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 811-9361
OPPENHEIMER TRINITY CORE 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
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended July 31, 2003, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's Discussion of Fund Performance. Over the 12-month period ended July
31, 2003, the Fund's performance was driven primarily by the stock market's
broadly based upward trend. The Fund not only participated in the market's rise,
it exceeded the market's performance in 7 out of the 11 sectors comprising the
Fund.
At the same time, the Fund remained true to its disciplined and systematic
investment process. It was essentially fully invested in equities at all times,
holding only stocks listed in the S&P 500 Index and maintaining portfolio sector
weights generally reflecting those of the Index. Our buy, hold and sell
decisions remained based on our computer-based modeling tools, which includes
more than 60 stock ranking and valuation techniques. Higher-ranked stocks were
purchase candidates, while lower-ranked stocks were either avoided or
underweighted.
The Fund achieved its best absolute performance in the financial services
area. Strong holdings included a variety of money-center and regional banks,
such as FleetBoston Financial Corp., Wells Fargo & Co. and Fifth Third Bancorp,
which benefited from a mortgage-refinancing boom fueled by low interest rates.
In another area of financial services, the Fund realized particularly good
returns from its significant investment in Capital One Financial Corp., a
consumer finance company that rebounded from unusually low valuations reached in
October 2002. Fortunate timing in the purchase and sale of investment banking
firm Morgan Stanley further enhanced the Fund's performance. These gains more
than compensated for disappointments generated by a small number of financial
services holdings, including Household International, Inc. and Freddie Mac
(Federal Home Loan Mortgage Corporation).
Although capital goods stocks declined in the S&P 500 Index, the Fund
delivered positive relative performance in the area on the strength of several
investment decisions. Returns benefited from our decision to hold a relatively
small position in General Electric Co., which reported weaker-than-expected
earnings. Mild advances in other investments, such as Rockwell Automation, Inc.,
enabled the Fund to post gains in the capital goods sector.
A small number of holdings in other areas also made significant contributions
to the good relative performance for the period. The Fund benefited from its
underweight position in Altria Group, Inc., the parent company of Phillip Morris
and Kraft Foods. An overweighted position in Nextel Communications, Inc., a
wireless communications utility that nearly tripled in value during the period,
boosted returns as well.
5 | OPPENHEIMER TRINITY CORE FUND
FUND PERFORMANCE DISCUSSION
On the other hand, investments in a small number of industry areas undermined
the Fund's relative performance. In technology, previously beaten-down stocks,
many with weak underlying fundamentals, provided some of the area's greatest
gains. Since such stocks generally failed to meet our investment criteria, they
were not held by the Fund when they rose. We also sold one holding, technology
consultancy firm Electronic Data Systems Corp., for a significant loss after the
company issued disappointing earnings reports toward the end of 2002. These
disappointments undercut strong performance from other technology holdings, such
as Intel Corp. and Micron Technology, Inc. Relatively weak performance among
consumer cyclical holdings, including Interpublic Group of Companies, Inc.; Best
Buy Co., Inc.; and Sears Roebuck & Co., also hurt the Fund's performance
compared to its benchmark, as did the bankruptcy of TXU Corp., an energy
holding.
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. The performance for Class A, B, C and Y shares is
measured from inception of each class on September 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 Standard & Poor's
500 Index, a broad-based index of equity securities widely regarded as a general
measure of the performance of the U.S. equity securities market. 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 the
index.
6 | OPPENHEIMER TRINITY CORE FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Core Fund (Class A)
Standard & Poor's 500 Index
[LINE CHART]
S & P 500
Value of Investment Index
Date In Fund Reinvested Monthly
09/01/1999 $9,425 $10,000
10/31/1999 9,161 10,341
01/31/2000 9,083 10,611
04/30/2000 9,631 11,084
07/31/2000 9,725 10,951
10/31/2000 9,517 10,970
01/31/2001 9,026 10,515
04/30/2001 8,526 9,647
07/31/2001 8,290 9,382
10/31/2001 7,299 8,240
01/31/2002 7,818 8,819
04/30/2002 7,553 8,430
07/31/2002 6,420 7,167
10/31/2002 6,166 6,996
01/31/2003 6,014 6,790
04/30/2003 6,468 7,309
07/31/2003 7,015 7,929
Average Annual Total Returns of Class A Shares of the Fund at 7/31/03*
1-Year 2.98% Since Inception -8.65%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Core Fund (Class B)
Standard & Poor's 500 Index
[LINE CHART]
S & P 500
Value of Investment Index
Date In Fund Reinvested Monthly
09/01/1999 $10,000 $10,000
10/31/1999 9,710 10,341
01/31/2000 9,600 10,611
04/30/2000 10,161 11,084
07/31/2000 10,231 10,951
10/31/2000 9,991 10,970
01/31/2001 9,450 10,515
04/30/2001 8,910 9,647
07/31/2001 8,639 9,382
10/31/2001 7,598 8,240
01/31/2002 8,119 8,819
04/30/2002 7,829 8,430
07/31/2002 6,647 7,167
10/31/2002 6,367 6,996
01/31/2003 6,197 6,790
04/30/2003 6,657 7,309
07/31/2003 6,982 7,929
Average Annual Total Returns of Class B Shares of the Fund at 7/31/03*
1-Year 3.28% Since Inception -8.76%
*See Notes on page 10 for further details.
The performance information for the Standard & Poor's 500 Index in the graphs
begins on 8/31/99 for Class A, Class B, Class C and Class Y and on 2/28/01 for
Class N.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 | OPPENHEIMER TRINITY CORE FUND
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Core Fund (Class C)
Standard & Poor's 500 Index
[LINE CHART]
S & P 500
Value of Investment Index
Date In Fund Reinvested Monthly
09/01/1999 $10,000 $10,000
10/31/1999 9,710 10,341
01/31/2000 9,600 10,611
04/30/2000 10,170 11,084
07/31/2000 10,240 10,951
10/31/2000 10,010 10,970
01/31/2001 9,460 10,515
04/30/2001 8,920 9,647
07/31/2001 8,650 9,382
10/31/2001 7,610 8,240
01/31/2002 8,130 8,819
04/30/2002 7,840 8,430
07/31/2002 6,660 7,167
10/31/2002 6,380 6,996
01/31/2003 6,200 6,790
04/30/2003 6,670 7,309
07/31/2003 7,210 7,929
Average Annual Total Returns of Class C Shares of the Fund at 7/31/03*
1-Year 7.26% Since Inception -8.01%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Core Fund (Class N)
Standard & Poor's 500 Index
[LINE CHART]
S & P 500
Value of Investment Index
Date In Fund Reinvested Monthly
03/01/2001 $10,000 $10,000
04/30/2001 10,146 10,094
07/31/2001 9,843 9,817
10/31/2001 8,661 8,621
01/31/2002 9,269 9,227
04/30/2002 8,965 8,821
07/31/2002 7,615 7,499
10/31/2002 7,312 7,320
01/31/2003 7,132 7,104
04/30/2003 7,672 7,647
07/31/2003 8,313 8,296
Average Annual Total Returns of Class N Shares of the Fund at 7/31/03* 1-Year
8.16% Since Inception -7.36%
*See Notes on page 10 for further details.
8 | OPPENHEIMER TRINITY CORE FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Trinity Core Fund (Class Y)
Standard & Poor's 500 Index
[LINE CHART]
S & P 500
Value of Investment Index
Date In Fund Reinvested Monthly
09/01/1999 $10,000 $10,000
10/31/1999 9,730 10,341
01/31/2000 9,645 10,611
04/30/2000 10,226 11,084
07/31/2000 10,326 10,951
10/31/2000 10,116 10,970
01/31/2001 9,594 10,515
04/30/2001 9,264 9,647
07/31/2001 9,013 9,382
10/31/2001 7,950 8,240
01/31/2002 8,522 8,819
04/30/2002 8,241 8,430
07/31/2002 7,018 7,167
10/31/2002 6,757 6,996
01/31/2003 6,597 6,790
04/30/2003 7,108 7,309
07/31/2003 7,710 7,929
Average Annual Total Returns of Class Y Shares of the Fund at 7/31/03*
1-Year 9.86% Since Inception -6.43%
The performance information for the Standard & Poor's 500 Index in the graphs
begins on 8/31/99 for Class A, Class B, Class C and Class Y and on 2/28/01 for
Class N.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER TRINITY CORE 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 9/1/99. 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 9/1/99. Unless
otherwise noted, Class B total returns are shown net of the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception). Class
B shares are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 9/1/99. 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 9/1/99. 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 CORE FUND
STATEMENT OF INVESTMENTS July 31, 2003
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Common Stocks--96.9%
- --------------------------------------------------------------------------------
Consumer Discretionary--14.3%
- --------------------------------------------------------------------------------
Auto Components--1.0%
Johnson Controls, Inc. 1,000 $ 96,610
- --------------------------------------------------------------------------------
Automobiles--1.9%
Ford Motor Co. 10,900 120,554
- --------------------------------------------------------------------------------
General Motors Corp. 1,900 71,117
----------
191,671
- --------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--1.3%
Harrah's Entertainment,
Inc. 1 1,500 65,475
- --------------------------------------------------------------------------------
Wendy's International,
Inc. 2,000 58,780
----------
124,255
- --------------------------------------------------------------------------------
Household Durables--1.4%
Black & Decker Corp. 1,100 44,946
- --------------------------------------------------------------------------------
Centex Corp. 900 65,313
- --------------------------------------------------------------------------------
Pulte Homes, Inc. 500 30,560
----------
140,819
- --------------------------------------------------------------------------------
Internet & Catalog Retail--1.2%
eBay, Inc. 1 1,100 117,920
- --------------------------------------------------------------------------------
Leisure Equipment & Products--0.7%
Eastman Kodak Co. 2,400 66,312
- --------------------------------------------------------------------------------
Media--3.0%
AOL Time Warner, Inc. 1 5,500 84,865
- --------------------------------------------------------------------------------
Knight-Ridder, Inc. 700 48,041
- --------------------------------------------------------------------------------
Omnicom Group, Inc. 1,100 81,268
- --------------------------------------------------------------------------------
Tribune Co. 1,800 84,996
----------
299,170
- --------------------------------------------------------------------------------
Specialty Retail--3.2%
AutoZone, Inc. 1 900 74,934
- --------------------------------------------------------------------------------
Gap, Inc. (The) 5,400 97,146
- --------------------------------------------------------------------------------
Sherwin-Williams Co. 2,000 60,000
- --------------------------------------------------------------------------------
TJX Cos., Inc. (The) 4,100 79,745
----------
311,825
- --------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.6%
Liz Claiborne, Inc. 1,800 61,974
- --------------------------------------------------------------------------------
Consumer Staples--8.5%
- --------------------------------------------------------------------------------
Beverages--1.7%
Anheuser-Busch Cos., Inc. 2,800 145,096
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Beverages Continued
Coca-Cola Co. (The) 500 $ 22,485
----------
167,581
- --------------------------------------------------------------------------------
Food & Staples Retailing--2.9%
Albertson's, Inc. 3,500 66,010
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 3,000 167,730
- --------------------------------------------------------------------------------
Winn-Dixie Stores, Inc. 4,400 50,424
----------
284,164
- --------------------------------------------------------------------------------
Food Products--0.4%
General Mills, Inc. 1,000 45,870
- --------------------------------------------------------------------------------
Household Products--3.2%
Colgate-Palmolive Co. 2,200 120,120
- --------------------------------------------------------------------------------
Procter & Gamble
Corp. (The) 2,200 193,314
----------
313,434
- --------------------------------------------------------------------------------
Tobacco--0.3%
UST, Inc. 800 26,600
- --------------------------------------------------------------------------------
Energy--4.3%
- --------------------------------------------------------------------------------
Oil & Gas--4.3%
Anadarko Petroleum
Corp. 1,400 61,320
- --------------------------------------------------------------------------------
ChevronTexaco Corp. 2,300 165,853
- --------------------------------------------------------------------------------
ConocoPhillips 600 31,404
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 4,800 170,784
----------
429,361
- --------------------------------------------------------------------------------
Financials--19.4%
- --------------------------------------------------------------------------------
Commercial Banks--4.3%
Bank of America Corp. 400 33,028
- --------------------------------------------------------------------------------
BB&T Corp. 1,600 55,840
- --------------------------------------------------------------------------------
Charter One Financial, Inc. 1,700 55,284
- --------------------------------------------------------------------------------
National City Corp. 1,900 62,605
- --------------------------------------------------------------------------------
U.S. Bancorp 3,500 85,820
- --------------------------------------------------------------------------------
Washington Mutual, Inc. 3,300 130,284
----------
422,861
- --------------------------------------------------------------------------------
Diversified Financial Services--4.6%
Citigroup, Inc. 4,500 201,600
- --------------------------------------------------------------------------------
Lehman Brothers
Holdings, Inc. 1,500 94,905
- --------------------------------------------------------------------------------
Morgan Stanley 3,400 161,296
----------
457,801
11 | OPPENHEIMER TRINITY CORE FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Insurance--7.2%
ACE Ltd. 2,400 $ 79,176
- --------------------------------------------------------------------------------
Allstate Corp. 900 34,227
- --------------------------------------------------------------------------------
American International
Group, Inc. 4,500 288,900
- --------------------------------------------------------------------------------
MBIA, Inc. 500 25,310
- --------------------------------------------------------------------------------
Safeco Corp. 700 26,061
- --------------------------------------------------------------------------------
St. Paul Cos., Inc. 1,700 59,789
- --------------------------------------------------------------------------------
Torchmark Corp. 1,500 60,960
- --------------------------------------------------------------------------------
Travelers Property
Casualty Corp., Cl. B 2,600 41,964
- --------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 1,200 95,400
----------
711,787
- --------------------------------------------------------------------------------
Real Estate--0.9%
Apartment Investment &
Management Co. 400 15,764
- --------------------------------------------------------------------------------
Simon Property
Group, Inc. 1,800 76,230
----------
91,994
- --------------------------------------------------------------------------------
Thrifts & Mortgage Finance--2.4%
Countrywide Financial
Corp. 1,200 80,172
- --------------------------------------------------------------------------------
Fannie Mae 2,400 153,696
----------
233,868
- --------------------------------------------------------------------------------
Health Care--15.4%
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies--0.9%
St. Jude Medical, Inc. 1 1,700 91,205
- --------------------------------------------------------------------------------
Health Care Providers & Services--4.9%
Aetna, Inc. 1,400 86,268
- --------------------------------------------------------------------------------
Cardinal Health, Inc. 2,000 109,500
- --------------------------------------------------------------------------------
Cigna Corp. 700 32,746
- --------------------------------------------------------------------------------
Humana, Inc. 1 4,700 82,344
- --------------------------------------------------------------------------------
Quintiles Transnational
Corp. 1 2,900 39,875
- --------------------------------------------------------------------------------
UnitedHealth Group, Inc. 2,500 130,225
----------
480,958
- --------------------------------------------------------------------------------
Pharmaceuticals--9.6%
Abbott Laboratories 4,000 157,000
- --------------------------------------------------------------------------------
Eli Lilly & Co. 800 52,672
- --------------------------------------------------------------------------------
Forest Laboratories, Inc. 1 1,700 81,396
- --------------------------------------------------------------------------------
Johnson & Johnson 5,100 264,129
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Pharmaceuticals Continued
Merck & Co., Inc. 3,800 $ 210,064
- --------------------------------------------------------------------------------
Pfizer, Inc. 5,700 190,152
----------
955,413
- --------------------------------------------------------------------------------
Industrials--7.9%
- --------------------------------------------------------------------------------
Building Products--0.4%
American Standard
Cos., Inc. 1 600 45,840
- --------------------------------------------------------------------------------
Industrial Conglomerates--5.4%
3M Co. 900 126,180
- --------------------------------------------------------------------------------
General Electric Co. 14,300 406,692
----------
532,872
- --------------------------------------------------------------------------------
Machinery--0.8%
Dover Corp. 2,200 80,542
- --------------------------------------------------------------------------------
Road & Rail--1.3%
CSX Corp. 1,600 50,080
- --------------------------------------------------------------------------------
Norfolk Southern Corp. 4,000 76,920
----------
127,000
- --------------------------------------------------------------------------------
Information Technology--16.8%
- --------------------------------------------------------------------------------
Communications Equipment--1.1%
Cisco Systems, Inc. 1 2,400 46,848
- --------------------------------------------------------------------------------
JDS Uniphase Corp. 1 6,100 18,361
- --------------------------------------------------------------------------------
Motorola, Inc. 5,000 45,200
----------
110,409
- --------------------------------------------------------------------------------
Computers & Peripherals--5.3%
Dell, Inc. 1 5,500 185,240
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 1,800 38,106
-------------------------------------------------------------------------------
International Business
Machines Corp. 2,600 211,250
- --------------------------------------------------------------------------------
Lexmark International,
Inc., Cl. A 1 1,200 77,004
- --------------------------------------------------------------------------------
NCR Corp. 1 500 13,785
- --------------------------------------------------------------------------------
Sun Microsystems, Inc. 1 400 1,496
----------
526,881
- --------------------------------------------------------------------------------
IT Services--2.2%
Computer Sciences
Corp. 1 1,300 52,741
- --------------------------------------------------------------------------------
First Data Corp. 2,400 90,624
- --------------------------------------------------------------------------------
Unisys Corp. 1 5,500 67,430
----------
210,795
12 | OPPENHEIMER TRINITY CORE FUND
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--3.7%
Intel Corp. 11,700 $ 291,915
- --------------------------------------------------------------------------------
Micron Technology, Inc. 1 5,200 76,128
----------
368,043
- --------------------------------------------------------------------------------
Software--4.5%
Microsoft Corp. 14,800 390,720
- --------------------------------------------------------------------------------
Novell, Inc. 1 7,400 26,270
- --------------------------------------------------------------------------------
Oracle Corp. 1 2,100 25,200
----------
442,190
- --------------------------------------------------------------------------------
Materials--3.1%
- --------------------------------------------------------------------------------
Chemicals--1.7%
Dow Chemical Co. 3,900 137,670
- --------------------------------------------------------------------------------
Rohm & Haas Co. 800 28,296
----------
165,966
- --------------------------------------------------------------------------------
Construction Materials--0.6%
Vulcan Materials Co. 1,500 60,330
- --------------------------------------------------------------------------------
Containers & Packaging--0.6%
Ball Corp. 1,200 59,640
- --------------------------------------------------------------------------------
Metals & Mining--0.2%
Worthington Industries,
Inc. 1,400 20,580
- --------------------------------------------------------------------------------
Telecommunication Services--4.7%
- --------------------------------------------------------------------------------
Diversified Telecommunication Services--3.7%
Citizens Communications
Co. 1 4,900 58,065
- --------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 7,400 104,488
- --------------------------------------------------------------------------------
Verizon Communications,
Inc. 5,800 202,188
----------
364,741
- --------------------------------------------------------------------------------
Wireless Telecommunication Services--1.0%
AT&T Corp. 3,700 78,662
- --------------------------------------------------------------------------------
Nextel Communications,
Inc., Cl. A 1 1,500 27,390
----------
106,052
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Utilities--2.5%
- --------------------------------------------------------------------------------
Electric Utilities--1.8%
Constellation Energy
Group, Inc. 2,000 $ 66,800
- --------------------------------------------------------------------------------
FirstEnergy Corp. 2,300 79,327
- --------------------------------------------------------------------------------
TXU Corp. 1,700 34,289
----------
180,416
- --------------------------------------------------------------------------------
Gas Utilities--0.7%
Sempra Energy 2,328 64,788
----------
Total Common Stocks
(Cost $8,826,404) 9,590,538
Principal
Amount
- --------------------------------------------------------------------------------
Joint Repurchase Agreements--3.2%
Undivided interest of 0.03% in joint repurchase
agreement (Principal Amount/Market Value
$1,000,213,000, with a maturity value of
$1,000,242,451) with PaineWebber, Inc., 1.06%,
dated 7/31/03, to be repurchased at $314,009 on
8/1/03, collateralized by Federal National
Mortgage Assn., 5%--6%, 6/1/18--5/1/33, with a
value of $1,022,331,088
(Cost $314,000) $314,000 314,000
- --------------------------------------------------------------------------------
Total Investments, at Value
(Cost $9,140,404) 100.1% 9,904,538
- --------------------------------------------------------------------------------
Liabilities in Excess of
Other Assets (0.1) (12,690)
----------------------
Net Assets 100.0% $9,891,848
======================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER TRINITY CORE FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $9,140,404)--see
accompanying statement $ 9,904,538
- --------------------------------------------------------------------------------
Cash 77
- --------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 11,735
Investments sold 4,379
Shares of beneficial interest sold 1,120
Other 478
------------
Total assets 9,922,327
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Legal, auditing and other professional fees 11,630
Shareholder reports 9,315
Shares of beneficial interest redeemed 3,323
Distribution and service plan fees 1,926
Transfer and shareholder servicing agent fees 1,568
Trustees' compensation 1,123
Registration and filing fees 935
Other 659
------------
Total liabilities 30,479
- --------------------------------------------------------------------------------
Net Assets $ 9,891,848
============
- --------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $12,096,118
- --------------------------------------------------------------------------------
Accumulated net investment loss (1,080)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (2,967,324)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 764,134
------------
Net Assets $ 9,891,848
============
14 | OPPENHEIMER TRINITY CORE FUND
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$4,943,491 and 665,395 shares of beneficial
interest outstanding) $7.43
Maximum offering price per share (net asset
value plus sales charge of
5.75% of offering price) $7.88
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price per share
(based on net assets of $2,308,815
and 321,011 shares of beneficial interest outstanding) $7.19
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $1,748,928 and 242,497 shares of beneficial interest
outstanding) $7.21
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $731,904 and 99,058 shares of beneficial interest
outstanding) $7.39
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $158,710 and 20,636 shares of beneficial
interest outstanding) $7.69
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER TRINITY CORE FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Dividends $ 163,040
- --------------------------------------------------------------------------------
Interest 6,852
------------
Total investment income 169,892
- --------------------------------------------------------------------------------
Expenses
Management fees 66,789
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 9,866
Class B 21,334
Class C 15,319
Class N 2,949
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 32,799
Class B 19,053
Class C 9,080
Class N 950
- --------------------------------------------------------------------------------
Shareholder reports 38,971
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 13,116
- --------------------------------------------------------------------------------
Trustees' compensation 524
- --------------------------------------------------------------------------------
Custodian fees and expenses 334
- --------------------------------------------------------------------------------
Other 8,608
------------
Total expenses 239,692
Less reduction to custodian expenses (14)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class A (18,801)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class B (12,697)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class C (4,205)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (141)
------------
Net expenses 203,834
- --------------------------------------------------------------------------------
Net Investment Loss (33,942)
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (1,319,414)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 2,177,734
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 824,378
============
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER TRINITY CORE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- ------------------------------------------------------------------------------------------
Operations
Net investment loss $ (33,942) $ (63,886)
- ------------------------------------------------------------------------------------------
Net realized loss (1,319,414) (754,452)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) 2,177,734 (1,279,863)
-----------------------------
Net increase (decrease) in net assets
resulting from operations 824,378 (2,098,201)
- ------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial
interest transactions:
Class A 261,672 753,354
Class B 376,428 805,690
Class C 276,059 429,039
Class N 554,400 105,713
Class Y 18,177 65,834
- ------------------------------------------------------------------------------------------
Net Assets
Total increase 2,311,114 61,429
- ------------------------------------------------------------------------------------------
Beginning of period 7,580,734 7,519,305
-----------------------------
End of period [including accumulated net investment
loss of $1,080 and $930, respectively] $9,891,848 $7,580,734
=============================
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER TRINITY CORE FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31 2003 2002 2001 2000 1
- ------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.80 $8.78 $10.30 $ 10.00
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.01) (.04) (.04) .02
Net realized and unrealized gain (loss) .64 (1.94) (1.48) .30
---------------------------------------------
Total from investment operations .63 (1.98) (1.52) .32
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- 2
Dividends in excess of net investment income -- -- -- (.02)
---------------------------------------------
Total dividends and/or distributions to shareholders -- -- -- (.02)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.43 $6.80 $8.78 $10.30
=============================================
- ------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 9.27% (22.55)% (14.76)% 3.18%
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $4,943 $4,270 $4,737 $5,918
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,510 $4,625 $5,173 $3,959
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.05)% (0.52)% (0.40)% 0.14%
Expenses, gross 2.39% 2.13% 1.68% 1.46%
Expenses, net 1.97% 5,6 1.95% 5,6 1.68% 5 1.41% 5,7
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 228% 105% 164% 195%
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Less than $0.005 per share.
3. 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. Sales
charges are not reflected in the total returns. 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.
4. Annualized for periods of less than one full year.
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.
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER TRINITY CORE FUND
Class B Year Ended July 31 2003 2002 2001 2000 1
- ------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.64 $ 8.63 $10.22 $ 10.00
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) (.06) (.10) (.02)
Net realized and unrealized gain (loss) .59 (1.93) (1.49) .25
---------------------------------------------
Total from investment operations .55 (1.99) (1.59) .23
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- 2
Dividends in excess of net investment income -- -- -- (.01)
---------------------------------------------
Total dividends and/or distributions to shareholders -- -- -- (.01)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.19 $6.64 $8.63 $10.22
=============================================
- ------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 8.28% (23.06)% (15.56)% 2.31%
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,309 $1,770 $1,434 $1,160
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,135 $1,736 $1,388 $ 386
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.81)% (1.27)% (1.32)% (0.73)%
Expenses, gross 3.33% 2.91% 2.57% 2.33%
Expenses, net 2.74% 5,6 2.73% 5,6 2.57% 5 2.28% 5,7
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 228% 105% 164% 195%
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Less than $0.005 per share.
3. 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. Sales
charges are not reflected in the total returns. 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.
4. Annualized for periods of less than one full year.
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.
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER TRINITY CORE FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended July 31 2003 2002 2001 2000 1
- ------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.66 $8.65 $10.24 $ 10.00
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) (.07) (.10) (.03)
Net realized and unrealized gain (loss) .59 (1.92) (1.49) .27
---------------------------------------------
Total from investment operations .55 (1.99) (1.59) .24
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- 2
Dividends in excess of net investment income -- -- -- --
---------------------------------------------
Total dividends and/or distributions to shareholders -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.21 $6.66 $8.65 $10.24
=============================================
- ------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 8.26% (23.01)% (15.53)% 2.40%
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,749 $1,337 $1,262 $989
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,533 $1,348 $1,215 $322
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.87)% (1.29)% (1.29)% (0.73)%
Expenses, gross 3.03% 2.90% 2.59% 2.33%
Expenses, net 2.76% 5,6 2.72% 5,6 2.59% 5 2.28% 5,7
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 228% 105% 164% 195%
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Less than $0.005 per share.
3. 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. Sales
charges are not reflected in the total returns. 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.
4. Annualized for periods of less than one full year.
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.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER TRINITY CORE FUND
Class N Year Ended July 31 2003 2002 2000 1
- ------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $6.77 $8.75 $8.89
- ------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.03) (.05) (.05)
Net realized and unrealized gain (loss) .65 (1.93) (.09)
---------------------------------
Total from investment operations .62 (1.98) (.14)
- ------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- --
Dividends in excess of net investment income -- -- --
---------------------------------
Total dividends and/or distributions to shareholders -- -- --
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.39 $6.77 $8.75
=================================
- ------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 9.16% (22.63)% (1.58)%
- ------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $732 $82 $1
- ------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $592 $71 $1
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.26)% (0.70)% (1.43)%
Expenses, gross 2.10% 2.46% 1.75%
Expenses, net 2.08% 4,5 2.28% 4,5 1.75% 4
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate 228% 105% 164%
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. Sales
charges are not reflected in the total returns. 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.
21 | OPPENHEIMER TRINITY CORE FUND
FINANCIAL HIGHLIGHTS Continued
Class Y Year Ended July 31 2003 2002 2001 2000 1
- ------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $7.00 $8.99 $10.30 $10.00
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 (.03) (.02) .05
Net realized and unrealized gain (loss) .68 (1.96) (1.29) .28
---------------------------------------------
Total from investment operations .69 (1.99) (1.31) .33
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- 2
Dividends in excess of net investment income -- -- -- (.03)
---------------------------------------------
Total dividends and/or distributions to shareholders -- -- -- (.03)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.69 $7.00 $8.99 $10.30
=============================================
- ------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 9.86% (22.14)% (12.72)% 3.26%
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $159 $121 $ 86 $1
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $142 $102 $160 $1
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.44% 0.04% 0.07% 0.26%
Expenses, gross 1.44% 3.80% 2.35% 5 1.34%
Expenses, net 1.44% 6 1.43% 6,7 1.30% 6 1.29% 6,7
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 228% 105% 164% 195%
1. For the period from September 1, 1999 (commencement of operations) to July
31, 2000.
2. Less than $0.005 per share.
3. 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. Sales
charges are not reflected in the total returns. 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.
4. Annualized for periods of less than one full year.
5. Added since July 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
6. Reduction to custodian expenses less than 0.01%.
7. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER TRINITY CORE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Trinity Core 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 long-term growth of capital. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Manager
has entered into a sub-advisory agreement with Trinity Investment Management
Corporation, a related party to the Manager.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class
A shares are sold at their offering price, which is normally net asset value
plus a front-end sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges. Earnings, net assets and net asset value per
share may differ by minor amounts due to each class having its own expenses
directly attributable to that class. Classes A, B, C and N have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. Class B shares will automatically convert to Class A shares six years
after the date of purchase.
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.
23 | OPPENHEIMER TRINITY CORE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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, however, during the year ended July 31, 2003, the Fund paid federal
excise tax of $27.
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 Appreciation Based
Net Undistributed Accumulated on Cost of Securities
Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2,3 Tax Purposes
----------------------------------------------------------------------------------------------
$-- $-- $2,668,598 $465,409
1. As of July 31, 2003, the Fund had $2,133,584 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
----------------------
2008 $ 41,424
2009 111,626
2010 969,855
2011 1,010,679
----------
Total $2,133,584
==========
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 $535,014 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.
24 | OPPENHEIMER TRINITY CORE FUND
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 Tax Return Investment
Loss Gain (Loss) of Capital Loss
------------------------------------------------------
$33,792 $-- $-- $33,765
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 $9,439,129
==========
Gross unrealized appreciation $ 722,459
Gross unrealized depreciation (257,050)
----------
Net unrealized appreciation $ 465,409
==========
- --------------------------------------------------------------------------------
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 $185
and payments of $34 were made to retired trustees, resulting in an accumulated
liability of $1,081 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.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
25 | OPPENHEIMER TRINITY CORE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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:
Year Ended July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
Class A
Sold 1,257,391 $ 7,963,498 357,407 $ 2,895,526
Redeemed (1,219,581) (7,701,826) (269,496) (2,142,172)
------------------------------------------------------------------
Net increase 37,810 $ 261,672 87,911 $ 753,354
==================================================================
- --------------------------------------------------------------------------------------------------
Class B
Sold 1,184,595 $ 7,273,141 170,545 $ 1,354,469
Redeemed (1,130,164) (6,896,713) (70,151) (548,779)
------------------------------------------------------------------
Net increase 54,431 $ 376,428 100,394 $ 805,690
==================================================================
- --------------------------------------------------------------------------------------------------
Class C
Sold 258,402 $ 1,636,440 118,519 $ 920,001
Redeemed (216,854) (1,360,381) (63,389) (490,962)
------------------------------------------------------------------
Net increase 41,548 $ 276,059 55,130 $ 429,039
==================================================================
- --------------------------------------------------------------------------------------------------
Class N
Sold 150,241 $ 969,473 42,122 $ 349,796
Redeemed (63,326) (415,073) (30,091) (244,083)
------------------------------------------------------------------
Net increase 86,915 $ 554,400 12,031 $ 105,713
==================================================================
- --------------------------------------------------------------------------------------------------
Class Y
Sold 14,704 $ 101,579 10,433 $ 87,052
Redeemed (11,414) (83,402) (2,604) (21,218)
------------------------------------------------------------------
Net increase 3,290 $ 18,177 7,829 $ 65,834
==================================================================
- --------------------------------------------------------------------------------
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 $21,553,158
and $20,226,791, respectively.
26 | OPPENHEIMER TRINITY CORE FUND
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 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 in excess of
$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 $21,572 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 $28,967 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 $14,663 $4,186 $2,413 $22,087 $6,436 $9,090
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
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- -------------------------------------------------------------------------------------------------------------
July 31, 2003 $158 $4,817 $380 $3,014
27 | OPPENHEIMER TRINITY CORE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
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 $9,866, all of which were paid by the Distributor to
recipients, which included $289 retained by the Distributor and $484 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 $21,334 $17,615 $89,063 3.86%
Class C Plan 15,319 8,031 31,566 1.80
Class N Plan 2,949 2,744 15,119 2.07
- --------------------------------------------------------------------------------
5. Fund Reorganization
On August 29, 2003, Shareholders of Oppenheimer Trinity Core Fund approved a
fund reorganization, whereby Shareholders received shares of Oppenheimer Main
Street Fund. The reorganization occurred on September 4, 2003.
28 | OPPENHEIMER TRINITY CORE FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Trinity Core Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Trinity Core 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 three years in the
period then ended, and the period from September 1, 1999 (commencement of
operations) to July 31, 2000. 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 and brokers or by other appropriate auditing
procedures where replies from brokers were not received. 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 Core 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 three years in the period then ended, and the period from September 1,
1999 (commencement of operations) to July 31, 2000, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2003
29 | OPPENHEIMER TRINITY CORE 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 CORE FUND
TRUSTEES AND OFFICERS Unaudited
- -----------------------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age Held by Trustee; Number of Portfolios in Fund Complex Currently Overseen by
Trustee
INDEPENDENT The address of each Trustee in the chart below is 6803 S. Tucson Way,
TRUSTEES 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 firm). Other directorships:
Chairman of the Board Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002);
of Trustees (since 2003); formerly a director of Caterpillar, Inc. (1993-December 2002). Oversees 29
Trustee (since 1999) portfolios in the OppenheimerFunds complex.
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May
Trustee (since 1999) 2000-2002) of Research Foundation of AIMR (investment research, non-profit) and
Age: 69 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 Study, Princeton, N.J., a
Trustee (since 1999) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 64 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. (privately-held financial
Trustee (since 2002) adviser); Managing Director (since 2002) Carmona Motley, Inc. (privately-held
Age: 53 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 utility holding company) and
Trustee (since 1999) Prime Retail, Inc. (real estate investment trust); formerly a director of
Age: 76 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 RBAsset (real estate manager); a
Trustee (since 1999) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 73 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 Group, Inc. (corporate
Trustee (since 1999) governance consulting and executive recruiting); a life trustee of International
Age: 71 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 CORE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the (January 1969-August 1999) of the Manager. Oversees 29 portfolios in the
Board of Trustees, OppenheimerFunds complex.
Trustee (since 1999)
Age: 77
- ----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New York, NY
AND OFFICER 10018. Mr. Murphy serves for an indefinite term, until his resignation, death
or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Trustee, (since September 2000) of the Manager; President and a director or trustee of
Trustee (since 2001) other Oppenheimer funds; President and a director (since July 2001) of
Age: 54 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.
- ---------------------------------------------------------------------------------------------------------------------------
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 1999) of the Manager; Treasurer
Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder
Age: 43 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 CORE FUND
Brian W. Wixted, Company (a trust company subsidiary of the Manager); Assistant Treasurer (since
Continued 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 Counsel (since February 2002)
Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of
Age: 54 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 CORE 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)