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 811-02306
OPPENHEIMER 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: August 31
Date of reporting period: September 1, 2002 - August 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 August 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, the Fund
produced a total return of 5.70% for Class A shares at net asset value. This
compares with a 12.06% total return for the Fund's benchmark, the S&P 500 Index,
during the same period.
For the fiscal year, the Fund delivered modest gains, but did lag its
benchmark. The Fund's performance was driven primarily by the stock market's
broadly based upward trend. Performance relative to the benchmark was adversely
affected by the abrupt timing of the rally, and by the disproportionate strength
of many speculative, low-quality issues, which the Fund's disciplined investment
approach generally led us to avoid during the period. For instance, the
beaten-down technology sector helped lead the market's rally. For the majority
of the period, we remained underweight this sector, as we did not find many
investments that fit our criteria. While this did change by the end of the
fiscal year, our smaller tech allocation hurt the Fund's performance versus the
S&P 500 during the period.
The Fund's investment strategy focuses on companies that are in our opinion
generating real growth by increasing sales and revenues, not those just
experiencing a temporary rise in earnings from cost cutting methods.
Specifically, we target companies currently producing greater-than-average
earnings and revenue growth that we believe are sustainable. This approach helps
us to control some of the risks implicit in growth-oriented stock investing.
During the reporting period, we found the greatest number of investment
opportunities meeting these criteria in health care. We invested from 35% to 40%
of the Fund's assets in various medical product, biotechnology, pharmaceutical
and service stocks, significantly more than the health care weighting of the S&P
500 Index. However, health care stocks, for the most part outside of
biotechnology, are generally lower beta, defensive stocks. As higher-beta stocks
led the markets rally during the period, our overweight in health care hurt
performance overall versus the benchmark.
Our biotechnology holdings generally delivered exceptionally strong
performance during the period, supported by a rapidly increasing number of
approved products with wide applications. Top-performing holdings included
Genentech, Inc., which announced positive test results for Avistin, a new
cancer-fighting drug; Amgen, Inc., which has emerged as a leading developer of
biotechnology products; and Gilead Sciences, Inc., which is building a
profitable franchise in the area of HIV treatment. The Fund's performance was
also boosted by its investments in Teva Pharmaceutical Industries Ltd. and
Stryker Corp. Teva is, in our opinion, a well-managed generic drug developer
that is taking advantage of various expiring drug patents and an expedited
government approval process for new generic equivalents. Stryker's revenues are
growing with the success of its specialty medical products designed for joint
replacement and reconstruction procedures.
However, these gains were undermined by disappointments in other health care
holdings. Specifically, Tenet Healthcare Corp., a hospital management company,
experienced accounting problems in the fall of 2002 that caused the stocks to
decline sharply and led
5 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
us to sell the Fund's holdings. In addition, AmerisourceBergen Corp., a major
pharmaceutical company, encountered a slowdown in sales and earnings that drove
the stock price lower and led us to sell.
The Fund also invested a relatively large percentage of assets in consumer
discretionary stocks. While the overweighting of this area boosted the Fund's
overall returns, our consumer-relate holdings included investments that
contributed and detracted from the Fund's performance during the period.
Retailer Bed Bath & Beyond, Inc. provided relatively strong returns, as did
satellite entertainment provider EchoStar Communications Corp. and internet
commerce company InterActiveCorp. On the other hand, Kohl's Corp. and
Harley-Davidson, Inc., two long-time holdings, encountered various short- to
intermediate-term difficulties that hurt stock prices and prompted us to trim
the Fund's holdings. We sold the Fund's position in another holding, Concord
EFS, Inc., an electronic transaction processor, that lost ground due to
declining growth.
As the period progressed, we found an increasing number of investment
opportunities among stocks of technology companies reporting improved earnings
and revenues. As a result, we increased the Fund's technology holdings from
roughly 7% of the portfolio in September 2002 to over 20% by August 31, 2003.
While these investments did not have a material impact on Fund performance
during the reporting period, we believe they position the Fund to benefit from a
continuation of the steady recovery the U.S. economy appears to be experiencing.
Although we have slightly reduced the Fund's health care investments, we
generally remain enthusiastic regarding the growth prospects for many
biotechnology and generic drug companies, which make up a significant proportion
of holdings. 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 August 31, 2003. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from the inception of the Class on November 1, 1995 and
in the case of Class Y shares, from the inception of the Class on June 1, 1994.
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, the applicable contingent
deferred sales charge on Class B, Class C and Class N shares, and reinvestment
of all dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 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 shows the effect of taxes. The Fund's performance reflects the effect 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 are not limited to the securities in the index shown.
6 | OPPENHEIMER GROWTH FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class A)
S&P 500 Index
[LINE CHART]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Value of Investment S&P 500 Index
Date In Fund Reinvested Monthly
- ---- ------- ------------------
06/30/1993 9,425 10,000
09/30/1993 9,611 10,258
12/31/1993 9,819 10,495
03/31/1994 9,606 10,098
06/30/1994 9,450 10,140
09/30/1994 10,081 10,635
12/31/1994 10,052 10,633
03/31/1995 11,022 11,667
06/30/1995 12,233 12,779
09/30/1995 13,258 13,794
12/31/1995 13,566 14,624
03/31/1996 14,376 15,409
06/30/1996 14,801 16,099
08/31/1996 1 14,917 15,714
11/30/1996 16,887 18,343
02/28/1997 17,520 19,252
05/31/1997 18,582 20,760
08/31/1997 20,142 22,097
11/30/1997 19,877 23,571
02/28/1998 21,137 25,988
05/31/1998 21,397 27,124
08/31/1998 17,802 23,892
11/30/1998 20,962 29,154
02/28/1999 22,142 31,123
05/31/1999 23,035 32,829
08/31/1999 24,813 33,402
11/30/1999 28,194 35,245
02/29/2000 37,716 34,773
05/31/2000 32,426 36,265
08/31/2000 41,462 38,849
11/30/2000 28,480 33,756
02/28/2001 24,997 31,923
05/31/2001 23,331 32,440
08/31/2001 20,783 29,379
11/30/2001 21,246 29,633
02/28/2002 20,259 28,888
05/31/2002 19,616 27,952
08/31/2002 17,299 24,095
11/30/2002 16,712 24,741
02/28/2003 15,411 22,339
05/31/2003 17,406 25,697
08/31/2003 18,286 27,000
Average Annual Total Returns of Class A Shares of the Fund at 8/31/03 2
1-Year -0.37% 5-Year -0.65% 10-Year 6.20%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class B)
S&P 500 Index
[LINE CHART]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Value of Investment S&P 500 Index
Date In Fund Reinvested Monthly
- ---- ------- ------------------
08/31/1993 10,000 10,000
09/30/1993 10,165 9,923
12/31/1993 10,360 10,153
03/31/1994 10,109 9,769
06/30/1994 9,928 9,810
09/30/1994 10,571 10,288
12/31/1994 10,516 10,287
03/31/1995 11,498 11,287
06/30/1995 12,730 12,363
09/30/1995 13,766 13,345
12/31/1995 14,053 14,147
03/31/1996 14,860 14,907
06/30/1996 15,271 15,575
08/31/1996 1 15,364 15,202
11/30/1996 17,356 17,745
02/28/1997 17,972 18,625
05/31/1997 19,023 20,083
08/31/1997 20,577 21,377
11/30/1997 20,268 22,803
02/28/1998 21,511 25,141
05/31/1998 21,729 26,240
08/31/1998 18,043 23,113
11/30/1998 21,203 28,204
02/28/1999 22,353 30,109
05/31/1999 23,204 31,759
08/31/1999 24,959 32,314
11/30/1999 28,360 34,096
02/29/2000 37,938 33,640
05/31/2000 32,617 35,084
08/31/2000 41,707 37,583
11/30/2000 28,648 32,656
02/28/2001 25,144 30,883
05/31/2001 23,469 31,383
08/31/2001 20,906 28,422
11/30/2001 21,371 28,667
02/28/2002 20,379 27,947
05/31/2002 19,731 27,041
08/31/2002 17,401 23,310
11/30/2002 16,811 23,935
02/28/2003 15,502 21,611
05/31/2003 17,509 24,860
08/31/2003 18,393 26,120
Average Annual Total Returns of Class B Shares of the Fund at 8/31/03 2
1-Year -0.18% 5-Year -0.57% 10-Year 6.28%
1. The Fund changed its fiscal year end from June 30 to August 31.
2. See Notes on page 10 for further details.
The performance information for the S&P 500 Index in the graphs begins on
6/30/93 for Class A, 8/31/93 for Class B, 10/31/95 for Class C, 2/28/01 for
Class N and 5/31/94 for Class Y. Past performance cannot guarantee future
results. Graphs are not drawn to same scale.
7 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class C)
S&P 500 Index
[LINE CHART]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Value of Investment S&P 500 Index
Date In Fund Reinvested Monthly
- ---- ------- ------------------
11/01/1995 10,000 10,000
12/31/1995 10,128 10,640
03/31/1996 10,711 11,211
06/30/1996 11,006 11,713
08/31/1996 1 11,073 11,432
11/30/1996 12,507 13,345
02/28/1997 12,952 14,007
05/31/1997 13,710 15,104
08/31/1997 14,830 16,077
11/30/1997 14,607 17,149
02/28/1998 15,502 18,907
05/31/1998 15,662 19,734
08/31/1998 13,001 17,382
11/30/1998 15,280 21,211
02/28/1999 16,107 22,643
05/31/1988 16,726 23,884
08/31/1999 17,977 24,301
11/30/1999 20,389 25,642
02/29/2000 27,225 25,299
05/31/2000 23,360 26,385
08/31/2000 29,819 28,264
11/30/2000 20,441 24,559
02/28/2001 17,908 23,226
05/31/2001 16,681 23,602
08/31/2001 14,831 21,375
11/30/2001 15,133 21,559
02/28/2002 14,403 21,018
05/31/2002 13,917 20,336
08/31/2002 12,252 17,530
11/30/2002 11,808 18,000
02/28/2003 10,867 16,253
05/31/2003 12,247 18,696
08/31/2003 12,844 19,644
Average Annual Total Returns of Class C Shares of the Fund at 8/31/03 2
1-Year 3.83% 5-Year -0.24% Since Inception 3.25%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class N)
S&P 500 Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Value of Investment S&P 500 Index
Date In Fund Reinvested Monthly
- ---- ------- ------------------
03/01/2001 10,000 10,000
05/31/2001 9,246 10,162
08/31/2001 8,231 9,203
11/30/2001 8,406 9,283
02/28/2002 8,011 9,049
05/31/2002 7,752 8,756
08/31/2002 6,823 7,548
11/30/2002 6,670 7,750
02/28/2003 6,152 6,998
05/31/2003 6,940 8,050
08/31/2003 7,288 8,458
Average Annual Total Returns of Class N Shares of the Fund at 8/31/03 2
1-Year 5.67% Since Inception -11.89%
1. The Fund changed its fiscal year end from June 30 to August 31.
2. See Notes on page 10 for further details.
8 | OPPENHEIMER GROWTH FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Growth Fund (Class Y)
S&P 500 Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Value of Investment S&P 500 Index
Date In Fund Reinvested Monthly
- ---- ------- ------------------
06/01/1994 10,000 10,000
06/30/1994 9,487 9,755
09/30/1994 10,132 10,231
12/31/1994 10,103 10,230
03/31/1995 11,077 11,224
06/30/1995 12,294 12,294
09/30/1995 13,328 13,271
12/31/1995 13,641 14,069
03/31/1996 14,456 14,824
06/30/1996 14,889 15,489
08/31/1996 1 15,009 15,117
11/30/1996 17,000 17,647
02/28/1997 17,648 18,522
05/31/1997 18,728 19,972
08/31/1997 20,316 21,259
11/30/1997 20,065 22,677
02/28/1998 21,350 25,002
05/31/1998 21,630 26,095
08/31/1998 18,005 22,985
11/30/1998 21,213 28,048
02/28/1999 22,421 29,942
05/31/1999 23,332 31,583
08/31/1999 25,161 32,135
11/30/1999 28,603 33,907
02/29/2000 38,284 33,453
05/31/2000 32,940 34,889
08/31/2000 42,159 37,375
11/30/2000 28,963 32,475
02/28/2001 25,437 30,712
05/31/2001 23,766 31,209
08/31/2001 21,176 28,264
11/30/2001 21,675 28,508
02/28/2002 20,680 27,792
05/31/2002 20,038 26,891
08/31/2002 17,682 23,181
11/30/2002 17,077 23,803
02/28/2003 15,764 21,491
05/31/2003 17,806 24,722
08/31/2003 18,718 25,976
Average Annual Total Returns of Class Y Shares of the Fund at 8/31/03 2
1-Year 5.86% 5-Year 0.78% Since Inception 7.01%
The performance information for the S&P 500 Index in the graphs begins on
6/30/93 for Class A, 8/31/93 for Class B, 10/31/95 for Class C, 2/28/01 for
Class N and 5/31/94 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER 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. 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 3/15/73. Class A
returns include the current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 8/17/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion, and the ending account value does
not reflect the deduction of any sales charges. Class B shares are subject to an
annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 6/1/94. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS August 31, 2003
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Common Stocks--91.4%
- --------------------------------------------------------------------------------
Consumer Discretionary--17.5%
- --------------------------------------------------------------------------------
Automobiles--1.2%
Harley-Davidson, Inc. 397,000 $ 19,778,540
- --------------------------------------------------------------------------------
Internet & Catalog Retail--4.8%
InterActiveCorp 1 2,050,000 75,870,500
- --------------------------------------------------------------------------------
Media--6.1%
EchoStar
Communications
Corp., Cl. A 1 2,250,000 83,025,000
- --------------------------------------------------------------------------------
Univision
Communications,
Inc., Cl. A 1 363,000 13,608,870
-------------
96,633,870
- --------------------------------------------------------------------------------
Multiline Retail--1.6%
Kohl's Corp. 1 407,000 25,742,750
- --------------------------------------------------------------------------------
Specialty Retail--3.8%
Bed Bath &
Beyond, Inc. 1 1,391,000 59,854,730
- --------------------------------------------------------------------------------
Consumer Staples--5.7%
- --------------------------------------------------------------------------------
Food & Staples Retailing--4.9%
Costco
Wholesale Corp. 1 834,000 26,763,060
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 542,000 32,070,140
- --------------------------------------------------------------------------------
Walgreen Co. 585,000 19,053,450
-------------
77,886,650
- --------------------------------------------------------------------------------
Personal Products--0.8%
Avon Products, Inc. 200,000 12,820,000
- --------------------------------------------------------------------------------
Financials--11.5%
- --------------------------------------------------------------------------------
Diversified Financial Services--9.3%
Citigroup, Inc. 1,000,000 43,350,000
- --------------------------------------------------------------------------------
Morgan Stanley 340,000 16,588,600
- --------------------------------------------------------------------------------
SLM Corp. 2,169,100 87,154,438
-------------
147,093,038
- --------------------------------------------------------------------------------
Insurance--1.9%
AMBAC
Financial Group, Inc. 164,600 10,685,832
- --------------------------------------------------------------------------------
MBIA, Inc. 335,500 18,942,330
-------------
29,628,162
- --------------------------------------------------------------------------------
Thrifts & Mortgage Finance--0.3%
Radian Group, Inc. 111,300 5,296,767
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Health Care--32.7%
- --------------------------------------------------------------------------------
Biotechnology--13.9%
Amgen, Inc. 1 1,250,000 $ 82,375,000
- --------------------------------------------------------------------------------
Genentech, Inc. 1 900,000 71,460,000
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 1,000,400 66,726,680
------------
220,561,680
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies--10.8%
Boston Scientific
Corp. 1 360,000 21,636,000
- --------------------------------------------------------------------------------
Medtronic, Inc. 1,025,000 50,819,500
- --------------------------------------------------------------------------------
Stryker Corp. 714,800 54,181,840
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 813,000 45,406,050
-------------
172,043,390
- --------------------------------------------------------------------------------
Pharmaceuticals--8.0%
Eli Lilly & Co. 600,000 39,918,000
- --------------------------------------------------------------------------------
Mylan Laboratories,
Inc 200,000 7,280,000
- --------------------------------------------------------------------------------
Pfizer, Inc. 1,800,000 53,856,000
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 440,000 25,833,280
-------------
126,887,280
- --------------------------------------------------------------------------------
Industrials--1.9%
- --------------------------------------------------------------------------------
Industrial Conglomerates--1.9%
General Electric Co. 1,010,000 29,865,700
- --------------------------------------------------------------------------------
Information Technology--22.1%
- --------------------------------------------------------------------------------
Communications Equipment--2.8%
Scientific-Atlanta, Inc. 890,600 30,280,400
- --------------------------------------------------------------------------------
UTStarcom, Inc. 1 350,000 15,036,000
-------------
45,316,400
- --------------------------------------------------------------------------------
Computers & Peripherals--6.2%
Dell, Inc. 1 2,300,000 75,049,000
- --------------------------------------------------------------------------------
EMC Corp. 1 884,800 11,281,200
- --------------------------------------------------------------------------------
International Business
Machines Corp. 140,000 11,481,400
-------------
97,811,600
- --------------------------------------------------------------------------------
Internet Software & Services--0.9%
Yahoo!, Inc. 1 440,000 14,696,000
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--0.6%
Texas Instruments, Inc. 400,000 9,540,000
11 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Software--11.6%
Microsoft Corp. 3,000,000 $ 79,560,000
- -------------------------------------------------------------------------------
Oracle Corp. 1 3,000,000 38,340,000
- -------------------------------------------------------------------------------
Symantec Corp. 1 1,150,000 66,044,500
- -------------------------------------------------------------------------------
183,944,500
-----------------
Total Common Stocks
(Cost $1,208,629,879) 1,451,271,557
- -------------------------------------------------------------------------------
Other Securities--4.2%
- -------------------------------------------------------------------------------
Nasdaq-100 Unit
Investment Trust 1
(Cost $49,973,816) 2,000,000 66,780,000
Principal
Amount
- -------------------------------------------------------------------------------
Short-Term Notes--1.2%
- -------------------------------------------------------------------------------
Windmill Funding Corp.,
1.06%, 9/5/03
(Cost $19,997,645) $ 20,000,000 19,997,645
Principal Market Value
Amount See Note 1
- -------------------------------------------------------------------------------
Joint Repurchase Agreements--3.4%
Undivided interest of 7.09% in joint
repurchase agreement (Principal Amount/
Market Value $754,227,000, with a
maturity value of $754,311,641) with
PaineWebber, Inc., 1.01%, dated 8/29/03,
to be repurchased at $53,451,998
on 9/2/03, collateralized by Federal
National Mortgage Assn., 5.50%,
6/1/33, with a value of $770,199,757
(Cost $53,446,000) $ 53,446,000 $ 53,446,000
- -------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $1,332,047,340) 100.2% 1,591,495,202
- -------------------------------------------------------------------------------
Liabilities in Excess
of Other Assets (0.2) (3,718,187)
--------------------------------------
Net Assets 100.0% $ 1,587,777,015
======================================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2003
- -----------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $1,332,047,340)--see accompanying statement $ 1,591,495,202
- -----------------------------------------------------------------------------------------------
Cash 575,691
- -----------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 745,230
Interest and dividends 635,897
Other 2,451
----------------
Total assets 1,593,454,471
- -----------------------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased 2,142,500
Shares of beneficial interest redeemed 1,498,032
Distribution and service plan fees 608,533
Shareholder reports 560,613
Trustees' compensation 420,439
Transfer and shareholder servicing agent fees 398,878
Other 48,461
----------------
Total liabilities 5,677,456
- -----------------------------------------------------------------------------------------------
Net Assets $ 1,587,777,015
================
- -----------------------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $62,975
- -----------------------------------------------------------------------------------------------
Additional paid-in capital 2,204,780,113
- -----------------------------------------------------------------------------------------------
Accumulated net investment loss (411,119)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (876,102,816)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 259,447,862
----------------
Net Assets $1,587,777,015
================
13 | OPPENHEIMER 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
$1,165,626,781 and 45,577,915 shares of beneficial interest outstanding) $25.57
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $27.13
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $270,715,108
and 11,325,938 shares of beneficial interest outstanding) $23.90
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $77,548,305
and 3,191,144 shares of beneficial interest outstanding) $24.30
- ----------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $7,765,883
and 303,456 shares of beneficial interest outstanding) $25.59
- ----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $66,120,938 and 2,576,469 shares of beneficial interest outstanding) $25.66
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2003
- ------------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $6,188) $ 5,488,661
- ------------------------------------------------------------------------------------------------
Interest 2,581,941
--------------
Total investment income 8,070,602
- ------------------------------------------------------------------------------------------------
Expenses
Management fees 9,902,838
- ------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,547,799
Class B 2,767,625
Class C 721,584
Class N 25,007
- ------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,896,670
Class B 1,544,569
Class C 351,431
Class N 4,916
Class Y 271,609
- ------------------------------------------------------------------------------------------------
Shareholder reports 960,061
- ------------------------------------------------------------------------------------------------
Trustees' compensation 79,451
- ------------------------------------------------------------------------------------------------
Custodian fees and expenses 7,845
- ------------------------------------------------------------------------------------------------
Other 104,344
--------------
Total expenses 22,185,749
Less reduction to custodian expenses (7,845)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (647,334)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (115,233)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (4,916)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class Y (52,696)
--------------
Net expenses 21,357,725
- ------------------------------------------------------------------------------------------------
Net Investment Loss (13,287,123)
- ------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (including premiums on options exercised) (203,812,732)
Closing and expiration of option contracts written 247,265
--------------
Net realized loss (203,565,467)
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 293,432,431
- ------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 76,579,841
==============
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended August 31, 2003 2002
- ------------------------------------------------------------------------------------------------------------------
Operations
Net investment loss $ (13,287,123) $ (14,549,925)
- ------------------------------------------------------------------------------------------------------------------
Net realized loss (203,565,467) (315,121,770)
- ------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 293,432,431 (23,465,967)
----------------------------------------
Net increase (decrease) in net assets resulting from operations 76,579,841 (353,137,662)
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A -- (7,204,260)
Class B -- --
Class C -- --
Class N -- (7,852)
Class Y -- (714,194)
- ------------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A (66,779,155) (124,336,568)
Class B (56,820,589) (92,299,250)
Class C (1,142,158) (10,045,794)
Class N 4,873,766 2,370,990
Class Y (3,927,695) (6,698,416)
- ------------------------------------------------------------------------------------------------------------------
Net Assets
Total decrease (47,215,990) (592,073,006)
- ------------------------------------------------------------------------------------------------------------------
Beginning of period 1,634,993,005 2,227,066,011
----------------------------------------
End of period [including accumulated net investment
loss of $411,119 and $402,691, respectively] $1,587,777,015 $1,634,993,005
========================================
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Class A Year Ended August 31 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 24.19 $ 29.20 $ 62.31 $ 39.77 $ 31.54
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.15) (.13) .18 (.02) .10
Net realized and unrealized gain (loss) 1.53 (4.74) (30.05) 25.42 11.69
------------------------------------------------------------------
Total from investment operations 1.38 (4.87) (29.87) 25.40 11.79
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.14) -- (.03) (.48)
Distributions from net realized gain -- -- (3.24) (2.83) (3.08)
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.14) (3.24) (2.86) (3.56)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.57 $ 24.19 $ 29.20 $ 62.31 $ 39.77
==================================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 5.70% (16.77)% (49.87)% 67.10% 39.39%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,165,627 $1,173,027 $1,553,066 $3,176,435 $1,730,087
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,095,830 $1,430,735 $2,149,795 $2,390,125 $1,620,201
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.69)% (0.54)% 0.45% (0.01)% 0.24%
Total expenses 1.22% 3 1.31% 3 1.06% 3 1.01% 3 1.05% 3
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 82% 60% 92% 49% 106%
1. Assumes an investment on the business day before the first day of the fiscal
period, 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Class B Year Ended August 31 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 22.80 $ 27.60 $ 59.55 $ 38.37 $ 30.54
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.58) (.54) (.10) (.21) (.20)
Net realized and unrealized gain (loss) 1.68 (4.26) (28.61) 24.22 11.32
-----------------------------------------------------------------
Total from investment operations 1.10 (4.80) (28.71) 24.01 11.12
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.21)
Distributions from net realized gain -- -- (3.24) (2.83) (3.08)
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (3.24) (2.83) (3.29)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.90 $ 22.80 $ 27.60 $ 59.55 $ 38.37
==================================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 4.83% (17.39)% (50.26)% 65.82% 38.27%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $270,715 $317,725 $483,298 $996,000 $445,629
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $276,668 $415,965 $692,159 $676,485 $410,058
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.52)% (1.30)% (0.31)% (0.78)% (0.58)%
Total expenses 2.29% 2.08% 1.83% 1.78% 1.86%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.06% N/A 3,4 N/A 4 N/A 4 N/A 4
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 82% 60% 92% 49% 106%
1. Assumes an investment on the business day before the first day of the fiscal
period, 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.
2. Annualized for periods of less than one full year.
3. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER GROWTH FUND
Class C Year Ended August 31, 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 23.18 $ 28.06 $ 60.48 $ 38.92 $ 30.93
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.36) (.43) (.04) (.09) (.20)
Net realized and unrealized gain (loss) 1.48 (4.45) (29.14) 24.48 11.47
------------------------------------------------------------------
Total from investment operations 1.12 (4.88) (29.18) 24.39 11.27
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.21)
Distributions from net realized gain -- -- (3.24) (2.83) (3.07)
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (3.24) (2.83) (3.28)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.30 $ 23.18 $ 28.06 $ 60.48 $ 38.92
==================================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 4.83% (17.39)% (50.26)% 65.87% 38.28%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $77,548 $75,229 $102,144 $176,150 $57,970
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $72,165 $93,082 $133,823 $103,076 $53,501
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.52)% (1.31)% (0.32)% (0.77)% (0.58)%
Total expenses 2.22% 2.08% 1.84% 1.78% 1.86%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.06% N/A 3,4 N/A 4 N/A 4 N/A 4
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 82% 60% 92% 49% 106%
1. Assumes an investment on the business day before the first day of the fiscal
period, 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.
2. Annualized for periods of less than one full year.
3. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
Class N Year Ended August 31, 2003 2002 2001 1
- --------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 23.99 $ 29.13 $ 35.39
- --------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) (.13) 2 (.01)
Net realized and unrealized gain (loss) 1.64 (4.78) 2 (6.25)
-----------------------------
Total from investment operations 1.60 (4.91) (6.26)
- --------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.23) --
Distributions from net realized gain -- -- --
-----------------------------
Total dividends and/or distributions to shareholders -- (.23) --
- --------------------------------------------------------------------------------------
Net asset value, end of period $ 25.59 $ 23.99 $ 29.13
=============================
- --------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 6.67% (17.00)% (17.69)%
- --------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,766 $2,243 $274
- --------------------------------------------------------------------------------------
Average net assets (in thousands) $5,016 $1,623 $ 70
- --------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.39)% (0.90)% (0.33)%
Total expenses 1.33% 1.57% 1.40%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.23% N/A 5,6 N/A 6
- --------------------------------------------------------------------------------------
Portfolio turnover rate 82% 60% 92%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. 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. Voluntary waiver of transfer agent fees less than 0.01%.
6. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER GROWTH FUND
Class Y Year Ended August 31, 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 24.24 $ 29.27 $ 62.33 $ 39.76 $ 31.54
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.12) (.06) .28 .16 .18
Net realized and unrealized gain (loss) 1.54 (4.73) (30.10) 25.37 11.69
-----------------------------------------------------------------
Total from investment operations 1.42 (4.79) (29.82) 25.53 11.87
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.24) -- (.13) (.58)
Distributions from net realized gain -- -- (3.24) (2.83) (3.07)
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.24) (3.24) (2.96) (3.65)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.66 $ 24.24 $ 29.27 $ 62.33 $ 39.76
=================================================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 5.86% (16.50)% (49.77)% 67.56% 39.74%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $66,121 $66,769 $ 88,284 $191,267 $ 93,936
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $61,965 $81,127 $124,168 $134,650 $116,615
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.55)% (0.25)% 0.67% 0.27% 0.65%
Total expenses 1.17% 1.13% 0.86% 0.73% 0.80%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.08% 1.02% N/A 3 N/A 3 N/A 3
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 82% 60% 92% 49% 106%
1. Assumes an investment on the business day before the first day of the fiscal
period, 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.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer 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 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. In the
event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
22 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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
Appreciation Based
Undistributed Undistributed Accumulated on Cost of Securities
Net Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2,3 Tax Purposes
-----------------------------------------------------------------------------------------
$-- $-- $859,392,676 $242,737,782
1. As of August 31, 2003, the Fund had $764,742,807 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of August 31, 2003,
details of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $ 50,983,636
2010 391,696,099
2011 322,063,072
------------
Total $764,742,807
============
2. During the fiscal years ended August 31, 2003 and August 31, 2002, the Fund
did not utilize any capital loss carryforwards.
3. As of August 31, 2003, the Fund had $94,649,869 of post-October losses
available to offset future realized 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. Accordingly,
the following amounts have been reclassified for August 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
-------------------------------------------------------
$13,278,695 $-- $-- $13,278,733
23 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
1. Significant Accounting Policies Continued
The tax character of distributions paid during the years ended August 31, 2003
and August 31, 2002 was as follows:
Year Ended Year Ended
August 31, 2003 August 31, 2002
------------------------------------------------------------------------
Distributions paid from:
Ordinary income $-- $7,926,306
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of August 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 $1,348,757,420
==============
Gross unrealized appreciation $ 291,757,563
Gross unrealized depreciation (49,019,781)
--------------
Net unrealized appreciation $ 242,737,782
==============
- --------------------------------------------------------------------------------
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
August 31, 2003, the Fund's projected benefit obligations were increased by
$29,835 and payments of $21,407 were made to retired trustees, resulting in an
accumulated liability of $411,185 as of August 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.
24 | OPPENHEIMER GROWTH 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 August 31, 2003 Year Ended August 31, 2002
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------
Class A
Sold 7,473,993 $ 175,173,916 6,933,882 $ 195,310,273
Dividends and/or
distributions reinvested -- -- 229,470 6,758,016
Redeemed (10,385,203) (241,953,071) (11,867,029) (326,404,857)
--------------------------------------------------------------------
Net decrease (2,911,210) $ (66,779,155) (4,703,677) $(124,336,568)
====================================================================
- -----------------------------------------------------------------------------------------------
Class B
Sold 2,646,013 $ 58,067,246 2,659,840 $ 70,453,666
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (5,257,802) (114,887,835) (6,235,475) (162,752,916)
--------------------------------------------------------------------
Net decrease (2,611,789) $ (56,820,589) (3,575,635) $ (92,299,250)
====================================================================
- -----------------------------------------------------------------------------------------------
Class C
Sold 1,014,973 $ 22,640,168 1,099,282 $ 29,093,790
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (1,069,585) (23,782,326) (1,493,796) (39,139,584)
--------------------------------------------------------------------
Net decrease (54,612) $ (1,142,158) (394,514) $ (10,045,794)
====================================================================
- -----------------------------------------------------------------------------------------------
Class N
Sold 286,041 $ 6,661,490 140,675 $ 3,970,419
Dividends and/or
distributions reinvested -- -- 268 7,845
Redeemed (76,061) (1,787,724) (56,863) (1,607,274)
--------------------------------------------------------------------
Net increase 209,980 $ 4,873,766 84,080 $ 2,370,990
====================================================================
- -----------------------------------------------------------------------------------------------
Class Y
Sold 859,150 $ 20,232,976 877,421 $ 24,490,320
Dividends and/or
distributions reinvested -- -- 24,235 713,722
Redeemed (1,037,240) (24,160,671) (1,162,874) (31,902,458)
--------------------------------------------------------------------
Net decrease (178,090) $ (3,927,695) (261,218) $ (6,698,416)
====================================================================
25 | OPPENHEIMER 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 August 31, 2003, were
$1,172,921,164 and $1,098,539,539, 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 of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, 0.60% of the next $700 million, 0.58% of the next
$1.0 billion, 0.56% of the next $2.0 billion, and 0.54% of the average annual
net assets in excess of $4.5 billion.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended August 31, 2003, the Fund
paid $4,662,228 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
- --------------------------------------------------------------------------------------------------------------------
August 31, 2003 $1,836,257 $504,366 $167,457 $1,509,600 $137,651 $52,686
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
- -----------------------------------------------------------------------------------
August 31, 2003 $20,149 $916,315 $19,351 $17,676
26 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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 August 31, 2003, expense under
the Class A Plan totaled $2,547,799, all of which were paid by the Distributor
to recipients, which included $19,630 retained by the Distributor and $129,739
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 August 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 $2,767,625 $2,165,757 $10,652,942 3.94%
Class C Plan 721,584 147,345 1,777,310 2.29
Class N Plan 25,007 20,747 133,158 1.71
- --------------------------------------------------------------------------------
5. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
27 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
5. Option Activity Continued
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss
if the market price of the security decreases and the option is exercised. The
risk in buying an option is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the additional risk of not being able to
enter into a closing transaction if a liquid secondary market does not exist.
Written option activity for the year ended August 31, 2003 was as follows:
Call Options
-----------------------------
Number of Amount of
Contracts Premiums
------------------------------------------------------
Options outstanding as of
August 31, 2002 -- $ --
Options written 3,000 530,992
Options closed or expired (1,397) (247,265
Options exercised (1,603) (283,727
-----------------------------
Options outstanding as of
August 31, 2003 -- $ --
=============================
- -----------------------------------------------------------------------
6. Borrowing and Lending Arrangements
The Fund entered into an "interfund borrowing and lending arrangement" with
other funds in the Oppenheimer funds complex, to allow funds to borrow for
liquidity purposes. The arrangement was initiated pursuant to exemptive relief
granted by the Securities and Exchange Commission to allow these affiliated
funds to lend money to, and borrow money from, each other, in an attempt to
reduce borrowing costs below those of bank loan facilities. Under the
arrangement the Fund may lend money to other Oppenheimer funds and may borrow
from other Oppenheimer funds at a rate set by the Fund's Board of Trustees,
based upon a recommendation by the Manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the year
ended or at August 31, 2003.
28 | OPPENHEIMER GROWTH FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Growth Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Growth Fund, including the statement of investments, as of August
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 five years in the
period then ended. 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 August 31, 2003, by
correspondence with the custodian and broker 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 Growth Fund as of August 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
five years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
September 22, 2003
29 | OPPENHEIMER 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 GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
- ----------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held
Fund, Length of Service, Age 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, Centennial,
TRUSTEES 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 1991) portfolios in the OppenheimerFunds complex.
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May 2000-
Trustee (since 1996) 2002) of Research Foundation of AIMR (investment research, non-profit) and
Age: 70 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.,
Trustee (since 1999) a 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: 51 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 1980) 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 1993) 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 1989) 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 29 portfolios in the OppenheimerFunds
complex.
31 | OPPENHEIMER GROWTH 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 1985)
Age: 77
- ------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New York,
AND OFFICER 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 June 2001) and President
President and Trustee, (since September 2000) of the Manager; President and a director or trustee
Trustee (since 2001) of 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 75 portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Messrs. Bartlett
and 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.
Bruce Bartlett, Senior Vice President (since January 1999) of the Manager; an officer of 5 port-
Vice President (since 1998) folios in the OppenheimerFunds complex; formerly Vice President and Portfolio
Age: 53 Manager of the Manager (April 1995 - December 1998).
32 | OPPENHEIMER GROWTH FUND
Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer (since March 1999) of HarbourView Asset Management Corporation,
Age: 43 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 (since May 2000) and OFI Institutional Asset
Management, Inc. (since November 2000) (offshore fund management sub-
sidiaries of the Manager); Treasurer and Chief Financial Officer (since May
2000) of Oppenheimer Trust Company (a trust company subsidiary of the Manager);
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 91 portfolios in the
OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February
Secretary (since 2001) 2002) of the Manager; General Counsel and a director (since November 2001) of
Age: 55 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 Interna-
tional Ltd. and OppenheimerFunds plc (October 1997-November 2001). An
officer of 91 portfolios in the OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustees and is available without charge upon request.
33 | OPPENHEIMER 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 August 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)