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 811-3694
OPPENHEIMER GOLD & SPECIAL MINERALS 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.
Two World Financial Center, New York, New York 10281-1008
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: JUNE 30
-------
Date of reporting period: JULY 1, 2003 - DECEMBER 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS December 31, 2003 / Unaudited
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------
COMMON STOCKS--98.4%
- -----------------------------------------------------------------
INDUSTRIALS--0.3%
- -----------------------------------------------------------------
MACHINERY--0.3%
Trans Hex
Group Ltd. 230,100 $ 965,213
- -----------------------------------------------------------------
MATERIALS--98.1%
- -----------------------------------------------------------------
METALS & MINING--98.1%
Aber Diamond
Corp. 1 167,300 6,086,108
- -----------------------------------------------------------------
Agnico-Eagle
Mines Ltd. 772,000 9,318,040
- -----------------------------------------------------------------
Amerigo
Resources Ltd. 1 355,000 549,429
- -----------------------------------------------------------------
Anglo American
Platinum Corp. Ltd. 86,000 3,755,655
- -----------------------------------------------------------------
AngloGold Ltd.,
Sponsored ADR 203,807 9,517,787
- -----------------------------------------------------------------
Ashanti Goldfields
Co. Ltd., Sponsored
GDR 1 1,023,400 13,345,136
- -----------------------------------------------------------------
Aurizon Mines Ltd. 1 750,000 1,143,355
- -----------------------------------------------------------------
Barrick Gold Corp. 811,900 18,438,249
- -----------------------------------------------------------------
Bema Gold Corp. 1 1,150,000 4,278,000
- -----------------------------------------------------------------
Bema Gold Corp. 1 1,000,000 3,729,928
- -----------------------------------------------------------------
Cambior, Inc. 1 2,258,900 6,974,665
- -----------------------------------------------------------------
Cameco Corp. 145,000 8,387,502
- -----------------------------------------------------------------
Canico
Resource Corp. 1 351,400 3,548,671
- -----------------------------------------------------------------
Coeur d'Alene
Mines Corp. 1 1,241,000 7,172,980
- -----------------------------------------------------------------
Compania de Minas
Buenaventura SA,
Sponsored ADR,
B Shares 600,000 16,968,000
- -----------------------------------------------------------------
Eldorado Gold
Corp. Ltd. 1 2,500,600 7,837,052
- -----------------------------------------------------------------
First Quantum
Minerals Ltd. 1 377,700 4,112,392
- -----------------------------------------------------------------
Freeport-McMoRan
Copper & Gold,
Inc., Cl. B 390,000 16,430,700
- -----------------------------------------------------------------
Gabriel
Resources Ltd. 1 730,000 2,768,040
- -----------------------------------------------------------------
Glamis Gold Ltd. 1 502,800 8,607,936
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------
METALS & MINING Continued
Gold Fields Ltd.,
Sponsored ADR 200,000 $ 2,788,000
- -----------------------------------------------------------------
Goldcorp, Inc. 848,800 13,538,360
- -----------------------------------------------------------------
Golden Star
Resources Ltd. 1 873,900 6,126,937
- -----------------------------------------------------------------
Harmony Gold
Mining Co. Ltd.,
Sponsored ADR 262,000 4,252,260
- -----------------------------------------------------------------
Hecla Mining Co. 1 609,700 5,054,413
- -----------------------------------------------------------------
IAMGOLD Corp. 1,412,400 9,858,656
- -----------------------------------------------------------------
Ivanhoe Mines Ltd. 1 832,200 6,633,128
- -----------------------------------------------------------------
Kenor ASA 1 1,710,899 1,280,705
- -----------------------------------------------------------------
Kingsgate
Consolidated Ltd. 300,000 867,974
- -----------------------------------------------------------------
Kinross Gold Corp. 1 400,000 3,194,428
- -----------------------------------------------------------------
Kinross Gold Corp. 1 745,290 5,954,867
- -----------------------------------------------------------------
Lihir Gold Ltd. 2,810,300 3,070,260
- -----------------------------------------------------------------
Meridian Gold, Inc. 1 280,000 4,090,800
- -----------------------------------------------------------------
Metall Mining Corp. 1 370,000 4,996,324
- -----------------------------------------------------------------
Minefinders
Corp. Ltd. 1 130,000 1,066,357
- -----------------------------------------------------------------
Nevsun
Resources Ltd. 1 275,000 1,430,064
- -----------------------------------------------------------------
Nevsun
Resources Ltd. 1 175,000 970,445
- -----------------------------------------------------------------
Newcrest
Mining Ltd. 1,408,997 13,747,835
- -----------------------------------------------------------------
Newmont Mining
Corp. (Holding Co.) 747,105 36,316,774
- -----------------------------------------------------------------
Northgate
Exploration Ltd. 1 2,370,000 4,896,808
- -----------------------------------------------------------------
Placer Dome, Inc. 1,010,000 18,089,100
- -----------------------------------------------------------------
Queenstake
Resources Ltd. 1 3,660,700 2,096,280
- -----------------------------------------------------------------
Randgold Resources
Ltd., ADR 175,800 4,799,340
- -----------------------------------------------------------------
Rio Narcea Gold
Mines Ltd. 1 1,265,000 3,915,651
- -----------------------------------------------------------------
Royal Gold, Inc. 260,000 5,441,800
- -----------------------------------------------------------------
Sons of Gwalia Ltd. 1 2,069,892 5,536,439
- -----------------------------------------------------------------
Southwestern
Resources Corp. 1 150,000 4,631,457
- -----------------------------------------------------------------
Teck Cominco
Ltd., Cl. B 330,000 5,600,232
8 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------
METALS & MINING Continued
Wheaton River
Minerals Ltd. 1 3,239,700 $ 9,702,178
- -----------------------------------------------------------------
Wolfden
Resources, Inc. 1 300,000 1,316,309
- -----------------------------------------------------------------
Yamana Gold, Inc. 1 450,000 1,079,515
--------------
345,313,321
--------------
Total Common Stocks
(Cost $223,075,308) 346,278,534
UNITS
- -----------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.2%
Eldorado Gold Corp.
Wts., Exp. 8/25/04 1 240,000 111,434
- -----------------------------------------------------------------
Goldcorp, Inc. Wts.,
Exp. 4/30/07 1 7,500 86,250
- -----------------------------------------------------------------
Rio Narcea Gold
Mines Ltd. Wts.,
Exp. 9/11/08 1 132,500 123,041
- -----------------------------------------------------------------
Wheaton River
Minerals Ltd. Wts.:
Exp. 5/30/07 1 125,000 223,447
Exp. 8/25/08 1 150,000 214,742
--------------
Total Rights, Warrants
and Certificates
(Cost $95,520) 758,914
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.9%
Undivided interest of 1.71% in joint repurchase
agreement (Principal Amount/Market Value
$190,001,000, with a maturity value of
$190,009,444) with Banc One Capital
Markets, Inc., 0.80%, dated 12/31/03,
to be repurchased at $3,247,144
in 1/2/04, collateralized by U.S.
Treasury Bonds, 4.25%, 11/30/13,
with a value of $194,000,862
(Cost $3,247,000) $3,247,000 $ 3,247,000
- -----------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $226,417,828) 99.5% 350,284,448
- -----------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.5 1,690,747
------------------------
NET ASSETS 100.0% $351,975,195
========================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE
OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS MARKET VALUE PERCENT
- -----------------------------------------------------------------------------
Canada $189,756,096 54.2%
United States 82,553,807 23.6
South Africa 34,624,051 9.9
Australia 23,222,508 6.6
Peru 16,968,000 4.8
China 1,879,281 0.5
Norway 1,280,705 0.4
----------------------------
Total $350,284,448 100.0%
============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
DECEMBER 31, 2003
- -------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $226,417,828)--see accompanying statement $350,284,448
- -------------------------------------------------------------------------------------------------
Cash 72,139
- -------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 1,965,069
Investments sold 482,841
Interest and dividends 94,467
Other 4,512
--------------
Total assets 352,903,476
- -------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 537,128
Distribution and service plan fees 190,168
Shareholder reports 88,750
Transfer and shareholder servicing agent fees 59,301
Trustees' compensation 21,488
Other 31,446
--------------
Total liabilities 928,281
- -------------------------------------------------------------------------------------------------
NET ASSETS $351,975,195
==============
- -------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $230,162,467
- -------------------------------------------------------------------------------------------------
Accumulated net investment loss (16,370,069)
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 14,313,817
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 123,868,980
--------------
NET ASSETS $351,975,195
==============
10 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$227,440,502 and 10,870,245 shares of beneficial interest outstanding) $20.92
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $22.20
- -------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $68,966,063 and 3,365,221 shares of beneficial interest outstanding) $20.49
- -------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $52,205,257 and 2,549,400 shares of beneficial interest outstanding) $20.48
- -------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $3,363,373 and 162,373 shares of beneficial interest outstanding) $20.71
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF OPERATIONS Unaudited
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $60,445) $ 1,156,799
- ------------------------------------------------------------------------------------------------
Interest 30,291
--------------
Total investment income 1,187,090
- ------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,018,949
- ------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 205,926
Class B 274,117
Class C 200,656
Class N 5,336
- ------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 218,399
Class B 69,728
Class C 39,227
Class N 3,286
- ------------------------------------------------------------------------------------------------
Shareholder reports:
Class A 47,765
Class B 14,780
Class C 10,551
Class N 462
- ------------------------------------------------------------------------------------------------
Custodian fees and expenses 15,436
- ------------------------------------------------------------------------------------------------
Trustees' compensation 5,476
- ------------------------------------------------------------------------------------------------
Other 34,078
--------------
Total expenses 2,164,172
Less reduction to custodian expenses (441)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (5,029)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (997)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (300)
--------------
Net expenses 2,157,405
- ------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (970,315)
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on:
Investments 16,720,323
Closing and expiration of option contracts written 72,599
Foreign currency transactions 4,219,704
--------------
Net realized gain 21,012,626
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 103,052,914
Translation of assets and liabilities denominated in foreign currencies 2,070,088
--------------
Net change in unrealized appreciation 105,123,002
- ------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $125,165,313
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
(UNAUDITED) 2003
- --------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) $ (970,315) $ 409,122
- --------------------------------------------------------------------------------------
Net realized gain 21,012,626 15,040,611
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation 105,123,002 (10,602,513)
------------------------------
Net increase in net assets resulting from operations 125,165,313 4,847,220
- --------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (7,772,920) (1,502,583)
Class B (2,019,095) (183,324)
Class C (1,584,832) (107,362)
Class N (111,403) (7,661)
- --------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (4,608,552) --
Class B (1,416,684) --
Class C (1,068,266) --
Class N (67,331) --
- --------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Class A 27,585,894 11,194,743
Class B 6,073,144 4,444,731
Class C 10,669,321 7,990,546
Class N 1,204,251 1,215,483
- --------------------------------------------------------------------------------------
NET ASSETS
Total increase 152,048,840 27,891,793
- --------------------------------------------------------------------------------------
Beginning of period 199,926,355 172,034,562
------------------------------
End of period [including accumulated net investment
loss of $16,370,069 and $3,911,504, respectively] $351,975,195 $199,926,355
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $13.79 $13.37 $ 9.91 $8.80 $9.85 $8.81
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .03 .07 .19 .14 .06 .06
Net realized and unrealized gain (loss) 8.30 .50 3.74 1.20 (.91) 1.00
---------------------------------------------------------------------------
Total from investment operations 8.33 .57 3.93 1.34 (.85) 1.06
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.75) (.15) (.47) (.23) (.20) (.02)
Distributions from net realized gain (.45) -- -- -- -- --
---------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (1.20) (.15) (.47) (.23) (.20) (.02)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.92 $13.79 $13.37 $9.91 $8.80 $9.85
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 60.93% 4.35% 2 41.56% 15.60% (8.83)% 12.03%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $227,441 $131,183 $117,794 $57,294 $61,298 $78,514
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $176,638 $128,266 $ 76,482 $54,347 $72,512 $78,932
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.44)% 0.46% 0.34% 1.82% 0.66% 0.62%
Total expenses 1.31% 4,5 1.40% 4 1.45% 4,5 1.34% 4 1.41% 4 1.62% 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 134% 60% 25% 36% 45%
<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 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. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 4.28%.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $13.50 $13.10 $ 9.73 $8.63 $9.67 $8.70
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.04) (.01) .16 .09 .01 --
Net realized and unrealized gain (loss) 8.12 .47 3.62 1.16 (.92) .97
---------------------------------------------------------------------------
Total from investment operations 8.08 .46 3.78 1.25 (.91) .97
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.64) (.06) (.41) (.15) (.13) --
Distributions from net realized gain (.45) -- -- -- -- --
---------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (1.09) (.06) (.41) (.15) (.13) --
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.49 $13.50 $13.10 $9.73 $8.63 $9.67
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 60.28% 3.57% 2 40.46% 14.76% (9.52)% 11.15%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $68,966 $41,426 $36,585 $16,990 $15,907 $14,528
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $54,526 $38,243 $23,133 $14,554 $16,624 $12,369
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (1.23)% (0.34)% (0.51)% 0.98% (0.17)% (0.22)%
Total expenses 2.08% 4,5 2.18% 4 2.22% 4,5 2.11% 4 2.19% 4 2.41% 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 134% 60% 25% 36% 45%
<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 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. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 3.50%.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS Continued
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $13.51 $13.11 $ 9.74 $8.66 $9.69 $8.72
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 .09 .15 .13 .01 (.02)
Net realized and unrealized gain (loss) 8.07 .38 3.63 1.12 (.91) .99
---------------------------------------------------------------------------
Total from investment operations 8.08 .47 3.78 1.25 (.90) .97
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.66) (.07) (.41) (.17) (.13) --
Distributions from net realized gain (.45) -- -- -- -- --
---------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (1.11) (.07) (.41) (.17) (.13) --
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.48 $13.51 $13.11 $9.74 $8.66 $9.69
===========================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 60.29% 3.63% 2 40.46% 14.71% (9.42)% 11.12%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $52,205 $25,899 $17,526 $8,344 $6,279 $5,900
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $39,946 $21,672 $11,090 $6,714 $6,579 $5,276
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (1.14)% (0.26)% (0.38)% 1.01% (0.13)% (0.22)%
Total expenses 2.02% 4,5 2.13% 4 2.22% 4,5 2.11% 4 2.19% 4 2.40% 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 134% 60% 25% 36% 45%
<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 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. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 3.56%.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2003 JUNE 30,
CLASS N (UNAUDITED) 2003 2002 2001 1
- ------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $13.68 $13.31 $ 9.89 $9.11
- ------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) .01 .47 (.06)
Net realized and unrealized gain 8.24 .53 3.40 .84
--------------------------------------------------
Total from investment operations 8.22 .54 3.87 .78
- ------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.74) (.17) (.45) --
Distributions from net realized gain (.45) -- -- --
--------------------------------------------------
Total dividends and/or
distributions to shareholders (1.19) (.17) (.45) --
- ------------------------------------------------------------------------------------------------
Net asset value, end of period $20.71 $13.68 $13.31 $9.89
==================================================
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 60.57% 4.17% 3 40.97% 8.56%
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $3,363 $1,419 $130 $1
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,128 $ 775 $ 34 $1
- ------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.75)% 0.13% 1.87% (2.09)%
Total expenses 1.63% 1.80% 1.69% 1.11%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses N/A 5 1.69% N/A 5,6 N/A 5
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 134% 60% 25%
<FN>
1. For the period from March 1, 2001 (inception of offering) to June 30, 2001.
2. 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.
3. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 4.10%.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Gold & Special Minerals Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Fund's investment objective is to seek
capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class N 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. All classes of
shares have identical rights and voting privileges with respect to the Fund in
general and exclusive voting rights on matters that affect that class alone.
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. Class B
shares will automatically convert to Class A shares six years after the date of
purchase. The Fund assesses a 2% fee on the proceeds of fund shares that are
redeemed (either by selling or exchanging to another Oppenheimer fund) within
30 days of their purchase. The fee, which is retained by the Fund, is accounted
for as an addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Securities whose values have been
materially affected by what the Manager identifies as a significant event
occurring before the Fund's assets are valued but after the close of their
respective foreign exchanges will be fair valued. Fair value is determined in
good faith using consistently applied procedures under the supervision of the
Board of Trustees. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign
18 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
- --------------------------------------------------------------------------------
securities and investment income are translated at the rates of exchange
prevailing on the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended December 31, 2003, the Fund's projected benefit obligations were
increased by $2,088 and payments of $100 were made to retired trustees,
resulting in an accumulated liability of $19,400 as of December 31, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the
Fund. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
Oppenheimer funds selected by the Trustee. Deferral of trustees' fees under the
plan will not affect the net assets of the Fund, and will not materially affect
the Fund's assets, liabilities or net investment income per share. Amounts will
be deferred until distributed in accordance to the Plan.
19 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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, if applicable,
represents earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
SIX MONTHS ENDED DECEMBER 31, 2003 YEAR ENDED JUNE 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS A
Sold 4,603,070 $ 82,898,699 12,695,881 $162,153,290
Dividends and/or
distributions reinvested 496,379 9,778,674 97,913 1,224,902
Redeemed (3,738,933) (65,091,479) (12,093,039) (152,183,449)
--------------------------------------------------------
Net increase 1,360,516 $27,585,894 700,755 $ 11,194,743
========================================================
- ------------------------------------------------------------------------------------
CLASS B
Sold 1,025,698 $ 18,762,572 2,918,264 $ 37,034,790
Dividends and/or
distributions reinvested 154,946 2,990,469 12,921 158,928
Redeemed (883,159) (15,679,897) (2,655,129) (32,748,987)
--------------------------------------------------------
Net increase 297,485 $ 6,073,144 276,056 $ 4,444,731
========================================================
20 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
SIX MONTHS ENDED DECEMBER 31, 2003 YEAR ENDED JUNE 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------
CLASS C
Sold 1,869,962 $ 33,144,528 2,514,063 $ 32,027,347
Dividends and/or
distributions reinvested 99,688 1,922,987 7,322 90,069
Redeemed (1,337,774) (24,398,194) (1,940,814) (24,126,870)
--------------------------------------------------------
Net increase 631,876 $10,669,321 580,571 $ 7,990,546
========================================================
- ------------------------------------------------------------------------------------
CLASS N
Sold 130,310 $ 2,485,020 225,369 $ 2,872,002
Dividends and/or
distributions reinvested 9,048 176,535 615 7,642
Redeemed (80,737) (1,457,304) (132,004) (1,664,161)
--------------------------------------------------------
Net increase 58,621 $ 1,204,251 93,980 $ 1,215,483
========================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended December 31, 2003, were
$160,784,289 and $138,431,747, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, and 0.60% of average annual net assets in excess of $800
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 six months ended December 31, 2003,
the Fund paid $317,138 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. 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 Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
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. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
21 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
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 to compensate the Distributor for its services in connection with the
distribution of these shares and servicing accounts. 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 0.25% per year on Class N shares. The
Distributor also receives a service fee of 0.25% per year under each plan. If
either the Class B, Class C or Class N plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees
must determine whether the Distributor shall be entitled to payment from the
Fund of all or a portion of the service fee and/or asset-based sales charge in
respect to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at December 31,
2003 for Class B, Class C and Class N shares was $1,619,383, $701,799 and
$48,949, respectively. Fees incurred by the Fund under the plans are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CONTINGENT CONTINGENT CONTINGENT CONTINGENT
CLASS A DEFERRED DEFERRED DEFERRED DEFERRED
FRONT-END SALES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS CHARGES RETAINED RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED BY DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------------------------------------------------------------------------------
Dec. 31, 2003 $114,508 $60,780 $109,991 $18,824 $11,742
- --------------------------------------------------------------------------------
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.
22 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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 gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of December 31, 2003, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss
if the market price of the security decreases and the option is exercised. The
risk in buying an option is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the additional risk of not being able to
enter into a closing transaction if a liquid secondary market does not exist.
23 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY Continued
Written option activity for the six months ended December 31, 2003 was as
follows:
PUT OPTIONS
---------------------------
NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS
------------------------------------------------------
Options outstanding
as of June 30, 2003 1,700 $ 72,599
Options closed or expired (1,700) (72,599)
-------------------------
Options outstanding
as of December 31, 2003 -- $ --
=========================
- --------------------------------------------------------------------------------
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 (the SEC) 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. The
SEC's order requires the Fund's Board of Trustees to adopt operating policies
and procedures to administer interfund borrowing and lending. Under the
arrangement the Fund may lend money to other Oppenheimer funds and may borrow
from other Oppenheimer funds at a rate set by the Fund's Board of Trustees,
based upon a recommendation by the Manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the six
months ended or at December 31, 2003.
24 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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.
25 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable for fiscal periods ending December 31, 2003.
ITEM 10. 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 December 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to provide reasonable
assurances 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 over financial reporting that occurred during the registrant's
last fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)