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 811-05360
OPPENHEIMER MAIN STREET 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. For the 12-month period ended
August 31, 2003, Oppenheimer Main Street Fund produced a total return of 6.93%
for its Class A shares (without sales charge). In comparison, the Fund's
benchmark, the S&P 500 Index, produced a 12.06% total return for the same
period.
It is important to understand that the Fund is not managed according to our
subjective view of market trends, industry conditions or macroeconomic forces.
Instead, we base our investment decisions on the disciplined application of
quantitative models combined with the judgment of experienced portfolio
managers. Our bottom-up, multi-factor quantitative models help us identify the
stocks that, in our view, are most likely to outperform the market.
With that said, the primary reason for the Fund's lagging relative
performance in the past 12 months was its emphasis on higher-quality stocks at a
time when more speculative shares led the market. After the prolonged bear
market of 2000-2003, investors apparently favored stocks that had been severely
beaten down during the decline, regardless of their business fundamentals. In
contrast, our stock scoring system assigned higher rankings based on factors
that have driven stocks higher in the past, including better profitability,
lower valuations and average to below-average measures of price volatility.
Although our stock scoring system was slow to adjust to the early stages of the
market's recovery, the Fund participated by remaining fully invested.
For some time now, our quantitative models have assigned higher rankings to
small- and mid-cap stocks than they have to mega-caps. Indeed, the reporting
period's market rallies were led by smaller stocks, and the Fund benefited from
its exposure to small-cap stocks, mid-cap stocks and stocks at the lower end of
the large-cap range. This helped offset some of the lagging relative performance
that resulted from our security selection strategy.
In addition, the Fund remained very broadly diversified, holding 423 stocks
as of August 31, 2003. During the reporting period, no stock was overweighted on
average by more than 0.70% relative to the Fund's benchmark. This
risk-management strategy is designed to help prevent disappointments in any
single stock from having a disproportionate effect on the overall portfolio. In
addition, because a broadly diversified portfolio enables us to trade stocks in
"baskets" containing shares of many different companies, we believe that our
diversification strategy helps minimize the potentially eroding effects of
transaction costs on performance.
5 | OPPENHEIMER MAIN STREET FUND
FUND PERFORMANCE DISCUSSION
Toward the end of the reporting period, our statistical models began to
suggest that higher-quality stocks are more attractive than lower-quality
stocks. Accordingly, we increased the Fund's exposure to higher-quality stocks,
and in August 2003, the Fund's average quality rating exceeded that of the S&P
500 Index by 13% and was at the highest point relative to the benchmark since
the current management team assumed responsibility for the Fund on March 31,
1998. Similarly, our models began to suggest that the margin of outperformance
among smaller stocks was likely to wane, and the Fund's weighted average market
capitalization increased to $76.5 billion in August 2003, its highest level
relative to the S&P 500 Index since November 2000. The Fund's holdings,
strategies and management 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 shares, performance is
measured over a ten-year period; in the case of Class B shares, from the
inception of the Class on October 3, 1994; in the case of Class C shares, from
the inception of the Class on December 1, 1993; and in the case of Class Y
shares, from the inception of the Class on November 1, 1996. In the case of
Class N shares, performance is measured from inception of the Class on March 1,
2001. The graphs reflect the deduction of the maximum initial sales charge on
Class A shares and the applicable contingent deferred sales charge for Class B,
Class C, and Class N shares and reinvestment of all dividends and capital
distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index. The S&P 500 Index is a broad based index of equity
securities widely regarded as a general measurement 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 cost,
and none of the data in the graphs shows the effect of taxes. The Fund's
performance reflects the effects of Fund business and operating expenses. While
index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to the
securities in the S&P 500 Index, which tend to be securities of larger,
well-capitalized companies.
6 | OPPENHEIMER MAIN STREET FUND
[LINE CHART]
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments In:
Oppenheimer Main Street
Fund (Class A) S&P 500 Index
06/30/1993 9,425 10,000
09/30/1993 10,772 10,258
12/31/1993 11,398 10,495
03/31/1994 11,370 10,098
06/30/1994 10,776 10,140
09/30/1994 11,405 10,635
12/31/1994 11,223 10,633
03/31/1995 12,111 11,667
06/30/1995 12,987 12,779
09/30/1995 14,121 13,794
12/31/1995 14,676 14,624
03/31/1996 15,501 15,409
06/30/1996 15,879 16,099
08/31/1996 1 15,362 15,714
11/30/1996 17,308 18,343
02/28/1997 17,908 19,252
05/31/1997 18,909 20,760
08/31/1997 20,138 22,097
11/30/1997 21,068 23,571
02/28/1998 22,758 25,988
05/31/1998 24,015 27,124
08/31/1998 20,878 23,892
11/30/1998 24,986 29,154
02/28/1999 26,540 31,123
05/31/1999 28,064 32,829
08/31/1999 28,941 33,402
11/30/1999 29,670 35,245
02/29/2000 29,823 34,773
05/31/2000 31,421 36,265
08/31/2000 34,078 38,849
11/30/2000 28,382 33,756
02/28/2001 27,352 31,923
05/31/2001 28,109 32,440
08/31/2001 25,608 29,379
11/30/2001 25,536 29,633
02/28/2002 25,341 28,888
05/31/2002 25,381 27,952
08/31/2002 22,304 24,095
11/30/2002 22,040 24,741
02/28/2003 20,098 22,339
05/31/2003 22,876 25,697
08/31/2003 23,850 27,000
Average Annual Total Returns of Class A Shares of the Fund at 8/31/03 2
1-Year 0.79% 5-Year 1.49% 10-Year 7.89%
[LINE CHART]
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street
Fund (Class B) S&P 500 Index
10/03/1994 10,000 10,000
12/31/1994 9,846 9,998
03/31/1995 10,599 10,971
06/30/1995 11,341 12,017
09/30/1995 12,305 12,971
12/31/1995 12,766 13,751
03/31/1996 13,459 14,489
06/30/1996 13,762 15,138
08/31/1996 1 13,293 14,776
11/30/1996 14,951 17,248
02/28/1997 15,439 18,103
05/31/1997 16,273 19,521
08/31/1997 17,297 20,778
11/30/1997 18,063 22,164
02/28/1998 19,473 24,437
05/31/1998 20,505 25,505
08/31/1998 17,792 22,466
11/30/1998 21,259 27,414
02/28/1999 22,540 29,265
05/31/1999 23,787 30,869
08/31/1999 24,485 31,408
11/30/1999 25,056 33,141
02/29/2000 25,129 32,697
05/31/2000 26,428 34,101
08/31/2000 28,607 36,530
11/30/2000 23,811 31,741
02/28/2001 22,947 30,018
05/31/2001 23,582 30,504
08/31/2001 21,484 27,626
11/30/2001 21,424 27,864
02/28/2002 21,260 27,164
05/31/2002 21,294 26,283
08/31/2002 18,712 22,657
11/30/2002 18,491 23,265
02/28/2003 16,861 21,005
05/31/2003 19,192 24,163
08/31/2003 20,009 25,388
Average Annual Total Returns of Class B Shares of the Fund at 8/31/03 2
1-Year 1.06% 5-Year 1.58% Since Inception 8.09%
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, 9/30/94 for Class B, 11/30/93 for Class C, 2/28/01 for
Class N, and 10/31/96 for Class Y.
PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. GRAPHS ARE NOT DRAWN TO SAME
SCALE.
7 | OPPENHEIMER MAIN STREET FUND
FUND PERFORMANCE DISCUSSION
[LINE CHART]
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Fund (Class C) S&P 500 Index
12/01/1993 10,000 10,000
12/31/1993 10,467 10,121
03/31/1994 10,415 9,738
06/30/1994 9,856 9,778
09/30/1994 10,412 10,256
12/31/1994 10,225 10,254
03/31/1995 11,011 11,251
06/30/1995 11,790 12,324
09/30/1995 12,791 13,302
12/31/1995 13,269 14,103
03/31/1996 13,993 14,859
06/30/1996 14,308 15,525
08/31/1996 1 13,825 15,153
11/30/1996 15,544 17,689
02/28/1997 16,056 18,566
05/31/1997 16,917 20,020
08/31/1997 17,982 21,309
11/30/1997 18,782 22,731
02/28/1998 20,254 25,061
05/31/1998 21,326 26,157
08/31/1998 18,505 23,040
11/30/1998 22,105 28,114
02/28/1999 23,437 30,013
05/31/1999 24,740 31,658
08/31/1999 25,460 32,211
11/30/1999 26,055 33,988
02/29/2000 26,137 33,533
05/31/2000 27,481 34,972
08/31/2000 29,754 37,463
11/30/2000 24,733 32,552
02/28/2001 23,793 30,785
05/31/2001 24,402 31,283
08/31/2001 22,192 28,332
11/30/2001 22,086 28,576
02/28/2002 21,875 27,858
05/31/2002 21,867 26,955
08/31/2002 19,178 23,236
11/30/2002 18,916 23,859
02/28/2003 17,220 21,542
05/31/2003 19,561 24,781
08/31/2003 20,356 26,037
Average Annual Total Returns of Class C Shares of the Fund at 8/31/03 2
1-Year 5.14% 5-Year 1.93% Since Inception 7.56%
[LINE CHART]
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Fund (Class N) S&P 500 Index
03/01/2001 10,000 10,000
05/31/2001 10,259 10,162
08/31/2001 9,339 9,203
11/30/2001 9,307 9,283
02/28/2002 9,229 9,049
05/31/2002 9,235 8,756
08/31/2002 8,111 7,548
11/30/2002 8,024 7,750
02/28/2003 7,312 6,998
05/31/2003 8,313 8,050
08/31/2003 8,661 8,458
Average Annual Total Returns of Class N Shares of the Fund at 8/31/03 2
1-Year 5.78% Since Inception -5.59%
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 MAIN STREET FUND
[LINE CHART]
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Main Street Fund (Class Y) S&P 500 Index
11/01/1996 10,000 10,000
11/30/1996 10,623 10,755
02/28/1997 11,007 11,288
05/31/1997 11,632 12,172
08/31/1997 12,398 12,957
11/30/1997 12,976 13,821
02/28/1998 14,025 15,238
05/31/1998 14,804 15,904
08/31/1998 12,879 14,009
11/30/1998 15,418 17,094
02/28/1999 16,375 18,249
05/31/1999 17,333 19,249
08/31/1999 17,882 19,585
11/30/1999 18,339 20,666
02/29/2000 18,443 20,389
05/31/2000 19,432 21,264
08/31/2000 21,101 22,779
11/30/2000 17,583 19,792
02/28/2001 16,949 18,718
05/31/2001 17,422 19,021
08/31/2001 15,877 17,226
11/30/2001 15,843 17,375
02/28/2002 15,728 16,939
05/31/2002 15,763 16,389
08/31/2002 13,854 14,128
11/30/2002 13,691 14,507
02/28/2003 12,495 13,098
05/31/2003 14,226 15,067
08/31/2003 14,840 15,831
Average Annual Total Returns of Class Y Shares of the Fund at 8/31/03 2
1-Year 7.11% 5-Year 2.87% Since Inception 5.95%
The performance information for the S&P 500 Index in the graphs begins on
6/30/93 for Class A, 9/30/94 for Class B, 11/30/93 for Class C, 2/28/01 for
Class N, and 10/31/96 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER MAIN STREET 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.
The Fund's name changed from Oppenheimer Main Street Growth & Income Fund(R) on
4/30/03.
Class A shares of the Fund were first publicly offered on 2/3/88. Class A
returns include the current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 10/3/94. 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 12/1/93. 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 11/1/96. 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 MAIN STREET FUND
STATEMENT OF INVESTMENTS August 31, 2003
Market Value
Shares See Note 1
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Common Stocks--98.9%
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Consumer Discretionary--14.1%
- ----------------------------------------------------------------
Auto ComponentS--0.4%
Aftermarket
Technology Corp. 1 125,400 $ 1,503,546
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American Axle &
Manufacturing
Holdings, Inc. 1 81,600 2,652,000
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ArvinMeritor, Inc. 102,600 1,930,932
- ----------------------------------------------------------------
Dana Corp. 1,129,700 17,419,974
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Delphi Corp. 948,000 8,588,880
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Johnson Controls, Inc. 187,400 18,552,601
--------------
50,647,933
- ----------------------------------------------------------------
Automobiles--1.2%
Ford Motor Co. 6,679,226 77,211,853
- ----------------------------------------------------------------
Harley-Davidson, Inc. 1,199,400 59,754,108
--------------
136,965,961
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Hotels, Restaurants & Leisure--1.3%
Applebee's
International, Inc. 179,125 5,757,077
- ----------------------------------------------------------------
Brinker
International, Inc. 1 521,000 17,818,200
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CBRL Group, Inc. 74,600 2,602,048
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CEC Entertainment,
Inc. 1 196,600 7,710,652
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Choice Hotels
International, Inc. 1 33,000 1,072,500
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GTech Holdings Corp. 216,500 9,175,270
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Outback Steakhouse,
Inc. 257,500 9,952,375
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P.F. Chang's
China Bistro, Inc. 1 255,900 11,899,350
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Panera Bread Co., Cl. A 1 228,500 10,088,275
- ----------------------------------------------------------------
Papa John's
International, Inc. 1 6,400 161,280
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Rare Hospitality
International, Inc. 1 5,000 190,400
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Ruby Tuesday, Inc. 637,000 14,504,490
- ----------------------------------------------------------------
Ryan's Family Steak
Houses, Inc. 1 105,350 1,409,583
- ----------------------------------------------------------------
Starbucks Corp. 1 1,252,800 35,629,632
- ----------------------------------------------------------------
Station Casinos, Inc. 59,800 1,779,050
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Wendy's
International, Inc. 28,000 883,400
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Hotels, Restaurants & Leisure Continued
Yum! Brands, Inc. 1 591,400 $ 17,535,010
--------------
148,168,592
- ----------------------------------------------------------------
Household Durables--2.2%
American Greetings
Corp., Cl. A 1 68,800 1,272,800
- ----------------------------------------------------------------
Beazer Homes
USA, Inc. 1 231,700 19,258,904
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Cavco Industries, Inc. 1 20,770 395,876
- ----------------------------------------------------------------
Centex Corp. 415,400 31,329,468
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D.R. Horton, Inc. 287,200 8,937,664
- ----------------------------------------------------------------
Fortune Brands, Inc. 225,800 12,735,120
- ----------------------------------------------------------------
Harman International
Industries, Inc. 119,300 11,888,245
- ----------------------------------------------------------------
Hovnanian Enterprises,
Inc., Cl. A 1 289,700 17,865,799
- ----------------------------------------------------------------
KB Home 456,800 26,138,096
- ----------------------------------------------------------------
Lennar Corp. 245,400 16,503,150
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Lennar Corp., Cl. B 54,100 3,502,975
- ----------------------------------------------------------------
M.D.C. Holdings, Inc. 36,990 1,889,819
- ----------------------------------------------------------------
Meritage Corp. 1 62,900 2,827,984
- ----------------------------------------------------------------
Newell
Rubbermaid, Inc. 362,400 8,607,000
- ----------------------------------------------------------------
NVR, Inc. 1 32,700 14,175,450
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Pulte Homes, Inc. 317,515 21,133,799
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Ryland Group,
Inc. (The) 548,400 36,830,544
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Standard Pacific Corp. 207,600 7,378,104
- ----------------------------------------------------------------
Toll Brothers, Inc. 1 354,300 10,529,796
--------------
253,200,593
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Internet & Catalog Retail--0.0%
InterActiveCorp 1 172,000 6,365,720
- ----------------------------------------------------------------
Leisure Equipment & Products--1.0%
Action Performance
Cos., Inc. 343,400 7,647,518
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Brunswick Corp. 189,900 5,123,502
- ----------------------------------------------------------------
Callaway Golf Co. 57,800 868,734
- ----------------------------------------------------------------
Eastman Kodak Co. 720,700 20,100,323
- ----------------------------------------------------------------
Hasbro, Inc. 1,202,200 22,240,700
- ----------------------------------------------------------------
Marvel Enterprises, Inc. 1 368,500 8,070,150
- ----------------------------------------------------------------
Mattel, Inc. 2,365,700 45,705,324
- ----------------------------------------------------------------
Polaris Industries, Inc. 108,800 8,405,888
--------------
118,162,139
11 | OPPENHEIMER STREET FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Media--2.0%
AOL Time Warner,
Inc. 1 1,488,900 $ 24,358,404
- ----------------------------------------------------------------
Clear Channel
Communications, Inc. 1 1,160,200 52,348,224
- ----------------------------------------------------------------
Comcast Corp., Cl. A 1 1,978,655 58,864,986
- ----------------------------------------------------------------
E.W. Scripps Co.
(The), Cl. A 34,000 2,944,060
- ----------------------------------------------------------------
Gannett Co., Inc. 135,500 10,625,910
- ----------------------------------------------------------------
McGraw-Hill Cos.,
Inc. (The) 350,000 21,350,000
- ----------------------------------------------------------------
New York Times Co.,
Cl. A 244,800 10,866,672
- ----------------------------------------------------------------
Tribune Co. 251,100 11,613,375
- ----------------------------------------------------------------
Viacom, Inc., Cl. B 848,448 38,180,160
- ----------------------------------------------------------------
Washington Post Co.
(The), Cl. B 3,700 2,575,311
--------------
233,727,102
- ----------------------------------------------------------------
Multiline Retail--0.2%
Big Lots, Inc. 1 113,600 2,078,880
- ----------------------------------------------------------------
Dollar General Corp. 229,800 5,269,314
- ----------------------------------------------------------------
Dollar Tree Stores, Inc. 1 277,200 10,874,556
- ----------------------------------------------------------------
Sears Roebuck & Co. 245,700 10,815,714
- ----------------------------------------------------------------
Shopko Stores, Inc. 1 20,800 286,416
--------------
29,324,880
- ----------------------------------------------------------------
Specialty Retail--5.3%
Abercrombie &
Fitch Co., Cl. A 1 834,500 25,402,180
- ----------------------------------------------------------------
Advance Auto
Parts, Inc. 1 58,400 4,359,560
- ----------------------------------------------------------------
AnnTaylor Stores Corp. 1 506,500 17,221,000
- ----------------------------------------------------------------
AutoZone, Inc. 1 467,000 42,870,600
- ----------------------------------------------------------------
Bed Bath &
Beyond, Inc. 1 728,400 31,343,052
- ----------------------------------------------------------------
Christopher &
Banks Corp. 1 364,200 10,816,740
- ----------------------------------------------------------------
Claire's Stores, Inc. 115,800 4,000,890
- ----------------------------------------------------------------
Deb Shops, Inc. 9,600 175,296
- ----------------------------------------------------------------
Foot Locker, Inc. 313,000 5,186,410
- ----------------------------------------------------------------
Gap, Inc. (The) 3,754,300 78,427,327
- ----------------------------------------------------------------
Home Depot, Inc. 3,240,200 104,204,832
- ----------------------------------------------------------------
Hot Topic, Inc. 1 369,750 13,185,285
- ----------------------------------------------------------------
Lowe's Cos., Inc. 1,701,900 93,366,234
- ----------------------------------------------------------------
Movie Gallery, Inc. 1 56,900 1,218,229
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Specialty Retail Continued
Pacific Sunwear of
California, Inc. 1 428,600 $ 14,486,680
- ----------------------------------------------------------------
Pier 1 Imports, Inc. 666,500 13,709,905
- ----------------------------------------------------------------
RadioShack Corp. 506,000 15,382,400
- ----------------------------------------------------------------
Regis Corp. 22,700 785,193
- ----------------------------------------------------------------
Ross Stores, Inc. 426,200 21,471,956
- ----------------------------------------------------------------
Sherwin-Williams Co. 197,700 5,946,816
- ----------------------------------------------------------------
Staples, Inc. 1 2,092,200 51,530,886
- ----------------------------------------------------------------
Talbots, Inc. (The) 246,700 9,046,489
- ----------------------------------------------------------------
TJX Cos., Inc. (The) 2,216,600 48,011,556
- ----------------------------------------------------------------
Weight Watchers
International, Inc. 1 8,400 364,140
- ----------------------------------------------------------------
Williams-Sonoma, Inc. 1 155,800 4,769,038
--------------
617,282,694
- ----------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.5%
Coach, Inc. 1 472,396 27,417,864
- ----------------------------------------------------------------
Columbia
Sportswear Co. 1 112,700 5,747,700
- ----------------------------------------------------------------
Kellwood Co. 39,300 1,434,843
- ----------------------------------------------------------------
Liz Claiborne, Inc. 347,900 11,992,113
- ----------------------------------------------------------------
Timberland Co., Cl. A 1 204,700 9,594,289
- ----------------------------------------------------------------
Tommy Hilfiger Corp. 1 85,200 1,051,368
--------------
57,238,177
- ----------------------------------------------------------------
Consumer Staples--11.6%
- ----------------------------------------------------------------
Beverages--2.6%
Anheuser-Busch
Cos., Inc. 1,748,100 90,097,074
- ----------------------------------------------------------------
Coca-Cola Co. (The) 2,001,600 87,109,632
- ----------------------------------------------------------------
Coca-Cola
Enterprises, Inc. 687,100 12,704,479
- ----------------------------------------------------------------
PepsiCo, Inc. 2,550,130 113,582,790
--------------
303,493,975
- ----------------------------------------------------------------
Food & Staples Retailing--2.7%
Albertson's, Inc. 638,400 13,419,168
- ----------------------------------------------------------------
CVS Corp. 572,600 18,666,760
- ----------------------------------------------------------------
Kroger Co. (The) 1 2,118,100 40,688,701
- ----------------------------------------------------------------
Wal-Mart Stores, Inc. 4,046,200 239,413,654
- ----------------------------------------------------------------
Winn-Dixie Stores, Inc. 541,800 5,445,090
--------------
317,633,373
12 | OPPENHEIMER STREET FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Food Products--1.9%
Campbell Soup Co. 2,309,600 $ 55,892,320
- ----------------------------------------------------------------
ConAgra Foods, Inc. 1,361,500 29,953,000
- ----------------------------------------------------------------
Dean Foods Co. 1 432,450 12,562,673
- ----------------------------------------------------------------
Del Monte Foods Co. 1 99,800 896,204
- ----------------------------------------------------------------
Fresh Del Monte
Produce, Inc. 232,200 6,443,550
- ----------------------------------------------------------------
Hershey Foods Corp. 327,100 22,864,290
- ----------------------------------------------------------------
Kellogg Co. 913,000 30,612,890
- ----------------------------------------------------------------
Kraft Foods, Inc., Cl. A 977,600 29,034,720
- ----------------------------------------------------------------
Sara Lee Corp. 244,981 4,649,739
- ----------------------------------------------------------------
Wm. Wrigley Jr. Co. 555,900 29,490,495
--------------
222,399,881
- ----------------------------------------------------------------
Household Products--2.6%
Clorox Co. (The) 585,300 25,080,105
- ----------------------------------------------------------------
Colgate-Palmolive Co. 1,128,300 62,372,424
- ----------------------------------------------------------------
Dial Corp. (The) 75,500 1,530,385
- ----------------------------------------------------------------
Energizer Holdings, Inc. 1 287,600 10,577,928
- ----------------------------------------------------------------
Procter & Gamble
Corp. (The) 2,274,200 198,514,918
--------------
298,075,760
- ----------------------------------------------------------------
Personal Products--0.7%
Avon Products, Inc. 420,400 26,947,640
- ----------------------------------------------------------------
Estee Lauder Cos.,
Inc. (The), Cl. A 253,700 8,750,113
- ----------------------------------------------------------------
Gillette Co. 1,465,100 47,557,146
--------------
83,254,899
- ----------------------------------------------------------------
Tobacco--1. %
Altria Group, Inc. 3,066,700 126,409,374
- ----------------------------------------------------------------
Energy--8.8%
- ----------------------------------------------------------------
Energy Equipment & Services--0.0%
Patterson-UTI
Energy, Inc. 1 23,600 704,224
- ----------------------------------------------------------------
Oil & Gas--8.8%
Anadarko Petroleum
Corp. 916,200 39,854,700
- ----------------------------------------------------------------
Apache Corp. 304,200 20,983,716
- ----------------------------------------------------------------
Baytex Energy Ltd. 1 375,000 3,325,163
- ----------------------------------------------------------------
Brown (Tom), Inc. 1 1,315,800 36,171,342
- ----------------------------------------------------------------
Burlington
Resources, Inc. 1,169,600 56,632,032
- ----------------------------------------------------------------
Canadian Natural
Resources Ltd. 1,272,585 49,292,428
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Oil & Gas Continued
Chesapeake Energy
Corp. 2,261,200 $ 24,511,408
- ----------------------------------------------------------------
ChevronTexaco Corp. 1,508,004 109,888,252
- ----------------------------------------------------------------
Cimarex Energy Co. 1 31,010 674,468
- ----------------------------------------------------------------
ConocoPhillips 755,991 42,214,538
- ----------------------------------------------------------------
Cross Timbers
Royalty Trust 6,474 144,629
- ----------------------------------------------------------------
Devon Energy Corp. 304,249 15,744,886
- ----------------------------------------------------------------
Enbridge Energy
Management LLC 242,698 11,236,917
- ----------------------------------------------------------------
EOG Resources, Inc. 619,900 26,283,760
- ----------------------------------------------------------------
Esprit Exploration Ltd. 1 5,360,000 9,930,577
- ----------------------------------------------------------------
Exxon Mobil Corp. 8,363,596 315,307,569
- ----------------------------------------------------------------
Frontier Oil Corp. 2 1,842,100 28,386,761
- ----------------------------------------------------------------
Kerr-McGee Corp. 103,000 4,526,850
- ----------------------------------------------------------------
Marathon Oil Corp. 442,300 12,335,747
- ----------------------------------------------------------------
Murphy Oil Corp. 580,500 33,512,265
- ----------------------------------------------------------------
Newfield
Exploration Co. 1 206,400 8,109,456
- ----------------------------------------------------------------
Noble Energy, Inc. 209,300 8,286,187
- ----------------------------------------------------------------
Occidental
Petroleum Corp. 1,455,000 49,950,150
- ----------------------------------------------------------------
Paramount Energy
Trust 1,211,136 8,800,959
- ----------------------------------------------------------------
Paramount
Resources Ltd. 1 1,838,400 12,921,746
- ----------------------------------------------------------------
Pioneer Natural
Resources Co. 1 51,300 1,300,968
- ----------------------------------------------------------------
Pogo Producing Co. 197,100 9,058,716
- ----------------------------------------------------------------
Sunoco, Inc. 202,300 8,219,449
- ----------------------------------------------------------------
Talisman Energy, Inc. 600,000 28,417,979
- ----------------------------------------------------------------
Teekay Shipping Corp. 31,500 1,419,075
- ----------------------------------------------------------------
Unocal Corp. 380,100 11,638,662
- ----------------------------------------------------------------
Valero Energy Corp. 309,600 12,198,240
- ----------------------------------------------------------------
Western Gas
Resources, Inc. 43,100 1,691,244
- ----------------------------------------------------------------
XTO Energy, Inc. 874,900 18,364,151
--------------
1,021,334,990
- ----------------------------------------------------------------
Financials--22.9%
- ----------------------------------------------------------------
Capital Markets--0.5%
Mellon Financial Corp. 1,977,300 61,988,355
13 | OPPENHEIMER STREET FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Commercial Banks--8.8%
AmSouth Bancorp 535,100 $ 11,526,054
- ----------------------------------------------------------------
Bank of America Corp. 2,545,400 201,722,950
- ----------------------------------------------------------------
Bank One Corp. 2,061,300 81,359,511
- ----------------------------------------------------------------
Banknorth Group, Inc. 46,300 1,301,030
- ----------------------------------------------------------------
Charter One
Financial, Inc. 569,171 17,644,301
- ----------------------------------------------------------------
Commerce
Bancorp, Inc. 5,600 226,800
- ----------------------------------------------------------------
Compass
Bancshares, Inc. 77,800 2,674,764
- ----------------------------------------------------------------
First Tennessee
National Corp. 409,800 16,945,230
- ----------------------------------------------------------------
FleetBoston
Financial Corp. 1,646,400 48,716,976
- ----------------------------------------------------------------
Golden West
Financial Corp. 808,000 69,706,160
- ----------------------------------------------------------------
Greenpoint
Financial Corp. 267,750 9,071,370
- ----------------------------------------------------------------
Hibernia Corp., Cl. A 169,800 3,523,350
- ----------------------------------------------------------------
Huntington
Bancshares, Inc. 138,700 2,774,000
- ----------------------------------------------------------------
Independence
Community Bank Corp. 122,300 4,042,015
- ----------------------------------------------------------------
KeyCorp 1,416,200 38,563,126
- ----------------------------------------------------------------
National City Corp. 1,958,900 62,057,952
- ----------------------------------------------------------------
New York
Community
Bancorp, Inc. 121,666 3,742,446
- ----------------------------------------------------------------
North Fork
Bancorp, Inc. 271,700 9,175,309
- ----------------------------------------------------------------
Regions Financial Corp. 244,500 8,621,070
- ----------------------------------------------------------------
Roslyn Bancorp, Inc. 76,400 1,756,436
- ----------------------------------------------------------------
SouthTrust Corp. 150,200 4,354,298
- ----------------------------------------------------------------
Sovereign Bancorp, Inc. 280,400 5,518,272
- ----------------------------------------------------------------
SunTrust Banks, Inc. 344,600 21,065,398
- ----------------------------------------------------------------
U.S. Bancorp 2,645,870 63,236,293
- ----------------------------------------------------------------
Union Planters Corp. 130,000 4,147,000
- ----------------------------------------------------------------
UnionBanCal Corp. 185,600 8,713,920
- ----------------------------------------------------------------
Wachovia Corp. 3,164,500 133,383,675
- ----------------------------------------------------------------
Washington
Mutual, Inc. 1,196,000 46,620,080
- ----------------------------------------------------------------
Webster Financial Corp. 51,900 2,021,505
- ----------------------------------------------------------------
Wells Fargo Co. 2,915,100 146,163,114
--------------
1,030,374,405
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Diversified Financial Services--6.9%
American Express Co. 1,012,500 $ 45,613,125
- ----------------------------------------------------------------
Bear Stearns Cos.,
Inc. (The) 405,000 28,341,900
- ----------------------------------------------------------------
Capital One
Financial Corp. 209,500 11,187,300
- ----------------------------------------------------------------
Citigroup, Inc. 6,974,246 302,333,564
- ----------------------------------------------------------------
Franklin Resources, Inc. 67,300 2,906,687
- ----------------------------------------------------------------
Household
International, Inc. 1,134,100 39,025,742
- ----------------------------------------------------------------
J.P. Morgan Chase
& Co. 1,000,700 34,243,954
- ----------------------------------------------------------------
Lehman Brothers
Holdings, Inc. 915,900 60,202,107
- ----------------------------------------------------------------
MBNA Corp. 2,952,000 68,899,680
- ----------------------------------------------------------------
Merrill Lynch
& Co., Inc. 1,368,100 73,576,418
- ----------------------------------------------------------------
Moody's Corp. 140,300 7,275,958
- ----------------------------------------------------------------
Morgan Stanley 1,113,700 54,337,423
- ----------------------------------------------------------------
Principal Financial
Group, Inc. (The) 1,019,700 32,079,762
- ----------------------------------------------------------------
Schwab (Charles)
Corp. 2,464,800 26,767,728
- ----------------------------------------------------------------
SLM Corp. 468,700 18,832,366
--------------
805,623,714
- ----------------------------------------------------------------
Insurance--4.9%
ACE Ltd. 169,200 5,448,240
- ----------------------------------------------------------------
AFLAC, Inc. 1,411,000 45,166,110
- ----------------------------------------------------------------
Allstate Corp. 2,429,900 86,868,925
- ----------------------------------------------------------------
AMBAC Financial
Group, Inc. 184,300 11,964,756
- ----------------------------------------------------------------
American International
Group, Inc. 1,895,505 112,915,233
- ----------------------------------------------------------------
Chubb Corp. 90,400 6,141,776
- ----------------------------------------------------------------
Cincinnati Financial
Corp. 99,900 4,030,965
- ----------------------------------------------------------------
Fidelity National
Financial, Inc. 1,271,513 36,746,726
- ----------------------------------------------------------------
John Hancock
Financial Services, Inc. 1,294,200 39,511,926
- ----------------------------------------------------------------
Loews Corp. 416,400 17,139,024
- ----------------------------------------------------------------
Marsh & McLennan
Cos., Inc. 831,600 41,580,000
- ----------------------------------------------------------------
MBIA, Inc. 112,500 6,351,750
- ----------------------------------------------------------------
MetLife, Inc. 1,046,700 29,747,214
14 | OPPENHEIMER STREET FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Insurance Continued
Nationwide Financial
Services, Inc., Cl. A 54,700 $ 1,613,650
- ----------------------------------------------------------------
Old Republic
International Corp. 170,000 5,710,300
- ----------------------------------------------------------------
Progressive Corp. 900,000 63,666,000
- ----------------------------------------------------------------
Prudential Financial, Inc. 274,000 9,976,340
- ----------------------------------------------------------------
RenaissanceRe
Holdings Ltd. 430,100 17,978,180
- ----------------------------------------------------------------
Safeco Corp. 304,500 10,980,270
- ----------------------------------------------------------------
Travelers Property
Casualty Corp., Cl. A 249,118 3,833,926
- ----------------------------------------------------------------
Travelers Property
Casualty Corp., Cl. B 511,620 7,924,994
- ----------------------------------------------------------------
Willis Group
Holdings Ltd. 148,700 4,310,813
--------------
569,607,118
- ----------------------------------------------------------------
Thrifts & Mortgage Finance--1.8%
Countrywide
Financial Corp. 470,300 31,909,855
- ----------------------------------------------------------------
Doral Financial Corp. 111,450 4,575,022
- ----------------------------------------------------------------
Fannie Mae 1,790,100 115,980,579
- ----------------------------------------------------------------
Freddie Mac 960,500 51,050,575
- ----------------------------------------------------------------
New Century
Financial Corp. 246,150 5,998,676
--------------
209,514,707
- ----------------------------------------------------------------
Health Care--13.0%
- ----------------------------------------------------------------
Biotechnology--0.7%
Amgen, Inc. 1 834,300 54,980,370
- ----------------------------------------------------------------
Genentech, Inc. 1 174,000 13,815,600
- ----------------------------------------------------------------
Wyeth 381,900 16,364,415
--------------
85,160,385
- ----------------------------------------------------------------
Health Care Equipment & Supplies--2.7%
Bard (C.R.), Inc. 142,200 9,527,400
- ----------------------------------------------------------------
Bausch & Lomb, Inc. 257,000 10,835,120
- ----------------------------------------------------------------
Beckman Coulter, Inc. 37,700 1,671,995
- ----------------------------------------------------------------
Becton, Dickinson
& Co. 769,300 28,110,222
- ----------------------------------------------------------------
Bio-Rad Laboratories,
Inc., Cl. A 1 42,400 2,168,760
- ----------------------------------------------------------------
Biosite, Inc. 1 55,000 2,552,000
- ----------------------------------------------------------------
Boston Scientific Corp. 1 191,600 11,515,160
- ----------------------------------------------------------------
Cooper Cos., Inc. (The) 159,500 5,915,855
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Health Care Equipment & Supplies Continued
Guidant Corp. 1,124,500 $ 56,449,900
- ----------------------------------------------------------------
Inamed Corp. 1 16,700 1,233,128
- ----------------------------------------------------------------
Medtronic, Inc. 1,570,100 77,845,558
- ----------------------------------------------------------------
St. Jude Medical, Inc. 1 200,200 10,424,414
- ----------------------------------------------------------------
Steris Corp. 1 182,000 4,262,440
- ----------------------------------------------------------------
Stryker Corp. 701,000 53,135,800
- ----------------------------------------------------------------
VISX, Inc. 1 638,200 12,776,764
- ----------------------------------------------------------------
Zimmer Holdings, Inc. 1 499,000 25,818,260
--------------
314,242,776
- ----------------------------------------------------------------
Health Care Providers & Services--2.5%
Aetna, Inc. 251,300 14,324,100
- ----------------------------------------------------------------
AMERIGROUP Corp. 1 20,500 834,760
- ----------------------------------------------------------------
Apria Healthcare
Group, Inc. 1 324,100 8,394,190
- ----------------------------------------------------------------
Covance, Inc. 1 405,500 8,454,675
- ----------------------------------------------------------------
Coventry Health
Care, Inc. 1 247,200 11,603,568
- ----------------------------------------------------------------
DaVita, Inc. 1 167,200 5,082,880
- ----------------------------------------------------------------
eResearch Technology,
Inc. 1 82,200 2,618,892
- ----------------------------------------------------------------
Express Scripts, Inc. 1 177,000 11,471,370
- ----------------------------------------------------------------
First Health Group
Corp. 1 209,500 5,493,090
- ----------------------------------------------------------------
HCA, Inc. 1,655,900 62,907,641
- ----------------------------------------------------------------
Health Net, Inc. 1 394,200 12,547,386
- ----------------------------------------------------------------
IMS Health, Inc. 92,870 1,808,179
- ----------------------------------------------------------------
Lincare Holdings, Inc. 1 445,400 15,424,202
- ----------------------------------------------------------------
Medco Health
Solutions, Inc. 1 442,071 11,803,295
- ----------------------------------------------------------------
Mid Atlantic
Medical Services, Inc. 1 253,800 12,451,428
- ----------------------------------------------------------------
Oxford Health
Plans, Inc. 1 847,300 30,714,625
- ----------------------------------------------------------------
PacifiCare Health
Systems, Inc. 1 26,500 1,319,700
- ----------------------------------------------------------------
Pediatrix Medical
Group, Inc. 1 388,400 17,369,248
- ----------------------------------------------------------------
Per-Se Technologies,
Inc. 1 78,700 1,264,709
- ----------------------------------------------------------------
Pharmaceutical
Product
Development, Inc. 1 29,100 742,341
- ----------------------------------------------------------------
Select Medical Corp. 1 34,500 993,600
15 | OPPENHEIMER STREET FUND
Statement of Investments Continued
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Health Care Providers & Services Continued
Sierra Health
Services, Inc. 1 27,300 $ 532,623
- ----------------------------------------------------------------
WellPoint Health
Networks, Inc. 1 722,500 56,355,000
--------------
294,511,502
- ----------------------------------------------------------------
Pharmaceuticals--7.1%
Abbott Laboratories 2,099,700 84,617,910
- ----------------------------------------------------------------
Alpharma, Inc., Cl. A 34,700 727,659
- ----------------------------------------------------------------
American
Pharmaceutical
Partners, Inc. 1 222,300 10,590,372
- ----------------------------------------------------------------
Bristol-Myers
Squibb Co. 4,435,600 112,531,172
- ----------------------------------------------------------------
Eli Lilly & Co. 731,400 48,660,042
- ----------------------------------------------------------------
Forest
Laboratories, Inc. 1 948,300 44,570,100
- ----------------------------------------------------------------
Hi-Tech Pharmacal
Co., Inc. 1 5,100 128,520
- ----------------------------------------------------------------
Johnson & Johnson 2,510,368 124,464,046
- ----------------------------------------------------------------
Merck & Co., Inc. 3,665,600 184,452,992
- ----------------------------------------------------------------
Pfizer, Inc. 6,728,645 201,321,058
- ----------------------------------------------------------------
Pharmaceutical
Resources, Inc. 1 132,700 7,423,238
- ----------------------------------------------------------------
Taro Pharmaceutical
Industries Ltd. 1 93,200 5,031,868
--------------
824,518,977
- ----------------------------------------------------------------
Industrials--6.8%
- ----------------------------------------------------------------
Aerospace & Defense--1.0%
General Dynamics
Corp. 356,500 30,698,215
- ----------------------------------------------------------------
Goodrich Corp. 160,900 4,188,227
- ----------------------------------------------------------------
Rockwell Collins, Inc. 94,900 2,567,045
- ----------------------------------------------------------------
United Technologies
Corp. 963,700 77,336,925
--------------
114,790,412
- ----------------------------------------------------------------
Air Freight & Logistics--0.3%
Expeditors
International of
Washington, Inc. 21,800 822,078
- ----------------------------------------------------------------
FedEx Corp. 182,500 12,245,750
- ----------------------------------------------------------------
United Parcel Service,
Inc., Cl. B 398,400 25,003,584
--------------
38,071,412
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Building Products--0.0%
USG Corp. 1 184,700 $ 3,077,102
- ----------------------------------------------------------------
Commercial Services & Supplies--0.8%
Apollo Group,
Inc., Cl. A 1 61,400 3,933,898
- ----------------------------------------------------------------
Arbitron, Inc. 1 28,100 1,039,138
- ----------------------------------------------------------------
Corinthian Colleges,
Inc. 1 211,000 12,143,050
- ----------------------------------------------------------------
Deluxe Corp. 334,800 14,295,960
- ----------------------------------------------------------------
DeVry, Inc. 1 32,300 838,185
- ----------------------------------------------------------------
H&R Block, Inc. 993,900 43,830,990
- ----------------------------------------------------------------
Harland (John H.) Co. 108,300 2,728,077
- ----------------------------------------------------------------
ITT Educational
Services, Inc. 1 360,700 15,636,345
- ----------------------------------------------------------------
Republic Services,
Inc. 1 174,700 4,301,114
- ----------------------------------------------------------------
Right Management
Consultants, Inc. 1 33,750 478,237
--------------
99,224,994
- ----------------------------------------------------------------
Electrical Equipment--0.2%
American Power
Conversion Corp. 94,900 1,700,608
- ----------------------------------------------------------------
Emerson Electric Co. 174,600 9,735,696
- ----------------------------------------------------------------
Molex, Inc., Cl. A 299,600 7,618,828
- ----------------------------------------------------------------
Rockwell
Automation, Inc. 137,200 3,734,584
--------------
22,789,716
- ----------------------------------------------------------------
Industrial Conglomerates--3.0%
3M Co. 330,800 47,129,076
- ----------------------------------------------------------------
Carlisle Cos., Inc. 45,500 2,069,795
- ----------------------------------------------------------------
General Electric Co. 10,066,500 297,666,405
--------------
346,865,276
- ----------------------------------------------------------------
Machinery--1.0%
Briggs & Stratton Corp. 94,900 5,580,120
- ----------------------------------------------------------------
Danaher Corp. 428,400 33,093,900
- ----------------------------------------------------------------
Deere & Co. 620,300 35,053,153
- ----------------------------------------------------------------
Eaton Corp. 78,300 7,332,012
- ----------------------------------------------------------------
EnPro Industries, Inc. 1 48,180 511,190
- ----------------------------------------------------------------
Ingersoll-Rand Co., Cl. A 171,900 10,231,488
- ----------------------------------------------------------------
Oshkosh Truck Corp. 104,600 4,092,998
- ----------------------------------------------------------------
Paccar, Inc. 216,100 18,411,720
- ----------------------------------------------------------------
Pall Corp. 258,400 6,460,000
--------------
120,766,581
16 | OPPENHEIMER STREET FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Road & Rail--0.5%
Burlington Northern
Santa Fe Corp. 428,100 $ 12,136,635
- ----------------------------------------------------------------
C.H. Robinson
Worldwide, Inc. 61,600 2,338,952
- ----------------------------------------------------------------
CSX Corp. 451,100 14,561,508
- ----------------------------------------------------------------
Hunt (J.B.) Transport
Services, Inc. 1 131,100 6,515,670
- ----------------------------------------------------------------
Norfolk Southern Corp. 324,800 6,184,192
- ----------------------------------------------------------------
Roadway Corp. 108,200 5,058,350
- ----------------------------------------------------------------
Ryder Systems, Inc. 213,100 6,399,393
--------------
53,194,700
- ----------------------------------------------------------------
Information Technology--14.0%
- ----------------------------------------------------------------
Communications Equipment--2.0%
ADTRAN, Inc. 463,400 25,394,320
- ----------------------------------------------------------------
Avocent Corp. 1 43,200 1,261,440
- ----------------------------------------------------------------
Cisco Systems, Inc. 1 8,256,900 158,119,635
- ----------------------------------------------------------------
Foundry Networks, Inc. 1 98,400 1,913,880
- ----------------------------------------------------------------
McDATA Corp., Cl. A 1 97,600 990,640
- ----------------------------------------------------------------
QUALCOMM, Inc. 1,274,600 52,615,488
--------------
240,295,403
- ----------------------------------------------------------------
Computers & Peripherals--2.7%
Avid Technology, Inc. 1 54,100 2,686,065
- ----------------------------------------------------------------
Dell, Inc. 1 3,917,300 127,821,499
- ----------------------------------------------------------------
Hutchinson
Technology, Inc. 1 31,800 1,005,834
- ----------------------------------------------------------------
Imation Corp. 70,300 2,527,285
- ----------------------------------------------------------------
International Business
Machines Corp. 1,216,200 99,740,562
- ----------------------------------------------------------------
Lexmark
International, Inc., Cl. A 1 723,000 48,469,920
- ----------------------------------------------------------------
Network
Appliance, Inc. 1 376,400 8,435,124
- ----------------------------------------------------------------
Seagate Technology
International, Inc.
(Escrow Shares) 1,3 903,300 --
- ----------------------------------------------------------------
Storage Technology
Corp. 1 356,900 9,140,209
- ----------------------------------------------------------------
Western Digital Corp. 1 1,396,100 16,041,189
--------------
315,867,687
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Electronic Equipment & Instruments--0.1%
Benchmark
Electronics, Inc. 1 197,800 $ 8,778,364
- ----------------------------------------------------------------
Diebold, Inc. 23,500 1,149,150
- ----------------------------------------------------------------
Waters Corp. 1 136,300 4,157,150
--------------
14,084,664
- ----------------------------------------------------------------
Internet Software & Services--0.2%
Digital River, Inc. 1 353,900 9,442,052
- ----------------------------------------------------------------
j2 Global
Communications, Inc. 1 24,400 1,530,368
- ----------------------------------------------------------------
United Online, Inc. 1 278,800 10,625,068
--------------
21,597,488
- ----------------------------------------------------------------
IT Services--0.4%
Cognizant Technology
Solutions Corp. 1 782,071 27,239,533
- ----------------------------------------------------------------
Convergys Corp. 1 557,000 10,026,000
- ----------------------------------------------------------------
First Data Corp. 222,600 8,547,840
--------------
45,813,373
- ----------------------------------------------------------------
Office Electronics--0.2%
Xerox Corp. 1 1,719,100 18,531,898
- ----------------------------------------------------------------
Zebra Technologies
Corp., Cl. A 1 24,000 1,286,880
--------------
19,818,778
- ----------------------------------------------------------------
Semiconductors & Semiconductor Equipment--2.6%
Genesis
Microchip, Inc. 1 48,500 589,760
- ----------------------------------------------------------------
Intel Corp. 7,765,600 222,251,472
- ----------------------------------------------------------------
Linear Technology
Corp. 222,700 9,179,694
- ----------------------------------------------------------------
National
Semiconductor Corp. 1 885,700 25,809,298
- ----------------------------------------------------------------
Power
Integrations, Inc. 1 25,400 817,372
- ----------------------------------------------------------------
QLogic Corp. 1 112,000 5,490,240
- ----------------------------------------------------------------
Silicon
Laboratories, Inc. 1 76,800 3,410,688
- ----------------------------------------------------------------
Texas Instruments, Inc. 1,319,800 31,477,230
--------------
299,025,754
17 | OPPENHEIMER STREET FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Software--5.8%
Adobe Systems, Inc. 52,700 $ 2,046,341
- ----------------------------------------------------------------
Amdocs Ltd. 1 1,191,300 26,661,294
- ----------------------------------------------------------------
Citrix Systems, Inc. 1 604,600 12,448,714
- ----------------------------------------------------------------
Electronic Arts, Inc. 1 937,900 84,176,525
- ----------------------------------------------------------------
FactSet Research
Systems, Inc. 110,800 5,379,340
- ----------------------------------------------------------------
Fair Isaac Corp. 125,000 7,325,000
- ----------------------------------------------------------------
Hyperion Solutions
Corp. 1 34,900 1,151,002
- ----------------------------------------------------------------
Microsoft Corp. 12,850,700 340,800,564
- ----------------------------------------------------------------
Oracle Corp. 1 8,867,400 113,325,372
- ----------------------------------------------------------------
Sybase, Inc. 1 141,400 2,391,074
- ----------------------------------------------------------------
Symantec Corp. 1 681,100 39,115,573
- ----------------------------------------------------------------
Synopsys, Inc. 1 47,300 3,226,333
- ----------------------------------------------------------------
Take-Two Interactive
Software, Inc. 1 628,800 18,719,376
- ----------------------------------------------------------------
Veritas Software Corp. 1 757,900 26,132,392
--------------
682,898,900
- ----------------------------------------------------------------
Materials--0.8%
- ----------------------------------------------------------------
Chemicals--0.5%
Cytec Industries, Inc. 1 18,400 689,816
- ----------------------------------------------------------------
Du Pont (E.I.) de
Nemours & Co. 656,700 29,380,758
- ----------------------------------------------------------------
Ecolab, Inc. 180,200 4,647,358
- ----------------------------------------------------------------
International Flavors
& Fragrances, Inc. 90,500 2,850,750
- ----------------------------------------------------------------
Monsanto Co. 459,300 11,808,603
- ----------------------------------------------------------------
PPG Industries, Inc. 31,500 1,729,665
- ----------------------------------------------------------------
Sigma-Aldrich Corp. 74,700 4,089,825
--------------
55,196,775
- ----------------------------------------------------------------
Containers & Packaging--0.0%
Ball Corp. 64,000 3,379,200
- ----------------------------------------------------------------
Sealed Air Corp. 1 93,500 4,549,710
--------------
7,928,910
- ----------------------------------------------------------------
Metals & Mining--0.3%
Alcan, Inc. 146,300 5,320,931
- ----------------------------------------------------------------
Alcoa, Inc. 631,800 18,044,208
- ----------------------------------------------------------------
Barrick Gold Corp. 190,900 3,858,089
- ----------------------------------------------------------------
Peabody Energy Corp. 186,700 5,909,055
--------------
33,132,283
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Telecommunication Services--4.9%
- ----------------------------------------------------------------
Diversified Telecommunication Services--3.9%
Alltel Corp. 556,600 $ 25,492,280
- ----------------------------------------------------------------
BellSouth Corp. 4,399,600 110,869,920
- ----------------------------------------------------------------
Citizens
Communications Co. 1 677,000 7,717,800
- ----------------------------------------------------------------
SBC Communications,
Inc. 6,104,800 137,296,952
- ----------------------------------------------------------------
Verizon
Communications, Inc. 4,829,710 170,585,357
--------------
451,962,309
- ----------------------------------------------------------------
Wireless Telecommunication Services--1.0%
AT&T Wireless
Services, Inc. 1 4,408,000 37,996,960
- ----------------------------------------------------------------
Nextel
Communications,
Inc., Cl. A 1 4,254,300 82,022,904
--------------
120,019,864
- ----------------------------------------------------------------
Utilities--2.0%
- ----------------------------------------------------------------
Electric Utilities--1.7%
Allegheny Energy, Inc. 48,800 452,376
- ----------------------------------------------------------------
Ameren Corp. 112,100 4,764,250
- ----------------------------------------------------------------
American Electric
Power Co., Inc. 404,800 11,459,888
- ----------------------------------------------------------------
Constellation Energy
Group, Inc. 503,100 18,307,809
- ----------------------------------------------------------------
Dominion
Resources, Inc. 491,100 29,750,838
- ----------------------------------------------------------------
Entergy Corp. 253,400 13,290,830
- ----------------------------------------------------------------
Exelon Corp. 1,026,875 60,482,938
- ----------------------------------------------------------------
FirstEnergy Corp. 574,200 16,801,092
- ----------------------------------------------------------------
FPL Group, Inc. 389,700 24,106,842
- ----------------------------------------------------------------
Progress Energy, Inc.,
Contingent Value
Obligation 1,3 700,000 84,000
- ----------------------------------------------------------------
Puget Energy, Inc. 18,800 409,840
- ----------------------------------------------------------------
Southern Co. 343,800 9,757,044
- ----------------------------------------------------------------
Texas Genco
Holdings, Inc. 11,420 279,790
- ----------------------------------------------------------------
Wisconsin Energy
Corp. 313,700 9,141,218
--------------
199,088,755
18 | OPPENHEIMER STREET FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Gas Utilities--0.1%
Kinder Morgan
Management LLC 61,521 $ 2,294,733
- ----------------------------------------------------------------
ONEOK, Inc. 320,400 6,725,196
---------------
9,019,929
- ----------------------------------------------------------------
Multi-Utilities & Unregulated Power--0.2%
Equitable
Resources, Inc. 85,000 3,354,950
- ----------------------------------------------------------------
Questar Corp. 19,400 622,352
- ----------------------------------------------------------------
Williams Cos.,
Inc. (The) 2,044,400 18,665,372
---------------
22,642,674
---------------
Total Common Stocks
(Cost $9,942,653,780) 11,557,105,945
- ----------------------------------------------------------------
Preferred Stocks--0.0%
Wachovia Corp.,
Dividend Equalization
Preferred Shares
(Cost $0) 100,000 600
Units
- ----------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
Dime Bancorp, Inc.
Wts., Exp. 1/2/10 1
(Cost $0) 500,000 80,000
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------
Short-Term Notes--0.8%
Crown Point Capital
Co., 1.08%, 10/2/03 $40,000,000 $ 39,962,800
- ----------------------------------------------------------------
Neptune Funding Corp.:
1.09%, 10/10/03 25,000,000 24,970,479
1.2%, 9/22/03 23,610,000 23,594,988
---------------
Total Short-Term Notes
(Cost $88,528,267) 88,528,267
- ----------------------------------------------------------------
Joint Repurchase Agreements--1.1%
Undivided interest of 17.50% 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 $132,041,816 on 9/2/03, collateralized
by Federal National Mortgage Assn., 5.50%, 6/1/33,
with a value of $770,199,757
(Cost $132,027,000) 132,027,000 132,027,000
- ----------------------------------------------------------------
Total Investments,
at Value
(COST $10,163,209,047) 100.8% 11,777,741,812
- ----------------------------------------------------------------
Liabilities
in Excess of
Other Assets (0.8) (93,189,617)
---------------------------
Net Assets 100.0% $11,684,552,195
===========================
Footnotes to Statement of Investments
1. Non-income producing security.
2. 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 $28,386,761. Transactions during the period in
which the issuer was an affiliate are as follows:
Shares Gross Gross Shares Unrealized Dividend Realized
August 31, 2002 Additions Reductions August 31, 2003 Appreciation Income Gain (Loss)
- --------------------------------------------------------------------------------------------------------------------
Stocks And/or Warrants
Esprit Exploration Ltd.
(formerly Canadian 88
Energy Corp.)* 6,539,500 -- 1,179,500 5,360,000 $ -- $ -- $(2,119,384)
Frontier Oil Corp. 1,856,000 -- 13,900 1,842,100 18,465,052 368,870 122,826
--------------------------------------
$18,465,052 $368,870 $(1,996,558)
======================================
*No longer an affiliate as of August 31, 2003.
3. Identifies issues considered to be illiquid. See Note 6 of Notes to Financial
Statements.
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2003
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $10,153,287,338) $11,749,355,051
Affiliated companies (cost $9,921,709) 28,386,761
----------------
11,777,741,812
- -----------------------------------------------------------------------------------
Cash 4,805,478
- -----------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 88,532,586
Interest and dividends 16,708,880
Shares of capital stock sold 8,479,145
Other 345,541
----------------
Total assets 11,896,613,442
- -----------------------------------------------------------------------------------
Liabilities
Unrealized depreciation on foreign currency contracts 22,153
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 187,210,565
Shares of capital stock redeemed 15,763,560
Distribution and service plan fees 4,654,495
Transfer and shareholder servicing agent fees 2,523,104
Shareholder reports 1,577,670
Directors' compensation 25,448
Other 284,252
----------------
Total liabilities 212,061,247
- -----------------------------------------------------------------------------------
Net Assets $11,684,552,195
================
- -----------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of capital stock $ 3,989,798
- -----------------------------------------------------------------------------------
Additional paid-in capital 12,662,938,593
- -----------------------------------------------------------------------------------
Undistributed net investment income 32,558,166
- -----------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign
currency transactions (2,629,484,227)
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 1,614,549,865
----------------
Net Assets $11,684,552,195
================
20 | OPPENHEIMER MAIN STREET FUND
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$7,033,312,488 and 237,427,186 shares of capital stock outstanding) $29.62
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $31.43
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$2,941,765,408 and 102,579,121 shares of capital stock outstanding) $28.68
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$1,188,825,749 and 41,434,632 shares of capital stock outstanding) $28.69
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$79,188,488 and 2,699,787 shares of capital stock outstanding) $29.33
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $441,460,062 and 14,839,060 shares of capital stock
outstanding) $29.75
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2003
- -----------------------------------------------------------------------------------
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes
of $509,918) $193,414,338
Affiliated companies 368,870
- -----------------------------------------------------------------------------------
Interest 2,651,896
--------------
Total investment income 196,435,104
- -----------------------------------------------------------------------------------
Expenses
Management fees 48,873,062
- -----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 15,475,586
Class B 29,662,203
Class C 11,111,558
Class N 304,261
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 14,651,680
Class B 9,413,896
Class C 2,829,243
Class N 148,999
Class Y 911,857
- -----------------------------------------------------------------------------------
Shareholder reports 2,519,194
- -----------------------------------------------------------------------------------
Directors' compensation 241,844
- -----------------------------------------------------------------------------------
Custodian fees and expenses 240,816
- -----------------------------------------------------------------------------------
Other 709,066
--------------
Total expenses 137,093,265
Less reduction to custodian expenses (22,227)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class N (32,892)
Less voluntary waiver of transfer and shareholder servicing
agent fees--Class Y (108,367)
--------------
Net expenses 136,929,779
- -----------------------------------------------------------------------------------
Net Investment Income 59,505,325
- -----------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments:
Unaffiliated companies (851,998,285)
Affiliated companies (1,996,558)
Foreign currency transactions (198,153)
--------------
Net realized loss (854,192,996)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 1,465,584,406
Translation of assets and liabilities denominated in
foreign currencies 9,544,294
--------------
Net change in unrealized appreciation 1,475,128,700
- -----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 680,441,029
==============
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER MAIN STREET FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended August 31, 2003 2002
- ----------------------------------------------------------------------------------------
Operations
Net investment income $ 59,505,325 $ 24,095,867
- ----------------------------------------------------------------------------------------
Net realized loss (854,192,996) (1,063,797,316)
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,475,128,700 (813,793,592)
-----------------------------------
Net increase (decrease) in net assets resulting
from operations 680,441,029 (1,853,495,041)
- ----------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (44,773,361) (15,028,867)
Class B -- --
Class C -- --
Class N (497,131) (58,345)
Class Y (1,922,959) (828,141)
- ----------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (12,132,399)
Class B -- (8,545,003)
Class C -- (2,567,066)
Class N -- (25,114)
Class Y -- (369,634)
- ----------------------------------------------------------------------------------------
Capital Stock Transactions
Net increase (decrease) in net assets resulting from capital stock
transactions:
Class A 178,709,918 148,547,544
Class B (700,117,179) (1,269,705,682)
Class C (72,176,143) (160,436,307)
Class N 29,863,069 41,677,838
Class Y 192,963,219 34,202,372
- ----------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 262,490,462 (3,098,763,845)
- ----------------------------------------------------------------------------------------
Beginning of period 11,422,061,733 14,520,825,578
----------------------------------
End of period [including undistributed net
investment income of $32,558,166 and
$20,383,192, respectively] $11,684,552,195 $11,422,061,733
===================================
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended August 31, 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $27.90 $32.15 $45.41 $42.89 $32.32
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .22 .16 .14 .21 .19
Net realized and unrealized gain (loss) 1.69 (4.29) (11.18) 6.79 12.03
------------------------------------------------------------
Total from investment operations 1.91 (4.13) (11.04) 7.00 12.22
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.19) (.07) (.12) -- (.15)
Distributions from net realized gain -- (.05) (2.10) (4.48) (1.50)
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.19) (.12) (2.22) (4.48) (1.65)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $29.62 $27.90 $32.15 $45.41 $42.89
============================================================
- ------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 6.93% (12.90)% (24.85)% 17.74% 38.62%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $7,033,312 $6,443,983 $7,320,747 $9,264,943 $7,723,607
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,310,359 $7,203,226 $7,954,409 $8,428,173 $6,721,568
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.87% 0.52% 0.47% 0.54% 0.50%
Total expenses 0.97% 3 0.99% 3 0.86% 3 0.90% 3 0.91% 3
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 94% 78% 76% 73% 72%
<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.
24 | OPPENHEIMER MAIN STREET FUND
Class B Year Ended August 31, 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $27.04 $31.34 $44.50 $42.42 $32.07
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.13) (.20) (.13) (.08) (.08)
Net realized and unrealized gain (loss) 1.77 (4.05) (10.93) 6.64 11.93
-------------------------------------------------------------
Total from investment operations 1.64 (4.25) (11.06) 6.56 11.85
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- (.05) (2.10) (4.48) (1.50)
-------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.05) (2.10) (4.48) (1.50)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $28.68 $27.04 $31.34 $44.50 $42.42
=============================================================
- ------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 6.06% (13.58)% (25.39)% 16.84% 37.62%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,941,765 $3,510,800 $5,404,510 $8,367,040 $7,072,718
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,964,666 $4,607,653 $6,630,335 $7,628,232 $5,930,303
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) 0.04% (0.25)% (0.29)% (0.22)% (0.26)%
Total expenses 1.81% 3 1.75% 3 1.61% 3 1.66% 3 1.66% 3
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 94% 78% 76% 73% 72%
<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.
25 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended August 31, 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 27.03 $ 31.33 $ 44.50 $ 42.41 $ 32.07
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- (.11) (.11) (.08) (.09)
Net realized and unrealized gain (loss) 1.66 (4.14) (10.96) 6.65 11.93
-------------------------------------------------------------
Total from investment operations 1.66 (4.25) (11.07) 6.57 11.84
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- (.05) (2.10) (4.48) (1.50)
-------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.05) (2.10) (4.48) (1.50)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $28.69 $27.03 $31.33 $44.50 $42.41
=============================================================
- ------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 6.14% (13.58)% (25.42)% 16.87% 37.59%
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,188,826 $1,198,517 $1,562,452 $2,213,568 $1,850,787
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,111,131 $1,432,566 $1,825,540 $2,004,263 $1,583,189
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) 0.09% (0.24)% (0.29)% (0.23)% (0.25)%
Total expenses 1.74% 3 1.75% 3 1.61% 3 1.67% 3 1.66% 3
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 94% 78% 76% 73% 72%
<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.
26 | OPPENHEIMER MAIN STREET FUND
Class N Year Ended August 31, 2003 2002 2001 1
- ---------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 27.72 $ 32.09 $ 34.36
- ---------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .20 .12 .02
Net realized and unrealized gain (loss) 1.65 (4.31) (2.29)
-----------------------------
Total from investment operations 1.85 (4.19) (2.27)
- ---------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.24) (.13) --
Distributions from net realized gain -- (.05) --
-----------------------------
Total dividends and/or distributions
to shareholders (.24) (.18) --
- ---------------------------------------------------------------------------------------
Net asset value, end of period $29.33 $27.72 $32.09
=============================
- ---------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 6.78% (13.15)% (6.61)%
- ---------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $79,188 $43,464 $7,641
- ---------------------------------------------------------------------------------------
Average net assets (in thousands) $60,950 $28,141 $2,672
- ---------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.65% 0.28% 0.36%
Total expenses 1.23% 1.24% 1.16%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses 1.18% N/A 4 N/A 4
- ---------------------------------------------------------------------------------------
Portfolio turnover rate 94% 78% 76%
<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.
27 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
Class Y Year Ended August 31 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $28.02 $32.28 $45.64 $43.00 $32.38
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .11 .19 .17 .24 .24
Net realized and unrealized gain (loss) 1.86 (4.28) (11.22) 6.88 12.07
----------------------------------------------------
Total from investment operations 1.97 (4.09) (11.05) 7.12 12.31
- --------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.24) (.12) (.21) -- (.19)
Distributions from net realized gain -- (.05) (2.10) (4.48) (1.50)
----------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.17) (2.31) (4.48) (1.69)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $29.75 $28.02 $32.28 $45.64 $43.00
====================================================
- --------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 7.11% (12.74)% (24.76)% 18.00% 38.84%
- --------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $441,460 $225,298 $225,475 $260,289 $148,397
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $242,029 $227,835 $239,222 $205,586 $ 99,155
- --------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 1.01% 0.74% 0.60% 0.77% 0.63%
Total expenses 0.87% 0.92% 0.79% 3 0.66% 0.77%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.83% 0.78% 0.73% N/A 4 N/A 4
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate 94% 78% 76% 73% 72%
<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. Added since August 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
4. Reduction to custodian expenses less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
28 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Main Street Fund (the Fund) which operated under the name
Oppenheimer Main Street Growth & Income Fund through April 29, 2003 is a
separate series of Oppenheimer Main Street Funds, Inc., an open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek a high total return. 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 Directors, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Directors. 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.
29 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- -------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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.
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
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.
30 | OPPENHEIMER MAIN STREET FUND
Net Unrealized
Appreciation
Undistributed Undistributed Accumulated Based on Cost of
Net Investment Long-Term Loss Securities for Federal
Income Gain Carryforward 1,2,3 Income Tax Purposes
----------------------------------------------------------------------------
$32,558,168 $-- $2,510,947,515 $1,496,013,151
1. As of August 31, 2003, the Fund had $2,167,036,018 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
----------------------
2010 $ 878,523,150
2011 1,288,512,868
--------------
Total $2,167,036,018
==============
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 $343,911,497 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 Net
Ordinary From Tax Return Investment
Income Loss of Capital Loss
------------------------------------------------------
$136,900 $148,340 $-- $--
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 $47,193,451 $15,915,353
Long-term capital gain -- 23,639,216
-----------------------------
Total $47,193,451 $39,554,569
=============================
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.
31 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- -------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Federal tax cost $10,281,745,761
===============
Gross unrealized appreciation $ 1,723,222,016
Gross unrealized depreciation (227,208,865)
---------------
Net unrealized appreciation $ 1,496,013,151
===============
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
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 Capital Stock
The Fund has authorized 840 million shares of $.01 par value capital stock of
each class. Transactions in shares of capital stock were as follows:
Year Ended August 31, 2003 Year Ended August 31, 2002
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------
Class A
Sold 57,515,190 $1,539,439,975 57,015,786 $1,776,402,610
Dividends and/or
distributions reinvested 1,539,850 40,960,045 761,969 24,779,385
Redeemed (52,631,425) (1,401,690,102) (54,472,499) (1,652,634,451)
-----------------------------------------------------------
Net increase 6,423,615 $ 178,709,918 3,305,256 $ 148,547,544
===========================================================
32 | OPPENHEIMER MAIN STREET FUND
YEAR ENDED AUGUST 31, 2003 YEAR ENDED AUGUST 31, 2002
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------
Class B
Sold 13,771,522 $ 359,570,385 16,064,824 $ 486,429,385
Dividends and/or
distributions reinvested -- -- 241,561 7,655,080
Redeemed (41,047,235) (1,059,687,564) (58,925,314) (1,763,790,147)
------------------------------------------------------------
Net decrease (27,275,713) $ (700,117,179) (42,618,929) $(1,269,705,682)
============================================================
- ---------------------------------------------------------------------------------------
Class C
Sold 6,240,812 $ 163,131,858 5,601,281 $ 168,931,421
Dividends and/or
distributions reinvested -- -- 66,833 2,117,929
Redeemed (9,141,515) (235,308,001) (11,204,768) (331,485,657)
------------------------------------------------------------
Net decrease (2,900,703) $ (72,176,143) (5,536,654) $ (160,436,307)
============================================================
- ---------------------------------------------------------------------------------------
Class N
Sold 1,754,034 $ 46,435,446 1,587,930 $ 49,389,515
Dividends and/or
distributions reinvested 18,620 491,777 2,577 83,453
Redeemed (640,941) (17,064,154) (260,531) (7,795,130)
------------------------------------------------------------
Net increase 1,131,713 $ 29,863,069 1,329,976 $ 41,677,838
============================================================
- ---------------------------------------------------------------------------------------
Class Y
Sold 9,608,142 $ 268,159,273 3,654,159 $ 113,685,089
Dividends and/or
distributions reinvested 71,957 1,919,814 36,629 1,194,830
Redeemed (2,880,960) (77,115,868) (2,635,983) (80,677,547)
------------------------------------------------------------
Net increase 6,799,139 $ 192,963,219 1,054,805 $ 34,202,372
============================================================
- --------------------------------------------------------------------------------
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
$9,877,462,609 and $10,136,574,625, 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
annual rate of 0.65% of the first $200 million of average annual net assets of
the Fund, 0.60% of the next $150 million, 0.55% of the next $150 million, and
0.45% of average annual net assets in excess of $500 million.
- --------------------------------------------------------------------------------
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 $29,017,305 to OFS for services to the Fund.
33 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may
voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
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 $10,218,529 $2,221,821 $1,365,250 $10,340,993 $1,196,635 $318,612
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 $97,262 $9,770,325 $105,288 $203,096
- --------------------------------------------------------------------------------
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 $15,475,586, all of which were paid by the Distributor
to recipients, which included $77,240 retained by the Distributor and $798,036
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.
34 | OPPENHEIMER MAIN STREET FUND
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 $29,662,203 $22,824,617 $58,890,804 2.00%
Class C Plan 11,111,558 1,394,946 26,170,296 2.20
Class N Plan 304,261 251,563 1,434,972 1.81
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation
or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of August 31, 2003, the Fund had outstanding foreign currency contracts as
follows:
Expiration Contract Amount Valuation as of Unrealized
Contract Description Dates (000s) August 31, 2003 Depreciation
- -----------------------------------------------------------------------------------------
Contracts to Sell
Canadian Dollar [CAD] 9/2/03-9/3/03 3,843CAD $2,770,602 $22,153
- --------------------------------------------------------------------------------
6. Illiquid Securities
As of August 31, 2003, investments in securities included issues that are
illiquid. A security may 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 securities. The
aggregate value of illiquid securities subject to this limitation as of August
31, 2003 was $84,000.
35 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
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 Directors,
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.
36 | OPPENHEIMER MAIN STREET FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of Oppenheimer Main Street Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Fund, a series of Oppenheimer Main Street Funds, Inc.,
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 the periods indicated. 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 brokers; where replies were not received
from brokers, we performed other auditing procedures. 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 Main Street 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 the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
September 22, 2003
37 | OPPENHEIMER MAIN STREET 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.
Dividends of $0.1926, $0.2414 and $0.2353 per share were paid to Class A,
Class N and Class Y shareholders, respectively, on December 6, 2002, all of
which was designated as "ordinary income" for federal income tax purposes.
Dividends paid by the Fund during the fiscal year ended August 31, 2003
which are not designated as capital gain distributions should be multiplied by
100% to arrive at the amount eligible for the corporate dividend-received
deduction.
A portion of the dividends paid by the Fund during the fiscal year ended
August 31, 2003 which are not designated as capital gain distributions are
eligible for lower individual income tax rates to the extent that the Fund has
received qualified dividend income as stipulated by recent tax legislation.
$194,293,126 of the Fund's fiscal year taxable income is eligible for the lower
individual income tax rates. In early 2004, shareholders of record will receive
information regarding the percentage of distributions that are eligible for
lower individual income tax rates.
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.
38 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited
- --------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other
Fund, Length of Service, Age Trusteeships/Directorships Held by Trustee; Number
of Portfolios in Fund Complex Currently Overseen
by Director
INDEPENDENT The address of each Director in the chart below is
DIRECTORS 6803 S. Tucson Way, Centennial, CO 80112-3924.
Each Director Serves for an indefinite term, until
his or her resignation, retirement, death or
removal.
James C. Swain, Formerly, Chief Executive Officer (until August
Chairman and Director 27, 2002) of the Board II Funds, Vice Chairman
(since 1998) (until January 2, 2002) of the Manager and
Age: 69 President and a director (until 1997) of
Centennial Asset Management Corporation (a
wholly-owned investment advisory subsidiary of the
Manager). Oversees 43 portfolios in the
OppenheimerFunds complex.
William L. Armstrong, Chairman of the following private mortgage banking
Vice Chairman and Director companies: Cherry Creek Mortgage Company (since
(since 1999) 1991), Centennial State Mortgage Company (since
Age: 66 1994), The El Paso Mortgage Company (since 1993),
Transland Financial Services, Inc. (since 1997);
Chairman of the following private companies: Great
Frontier Insurance (insurance agency) (since
1995), Ambassador Media Corporation and Broadway
Ventures (since 1984); a director of the following
public companies: Helmerich & Payne, Inc. (oil and
gas drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991).
Mr. Armstrong is also a Director/Trustee of Campus
Crusade for Christ and the Bradley Foundation.
Formerly a director of the following: Storage
Technology Corporation (a publicly-held computer
equipment company) (1991-February 2003), and
International Family Entertainment (television
channel) (1992-1997), Frontier Real Estate, Inc.
(residential real estate brokerage) (1994-1999),
and Frontier Title (title insurance agency)
(1995-June 1999); a U.S. Senator (January
1979-January 1991). Oversees 43 portfolios in the
OppenheimerFunds complex.
Robert G. Avis, Formerly, Director and President of A.G. Edwards
Director (since 1993) Capital, Inc. (General Partner of private equity
Age: 72 funds) (until February 2001); Chairman, President
and Chief Executive Officer of A.G. Edwards
Capital, Inc. (until March 2000); Vice Chairman
and Director of A.G. Edwards, Inc. and Vice
Chairman of A.G. Edwards & Sons, Inc. (its
brokerage company subsidiary) (until March 1999);
Chairman of A.G. Edwards Trust Company and A.G.E.
Asset Management (investment advisor) (until March
1999); and a Director (until March 2000) of A.G.
Edwards & Sons and A.G. Edwards Trust Company.
Oversees 43 portfolios in the OppenheimerFunds
complex.
George C. Bowen, Formerly (until April 1999): Senior Vice President
Director (since 1997) (from September 1987) and Treasurer (from March
Age: 66 1985) of the Manager; Vice President (from June
1983) and Treasurer (since March 1985) of
OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Senior Vice President (since
February 1992), Treasurer (since July 1991)
Assistant Secretary and a director (since December
1991) of the Centennial Asset Management
Corporation; Vice President (since October 1989)
and Treasurer (since April 1986) of HarbourView
Asset Management Corporation (an investment
advisory subsidiary of the Manager); President,
Treasurer and a director (June 1989-January 1990)
of Centennial Capital Corporation (an investment
advisory subsidiary of the Manager); Vice
President and Treasurer (since August 1978) and
Secretary (since April 1981) of Shareholder
Services, Inc. (a transfer agent subsidiary of the
Manager); Vice President, Treasurer and Secretary
(since November 1989) of Shareholder Financial
Services, Inc. (a transfer agent subsidiary of the
Manager); Assistant Treasurer (since March 1998)
of Oppenheimer Acquisition Corp. (the Manager's
parent corporation); Treasurer (since November
1989) of Oppenheimer Partnership Holdings, Inc. (a
holding company subsidiary of the Manager); Vice
President and Treasurer (since July
39 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited / Continued
George C. Bowen, 1996) of Oppenheimer Real Asset Management, Inc.
Continued (an investment advisory subsidiary of the
Manager); Chief Executive Officer and director
(since March 1996) of MultiSource Services, Inc.
(a broker-dealer subsidiary of the Manager);
Treasurer (since October 1997) of OppenheimerFunds
International Ltd. and OppenheimerFunds plc
(offshore fund management subsidiaries of the
Manager). Oversees 43 portfolios in the
OppenheimerFunds complex.
Edward L. Cameron, A member of The Life Guard of Mount Vernon, George
Director (since 1999) Washington's home (since June 2000). Formerly
Age: 65 (March 2001 - May 2002) Director of Genetic ID,
Inc. and its subsidiaries (a privately held
biotech company); a partner with
PricewaterhouseCoopers LLP (from 1974-1999) (an
accounting firm) and Chairman (from 1994-1998),
Price Waterhouse LLP Global Investment Management
Industry Services Group. Oversees 43 portfolios in
the OppenheimerFunds complex.
Jon S. Fossel, Chairman and Director (since 1998) of Rocky
Director (since 1990) Mountain Elk Foundation (a not-for-profit
Age: 61 foundation); and a director (since October 1999)
of P.R. Pharmaceuticals (a privately held company)
and UNUMProvident (an insurance company) (since
June 1, 2002). Formerly Chairman and a director
(until October 1996) and President and Chief
Executive Officer (until October 1995) of the
Manager; President, Chief Executive Officer and a
director of Oppenheimer Acquisition Corp.,
Shareholders Services Inc. and Shareholder
Financials Services, Inc. (until October 1995).
Oversees 43 portfolios in the OppenheimerFunds
complex.
Sam Freedman, Director of Colorado Uplift (a non-profit charity
Director (since 1996) (since September 1984). Formerly (until October
Age: 62 1994) Mr. Freedman held several positions in
subsidiary or affiliated companies of the Manager.
Oversees 43 portfolios in the OppenheimerFunds
complex.
Beverly L. Hamilton, Trustee (since 1996) of MassMutual Institutional
Director (since 2002) Funds and of MML Series Investment Fund (open-end
Age: 56 investment companies); Director of MML Services
(since April 1987) and America Funds Emerging
Markets Growth Fund (since October 1991) (both are
investment companies), The California Endowment (a
philanthropy organization) (since April 2002), and
Community Hospital of Monterey Peninsula, (since
February 2002); a trustee (since February 2000) of
Monterey International Studies (an educational
organization), and an advisor to Unilever
(Holland)'s pension fund and to Credit Suisse
First Boston's Sprout venture capital unit. Mrs.
Hamilton also is a member of the investment
committees of the Rockefeller Foundation, the
University of Michigan and Hartford Hospital.
Formerly, President (February 1991-April 2000)
ARCO Investment Management Company. Oversees 44
portfolios in the OppenheimerFunds complex.
Robert J. Malone, Chairman and CEO (since August 2003) of Steele
Director (since 2002) Street Bank (a commercial bank entity), Director
Age: 59 (since 2001) of Jones Knowledge, Inc. (a privately
held company), U.S. Exploration, Inc., (since
1997), Colorado UpLIFT (a non-profit organization)
(since 1986) and a trustee of the Gallagher Family
Foundation (non-profit organization) (since 2000).
Formerly, Chairman of U.S. Bank (a subsidiary of
U.S. Bancorp and formerly Colorado National Bank)
(July 1996-April 1, 1999) and a director of
Commercial Assets, Inc. (a REIT) (1993-2000).
Oversees 44 portfolios in the OppenheimerFunds
complex.
F. William Marshall, Jr., Trustee (since 1996) of MassMutual Institutional
Director (since 2000) Funds and of MML Series Investment Fund (open-end
Age: 61 investment companies); Trustee (since 1987),
Chairman of the Board (since 2003) and Chairman of
the investment committee (since 1994) for the
Worcester Polytech Institute; President and
Treasurer (since
40 | OPPENHEIMER MAIN STREET FUND
F. William Marshall, Jr., January 1999) of the SIS Fund (a private not for
Continued profit charitable fund); Trustee (since 1995) of
the Springfield Library and Museum Association;
Trustee (since 1996) of the Community Music School
of Springfield. Formerly, member of the investment
committee of the Community Foundation of Western
Massachusetts (1998 - 2003); Chairman (January
1999-July 1999) of SIS & Family Bank, F.S.B.
(formerly SIS Bank); President, Chief Executive
Officer and Director (May 1993-December 1998) of
SIS Bankcorp, Inc. and SIS Bank (formerly
Springfield Institution for Savings) and Executive
Vice President (January 1999-July 1999) of Peoples
Heritage Financial Group, Inc. Oversees 43
portfolios in the OppenheimerFunds complex.
- -------------------------------------------------------------------------------------
INTERESTED DIRECTOR The address of Mr. Murphy in the chart below is
AND OFFICER 498 Seventh Avenue, New York, NY 10018. Mr. Murphy
serves for an indefinite term, until his
resignation, death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director
President and Director (since June 2001) and President (since September
(since October 2001) 2000) of the Manager; President and a director or
Age: 54 trustee of other Oppenheimer funds; President and
a director (since July 2001) of Oppenheimer
Acquisition Corp. and of Oppenheimer Partnership
Holdings, Inc.; a director (since November 2001)
of OppenheimerFunds Distributor, Inc.; Chairman
and a director (since July 2001) of Shareholder
Services, Inc. and of Shareholder Financial
Services, Inc.; President and a director (since
July 2001) of OppenheimerFunds Legacy Program (a
charitable trust program established by the
Manager); a director of the following investment
advisory subsidiaries of OppenheimerFunds, Inc.:
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 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.
41 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited / Continued
- -------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is
as follows: for Messrs. Albers, Monoyios 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.
Charles Albers, Senior Vice President (since April 1998) of the
Vice President (since 1998) Manager; a Certified Financial Analyst; an officer
Age: 62 of 6 portfolios in the OppenheimerFunds complex;
formerly a Vice President and portfolio manager
for Guardian Investor Services, the investment
management subsidiary of The Guardian Life
Insurance Company (1972 - April 1998).
Nikolaos D. Monoyios, Vice President of the Manager (since April 1998);
Vice President (since 1998) an officer of 4 portfolios in the OppenheimerFunds
Age: 54 complex; a Certified Financial Analyst; formerly a
Vice President and portfolio manager for Guardian
Investor Services, the investment management
subsidiary of The Guardian Life Insurance Company
(1979 - March 1998).
Brian W. Wixted, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer (since March 1999)
Age: 43 of HarbourView Asset Management Corporation,
Shareholder Services, Inc., Oppenheimer Real Asset
Management Corporation, Shareholder Financial
Services, Inc., Oppenheimer Partnership Holdings,
Inc., OFI Private Investments, Inc. (since March
2000), OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiaries of the Manager) (since May 2000) and
OFI Institutional Asset Management, Inc. (since
November 2000); 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, General Counsel (since November 2001) of the
Vice President & Secretary Manager; Senior Vice President (since May 1985)
(since 2001) and General Counsel (since February 2002) of
Age: 55 OppenheimerFunds, Inc.; General Counsel and a
director (since November 2001) of OppenheimerFunds
Distributor, Inc.; Senior Vice President and
General Counsel (since November 2001) of
HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of
Oppenheimer Partnership Holdings, Inc.; Senior
Vice President, General Counsel and a director
(since November 2001) of Shareholder Services,
Inc., Shareholder Financial Services, Inc., OFI
Private Investments, Inc., Oppenheimer Trust
Company and OFI Institutional Asset Management,
Inc.; 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 Directors and is available without charge upon request.
42 | OPPENHEIMER MAIN STREET FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Directors of the Fund has determined that Edward L. Cameron, the
Chairman of the Board's Audit Committee, and George C. Bowen, a member of the
Board's Audit Committee, possess the technical attributes identified in
Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit committee
financial experts," and has designated Messrs. Cameron and Bowen as the Audit
Committee's financial experts. Messrs. Cameron and Bowen are "independent"
Directors 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)