OPP
(1.800.225.5677). Read the prospectus carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 12/17/98. Unless
otherwise noted, Class A total returns are shown net of the applicable 5.75%
maximum initial sales charge.
Class B shares of the Fund were first publicly offered on 3/1/99. Unless
otherwise noted, Class B total returns are shown net of the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception). Class
B shares are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 3/1/99. Unless
otherwise noted Class C total returns are shown net of the 1% contingent
deferred sales charge for the 1-year period. Class C shares are subject to an
annual 0.75% asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 12/17/98. Class Y
shares are only offered to certain institutional investors under special
agreement with the distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENT OF INVESTMENTS July 31, 2003
Market Value
Shares See Note 1
- -----------------------------------------------------------------
Common Stocks--98.5%
- -----------------------------------------------------------------
Consumer Discretionary--12.4%
- -----------------------------------------------------------------
Automobiles--1.5%
Harley-Davidson, Inc. 12,600 $ 590,688
- -----------------------------------------------------------------
Internet & Catalog Retail--1.7%
eBay, Inc. 1 6,300 675,360
- -----------------------------------------------------------------
Media--1.1%
McGraw-Hill Cos.,
Inc. (The) 3,900 237,042
- -----------------------------------------------------------------
Omnicom Group, Inc. 2,300 169,924
---------------
406,966
- -----------------------------------------------------------------
Specialty Retail--8.1%
AutoZone, Inc. 1 16,300 1,357,138
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Gap, Inc. (The) 58,500 1,052,415
- -----------------------------------------------------------------
TJX Cos., Inc. (The) 38,400 746,880
---------------
3,156,433
- -----------------------------------------------------------------
Consumer Staples--14.1%
- -----------------------------------------------------------------
Beverages--4.1%
Anheuser-Busch Cos.,
Inc. 30,500 1,580,510
- -----------------------------------------------------------------
Food & Staples Retailing--3.3%
Wal-Mart Stores, Inc. 23,200 1,297,112
- -----------------------------------------------------------------
Food Products--0.4%
General Mills, Inc. 3,800 174,306
- -----------------------------------------------------------------
Household Products--6.3%
Clorox Co. (The) 29,000 1,258,310
- -----------------------------------------------------------------
Colgate-Palmolive Co. 2,000 109,200
- -----------------------------------------------------------------
Procter & Gamble
Corp. (The) 12,200 1,072,014
---------------
2,439,524
- -----------------------------------------------------------------
Energy--0.3%
- -----------------------------------------------------------------
Oil & Gas--0.3%
Anadarko Petroleum
Corp. 3,000 131,400
- -----------------------------------------------------------------
Financials--4.2%
- -----------------------------------------------------------------
Thrifts & Mortgage Finance--4.2%
Fannie Mae 25,800 1,652,232
- -----------------------------------------------------------------
Health Care--29.5%
- -----------------------------------------------------------------
Biotechnology--1.6%
Amgen, Inc. 1 9,100 633,178
Market Value
Shares See Note 1
- -----------------------------------------------------------------
Health Care Equipment & Supplies--5.5%
Medtronic, Inc. 34,900 $1,797,350
- -----------------------------------------------------------------
Zimmer Holdings, Inc. 1 7,000 334,670
---------------
2,132,020
- -----------------------------------------------------------------
Health Care Providers & Services--3.1%
UnitedHealth Group, Inc. 23,400 1,218,906
- -----------------------------------------------------------------
Pharmaceuticals--19.3%
Abbott Laboratories 35,600 1,397,300
- -----------------------------------------------------------------
Forest
Laboratories, Inc. 1 18,100 866,628
- -----------------------------------------------------------------
Johnson & Johnson 46,500 2,408,235
- -----------------------------------------------------------------
Merck & Co., Inc. 30,600 1,691,568
- -----------------------------------------------------------------
Pfizer, Inc. 33,900 1,130,904
---------------
7,494,635
- -----------------------------------------------------------------
Industrials--6.3%
- -----------------------------------------------------------------
Industrial Conglomerates--6.3%
3M Co. 5,500 771,100
- -----------------------------------------------------------------
General Electric Co. 58,800 1,672,272
---------------
2,443,372
- -----------------------------------------------------------------
Information Technology--29.3%
- -----------------------------------------------------------------
Communications Equipment--2.0%
Cisco Systems, Inc. 1 39,200 765,184
- -----------------------------------------------------------------
Computers & Peripherals--10.4%
Dell, Inc. 1 54,700 1,842,296
- -----------------------------------------------------------------
International Business
Machines Corp. 14,200 1,153,750
- -----------------------------------------------------------------
Lexmark International,
Inc., Cl. A 1 16,500 1,058,805
---------------
4,054,851
- -----------------------------------------------------------------
IT Services--4.1%
Automatic Data
Processing, Inc. 9,600 355,968
- -----------------------------------------------------------------
DST Systems, Inc. 1 3,800 139,688
- -----------------------------------------------------------------
Electronic Data
Systems Corp. 9,300 207,111
- -----------------------------------------------------------------
Unisys Corp. 1 74,100 908,466
---------------
1,611,233
- -----------------------------------------------------------------
Semiconductor & Semiconductor Equipment--4.3%
Intel Corp. 67,200 1,676,640
11 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -----------------------------------------------------------------
Software--8.5%
Intuit, Inc. 1 2,300 $ 98,946
- -----------------------------------------------------------------
Microsoft Corp. 106,900 2,822,160
- -----------------------------------------------------------------
Oracle Corp. 1 33,900 406,800
---------------
3,327,906
- -----------------------------------------------------------------
Materials--0.4%
- -----------------------------------------------------------------
Containers & Packaging--0.4%
Ball Corp. 2,900 144,130
- -----------------------------------------------------------------
Telecommunication Services--2.0%
- -----------------------------------------------------------------
Diversified Telecommunication Services--2.0%
Verizon
Communications, Inc. 22,300 777,378
---------------
Total Common Stocks
(Cost $39,406,315) 38,383,964
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------
Joint Repurchase Agreements--1.5%
Undivided interest of 14.56% in joint
repurchase agreement (Principal Amount/
Market Value $4,093,000, with a maturity
value of $4,093,117) with Banc One
Capital Markets, Inc., 1.03%, dated
7/31/03, to be repurchased at
$596,017 on 8/1/03, collateralized by
U.S. Treasury Nts., 3%, 2/29/04, with
a value of $4,178,213
(Cost $596,000) $596,000 $ 596,000
- -----------------------------------------------------------------
Total Investments, at Value
(Cost $40,002,315) 100.0% 38,979,964
- -----------------------------------------------------------------
Liabilities in Excess of
Other Assets (0.0) (4,541)
-------------------------------
Net Assets 100.0% $38,975,423
===============================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $40,002,315)--see
accompanying statement $ 38,979,964
- --------------------------------------------------------------------------------
Cash 16,022
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 61,414
Interest and dividends 34,360
Other 2,772
--------------
Total assets 39,094,532
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Shareholder reports 40,721
Shares of beneficial interest redeemed 34,053
Legal, auditing and other professional fees 21,897
Transfer and shareholder servicing agent fees 8,480
Distribution and service plan fees 7,999
Trustees' compensation 4,763
Other 1,196
--------------
Total liabilities 119,109
- --------------------------------------------------------------------------------
Net Assets $ 38,975,423
==============
- --------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 5,722
- --------------------------------------------------------------------------------
Additional paid-in capital 55,685,520
- --------------------------------------------------------------------------------
Accumulated net investment loss (4,681)
- --------------------------------------------------------------------------------
Accumulated net realized loss on
investment transactions (15,688,787)
- --------------------------------------------------------------------------------
Net unrealized depreciation on investments (1,022,351)
--------------
Net Assets $ 38,975,423
==============
13 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price
per share (based on net assets of
$18,871,404 and 2,720,815 shares of
beneficial interest outstanding) $6.94
Maximum offering price per share (net
asset value plus sales charge
of 5.75% of offering price) $7.36
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price
(excludes applicable contingent deferred
sales charge) and offering price per
share (based on net assets of
$13,836,497 and 2,067,732 shares of
beneficial interest outstanding) $6.69
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price
(excludes applicable contingent deferred
sales charge) and offering price per
share (based on net assets of $5,581,423
and 834,118 shares of beneficial interest outstanding) $6.69
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price
(excludes applicable contingent deferred
sales charge) and offering price per
share (based on net assets of $553,887
and 80,489 shares of beneficial interest outstanding) $6.88
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and
offering price per share (based on
net assets of $132,212 and 18,601
shares of beneficial interest outstanding) $7.11
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Dividends $ 435,820
- --------------------------------------------------------------------------------
Interest 11,543
-------------
Total investment income 447,363
- --------------------------------------------------------------------------------
Expenses
Management fees 254,235
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 38,938
Class B 119,602
Class C 47,497
Class N 1,941
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 107,011
Class B 90,452
Class C 31,562
Class N 2,771
Class Y 8
- --------------------------------------------------------------------------------
Shareholder reports 85,190
- --------------------------------------------------------------------------------
Trustees' compensation 2,018
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,474
- --------------------------------------------------------------------------------
Other 39,963
-------------
Total expenses 822,662
Less reduction to custodian expenses (25)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class A (53,899)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class B (52,847)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class C (16,397)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (1,502)
-------------
Net expenses 697,992
- --------------------------------------------------------------------------------
Net Investment Loss (250,629)
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (4,222,969)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 6,652,439
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $2,178,841
=============
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- ----------------------------------------------------------------------------------------------------
Operations
Net investment loss $ (250,629) $ (347,681)
- ----------------------------------------------------------------------------------------------------
Net realized loss (4,222,969) (4,180,725)
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 6,652,439 (4,530,887)
----------------------------------
Net increase (decrease) in net assets
resulting from operations 2,178,841 (9,059,293)
- ----------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions:
Class A 3,426,009 6,840,815
Class B 2,996,444 4,657,802
Class C 1,254,799 3,184,637
Class N 309,222 234,202
Class Y 24,877 113,887
- ----------------------------------------------------------------------------------------------------
Net Assets
Total increase 10,190,192 5,972,050
- ----------------------------------------------------------------------------------------------------
Beginning of period 28,785,231 22,813,181
----------------------------------
End of period [including accumulated net investment
loss of $4,681 and $4,090, respectively] $38,975,423 $28,785,231
==================================
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31, 2003 2002 2001 2000 1999 1
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.44 $8.52 $14.55 $11.93 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.03) (.07) (.10) (.11) (1.05)
Net realized and unrealized gain (loss) .53 (2.01) (5.06) 2.91 2.98
----------------------------------------------------------
Total from investment operations .50 (2.08) (5.16) 2.80 1.93
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (.87) (.18) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.94 $6.44 $ 8.52 $14.55 $11.93
==========================================================
7.76% (24.41)% (36.60)% 23.63% 19.30%
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $18,871 $14,356 $12,029 $16,470 $6,059
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,712 $15,495 $14,063 $11,973 $4,028
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.36)% (0.75)% (1.01)% (1.03)% (1.05)%
Expenses, gross 2.00% 2.03% 1.54% 1.91% 1.81%
Expenses, net 1.68% 4,5 1.75% 4,5 1.54% 4 1.89% 6 1.65% 4,7
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of reduction to custodian expenses.
7. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Class B Year Ended July 31, 2003 2002 2001 2000 1999 1
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.26 $8.34 $14.39 $11.89 $10.48
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) (.09) (.16) (.17) (1.04)
Net realized and unrealized gain (loss) .48 (1.99) (5.02) 2.85 2.45
----------------------------------------------------------
Total from investment operations .43 (2.08) (5.18) 2.68 1.41
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (.87) (.18) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.69 $6.26 $ 8.34 $14.39 $11.89
==========================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 6.87% (24.94)% (37.17)% 22.70% 13.45%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $13,836 $10,101 $8,800 $11,499 $1,764
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $11,970 $11,463 $9,945 $ 7,257 $ 722
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.12)% (1.52)% (1.81)% (1.81)% (1.93)%
Expenses, gross 2.89% 2.80% 2.34% 2.69% 2.92%
Expenses, net 2.45% 4,5 2.52% 4,5 2.34% 4 2.67% 6 2.75% 4,7
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of reduction to custodian expenses.
7. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class C Year Ended July 31, 2003 2002 2001 2000 1999 1
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.26 $8.35 $14.39 $11.89 $10.48
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.05) (.14) (.19) (1.04)
Net realized and unrealized gain (loss) .49 (2.04) (5.03) 2.87 2.45
----------------------------------------------------------
Total from investment operations .43 (2.09) (5.17) 2.68 1.41
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (.87) (.18) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $6.69 $6.26 $ 8.35 $14.39 $11.89
==========================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 6.87% (25.03)% (37.10)% 22.70% 13.45%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $5,581 $4,032 $1,983 $2,241 $438
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,754 $3,814 $2,109 $1,566 $192
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.13)% (1.47)% (1.82)% (1.82)% (1.95)%
Expenses, gross 2.79% 2.79% 2.35% 2.72% 2.90%
Expenses, net 2.45% 4,5 2.51% 4,5 2.35% 4 2.70% 6 2.73% 4,7
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of reduction to custodian expenses.
7. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Class N Year Ended July 31, 2003 2002 2001 1
- ------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.41 $8.50 $9.03
- ------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.10) (.06)
Net realized and unrealized gain (loss) .53 (1.99) (.47)
-----------------------------------
Total from investment operations .47 (2.09) (.53)
- ------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- --
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $6.88 $6.41 $8.50
===================================
- ------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 7.33% (24.59)% (5.87)%
- ------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $554 $201 $1
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $389 $ 87 $1
- ------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.67)% (0.87)% (1.67)%
Expenses, gross 2.34% 2.29% 1.48%
Expenses, net 1.95% 4,5 2.01% 4,5 1.48% 4
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate 140% 96% 160%
1. For the period from March 1, 2001 (inception of offering) to July 31, 2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Class Y Year Ended July 31, 2003 2002 2001 2000 1999 1
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.56 $8.63 $14.65 $11.95 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.01) (.15) (.05) (.07) (1.03)
Net realized and unrealized gain (loss) .56 (1.92) (5.10) 2.95 2.98
----------------------------------------------------------
Total from investment operations .55 (2.07) (5.15) 2.88 1.95
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (.87) (.18) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.11 $6.56 $ 8.63 $14.65 $11.95
==========================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 8.38% (23.99)% (36.26)% 24.27% 19.50%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $132 $95 $1 $1 $1
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $101 $68 $1 $1 $1
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment gain (loss) 0.15% (0.10)% (0.48)% (0.54)% (0.72)%
Expenses, gross 1.14% 4.83% 168.30% 4 1.45% 1.65%
Expenses, net 1.14% 5 1.20% 5,6 1.10% 5 1.43% 7 1.50% 5,8
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 140% 96% 160% 258% 157%
1. For the period from December 17, 1998 (commencement of operations) to July
31, 1999.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Added since July 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
5. Reduction to custodian expenses less than 0.01%.
6. Net of voluntary waiver of transfer agent fees.
7. Net of reduction to custodian expenses.
8. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Trinity Large Cap Growth Fund (the Fund), is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund's investment objective is to seek capital
appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The Manager has entered into a sub-advisory agreement with Trinity
Investment Management Corporation, a related party to theManager.
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. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ 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 using 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. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. Secured by U.S. government securities, these
balances are invested in one or more repurchase agreements. 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.
22 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
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 on a
daily basis 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 comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company 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.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of investment for federal income
tax purposes.
Net Unrealized
Undistributed Depreciation Based
Net Undistributed Accumulated on Cost of Securities
Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2,3 Tax Purposes
----------------------------------------------------------------------------
$-- $-- $16,007,591 $1,315,914
1. As of July 31, 2003, the Fund had $13,336,905 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2003, details
of the capital loss carryforwards were as follows:
Expiring
-----------------------
2009 $ 2,814,048*
2010 7,389,585
2011 3,133,272
-----------
Total $13,336,905
===========
*$612,369 of the capital loss carryforward was acquired in connection with
the Oppenheimer Trinity Growth Fund merger.
2. During the fiscal years ended July 31, 2003 and July 31, 2002, the Fund did
not utilize any capital loss carryforwards.
3. As of July 31, 2003, the Fund had $2,670,685 of post-October losses
available to offset future capital gains, if any. Such losses, if unutilized,
will expire in 2012.
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.
23 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Accordingly, the following amounts have been reclassified for July 31, 2003.
Net assets of the Fund were unaffected by the reclassifications.
From To (From) Net
Ordinary Capital Gain Tax Return Investment
Loss (Loss) of Capital Loss
-----------------------------------------------------------------------
$250,038 $-- $-- $198,805
No distributions were paid during the years ended July 31, 2003 and July 31,
2002.
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of July 31, 2003 are noted below. The primary difference between book and tax
appreciation or depreciation of investments, if applicable, is attributable to
the tax deferral of losses or tax realization of financial statement unrealized
gain or loss.
Federal Tax Cost $40,295,878
===========
Gross unrealized appreciation $ 1,808,685
Gross unrealized depreciation (3,124,599)
-----------
Net unrealized depreciation $(1,315,914)
===========
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
July 31, 2003, the Fund's projected benefit obligations were increased by $738
and payments of $147 were made to retired trustees, resulting in an accumulated
liability of $4,684 as of July 31, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the
Fund. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
selected Oppenheimer funds. Deferral of trustees' fees under the plan will not
affect the net assets of the Fund, and will not materially affect the Fund's
assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
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. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
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.
24 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
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 $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Class A
Sold 1,920,993 $12,512,024 1,220,919 $ 9,861,258
Acquisition--Note 5 -- -- 488,341 3,716,273
Redeemed (1,429,508) (9,086,015) (892,005) (6,736,716)
---------------------------------------------------------
Net increase 491,485 $ 3,426,009 817,255 $ 6,840,815
=========================================================
- --------------------------------------------------------------------------------
Class B
Sold 1,319,060 $ 8,295,051 949,955 $ 7,487,395
Acquisition--Note 5 -- -- 327,908 2,439,639
Redeemed (864,979) (5,298,607) (718,719) (5,269,232)
---------------------------------------------------------
Net increase 454,081 $ 2,996,444 559,144 $ 4,657,802
=========================================================
- --------------------------------------------------------------------------------
Class C
Sold 686,591 $ 4,294,225 557,904 $ 4,306,057
Acquisition--Note 5 -- -- 129,384 962,619
Redeemed (496,405) (3,039,426) (280,869) (2,084,039)
---------------------------------------------------------
Net increase 190,186 $ 1,254,799 406,419 $ 3,184,637
=========================================================
- --------------------------------------------------------------------------------
Class N
Sold 58,283 $ 370,273 34,570 $ 256,789
Acquisition--Note 5 -- -- 115 875
Redeemed (9,246) (61,051) (3,344) (23,462)
---------------------------------------------------------
Net increase 49,037 $ 309,222 31,341 $ 234,202
=========================================================
- --------------------------------------------------------------------------------
Class Y
Sold 17,368 $ 113,161 9,810 $ 77,807
Acquisition--Note 5 -- -- 7,350 56,743
Redeemed (13,243) (88,284) (2,784) (20,663)
---------------------------------------------------------
Net increase 4,125 $ 24,877 14,376 $ 113,887
=========================================================
25 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS 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 year ended July 31, 2003, were $54,014,435
and $46,314,970, 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 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, and 0.60% of average annual net assets over $800 million.
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager pays Trinity Investment Management Corporation
(the Sub-Advisor) based on the fee schedule set forth in the Prospectus. For
the year ended July 31, 2003, the Manager paid $85,313 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 per account fee. For the year ended July 31, 2003, the Fund
paid $115,648 to OFS for services to the Fund.
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
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- --------------------------------------------------------------------------------------------------------------------------
July 31, 2003 $116,220 $41,939 $4,337 $115,008 $18,691 $3,095
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.
26 | OPPENHEIMER TRINITY LARGE CAP 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
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- -----------------------------------------------------------------------------------------------
July 31, 2003 $582 $33,397 $1,049 $312
- --------------------------------------------------------------------------------
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 year ended July 31, 2003, expense under the
Class A Plan totaled $38,938, all of which were paid by the Distributor to
recipients, which included $575 retained by the Distributor and $4,410 which
was 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 year ended July 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 $119,602 $97,050 $246,318 1.78%
Class C Plan 47,497 20,001 75,165 1.35
Class N Plan 1,941 1,752 8,737 1.58
- --------------------------------------------------------------------------------
5. Acquisition of Oppenheimer Trinity Growth Fund
On October 12, 2001, the Fund acquired all of the net assets of Oppenheimer
Trinity Growth Fund, pursuant to an Agreement and Plan of Reorganization
approved by the Oppenheimer Trinity Growth Fund shareholders on April 12, 2001.
The Fund issued (at an exchange ratio of 0.929111 for Class A, 0.934499 for
Class B, 0.933942 for Class C, 0.927699 for Class N and 0.922201 for Class Y of
the Fund, to one share of Oppenheimer Trinity Large Cap Growth Fund) 488,341;
327,908; 129,384; 115 and 7,350 shares of beneficial interest for Class A,
Class B, Class C, Class N and Class Y, respectively, valued at $3,716,273;
$2,439,639; $962,619; $875 and $56,743 in exchange for the net assets,
resulting in combined Class A net assets of $14,652,007, Class B net assets of
$10,711,439, Class C net assets of $2,969,374, Class N net assets of $22,045
and Class Y net assets of $61,005 on October 12, 2001. The net assets acquired
included net unrealized depreciation of
27 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
5. Acquisition of Oppenheimer Trinity Growth Fund Continued
$1,140,630, undistributed realized losses of $2,775,589 and unused capital loss
carryforward of $2,775,589. The exchange qualified as a tax-free reorganization
for federal income tax purposes.
- --------------------------------------------------------------------------------
6. Fund Reorganization
On September 12, 2003, Shareholders of Oppenheimer Trinity Large Cap Growth Fund
approved a fund reorganization, whereby Shareholders received shares of
Oppenheimer Growth Fund. The reorganization occurred on September 18, 2003.
28 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Trinity Large Cap Growth Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Trinity Large Cap Growth Fund, including the statement of
investments, as of July 31, 2003, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the four years in the period then ended, and the period from December 17, 1998
(commencement of operations) to July 31, 1999. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 2003, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Trinity Large Cap Growth Fund as of July 31, 2003, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended, and the period from December
17, 1998 (commencement of operations) to July 31, 1999, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2003
29 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
30 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
Name, Position(s) Held Principal Occupation(s) During Past 5 Years; Other
with Fund, Length of Trusteeships/Directorships Held by Trustee; Number of
Service, Age Portfolios in Fund Complex Currently Overseen by
Trustee
INDEPENDENT TRUSTEES The address of each Trustee in the chart below is
6803 S. Tucson Way, Centennial, CO 80112-3924. Each
Trustee serves for an indefinite term, until his or
her resignation, retirement, death or removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law
Chairman of the Board of firm). Other directorships: Weyerhaeuser Corp. (since
Trustees (since 2003), 1999) and Danielson Holding Corp. (since 2002);
Trustee (since 1998) formerly a director of Caterpillar, Inc.
Age: 72 (1993-December 2002). Oversees 29 portfolios in the
OppenheimerFunds complex.
Robert G. Galli, A trustee or director of other Oppenheimer funds.
Trustee (since 1998) Formerly Trustee (May 2000-2002) of Research
Age: 69 Foundation of AIMR (investment research, non-profit)
and Vice Chairman (October 1995-December 1997) of
OppenheimerFunds, Inc. (the Manager). Oversees 39
portfolios in the OppenheimerFunds complex.
Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced
Trustee (since 1998) Study, Princeton, N.J., a director (since 2001) of
Age: 64 GSI Lumonics, a trustee (since 1983) of Woodward
Academy, a Senior Advisor (since 2001) of The Andrew
W. Mellon Foundation. A member of: the National
Academy of Sciences (since 1979), American Academy of
Arts and Sciences (since 1995), American
Philosophical Society (since 1996) and Council on
Foreign Relations (since 2002). Formerly a director
of Bankers Trust New York Corporation (1994-1999).
Oversees 29 portfolios in the OppenheimerFunds
complex.
Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp.
Trustee (since 2002) (privately-held financial adviser); Managing Director
Age: 53 (since 2002) Carmona Motley, Inc. (privately-held
financial adviser); Formerly he held the following
positions: Managing Director (January 1998-December
2001), Carmona Motley Hoffman Inc. (privately-held
financial adviser); Managing Director (January
1992-December 1997), Carmona Motley & Co.
(privately-held financial adviser). Oversees 29
portfolios in the OppenheimerFunds complex.
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric
Trustee (since 1998) utility holding company) and Prime Retail, Inc. (real
Age: 76 estate investment trust); formerly a director of
Dominion Energy, Inc. (electric power and oil & gas
producer), President and Chief Executive Officer of
The Conference Board, Inc. (international economic
and business research) and a director of Lumbermens
Mutual Casualty Company, American Motorists Insurance
Company and American Manufacturers Mutual Insurance
Company. Oversees 29 portfolios in the
OppenheimerFunds complex.
Edward V. Regan, President, Baruch College, CUNY; a director of
Trustee (since 1998) RBAsset (real estate manager); a director of
Age: 73 OffitBank; formerly Trustee, Financial Accounting
Foundation (FASB and GASB), Senior Fellow of Jerome
Levy Economics Institute, Bard College, Chairman of
Municipal Assistance Corporation for the City of New
York, New York State Comptroller and Trustee of New
York State and Local Retirement Fund. Oversees 29
investment companies in the OppenheimerFunds complex.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search
Trustee (since 1998) Group, Inc. (corporate governance consulting and
Age: 71 executive recruiting); a life trustee of
International House (non-profit educational
organization), and a trustee (since 1996) of the
Greenwich Historical Society. Oversees 31 portfolios
in the OppenheimerFunds complex.
31 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
Donald W. Spiro, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January 1969-August
Board of Trustees, 1999) of the Manager. Oversees 29 portfolios in the
Trustee (since 1998) OppenheimerFunds complex.
Age: 77
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INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498
AND OFFICER Seventh Avenue, New York, NY 10018. Mr. Murphy serves
for an indefinite term, until his resignation, death
or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since
President and Trustee, June 2001) and President (since September 2000) of
Trustee (since 2001) the Manager; President and a director or trustee of
Age: 54 other Oppenheimer funds; President and a director
(since July 2001) of Oppenheimer Acquisition Corp.
(the Manager's parent holding company) and of
Oppenheimer Partnership Holdings, Inc. (a holding
company subsidiary of the Manager); a director (since
November 2001) of OppenheimerFunds Distributor, Inc.
(a subsidiary of the Manager); Chairman and a
director (since July 2001) of Shareholder Services,
Inc. and of Shareholder Financial Services, Inc.
(transfer agent subsidiaries of the Manager);
President and a director (since July 2001) of
OppenheimerFunds Legacy Program (a charitable trust
program established by the Manager); a director of
the investment advisory subsidiaries of the Manager:
OFI Institutional Asset Management, Inc. and
Centennial Asset Management Corporation (since
November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since
July 2001); President (since November 1, 2001) and a
director (since July 2001) of Oppenheimer Real Asset
Management, Inc.; a director (since November 2001) of
Trinity Investment Management Corp. and Tremont
Advisers, Inc. (investment advisory affiliates of the
Manager); Executive Vice President (since February
1997) of Massachusetts Mutual Life Insurance Company
(the Manager's parent company); a director (since
June 1995) of DLB Acquisition Corporation (a holding
company that owns the shares of David L. Babson &
Company, Inc.); formerly, Chief Operating Officer
(September 2000-June 2001) of the Manager; President
and trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual Institutional
Funds (open-end investment companies); a director
(September 1999-August 2000) of C.M. Life Insurance
Company; President, Chief Executive Officer and
director (September 1999-August 2000) of MML Bay
State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and Hibernia
Savings Bank (a wholly-owned subsidiary of Emerald
Isle Bancorp). Oversees 73 portfolios in the
OppenheimerFunds complex.
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OFFICERS The address of the Officers in the chart below is as
follows: for Mr. Zack, 498 Seventh Avenue, New York,
NY 10018, for Mr. Wixted, 6803 S. Tucson Way,
Centennial, CO 80112-3924. Each Officer serves for an
annual term or until his or her earlier resignation,
death or removal.
Brian W. Wixted, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer (since March 1999) of
Age: 43 HarbourView Asset Management Corporation, Shareholder
Services, Inc., Oppenheimer Real Asset Management
Corporation, Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiary of the Manager) (since May 2000) and OFI
Institutional Asset Management, Inc. (since November
2000) (offshore fund management subsidiaries of the
Manager); Treasurer and Chief Financial Officer
(since May 2000) of Oppenheimer Trust
32 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
Brian W. Wixted, Company (a trust company subsidiary of the Manager);
Continued Assistant Treasurer (since March 1999) of Oppenheimer
Acquisition Corp. and OppenheimerFunds Legacy Program
(since April 2000); formerly Principal and Chief
Operating Officer (March 1995-March 1999), Bankers
Trust Company-Mutual Fund Services Division. An
officer of 89 portfolios in the OppenheimerFunds
complex.
Robert G. Zack, Senior Vice President (since May 1985) and General
Secretary (since 2001) Counsel (since February 2002) of the Manager; General
Age: 54 Counsel and a director (since November 2001) of
OppenheimerFunds Distributor, Inc.; Senior Vice
President and General Counsel (since November 2001)
of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of
Oppenheimer Partnership Holdings, Inc.; Senior Vice
President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc.,
Shareholder Financial Services, Inc., OFI Private
Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel
(since November 2001) of Centennial Asset Management
Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant
Secretary and a director (since November 2001) of
OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy
Program; Secretary (since November 2001) of
Oppenheimer Acquisition Corp.; formerly Acting
General Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October 2001) of
the Manager; Assistant Secretary of Shareholder
Services, Inc. (May 1985-November 2001), Shareholder
Financial Services, Inc. (November 1989-November
2001); OppenheimerFunds International Ltd. and
OppenheimerFunds plc (October 1997-November 2001). An
officer of 89 portfolios in the OppenheimerFunds
complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
33 | OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
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 July 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.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)