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 811-07265
OPPENHEIMER ENTERPRISE 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
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(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.
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FUND PERFORMANCE DISCUSSION
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a large position in Genentech, the company announced impressively positive test
results for Avastin, its lead cancer-fighting drug, driving the stock price
sharply higher.
Although our company-by-company stock selection process led us to concentrate
assets in technology and health care, a small number of individual holdings in
other areas also made significant contributions to the Fund's relatively good
performance for the period. For example, returns benefited from the Fund's
consumer discretionary holdings, including fashion accessories maker Coach,
Inc.; satellite entertainment provider EchoStar Communications Corp.; and
Spanish-language broadcasting network Univision Communications, Inc. Rising
levels of spending on continuing education boosted Apollo Group, Inc., the
parent company of University of Phoenix, Inc., with its fast-growing online
educational programs. Finally, the Fund's holdings in Citigroup, Inc. gained
ground largely on the basis of the company's position as a leading broker and
market maker during a time of increasing market activity. 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 Class A, B and C shares of
the Fund from the inception date of November 7, 1995, and Class Y shares from
the inception date of April 1, 1999 held until its fiscal year-end August 31,
2003. In the case of Class N shares, performance is measured from inception of
the Class on March 1, 2001. The graphs assume that all dividends and capital
gains distributions were reinvested in additional shares. The graphs reflect the
deduction of the maximum initial sales charge on Class A shares and the
applicable contingent deferred sales charge on Class B, Class C and Class N
shares.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index and the Russell 2000 Index. The S&P 500 Index is a
broad-based index of equity securities widely regarded as a general measure of
the performance of the U.S. equity securities market. The Russell 2000 Index is
a capitalization-weighted index of 2,000 U.S. issuers whose common stocks are
traded on The New York and American Stock Exchanges and NASDAQ, and is widely
recognized as a measure of the performance of mid-capitalization stocks. 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 show 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 are not limited to the securities in the indices shown.
6 OPPENHEIMER ENTERPRISE FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Enterprise Fund (Class A)
S&P 500 Index
Russell 2000 Index
[GRAPHIC]
EDGAR REPRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Oppenheimer Enterprise
Date Yrs. Fund (Class A) S&P 500 Index Russell 2000 Index
11/07/1995 9,425.00 10,000.00 10,000.00
11/30/1995 10,848.00 10,438.00 10,420.00
02/29/1996 12,743.00 11,104.00 11,017.00
05/31/1996 16,136.00 11,669.00 12,309.00
08/31/1996 14,590.00 11,432.00 11,398.00
11/30/1996 14,185.00 13,345.00 12,141.00
02/28/1997 14,423.00 14,007.00 12,400.00
05/31/1997 14,200.00 15,104.00 13,166.00
08/31/1997 17,198.00 16,077.00 14,698.00
11/30/1997 17,745.00 17,149.00 14,983.00
02/28/1998 18,993.00 18,907.00 16,114.00
05/31/1998 19,919.00 19,734.00 15,963.00
08/31/1998 16,226.00 17,382.00 11,847.00
11/30/1998 20,007.00 21,211.00 13,992.00
02/28/1999 23,831.00 22,643.00 13,835.00
05/31/1999 26,670.00 23,884.00 15,534.00
08/31/1999 29,587.00 24,301.00 15,207.00
11/30/1999 41,178.00 25,642.00 16,183.00
02/29/2000 58,877.00 25,299.00 20,653.00
05/31/2000 35,624.00 26,385.00 17,074.00
08/31/2000 45,826.00 28,264.00 19,336.00
11/30/2000 26,665.00 24,559.00 16,089.00
02/28/2001 22,968.00 23,226.00 17,175.00
05/31/2001 21,521.00 23,602.00 18,045.00
08/31/2001 19,448.00 21,375.00 17,088.00
11/30/2001 17,884.00 21,559.00 16,865.00
02/28/2002 15,551.00 21,018.00 17,234.00
05/31/2002 14,378.00 20,336.00 17,955.00
08/31/2002 11,614.00 17,530.00 14,450.00
11/30/2002 11,940.00 18,000.00 15,077.00
02/28/2003 11,054.00 16,253.00 13,426.00
05/31/2003 13,504.00 18,696.00 16,485.00
08/31/2003 14,990.00 19,644.00 18,652.00
Average Annual Total Returns of Class A Shares of the Fund at 8/31/03*
1-Year 21.65% 5-Year -2.73% Since Inception 5.32%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Enterprise Fund (Class B)
S&P 500 Index
Russell 2000 Index
[GRAPHIC]
EDGAR REPRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Oppenheimer Enterprise
Date Yrs. Fund (Class B) S&P 500 Index Russell 2000 Index
11/07/1995 10,000.00 10,000.00 10,000.00
11/30/1995 11,500.00 10,438.00 10,420.00
02/29/1996 13,490.00 11,104.00 11,017.00
05/31/1996 17,060.00 11,669.00 12,309.00
08/31/1996 15,390.00 11,432.00 11,398.00
11/30/1996 14,940.00 13,345.00 12,141.00
02/28/1997 15,151.00 14,007.00 12,400.00
05/31/1997 14,893.00 15,104.00 13,166.00
08/31/1997 18,011.00 16,077.00 14,698.00
11/30/1997 18,538.00 17,149.00 14,983.00
02/28/1998 19,806.00 18,907.00 16,114.00
05/31/1998 20,743.00 19,734.00 15,963.00
08/31/1998 16,853.00 17,382.00 11,847.00
11/30/1998 20,755.00 21,211.00 13,992.00
02/28/1999 24,680.00 22,643.00 13,835.00
05/31/1999 27,568.00 23,884.00 15,534.00
08/31/1999 30,527.00 24,301.00 15,207.00
11/30/1999 42,414.00 25,642.00 16,183.00
02/29/2000 60,531.00 25,299.00 20,653.00
05/31/2000 36,548.00 26,385.00 17,074.00
08/31/2000 46,928.00 28,264.00 19,336.00
11/30/2000 27,255.00 24,559.00 16,089.00
02/28/2001 23,438.00 23,226.00 17,175.00
05/31/2001 21,918.00 23,602.00 18,045.00
08/31/2001 19,769.00 21,375.00 17,088.00
11/30/2001 18,153.00 21,559.00 16,865.00
02/28/2002 15,785.00 21,018.00 17,234.00
05/31/2002 14,594.00 20,336.00 17,955.00
08/31/2002 11,789.00 17,530.00 14,450.00
11/30/2002 12,120.00 18,000.00 15,077.00
02/28/2003 11,220.00 16,253.00 13,426.00
05/31/2003 13,707.00 18,696.00 16,485.00
08/31/2003 15,216.00 19,644.00 18,652.00
Average Annual Total Returns of Class B Shares of the Fund at 8/31/03*
1-Year 23.10% 5-Year -2.62% Since Inception 5.52%
*See Notes on page 10 for further details.
The performance information for both indices in the graphs begins on 10/31/95
for Class A, B and C, 2/28/01 for Class N and 3/31/99 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Enterprise Fund (Class C)
S&P 500 Index
Russell 2000 Index
[GRAPHIC]
EDGAR REPRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Oppenheimer Enterprise
Date Yrs. Fund (Class C) S&P 500 Index Russell 2000 Index
11/07/1995 10,000.00 10,000.00 10,000.00
11/30/1995 11,500.00 10,438.00 10,420.00
02/29/1996 13,490.00 11,104.00 11,017.00
05/31/1996 17,050.00 11,669.00 12,309.00
08/31/1996 15,390.00 11,432.00 11,398.00
11/30/1996 14,940.00 13,345.00 12,141.00
02/28/1997 15,152.00 14,007.00 12,400.00
05/31/1997 14,883.00 15,104.00 13,166.00
08/31/1997 18,001.00 16,077.00 14,698.00
11/30/1997 18,528.00 17,149.00 14,983.00
02/28/1998 19,807.00 18,907.00 16,114.00
05/31/1998 20,733.00 19,734.00 15,963.00
08/31/1998 16,853.00 17,382.00 11,847.00
11/30/1998 20,745.00 21,211.00 13,992.00
02/28/1999 24,693.00 22,643.00 13,835.00
05/31/1999 27,581.00 23,884.00 15,534.00
08/31/1999 30,541.00 24,301.00 15,207.00
11/30/1999 42,452.00 25,642.00 16,183.00
02/29/2000 60,582.00 25,299.00 20,653.00
05/31/2000 36,587.00 26,385.00 17,074.00
08/31/2000 46,979.00 28,264.00 19,336.00
11/30/2000 27,293.00 24,559.00 16,089.00
02/28/2001 23,464.00 23,226.00 17,175.00
05/31/2001 21,943.00 23,602.00 18,045.00
08/31/2001 19,795.00 21,375.00 17,088.00
11/30/2001 18,163.00 21,559.00 16,865.00
02/28/2002 15,763.00 21,018.00 17,234.00
05/31/2002 14,550.00 20,336.00 17,955.00
08/31/2002 11,732.00 17,530.00 14,450.00
11/30/2002 12,039.00 18,000.00 15,077.00
02/28/2003 11,118.00 16,253.00 13,426.00
05/31/2003 13,559.00 18,696.00 16,485.00
08/31/2003 15,024.00 19,644.00 18,652.00
Average Annual Total Returns of Class C Shares of the Fund at 8/31/03*
1-Year 27.06% 5-Year -2.27% Since Inception 5.35%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Enterprise Fund (Class N)
S&P 500 Index
Russell 2000 Index
[GRAPHIC]
EDGAR REPRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Oppenheimer Enterprise
Date Yrs. Fund (Class N) S&P 500 Index Russell 2000 Index
03/01/2001 10,000.00 10,000.00 10,000.00
05/31/2001 9,295.00 10,162.00 10,507.00
08/31/2001 8,399.00 9,203.00 9,949.00
11/30/2001 7,711.00 9,283.00 9,819.00
02/28/2002 6,708.00 9,049.00 10,034.00
05/31/2002 6,195.00 8,756.00 10,454.00
08/31/2002 5,000.00 7,548.00 8,413.00
11/30/2002 5,141.00 7,750.00 8,779.00
02/28/2003 4,752.00 6,998.00 7,817.00
05/31/2003 5,800.00 8,050.00 9,599.00
08/31/2003 6,432.00 8,458.00 10,860.00
Average Annual Total Returns of Class N Shares of the Fund at 8/31/03*
1-Year 27.64% Since Inception -16.18%
*See Notes on page 10 for further details.
8 OPPENHEIMER ENTERPRISE FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Enterprise Fund (Class Y)
S&P 500 Index
Russell 2000 Index
[GRAPHIC]
EDGAR REPRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Oppenheimer Enterprise
Date Yrs. Fund (Class Y) S&P 500 Index Russell 2000 Index
04/01/1999 10,000.00 10,000.00 10,000.00
05/31/1999 10,115.00 10,142.00 11,055.00
08/31/1999 11,234.00 10,319.00 10,822.00
11/30/1999 15,649.00 10,889.00 11,517.00
02/29/2000 22,407.00 10,743.00 14,698.00
05/31/2000 13,570.00 11,204.00 12,151.00
08/31/2000 17,477.00 12,002.00 13,761.00
11/30/2000 10,165.00 10,429.00 11,450.00
02/28/2001 8,760.00 9,863.00 12,223.00
05/31/2001 8,222.00 10,022.00 12,842.00
08/31/2001 7,432.00 9,077.00 12,161.00
11/30/2001 6,839.00 9,155.00 12,002.00
02/28/2002 5,955.00 8,925.00 12,265.00
05/31/2002 5,511.00 8,636.00 12,778.00
08/31/2002 4,454.00 7,444.00 10,283.00
11/30/2002 4,578.00 7,644.00 10,730.00
02/28/2003 4,247.00 6,902.00 9,555.00
05/31/2003 5,190.00 7,939.00 11,732.00
08/31/2003 5,763.00 8,342.00 13,274.00
Average Annual Total Returns of Class Y Shares of the Fund at 8/31/03*
1-Year 29.38% Since Inception -11.73%
The performance information for both indices in the graphs begins on 10/31/95
for Class A, B and C, 2/28/01 for Class N and 3/31/99 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 OPPENHEIMER ENTERPRISE FUND
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NOTES
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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 11/7/95. Class A
returns include the current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 11/7/95. 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. 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 11/7/95. 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 4/1/99. Class Y shares
are offered only to certain institutional investors under special agreements
with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER ENTERPRISE FUND
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STATEMENT OF INVESTMENTS AUGUST 31, 2003
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Market Value
Shares See Note 1
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Common Stocks--95.1%
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Consumer Discretionary--18.3%
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Household Durables--1.8%
Garmin Ltd. 1 100,000 $ 3,997,000
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Internet & Catalog Retail--4.5%
InterActiveCorp 1 265,000 9,807,650
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Media--8.7%
Citadel Broadcasting
Corp. 1 9,600 211,968
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EchoStar
Communications
Corp., Cl. A 1 275,000 10,147,500
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Univision
Communications,
Inc., Cl. A 1 235,000 8,810,150
--------------
19,169,618
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Specialty Retail--2.0%
Bed Bath &
Beyond, Inc. 1 100,000 4,303,000
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Textiles, Apparel & Luxury Goods--1.3%
Coach, Inc. 1 50,000 2,902,000
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Consumer Staples--0.9%
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Food & Staples Retailing--0.9%
Wal-Mart Stores, Inc. 35,000 2,070,950
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Financials--13.8%
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Diversified Financial Services--6.8%
Citigroup, Inc. 125,000 5,418,750
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SLM Corp. 240,000 9,643,200
--------------
15,061,950
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Thrifts & Mortgage Finance--7.0%
Doral Financial Corp. 118,500 4,864,425
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Radian Group, Inc. 220,000 10,469,800
--------------
15,334,225
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Health Care--28.6%
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Biotechnology--16.0%
Amgen, Inc. 1 140,000 9,226,000
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Genentech, Inc. 1 120,000 9,528,000
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Gilead Sciences, Inc. 1 150,000 10,005,000
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ImClone Systems, Inc. 1 50,000 2,101,500
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Medimmune, Inc. 1 125,000 4,358,750
--------------
35,219,250
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies--6.8%
Boston Scientific Corp. 1 25,000 $ 1,502,500
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Medtronic, Inc. 100,000 4,958,000
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Varian Medical
Systems, Inc. 1 152,000 8,489,200
--------------
14,949,700
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Pharmaceuticals--5.8%
Eli Lilly & Co. 80,000 5,322,400
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Pfizer, Inc. 250,000 7,480,000
--------------
12,802,400
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Industrials--1.9%
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Commercial Services & Supplies--1.9%
Apollo Group, Inc.,
Cl. A 1 65,000 4,164,550
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Information Technology--31.6%
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Communications Equipment--7.6%
Scientific-Atlanta, Inc. 150,000 5,100,000
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UTStarcom, Inc. 1 270,000 11,599,200
--------------
16,699,200
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Computers & Peripherals--5.0%
Dell, Inc. 1 300,000 9,789,000
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EMC Corp. 1 100,000 1,275,000
--------------
11,064,000
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Internet Software & Services--0.5%
Yahoo!, Inc. 1 35,000 1,169,000
- --------------------------------------------------------------------------------
IT Services--2.1%
Iron Mountain, Inc. 1 125,000 4,625,000
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--5.4%
Marvell Technology
Group Ltd. 1 250,000 10,542,500
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 50,000 1,192,500
--------------
11,735,000
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Software--11.0%
Microsoft Corp. 390,000 10,342,800
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Oracle Corp. 1 500,000 6,390,000
- --------------------------------------------------------------------------------
Symantec Corp. 1 130,000 7,465,900
--------------
24,198,700
--------------
Total Common Stocks
(Cost $161,908,821) 209,273,193
11 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Preferred Stocks--0.2%
Axsun Technologies,
Inc., Cv., Series C 1,2,3 514,139 $ 107,712
- --------------------------------------------------------------------------------
Multiplex, Inc., Cv.,
Series C 1,2,3 543,478 179,946
-------------
Total Preferred Stocks
(Cost $10,000,000) 287,658
Market Value
Units See Note 1
- --------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
American Banknote Corp.:
Series 1 Wts.,
Exp. 10/1/07 1 777 $ --
Series 2 Wts.,
Exp. 10/1/07 1 777 --
-------------
Total Rights, Warrants
and Certificates (Cost $0) --
- --------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $171,908,821) 95.3% 209,560,851
- --------------------------------------------------------------------------------
Other Assets
Net of Liabilities 4.7 10,449,590
----------------------------
Net Assets 100.0% $220,010,441
============================
Footnotes to Statement of Investments
1. Non-income producing security.
2. Identifies issues considered to be illiquid or restricted. See Note 6 of
Notes to Financial Statements.
3. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended August 31, 2003.
The aggregate fair value of securities of affiliated companies held by the Fund
as of August 31, 2003 amounts to $287,658. Transactions during the period in
which the issuer was an affiliate are as follows:
Shares Gross Gross Shares Unrealized
August 31, 2002 Additions Reductions August 31, 2003 Depreciation
- ----------------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Axsun Technologies, Inc., Cv.,
Series C 514,139 -- -- 514,139 $5,892,290
Multiplex, Inc., Cv., Series C 543,478 -- -- 543,478 3,820,052
----------
$9,712,342
==========
See accompanying Notes to Financial Statements.
12 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES August 31, 2003
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $161,908,821) $209,273,193
Affiliated companies (cost $10,000,000) 287,658
-------------
209,560,851
- -------------------------------------------------------------------------------
Cash 10,181
- -------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 10,752,022
Shares of beneficial interest sold 228,349
Interest and dividends 107,352
Other 25,847
-------------
Total assets 220,684,602
- -------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed 286,964
Shareholder reports 151,736
Distribution and service plan fees 81,362
Trustees' compensation 72,315
Transfer and shareholder servicing agent fees 59,161
Other 22,623
-------------
Total liabilities 674,161
- -------------------------------------------------------------------------------
Net Assets $220,010,441
=============
- -------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $582,672,916
- -------------------------------------------------------------------------------
Accumulated net investment loss (72,047)
- -------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (400,242,458)
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments 37,652,030
-------------
Net Assets $220,010,441
=============
13 OPPENHEIMER ENTERPRISE 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
$120,101,008 and 10,444,679 shares of beneficial interest outstanding) $11.50
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $12.20
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $62,170,268
and 5,780,414 shares of beneficial interest outstanding) $10.76
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $14,593,647
and 1,355,475 shares of beneficial interest outstanding) $10.77
- -----------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $684,769 and
60,010 shares of beneficial interest outstanding) $11.41
- -----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $22,460,749 and 1,923,981 shares of beneficial interest
outstanding) $11.67
See accompanying Notes to Financial Statements.
14 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended August 31, 2003
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $1,065) $ 586,167
- -----------------------------------------------------------------------------------------------
Interest 92,468
------------
Total investment income 678,635
- -----------------------------------------------------------------------------------------------
Expenses
Management fees 1,371,543
- -----------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 242,544
Class B 524,148
Class C 125,123
Class N 2,681
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 725,313
Class B 481,929
Class C 116,515
Class N 3,868
Class Y 142,066
- -----------------------------------------------------------------------------------------------
Shareholder reports 189,060
- -----------------------------------------------------------------------------------------------
Trustees' compensation 5,544
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 1,851
- -----------------------------------------------------------------------------------------------
Other 27,365
------------
Total expenses 3,959,550
Less reduction to custodian expenses (1,851)
Less reimbursement of management fees (73,046)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (494,222)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (360,660)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (86,298)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (2,348)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class Y (106,201)
------------
Net expenses 2,834,924
- -----------------------------------------------------------------------------------------------
Net Investment Loss (2,156,289)
- -----------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (36,076,629)
Closing and expiration of option contracts written 73,499
------------
Net realized loss (36,003,130)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 86,514,925
- -----------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $48,355,506
============
See accompanying Notes to Financial Statements.
15 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended August 31, 2003 2002
- ------------------------------------------------------------------------------------------------
Operations
Net investment loss $ (2,156,289) $ (3,900,993)
- ------------------------------------------------------------------------------------------------
Net realized loss (36,003,130) (94,565,845)
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 86,514,925 (46,274,452)
------------------------------
Net increase (decrease) in net assets resulting from operations 48,355,506 (144,741,290)
- ------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (9,615,427) (48,332,934)
Class B (4,005,525) (29,913,344)
Class C (512,633) (4,605,462)
Class N 71,137 501,224
Class Y 1,925,857 1,063,752
- ------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 36,218,915 (226,028,054)
- ------------------------------------------------------------------------------------------------
Beginning of period 183,791,526 409,819,580
------------------------------
End of period [including accumulated net investment loss
of $72,047 and $73,098, respectively] $220,010,441 $ 183,791,526
==============================
See accompanying Notes to Financial Statements.
16 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Class A Year Ended August 31, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.91 $14.92 $ 39.08 $26.37 $14.72
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.09) (.18) (.15) (.11)
Net realized and unrealized gain (loss) 2.65 (5.92) (21.40) 14.52 12.08
------------------------------------------------------------
Total from investment operations 2.59 (6.01) (21.58) 14.37 11.97
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (2.58) (1.66) (.32)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.50 $8.91 $ 14.92 $39.08 $26.37
============================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 29.07% (40.28)% (57.56)% 54.89% 82.34%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $120,101 $103,105 $233,045 $624,971 $335,682
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $100,922 $166,632 $357,113 $563,739 $182,121
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (0.93)% (1.09)% (0.81)% (0.37)% (0.47)%
Total expenses 1.83% 1.95% 1.33% 1.24% 1.48%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.29% 1.60% N/A 3 N/A 3 N/A 3
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% 150% 160% 142% 134%
<FN>
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%.
</FN>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER ENTERPRISE 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 $ 8.40 $14.17 $ 37.57 $25.58 $14.38
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.20) (.41) (.30) (.39) (.11)
Net realized and unrealized gain (loss) 2.56 (5.36) (20.52) 14.04 11.63
------------------------------------------------------------
Total from investment operations 2.36 (5.77) (20.82) 13.65 11.52
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (2.58) (1.66) (.32)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.76 $8.40 $ 14.17 $37.57 $25.58
============================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 28.10% (40.72)% (57.87)% 53.73% 81.14%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $62,170 $52,633 $125,772 $310,972 $189,699
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $52,441 $86,628 $181,217 $294,487 $107,124
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.69)% (1.85)% (1.58)% (1.13)% (1.22)%
Total expenses 2.79% 2.71% 2.10% 2.00% 2.23%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.05% 2.36% N/A 3 N/A 3 N/A 3
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% 150% 160% 142% 134%
<FN>
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%.
</FN>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER ENTERPRISE FUND
Class C Year Ended August 31, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.41 $14.19 $ 37.61 $25.59 $14.38
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.17) (.37) (.32) (.39) (.10)
Net realized and unrealized gain (loss) 2.53 (5.41) (20.52) 14.07 11.63
------------------------------------------------------------
Total from investment operations 2.36 (5.78) (20.84) 13.68 11.53
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (2.58) (1.66) (.32)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.77 $ 8.41 $ 14.19 $37.61 $25.59
============================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 28.06% (40.73)% (57.86)% 53.83% 81.22%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $14,594 $11,578 $25,468 $64,522 $39,083
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $12,521 $18,550 $37,410 $60,868 $21,790
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.70)% (1.85)% (1.57)% (1.13)% (1.22)%
Total expenses 2.80% 2.71% 2.10% 2.00% 2.22%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.06% 2.36% N/A 3 N/A 3 N/A 3
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% 150% 160% 142% 134%
<FN>
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%.
</FN>
See accompanying Notes to Financial Statements.
19 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
Class N Year Ended August 31 2003 2002 2001 1
- -----------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.87 $14.90 $17.74
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.13) (.28) (.01)
Net realized and unrealized gain (loss) 2.67 (5.75) (2.83)
----------------------------------
Total from investment operations 2.54 (6.03) (2.84)
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- --
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $11.41 $ 8.87 $14.90
==================================
- -----------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 28.64% (40.47)% (16.01)%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $685 $456 $83
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $537 $249 $12
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.24)% (1.44)% (0.94)%
Total expenses 2.09% 2.25% 1.75%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses 1.60% 1.90% N/A 4
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 103% 150% 160%
<FN>
1. For the period from March 1, 2001 (inception of offering) to August 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%.
</FN>
See accompanying Notes to Financial Statements.
20 OPPENHEIMER ENTERPRISE FUND
Class Y Year Ended August 31, 2003 2002 2001 2000 1999 1
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 9.02 $15.05 $ 39.32 $26.41 $23.51
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.10) (.10) (.09) (.04) -- 2
Net realized and unrealized gain (loss) 2.75 (5.93) (21.60) 14.61 2.90
------------------------------------------------------------
Total from investment operations 2.65 (6.03) (21.69) 14.57 2.90
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- (2.58) (1.66) --
------------------------------------------------------------
Net asset value, end of period $11.67 $ 9.02 $ 15.05 $39.32 $26.41
============================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 29.38% (40.07)% (57.48)% 55.58% 12.34%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $22,461 $16,020 $25,450 $91,656 $31,306
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,675 $19,590 $49,978 $80,415 $11,731
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.67)% (0.70)% (0.67)% 0.04% 0.09%
Total expenses 1.72% 2.16% 1.36% 5 0.91% 0.96%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.03% 1.19% 1.20% N/A 6 N/A 6
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 103% 150% 160% 142% 134%
<FN>
1. For the period from April 1, 1999 (inception of offering) to August 31, 1999.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. 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 August 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%.
</FN>
See accompanying Notes to Financial Statements.
21 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Enterprise 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).
- --------------------------------------------------------------------------------
Foreign Currency Translation. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
22 OPPENHEIMER ENTERPRISE 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
-------------------------------------------------------------------------
$-- $-- $400,191,575 $37,602,464
1. As of August 31, 2003, the Fund had $383,574,177 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 $ 46,931,758
2010 257,289,240
2011 79,353,179
------------
Total $383,574,177
============
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 $16,617,398 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 Gain Tax Return Investment
Loss (Loss) of Capital Loss
----------------------------------------------------------
$2,157,340 $-- $-- $2,157,340
23 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
No distributions were paid during the years ended August 31, 2003 and August
31, 2002.
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 $171,958,387
============
Gross unrealized appreciation $ 48,266,601
Gross unrealized depreciation (10,664,137)
------------
Net unrealized appreciation $ 37,602,464
============
- --------------------------------------------------------------------------------
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
$1,976 and payments of $3,026 were made to retired trustees, resulting in an
accumulated liability of $72,047 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.
- --------------------------------------------------------------------------------
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.
24 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
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 August 31, 2003 Year Ended August 31, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Class A
Sold 3,692,019 $ 35,803,356 3,264,293 $ 40,977,056
Redeemed (4,817,067) (45,418,783) (7,311,154) (89,309,990)
------------------------------------------------------------------------
Net decrease (1,125,048) $ (9,615,427) (4,046,861) $(48,332,934)
========================================================================
- --------------------------------------------------------------------------------------------------------
Class B
Sold 1,371,862 $ 12,295,804 1,037,345 $ 12,006,706
Redeemed (1,858,129) (16,301,329) (3,645,358) (41,920,050)
------------------------------------------------------------------------
Net decrease (486,267) $ (4,005,525) (2,608,013) $(29,913,344)
========================================================================
- --------------------------------------------------------------------------------------------------------
Class C
Sold 812,619 $ 7,044,476 306,034 $ 3,532,850
Redeemed (834,067) (7,557,109) (724,154) (8,138,312)
------------------------------------------------------------------------
Net decrease (21,448) $ (512,633) (418,120) $ (4,605,462)
========================================================================
- --------------------------------------------------------------------------------------------------------
Class N
Sold 51,546 $ 487,334 51,240 $ 555,908
Redeemed (42,916) (416,197) (5,451) (54,684)
------------------------------------------------------------------------
Net increase 8,630 $ 71,137 45,789 $ 501,224
========================================================================
- --------------------------------------------------------------------------------------------------------
Class Y
Sold 1,446,844 $ 14,331,551 1,345,843 $ 16,119,763
Redeemed (1,298,227) (12,405,694) (1,261,867) (15,056,011)
------------------------------------------------------------------------
Net increase 148,617 $ 1,925,857 83,976 $ 1,063,752
========================================================================
- --------------------------------------------------------------------------------
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
$182,093,486 and $206,655,638, respectively.
25 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, 0.60% of the next $700 million, and 0.58% of average annual
net assets over $1.5 billion. Effective January 1, 2002, the Manager has
voluntarily agreed to waive advisory fees at an annual rate equal to 0.05% of
the Fund's average daily net assets until the Fund's trailing one year
performance percentile at the end of the preceding quarter is in the third
quintile or better of the Fund's Lipper peer group. The foregoing waiver is
voluntary and may be terminated by the Manager at any time.
- --------------------------------------------------------------------------------
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 $634,467 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 $254,370 $73,120 $43,873 $239,969 $23,467 $1,828
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 $10,421 $150,890 $3,231 $1,813
26 OPPENHEIMER ENTERPRISE 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 $242,544, all of which were paid by the Distributor to
recipients, which included $5,740 retained by the Distributor and $17,095 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 $524,148 $405,994 $1,382,862 2.22%
Class C Plan 125,123 26,727 301,724 2.07
Class N Plan 2,681 2,155 8,646 1.26
- --------------------------------------------------------------------------------
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 ENTERPRISE 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 500 $ 73,499
Options closed or expired (500) (73,499)
------------------------
Options outstanding as of August 31, 2003 -- $ --
========================
- --------------------------------------------------------------------------------
6. Illiquid or Restricted Securities
As of August 31, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private
placement transactions, are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are valued under methods
approved by the Board of Trustees as reflecting fair value. A security may also
be considered illiquid if it lacks a readily available market or if its
valuation has not changed for a certain period of time. The Fund intends to
invest no more than 10% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid or restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of August 31, 2003 was
$287,658, which represents 0.13% of the Fund's net assets, all of which is
considered restricted. Information concerning restricted securities is as
follows:
Acquisition Valuation as of Unrealized
Security Dates Cost August 31, 2003 Depreciation
- ---------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Axsun Technologies, Inc., Cv., Series C 12/13/00 $6,000,002 $107,712 $5,892,290
Multiplex, Inc., Cv., Series C 2/9/01 3,999,998 179,946 3,820,052
28 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
7. 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.
29 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer Enterprise Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Enterprise 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. 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 Enterprise 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
30 OPPENHEIMER ENTERPRISE 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.
31 OPPENHEIMER ENTERPRISE 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,
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 1995) portfolios in the OppenheimerFunds complex.
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May
Trustee (since 1996) 2000-2002) 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., 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: 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 1995) 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 1995) 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 1995) 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.
32 OPPENHEIMER ENTERPRISE FUND
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 1995)
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 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 75 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Messrs. Turner
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.
James F. Turner, II, Vice President and Portfolio Manager of the Manager since March 2001; an officer
Vice President (since 2001) of 2 portfolios in the OppenheimerFunds complex; formerly portfolio manager for
Age: 36 Technology Crossover Ventures (May 2000 - March 2001); Assistant Vice President
and Associate Portfolio Manager of the Manager (August 1999 - May 2000); and a
securities analyst for the Manager (October 1996 - August 1999).
33 OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
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 (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 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 2002)
Secretary (since 2001) 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 International 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.
34 OPPENHEIMER ENTERPRISE 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)