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 811-2306
Oppenheimer Growth Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: August 31
Date of reporting period: September 1, 2003 - February 29, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS February 29, 2004 / Unaudited
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MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--95.3%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--12.6%
- --------------------------------------------------------------------------------
AUTOMOBILES--0.7%
Harley-Davidson, Inc. 237,500 $ 12,616,000
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.8%
Amazon.com, Inc. 1 200,000 8,630,000
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eBay, Inc. 1 302,700 20,843,922
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InterActiveCorp 1 3,300 107,481
----------------
29,581,403
- --------------------------------------------------------------------------------
MEDIA--5.8%
Clear Channel
Communications, Inc. 547,000 23,542,880
- --------------------------------------------------------------------------------
Comcast Corp., Cl. A 1 468,700 14,079,748
- --------------------------------------------------------------------------------
Cox Communications,
Inc., Cl. A 1 467,400 15,143,760
- --------------------------------------------------------------------------------
Univision
Communications,
Inc., Cl. A 1 1,189,000 42,364,070
----------------
95,130,458
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.8%
Target Corp. 670,000 29,453,200
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SPECIALTY RETAIL--2.5%
Bed Bath &
Beyond, Inc. 1 8,400 343,392
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Gap, Inc. (The) 472,500 9,828,000
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Staples, Inc. 1 1,195,900 31,356,498
----------------
41,527,890
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CONSUMER STAPLES--8.2%
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BEVERAGES--2.0%
PepsiCo, Inc. 637,900 33,107,010
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FOOD & STAPLES RETAILING--5.1%
Sysco Corp. 212,900 8,441,485
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 1,078,400 64,229,504
- --------------------------------------------------------------------------------
Walgreen Co. 304,800 10,869,168
----------------
83,540,157
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PERSONAL PRODUCTS--1.1%
Avon Products, Inc. 252,000 17,791,200
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
ENERGY--1.5%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.5%
BJ Services Co. 1 386,900 $ 16,748,901
- --------------------------------------------------------------------------------
Halliburton Co. 262,800 8,399,088
----------------
25,147,989
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FINANCIALS--9.0%
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--6.9%
American Express Co. 781,500 41,747,730
- --------------------------------------------------------------------------------
Citigroup, Inc. 1,009,100 50,717,366
- --------------------------------------------------------------------------------
Morgan Stanley 340,000 20,318,400
- --------------------------------------------------------------------------------
SLM Corp. 2,300 96,347
----------------
112,879,843
- --------------------------------------------------------------------------------
INSURANCE--2.1%
American
International
Group, Inc. 478,700 35,423,800
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HEALTH CARE--30.5%
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BIOTECHNOLOGY--14.0%
Amgen, Inc. 1 1,267,100 80,498,863
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Genentech, Inc. 1 1,003,200 108,235,248
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Gilead Sciences, Inc. 1 338,500 18,350,085
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MedImmune, Inc. 1 193,200 4,963,308
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Wyeth 454,400 17,948,800
----------------
229,996,304
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--8.1%
Boston Scientific
Corp. 1 1,002,400 40,948,040
- --------------------------------------------------------------------------------
Medtronic, Inc. 3,800 178,220
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Stryker Corp. 439,800 39,023,454
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 638,000 53,426,120
----------------
133,575,834
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.5%
Lincare Holdings, Inc. 1 258,400 8,356,656
10 | OPPENHEIMER GROWTH FUND
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
PHARMACEUTICALS--7.9%
Pfizer, Inc. 2,328,940 $ 85,355,651
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 688,500 44,752,500
----------------
130,108,151
- --------------------------------------------------------------------------------
INDUSTRIALS--5.9%
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INDUSTRIAL CONGLOMERATES--5.9%
General Electric Co. 2,972,900 96,678,708
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INFORMATION TECHNOLOGY--27.6%
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COMMUNICATIONS EQUIPMENT--3.2%
Cisco Systems, Inc. 1 1,029,800 23,788,380
- --------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 890,600 29,478,860
----------------
53,267,240
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COMPUTERS & PERIPHERALS--6.1%
Dell, Inc. 1 2,365,900 77,246,635
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EMC Corp. 1 1,617,400 23,161,168
----------------
100,407,803
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.0%
Agilent
Technologies, Inc. 1 6,000 205,140
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--2.1%
Yahoo!, Inc. 1 755,300 33,535,320
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3 3%
Analog Devices, Inc. 4,100 204,590
- --------------------------------------------------------------------------------
Applied Materials, Inc. 1 5,500 116,820
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Intel Corp. 1,290,200 37,712,546
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KLA-Tencor Corp. 1 3,900 205,920
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 501,300 15,364,845
----------------
53,604,721
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SOFTWARE--12.9%
Adobe Systems, Inc. 216,700 8,069,908
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Computer Associates
International, Inc. 5,100 135,456
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Microsoft Corp. 3,132,300 83,005,950
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Oracle Corp. 1 3,029,300 39,017,384
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Symantec Corp. 1 1,452,700 59,764,078
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE Continued
Veritas Software Corp. 1 750,000 $ 22,815,000
----------------
212,807,776
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TELECOMMUNICATION SERVICES--0.0%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.0%
Nextel
Communications,
Inc., Cl. A 1 2,500 66,225
----------------
Total Common Stocks
(Cost $1,354,768,951) 1,568,808,828
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OTHER SECURITIES--3.5%
- --------------------------------------------------------------------------------
Nasdaq-100 Unit
Investment Trust
(Cost $38,044,720) 1,570,700 57,424,792
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.1%
- --------------------------------------------------------------------------------
Undivided interest of 1.32% in joint repurchase
agreement (Principal Amount/Market Value
$178,071,000, with a maturity value of
$178,085,542) with Banc One Capital
Markets, Inc., 0.98%, dated 2/27/04, to
be repurchased at $2,350,192 on 3/1/04,
collateralized by U.S. Treasury Nts., 5%,
5/2/11, with a value of $45,240,809, U.S.
Treasury Bonds, 3.125%, 9/30/08, with
a value of $102,650,000 and U.S.
Treasury Bills, 4/29/04, with a
value of $33,847,097
(Cost $2,350,000) $2,350,000 2,350,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $1,395,163,671) 98.9% 1,628,583,620
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 1.1 17,588,854
-----------------------------
NET ASSETS 100.0% $1,646,172,474
=============================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 | OPPENHEIMER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
February 29, 2004
- ------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------
Investments, at value (cost $1,395,163,671)--see accompanying statement $1,628,583,620
- ------------------------------------------------------------------------------------------
Cash 567,570
- ------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 78,906,744
Interest and dividends 1,269,826
Shares of beneficial interest sold 885,489
Other 44,207
----------------
Total assets 1,710,257,456
- ------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 59,713,593
Shares of beneficial interest redeemed 2,437,216
Distribution and service plan fees 614,791
Trustees' compensation 447,397
Transfer and shareholder servicing agent fees 409,856
Shareholder communications 408,333
Other 53,796
----------------
Total liabilities 64,084,982
- ------------------------------------------------------------------------------------------
NET ASSETS $1,646,172,474
================
- ------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 61,977
- ------------------------------------------------------------------------------------------
Additional paid-in capital 2,177,183,934
- ------------------------------------------------------------------------------------------
Accumulated net investment loss (6,648,304)
- ------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (757,845,082)
- ------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 233,419,949
----------------
NET ASSETS $1,646,172,474
================
12 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,210,388,744 and 44,905,138 shares of beneficial interest outstanding) $26.95
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $28.59
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $264,665,947 and 10,551,605 shares of beneficial interest
outstanding) $25.08
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $86,509,414 and 3,392,143 shares of beneficial interest
outstanding) $25.50
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $12,791,494 and 475,094 shares of beneficial interest
outstanding) $26.92
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $71,816,875 and 2,652,723 shares of beneficial interest
outstanding) $27.07
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER GROWTH FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended February 29, 2004
- ---------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $25,354) $ 4,722,478
- ---------------------------------------------------------------------------------------------------
Interest 160,337
--------------
Total investment income 4,882,815
- ---------------------------------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------------------------------
Management fees 5,269,643
- ---------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,377,114
Class B 1,343,316
Class C 422,220
Class N 27,293
- ---------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,663,866
Class B 693,453
Class C 198,186
Class N 29,854
Class Y 120,141
- ---------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 101,020
Class B 36,514
Class C 8,372
Class N 886
- ---------------------------------------------------------------------------------------------------
Trustees' compensation 41,489
- ---------------------------------------------------------------------------------------------------
Custodian fees and expenses 8,187
- ---------------------------------------------------------------------------------------------------
Other 103,329
--------------
Total expenses 11,444,883
Less reduction to custodian expenses (838)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (60,011)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (208,076)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (45,770)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (10,188)
--------------
Net expenses 11,120,000
- ---------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (6,237,185)
- ---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ---------------------------------------------------------------------------------------------------
Net realized gain on investments 118,257,734
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (29,300,107)
- ---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 82,720,442
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
(UNAUDITED) 2003
- ------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
Net investment loss $ (6,237,185) $ (13,287,123)
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 118,257,734 (203,565,467)
- ------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (29,300,107) 293,432,431
-------------------------------------
Net increase in net assets resulting from operations 82,720,442 76,579,841
- ------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (17,249,765) (66,779,155)
Class B (18,688,732) (56,820,589)
Class C 5,069,896 (1,142,158)
Class N 4,510,505 4,873,766
Class Y 2,033,113 (3,927,695)
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease) 58,395,459 (47,215,990)
- ------------------------------------------------------------------------------------------------------------------
Beginning of period 1,587,777,015 1,634,993,005
-------------------------------------
End of period (including accumulated net investment loss
of $6,648,304 and $411,119, respectively) $1,646,172,474 $1,587,777,015
=====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $25.57 $24.19 $29.20 $62.31 $39.77 $31.54
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.07) (.15) (.13) .18 (.02) .10
Net realized and unrealized gain (loss) 1.45 1.53 (4.74) (30.05) 25.42 11.69
------------------------------------------------------------------------------
Total from investment operations 1.38 1.38 (4.87) (29.87) 25.40 11.79
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.14) -- (.03) (.48)
Distributions from net realized gain -- -- -- (3.24) (2.83) (3.08)
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.14) (3.24) (2.86) (3.56)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.95 $25.57 $24.19 $29.20 $62.31 $39.77
==============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 5.40% 5.70% (16.77)% (49.87)% 67.10% 39.39%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,210,389 $1,165,627 $1,173,027 $1,553,066 $3,176,435 $1,730,087
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,193,493 $1,095,830 $1,430,735 $2,149,795 $2,390,125 $1,620,201
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.58)% (0.69)% (0.54)% 0.45% (0.01)% 0.24%
Total expenses 1.20% 1.22% 1.31% 1.06% 1.01% 1.05%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.19% N/A 3 N/A 3 N/A 3 N/A 3 N/A 3
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 82% 60% 92% 49% 106%
<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.
16 | OPPENHEIMER GROWTH FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $23.90 $22.80 $27.60 $59.55 $38.37 $30.54
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.28) (.58) (.54) (.10) (.21) (.20)
Net realized and unrealized gain (loss) 1.46 1.68 (4.26) (28.61) 24.22 11.32
------------------------------------------------------------------------------
Total from investment operations 1.18 1.10 (4.80) (28.71) 24.01 11.12
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- -- (.21)
Distributions from net realized gain -- -- -- (3.24) (2.83) (3.08)
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- -- (3.24) (2.83) (3.29)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.08 $23.90 $22.80 $27.60 $59.55 $38.37
==============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 4.94% 4.83% (17.39)% (50.26)% 65.82% 38.27%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $264,666 $270,715 $317,725 $483,298 $996,000 $445,629
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $269,692 $276,668 $415,965 $692,159 $676,485 $410,058
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.46)% (1.52)% (1.30)% (0.31)% (0.78)% (0.58)%
Total expenses 2.22% 2.29% 2.08% 1.83% 1.78% 1.86%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.07% 2.06% N/A 3,4 N/A 4 N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 82% 60% 92% 49% 106%
<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. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $24.30 $23.18 $28.06 $60.48 $38.92 $30.93
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.13) (.36) (.43) (.04) (.09) (.20)
Net realized and unrealized gain (loss) 1.33 1.48 (4.45) (29.14) 24.48 11.47
------------------------------------------------------------------------------
Total from investment operations 1.20 1.12 (4.88) (29.18) 24.39 11.27
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- -- (.21)
Distributions from net realized gain -- -- -- (3.24) (2.83) (3.07)
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- -- (3.24) (2.83) (3.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.50 $24.30 $23.18 $28.06 $60.48 $38.92
==============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 4.94% 4.83% (17.39)% (50.26)% 65.87% 38.28%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $86,509 $77,548 $75,229 $102,144 $176,150 $57,970
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $84,820 $72,165 $93,082 $133,823 $103,076 $53,501
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.45)% (1.52)% (1.31)% (0.32)% (0.77)% (0.58)%
Total expenses 2.16% 2.22% 2.08% 1.84% 1.78% 1.86%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 2.05% 2.06% N/A 3,4 N/A 4 N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 82% 60% 92% 49% 106%
<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. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER GROWTH FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
CLASS N (UNAUDITED) 2003 2002 2001 1
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $25.59 $23.99 $29.13 $35.39
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.16) (.04) (.13) 2 (.01)
Net realized and unrealized gain (loss) 1.49 1.64 (4.78) 2 (6.25)
---------------------------------------------------
Total from investment operations 1.33 1.60 (4.91) (6.26)
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.23) --
Distributions from net realized gain -- -- -- --
---------------------------------------------------
Total dividends and/or distributions to shareholders -- -- (.23) --
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.92 $25.59 $23.99 $29.13
===================================================
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 5.20% 6.67% (17.00)% (17.69)%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $12,791 $7,766 $2,243 $274
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $10,989 $5,016 $1,623 $ 70
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.94)% (0.39)% (0.90)% (0.33)%
Total expenses 1.73% 1.33% 1.57% 1.40%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses 1.54% 1.23% N/A 5,6 N/A 6
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 82% 60% 92%
<FN>
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Voluntary waiver of transfer agent fees less than 0.01%.
6. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2004 AUGUST 31,
CLASS Y (UNAUDITED) 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $25.66 $24.24 $29.27 $62.33 $39.76 $31.54
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) (.12) (.06) .28 .16 .18
Net realized and unrealized gain (loss) 1.47 1.54 (4.73) (30.10) 25.37 11.69
------------------------------------------------------------------------------
Total from investment operations 1.41 1.42 (4.79) (29.82) 25.53 11.87
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.24) -- (.13) (.58)
Distributions from net realized gain -- -- -- (3.24) (2.83) (3.07)
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.24) (3.24) (2.96) (3.65)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $27.07 $25.66 $24.24 $29.27 $62.33 $39.76
==============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 5.49% 5.86% (16.50)% (49.77)% 67.56% 39.74%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $71,817 $66,121 $66,769 $ 88,284 $191,267 $ 93,936
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $68,557 $61,965 $81,127 $124,168 $134,650 $116,615
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.40)% (0.55)% (0.25)% 0.67% 0.27% 0.65%
Total expenses 1.02% 1.17% 1.13% 0.86% 0.73% 0.80%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3 1.08% 1.02% N/A 3 N/A 3 N/A 3
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 55% 82% 60% 92% 49% 106%
<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.
20 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Growth Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The
Fund's investment objective is to seek capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class
A shares are sold at their offering price, which is normally net asset value
plus a front-end sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges 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. 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 may be valued
primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities (including restricted
securities) for which market quotations are not readily available are valued 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 prevailing exchange rates on the valuation
date. Amounts related to the purchase and sale of foreign securities and
investment income are translated at the prevailing exchange rates on the
respective dates of such transactions.
21 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / 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.
As of February 29, 2004, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $741,134,942 expiring
by 2011. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year. During the six months ended February 29, 2004 and the year ended August
31, 2003, the Fund used $118,257,734 and $0, respectively, of carryforward to
offset capital gains realized.
As of August 31, 2003, the Fund had available for federal income tax purposes
post-October losses of $94,649,869 and unused capital loss carryforwards as
follows:
EXPIRING
----------------------
2009 $ 50,983,636
2010 391,696,099
2011 322,063,072
------------
Total $764,742,807
============
22 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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 February 29, 2004, the Fund's projected benefit obligations were
increased by $16,092 and payments of $24,790 were made to retired trustees,
resulting in an accumulated liability of $402,487 as of February 29, 2004.
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.
- --------------------------------------------------------------------------------
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.
23 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
SIX MONTHS ENDED FEBRUARY 29, 2004 YEAR ENDED AUGUST 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 3,965,484 $ 103,537,552 7,473,993 $ 175,173,916
Acquisition--Note 5 1,087,441 28,622,869 -- --
Redeemed (5,725,702) (149,410,186) (10,385,203) (241,953,071)
-----------------------------------------------------------------
Net decrease (672,777) $ (17,249,765) (2,911,210) $ (66,779,155)
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS B
Sold 1,143,143 $ 27,858,593 2,646,013 $ 58,067,246
Acquisition--Note 5 690,353 16,977,089 -- --
Redeemed (2,607,829) (63,524,414) (5,257,802) (114,887,835)
-----------------------------------------------------------------
Net decrease (774,333) $ (18,688,732) (2,611,789) $ (56,820,589)
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS C
Sold 450,901 $ 11,160,579 1,014,973 $ 22,640,168
Acquisition--Note 5 399,809 9,988,803 -- --
Redeemed (649,711) (16,079,486) (1,069,585) (23,782,326)
-----------------------------------------------------------------
Net increase (decrease) 200,999 $ 5,069,896 (54,612) $ (1,142,158)
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS N
Sold 123,680 $ 3,233,056 286,041 $ 6,661,490
Acquisition--Note 5 118,019 3,107,869 -- --
Redeemed (70,061) (1,830,420) (76,061) (1,787,724)
-----------------------------------------------------------------
Net increase 171,638 $ 4,510,505 209,980 $ 4,873,766
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS Y
Sold 512,370 $ 13,495,054 859,150 $ 20,232,976
Acquisition--Note 5 7,946 209,931 -- --
Redeemed (444,062) (11,671,872) (1,037,240) (24,160,671)
-----------------------------------------------------------------
Net increase (decrease) 76,254 $ 2,033,113 (178,090) $ (3,927,695)
=================================================================
- --------------------------------------------------------------------------------
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 February 29, 2004, were
$876,185,257 and $860,165,284, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, 0.60%
24 | OPPENHEIMER GROWTH FUND
of the next $700 million, 0.58% of the next $1.0 billion, 0.56% of the next
$2.0 billion, and 0.54% of the average annual net assets in excess of $4.5
billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended February 29, 2004,
the Fund paid $2,370,474 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may
voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the 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
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 up to 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 February 29, 2004 for Class B, Class C and Class N shares was $10,512,817,
$1,885,323 and $137,702, respectively. Fees incurred by the Fund under the
plans are detailed in the Statement of Operations.
25 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------------
February 29, 2004 $322,079 $6,927 $310,274 $18,424 $4,065
- --------------------------------------------------------------------------------
5. ACQUISITIONS OF OPPENHEIMER TRINITY LARGE CAP GROWTH FUND, OPPENHEIMER
SELECT MANAGERS MERCURY ADVISORS FOCUS GROWTH FUND AND OPPENHEIMER SELECT
MANAGERS JENNISON GROWTH FUND
OPPENHEIMER TRINITY LARGE CAP GROWTH FUND
On September 18, 2003, the Fund acquired all of the net assets of Oppenheimer
Trinity Large Cap Growth Fund, pursuant to an Agreement and Plan of
Reorganization approved by the Oppenheimer Trinity Large Cap Growth Fund
shareholders on September 12, 2003. The Fund issued (at an exchange ratio of
0.278140 for Class A, 0.286919 for Class B, 0.282206 for Class C, 0.275754 for
Class N and 0.284252 for Class Y of the Fund to one share of Oppenheimer Growth
Fund), 765,450; 581,877; 238,637; 23,681 and 7,906 shares of beneficial
interest for Class A, Class B, Class C, Class N and Class Y, respectively,
valued at $20,154,303, $14,314,163, $5,968,305, $623,763 and $208,876 in
exchange for the net assets, resulting in combined Class A net assets of
$1,220,006,160, Class B net assets of $287,085,907, Class C net assets of
$85,655,039, Class N net assets of $8,789,832 and Class Y net assets of
$68,519,811 on September 18, 2003. The net assets acquired included net
unrealized appreciation of $886,399 and unused capital loss carryforward of
$16,060,774 potential utilization subject to tax limitation. The exchange
qualified as a tax-free reorganization for federal income tax purposes.
OPPENHEIMER SELECT MANAGERS JENNISON GROWTH FUND
On October 16, 2003, the Fund acquired all of the net assets of Oppenheimer
Select Managers Jennison Growth Fund, pursuant to an Agreement and Plan of
Reorganization approved by the Oppenheimer Select Managers Jennison Growth Fund
shareholders on October 10, 2003. The Fund issued (at an exchange ratio of
0.278982 for Class A, 0.292653 for Class B, 0.287686 for Class C, 0.276624 for
Class N and 0.279527 for Class Y of the Fund to one share of Oppenheimer Growth
Fund), 276,588; 92,068; 130,475; 89,456 and 28 shares of beneficial interest
for Class A, Class B, Class C, Class N and Class Y, respectively, valued at
$7,288,099, $2,264,865, $3,263,187, $2,357,167 and $739 in exchange for
26 | OPPENHEIMER GROWTH FUND
the net assets, resulting in combined Class A net assets of $1,209,081,297,
Class B net assets of $279,669,909, Class C net assets of $86,527,169, Class N
net assets of $11,395,753 and Class Y net assets of $68,059,567 on October 16,
2003. The net assets acquired included net unrealized appreciation of
$2,184,227 and unused capital loss carryforward of $3,197,163 potential
utilization subject to tax limitation. The exchange qualified as a tax-free
reorganization for federal income tax purposes.
OPPENHEIMER SELECT MANAGERS MERCURY ADVISORS FOCUS GROWTH FUND
On November 6, 2003, the Fund acquired all of the net assets of Oppenheimer
Select Managers Mercury Advisors Focus Growth Fund, pursuant to an Agreement
and Plan of Reorganization approved by the Oppenheimer Select Managers Mercury
Advisors Focus Growth Fund shareholders on October 31, 2003. The Fund issued
(at an exchange ratio of 0.120563 for Class A, 0.126778 for Class B, 0.124573
for Class C, 0.120102 for Class N and 0.121154 for Class Y of the Fund to one
share of Oppenheimer Growth Fund), 45,403; 16,408; 30,697; 4,882 and 12 shares
of beneficial interest for Class A, Class B, Class C, Class N and Class Y,
respectively, valued at $1,180,467, $398,061, $757,311, $126,939 and $316 in
exchange for the net assets, resulting in combined Class A net assets of
$1,187,485,864, Class B net assets of $269,157,589, Class C net assets of
$86,380,114, Class N net assets of $11,400,709 and Class Y net assets of
$67,635,520 on November 6, 2003. The net assets acquired included net
unrealized appreciation of $201,568 and unused capital loss carryforward of
$1,186,539 potential utilization subject to tax limitation. The exchange
qualified as a tax-free reorganization for federal income tax purposes.
- --------------------------------------------------------------------------------
6. BORROWING AND LENDING ARRANGEMENTS
The Fund entered into an "interfund borrowing and lending arrangement" with
other funds in the Oppenheimer funds complex, to allow funds to borrow for
liquidity purposes. The arrangement was initiated pursuant to exemptive relief
granted by the Securities and Exchange Commission (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 February 29, 2004.
27 | OPPENHEIMER GROWTH 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.
28 | OPPENHEIMER GROWTH 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 registrant 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
At a meeting of the Board of Trustees of the registrant held on February 18,
2004, the Board adopted (1) a policy that, should the Board determine that a
vacancy exists or is likely to exist on the Board, the Governance Committee of
the Board, which is comprised entirely of independent trustees, shall consider
any candidates for Board membership recommended by the registrant's security
holders and (2) a policy that security holders wishing to submit a nominee for
election to the Board may do so by mailing their submission to the offices of
OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street - 11th
Floor, New York, NY 10281-1008, to the attention of the Chair of the Governance
Committee. Prior to February 18, 2004, the Board did not have a formalized
policy with respect to consideration of security holder nominees or a procedure
by which security holders may make their submissions. In addition to security
holder nominees, the Governance Committee may also consider nominees recommended
by independent Board members or recommended by any other Board members and is
authorized under its Charter, upon Board approval, to retain an executive search
firm to assist in screening potential candidates. Upon Board approval, the
Governance Committee may also obtain legal, financial, or other external counsel
that may be necessary or desirable in the screening process.
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 February 29, 2004, 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)