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
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(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
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(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
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Date of fiscal year end: August 31
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Date of reporting period: September 1, 2003 - August 31, 2004
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Software 13.6%
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Biotechnology 9.3
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Pharmaceuticals 7.6
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Semiconductors & Semiconductor Equipment 6.5
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Industrial Conglomerates 6.2
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Communications Equipment 5.9
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Computers & Peripherals 5.3
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Health Care Equipment & Supplies 5.3
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Specialty Retail 4.3
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Diversified Financial Services 4.2
Portfolio's holdings and allocations are subject to change. Percentages are as
of August 31, 2004, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
TOP TEN COMMON STOCK HOLDINGS
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Microsoft Corp. 5.1%
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General Electric Co. 5.0
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Pfizer, Inc. 3.6
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Amgen, Inc. 3.5
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American Express Co. 3.0
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Intel Corp. 2.7
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Cisco Systems, Inc. 2.6
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American International Group, Inc. 2.3
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Boston Scientific Corp. 2.3
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Staples, Inc. 2.1
Portfolio's holdings and allocations are subject to change. Percentages are as
of August 31, 2004, and are based on net assets.
8 | OPPENHEIMER GROWTH FUND
SECTOR ALLOCATION
o Information Technology 35.7%
Software 13.7
Semiconductors & Semiconductor Equipment 6.5
Communications Equipment 5.9
[GRAPHIC] Computers & Peripherals 5.4
IT Services 2.4
Electronic Equipment & Instruments 1.2
Internet Software & Services 0.6
o Health Care 22.3
o Consumer Discretionary 11.5
o Consumer Staples 9.2
o Industrials 8.9
o Financials 7.8
o Energy 4.6
Portfolio's holdings and allocations are subject to change. Percentages are as
of August 31, 2004, and are based on common stocks.
9 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED AUGUST 31, 2004, FOLLOWED BY
A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund's performance was
challenged during the Fund's fiscal period--a time of significant volatility in
the equity markets--with the Fund's results trailing those of the broad stock
market. Overweightings in technology and health care stocks detracted from
performance, as did underweightings in the consumer discretionary and financial
sectors. Also hindering results were adjustments to the portfolio in conjunction
with a manager shift on June 1, 2004; the changes were implemented at a time
when stocks were caught up in a broad downward trend.
We kept in place the Fund's basic growth investment strategy throughout
the reporting period, even following a portfolio management change that took
place on June 1, 2004. Specifically, the Fund maintained its longtime focus on
companies we believe had strong balance sheets and bottom-line earnings, that
displayed better-than-average revenue growth driven by unit-volume sales, and
that we believed had the potential to sustain their earnings and revenue growth.
We followed a bottom-up approach to stock selection, meaning we chose the
portfolio's investments on a stock-by-stock basis. We also tended to take a
longer-term view of our investments--generally seeking to hold securities
between 12 and 18 months--than was prevalent during the highly volatile period,
especially toward its end. In our view, such a short-term "trading" mentality
created opportunities to buy attractive growth stocks at compelling valuations.
In the transition to new portfolio management, we also implemented subtle
shifts to create a mix of well-established, classic growth stocks balanced by
more-opportunistic and dynamic emerging-growth stocks. In particular, we looked
to add companies with above-average earnings growth, strong and seasoned
leadership, and healthy balance sheets. We also took several steps to help
manage the Fund's risk while maintaining its growth focus. For example, we
increased our target portfolio to between approximately 60 and 80 names, and
limited the maximum position size of one investment to about 6% of assets. This
repositioning, unfortunately, was undertaken during a time of market weakness,
which had the short-term effect of hampering results.
In light of the recent market correction, we added to our holdings in the
technology sector, especially among higher-quality names. We also selectively
purchased smaller-capitalization technology stocks that we believed were
particularly well positioned. Energy stocks represented a second area of
emphasis. We were looking for oil prices to remain higher than many analysts
expected, and we believed that valuations for energy stocks
10 | OPPENHEIMER GROWTH FUND
were not adequately reflecting their growth potential. Accordingly, we sought to
add high-quality energy names including one of the world's leading oil field
services companies, a top provider of pressure-pumping services for oil, and an
oil and gas exploration and production company. By contrast, we reduced the
Fund's weighting in health care, cutting back, for example, what we believed had
become an overly large concentration in biotechnology stocks.
Although we were reducing our biotechnology weighting late in the period,
the Fund did benefit overall during the past 12 months from a position in
Genentech, Inc., best known for its cancer treatments. The stock did well
because of anticipation surrounding several promising new products, although it
did give back some gains late in the period as the market fell. Consistent with
our risk-reduction approach, we scaled back the portfolio's holdings but
continued to own a smaller stake in Genentech, Inc., believing its share price
was not fully reflecting the company's earnings potential. Other health care
names boosted the Fund's performance as well, including medical-device makers
Varian Medical Systems, Inc. and Boston Scientific Corp.
Several technology stocks also boosted results. For example,
network-security company Symantec Corp. benefited from strong demand for
antivirus and Internet-security software. Internet portal Yahoo!, Inc. and an
online auction house both gained on stronger-than-expected earnings. Toward
period end, we believed both stocks' valuations had risen to the point where
their risk exceeded their reward potential, leading us to sell all or nearly all
of these two names.
Performance was hampered by InterActiveCorp, a media conglomerate sold
from the portfolio before the end of the period. InterActiveCorp's stock fell
after the company failed to meet its earnings targets. Some investors also
wondered about the company's business strategy and management capabilities. A
second detractor was a maker of data-management software that fell after it
announced a particularly large earnings shortfall for its June 2004 quarter.
Also in the technology sector, Intel Corp., the world's largest semiconductor
maker, had a negative impact on performance as the company struggled with
manufacturing glitches and rising inventory levels. A leading radio station
operator also encountered difficulty. The company was hurt by continued
sluggishness in radio ad spending. We remained optimistic about the company,
however, attracted to its inexpensive valuation, significant cash flow and stock
buyback program.
11 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 2004. In the case of Class A, Class B, and Class Y
shares, performance is measured over a ten-fiscal-year period. For Class C
shares, performance is measured from the inception of the Class on November 1,
1995. In the case of Class N shares, performance is measured from inception of
the Class on March 1, 2001. The Fund's performance reflects the deduction of the
maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B, Class C, and Class N shares, and reinvestments
of all dividends and capital gains distributions. Past performance cannot
guarantee future results.
The Fund's performance is compared to the performance of the S&P 500
Index, an unmanaged index of equity securities. Index performance reflects the
reinvestment of income but does not consider the effect of transaction costs,
and none of the data in the graphs shows the effect of taxes. The Fund's
performance reflects the effects of the Fund's business and operating expenses.
While index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to the
investments in the index.
12 | OPPENHEIMER GROWTH FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class A)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Growth Fund
(Class A Shares)
06/30/1994 $ 9,425 $10,000
09/30/1994 10,055 10,488
12/31/1994 10,026 10,486
03/31/1995 10,992 11,506
06/30/1995 12,200 12,603
09/30/1995 13,222 13,604
12/31/1995 13,530 14,422
03/31/1996 14,338 15,196
06/30/1996 14,762 15,877
08/31/1996 1 14,877 15,497
11/30/1996 16,842 18,089
02/28/1997 17,474 18,986
05/31/1997 18,532 20,473
08/31/1997 20,088 21,792
11/30/1997 19,824 23,246
02/28/1998 21,081 25,629
05/31/1998 21,340 26,749
08/31/1998 17,754 23,562
11/30/1998 20,906 28,751
02/28/1999 22,083 30,693
05/31/1999 22,973 32,375
08/31/1999 24,746 32,941
11/30/1999 28,119 34,758
02/29/2000 37,615 34,293
05/31/2000 32,339 35,764
08/31/2000 41,351 38,312
11/30/2000 28,404 33,289
02/28/2001 24,930 31,482
05/31/2001 23,269 31,992
08/31/2001 20,728 28,973
11/30/2001 21,189 29,224
02/28/2002 20,205 28,489
05/31/2002 19,563 27,566
08/31/2002 17,253 23,762
11/30/2002 16,668 24,400
02/28/2003 15,370 22,030
05/31/2003 17,359 25,342
08/31/2003 18,237 26,627
11/30/2003 18,272 28,079
02/29/2004 19,221 30,511
05/31/2004 19,228 29,985
08/31/2004 17,702 29,675
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year 10-Year
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- -8.51% -7.58% 4.98%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 18 FOR FURTHER
INFORMATION.
1. The Fund changed its fiscal year end from June 30 to August 31.
13 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class B)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Growth Fund
(Class B Shares)
06/30/1994 $10,000 $10,000
09/30/1994 10,647 10,488
12/31/1994 10,592 10,486
03/31/1995 11,580 11,506
06/30/1995 12,822 12,603
09/30/1995 13,865 13,604
12/31/1995 14,155 14,422
03/31/1996 14,967 15,196
06/30/1996 15,381 15,877
08/31/1996 1 15,475 15,497
11/30/1996 17,481 18,089
02/28/1997 18,101 18,986
05/31/1997 19,160 20,473
08/31/1997 20,725 21,792
11/30/1997 20,414 23,246
02/28/1998 21,666 25,629
05/31/1998 21,886 26,749
08/31/1998 18,173 23,562
11/30/1998 21,356 28,751
02/28/1999 22,514 30,693
05/31/1999 23,371 32,375
08/31/1999 25,126 32,941
11/30/1999 28,492 34,758
02/29/2000 38,040 34,293
05/31/2000 32,646 35,764
08/31/2000 41,741 38,312
11/30/2000 28,671 33,289
02/28/2001 25,165 31,482
05/31/2001 23,488 31,992
08/31/2001 20,923 28,973
11/30/2001 21,389 29,224
02/28/2002 20,395 28,489
05/31/2002 19,747 27,566
08/31/2002 17,415 23,762
11/30/2002 16,825 24,400
02/28/2003 15,514 22,030
05/31/2003 17,523 25,342
08/31/2003 18,408 26,627
11/30/2003 18,444 28,079
02/29/2004 19,402 30,511
05/31/2004 19,409 29,985
08/31/2004 17,868 29,675
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year 10-Year
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- -8.66% -7.57% 5.08%
1. The Fund changed its fiscal year end from June 30 to August 31.
14 | OPPENHEIMER GROWTH FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class C)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Growth Fund
(Class C Shares)
11/01/1995 $10,000 $10,000
12/31/1995 10,128 10,640
03/31/1996 10,711 11,211
06/30/1996 11,006 11,713
08/31/1996 1 11,073 11,432
11/30/1996 12,507 13,345
02/28/1997 12,952 14,007
05/31/1997 13,710 15,104
08/31/1997 14,830 16,077
11/30/1997 14,607 17,149
02/28/1998 15,502 18,907
05/31/1998 15,662 19,734
08/31/1998 13,001 17,382
11/30/1998 15,280 21,211
02/28/1999 16,107 22,643
05/31/1988 16,726 23,884
08/31/1999 17,977 24,301
11/30/1999 20,389 25,642
02/29/2000 27,225 25,299
05/31/2000 23,360 26,385
08/31/2000 29,819 28,264
11/30/2000 20,441 24,559
02/28/2001 17,908 23,226
05/31/2001 16,681 23,602
08/31/2001 14,831 21,375
11/30/2001 15,133 21,559
02/28/2002 14,403 21,018
05/31/2002 13,917 20,336
08/31/2002 12,252 17,530
11/30/2002 11,808 18,000
02/28/2003 10,867 16,253
05/31/2003 12,247 18,696
08/31/2003 12,844 19,644
11/30/2003 12,844 20,715
02/29/2004 13,478 22,509
05/31/2004 13,452 22,121
08/31/2004 12,358 21,892
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year Since Inception
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- -4.75% -7.22% 2.43%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 18 FOR FURTHER
INFORMATION.
1. The Fund changed its fiscal year end from June 30 to August 31.
15 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class N)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Growth Fund
(Class N Shares)
03/01/2001 $10,000 $10,000
05/31/2001 9,246 10,162
08/31/2001 8,231 9,203
11/30/2001 8,406 9,283
02/28/2002 8,011 9,049
05/31/2002 7,752 8,756
08/31/2002 6,823 7,548
11/30/2002 6,670 7,750
02/28/2003 6,152 6,998
05/31/2003 6,940 8,050
08/31/2003 7,288 8,458
11/30/2003 7,296 8,919
02/29/2004 7,667 9,692
05/31/2004 7,661 9,524
08/31/2004 7,049 9,426
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year Since Inception
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- -4.25% -9.51%
16 | OPPENHEIMER GROWTH FUND
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class Y)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Growth Fund
(Class Y Shares)
06/30/1994 $10,000 $10,000
09/30/1994 10,679 10,488
12/31/1994 10,649 10,486
03/31/1995 11,676 11,506
06/30/1995 12,959 12,603
09/30/1995 14,049 13,604
12/31/1995 14,378 14,422
03/31/1996 15,238 15,196
06/30/1996 15,693 15,877
08/31/1996 1 15,820 15,497
11/30/1996 17,919 18,089
02/28/1997 18,602 18,986
05/31/1997 19,741 20,473
08/31/1997 21,415 21,792
11/30/1997 21,150 23,246
02/28/1998 22,504 25,629
05/31/1998 22,799 26,749
08/31/1998 18,978 23,562
11/30/1998 22,360 28,751
02/28/1999 23,633 30,693
05/31/1999 24,593 32,375
08/31/1999 26,521 32,941
11/30/1999 30,150 34,758
02/29/2000 40,353 34,293
05/31/2000 34,721 35,764
08/31/2000 44,438 38,312
11/30/2000 30,528 33,289
02/28/2001 26,812 31,482
05/31/2001 25,051 31,992
08/31/2001 22,321 28,973
11/30/2001 22,847 29,224
02/28/2002 21,798 28,489
05/31/2002 21,121 27,566
08/31/2002 18,638 23,762
11/30/2002 18,000 24,400
02/28/2003 16,616 22,030
05/31/2003 18,769 25,342
08/31/2003 19,730 26,627
11/30/2003 19,776 28,079
02/29/2004 20,814 30,511
05/31/2004 20,829 29,985
08/31/2004 19,184 29,675
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year 10-Year
- ------ ------ -------
- -2.77% -6.27% 5.82%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 18 FOR FURTHER
INFORMATION.
1. The Fund changed its fiscal year end from June 30 to August 31.
17 | OPPENHEIMER GROWTH FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
Investors should consider the Fund's investment objectives, risks, and other
charges and expenses carefully before investing. The Fund's prospectus contains
this and other information about the Fund, and may be obtained by asking your
financial advisor, calling us at 1.800.525.7048 or visiting our website at
www.oppenheimerfunds.com. Read the prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 3/15/73. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 8/17/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the 10-year return for Class B uses Class A performance for the
period after conversion, and the ending account value does not reflect the
deduction of any sales charges. Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/1/95.Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 6/1/94. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
18 | OPPENHEIMER GROWTH FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments;
contingent deferred sales charges on redemptions and redemption fees, if any and
(2) ongoing costs, including management fees; distribution and service fees; and
other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended August 31, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
19 | OPPENHEIMER GROWTH FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING 6 MONTHS
(3/1/04) (8/31/04) ENDED AUGUST 31, 2004
- ----------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 921.00 $ 5.72
- ----------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.20 6.01
- ----------------------------------------------------------------------
Class B Actual 1,000.00 916.30 10.37
- ----------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.38 10.89
- ----------------------------------------------------------------------
Class C Actual 1,000.00 916.90 10.03
- ----------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.73 10.54
- ----------------------------------------------------------------------
Class N Actual 1,000.00 919.40 7.36
- ----------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.50 7.74
- ----------------------------------------------------------------------
Class Y Actual 1,000.00 921.70 4.70
- ----------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.26 4.94
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/366
(to reflect the one-half year period). Those expense ratios for the 6-month
period ended August 31, 2004 are as follows:
CLASS EXPENSE RATIOS
- ------------------------
Class A 1.18%
- ------------------------
Class B 2.14
- ------------------------
Class C 2.07
- ------------------------
Class N 1.52
- ------------------------
Class Y 0.97
The expense ratios reflect voluntary reimbursements of expenses by the Fund's
Transfer Agent that can be terminated at any time, without advance notice. The
"Financial Highlights" tables in the Fund's financial statements, included in
this report, also show the gross expense ratios, without such reimbursements.
20 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS August 31, 2004
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--11.5%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--0.0%
Autoliv, Inc. 9,300 $ 392,925
- --------------------------------------------------------------------------------
AUTOMOBILES--1.0%
Harley-Davidson, Inc. 237,500 14,492,250
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.2%
eBay, Inc. 1 30,300 2,622,162
- --------------------------------------------------------------------------------
MEDIA--2.7%
Clear Channel
Communications, Inc. 378,500 12,683,535
- --------------------------------------------------------------------------------
Comcast Corp., Cl. A 1 600,000 16,902,000
- --------------------------------------------------------------------------------
Cox Communications,
Inc., Cl. A 1 266,100 8,744,046
---------------
38,329,581
- --------------------------------------------------------------------------------
MULTILINE RETAIL--2.6%
Kohl's Corp. 1 270,500 13,384,340
- --------------------------------------------------------------------------------
Target Corp. 540,000 24,073,200
---------------
37,457,540
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--4.3%
Chico's FAS, Inc. 1 124,300 5,083,870
- --------------------------------------------------------------------------------
Gap, Inc. (The) 630,000 11,806,200
- --------------------------------------------------------------------------------
Home Depot, Inc. 396,500 14,496,040
- --------------------------------------------------------------------------------
Staples, Inc. 1,075,000 30,831,000
---------------
62,217,110
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.7%
Polo Ralph Lauren
Corp. 264,800 9,673,144
- --------------------------------------------------------------------------------
CONSUMER STAPLES--9.2%
- --------------------------------------------------------------------------------
BEVERAGES--3.0%
Coca-Cola Co. (The) 313,800 14,029,998
- --------------------------------------------------------------------------------
PepsiCo, Inc. 583,600 29,180,000
---------------
43,209,998
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--3.2%
Sysco Corp. 195,730 6,290,762
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 538,300 28,352,261
- --------------------------------------------------------------------------------
Walgreen Co. 300,000 10,935,000
---------------
45,578,023
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--3.0%
Avon Products, Inc. 575,600 25,430,008
- --------------------------------------------------------------------------------
Estee Lauder Cos.,
Inc. (The), Cl. A 405,000 17,799,750
---------------
43,229,758
- --------------------------------------------------------------------------------
ENERGY--4.6%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--2.5%
BJ Services Co. 1 385,000 18,499,250
- --------------------------------------------------------------------------------
Schlumberger Ltd. 295,200 18,243,360
---------------
36,742,610
- --------------------------------------------------------------------------------
OIL & GAS--2.1%
Apache Corp. 327,100 14,618,099
- --------------------------------------------------------------------------------
Noble Energy, Inc. 296,500 15,263,820
---------------
29,881,919
- --------------------------------------------------------------------------------
FINANCIALS--7.8%
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--4.2%
American Express Co. 863,000 43,167,260
- --------------------------------------------------------------------------------
Citigroup, Inc. 7,100 330,718
- --------------------------------------------------------------------------------
Morgan Stanley 335,000 16,994,550
---------------
60,492,528
- --------------------------------------------------------------------------------
INSURANCE--3.6%
AFLAC, Inc. 454,600 18,229,460
- --------------------------------------------------------------------------------
American
International
Group, Inc. 471,500 33,589,660
---------------
51,819,120
- --------------------------------------------------------------------------------
HEALTH CARE--22.2%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--9.3%
Amgen, Inc. 1 861,700 51,090,193
- --------------------------------------------------------------------------------
Celgene Corp. 1 21,800 1,237,150
- --------------------------------------------------------------------------------
Genentech, Inc. 1 590,000 28,780,200
- --------------------------------------------------------------------------------
Genzyme Corp.
(General Division) 1 330,000 17,820,000
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 440,000 30,417,200
- --------------------------------------------------------------------------------
MedImmune, Inc. 1 193,200 4,611,684
---------------
133,956,427
21 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.3%
Boston Scientific
Corp. 1 931,700 $ 33,289,641
- --------------------------------------------------------------------------------
Stryker Corp. 340,000 15,402,000
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 830,000 27,514,500
---------------
76,206,141
- --------------------------------------------------------------------------------
PHARMACEUTICALS--7.6%
Elan Corp. plc, ADR 1 800,000 18,104,000
- --------------------------------------------------------------------------------
Eli Lilly & Co. 347,200 22,029,840
- --------------------------------------------------------------------------------
Johnson & Johnson 189,300 10,998,330
- --------------------------------------------------------------------------------
Pfizer, Inc. 1,600,000 52,272,000
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 240,000 6,540,000
---------------
109,944,170
- --------------------------------------------------------------------------------
INDUSTRIALS--8.8%
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--1.2%
Expeditors
International of
Washington, Inc. 194,200 9,473,076
- --------------------------------------------------------------------------------
FedEx Corp. 100,000 8,199,000
---------------
17,672,076
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.4%
Apollo Group,
Inc., Cl. A 1 129,100 10,069,800
- --------------------------------------------------------------------------------
Monster Worldwide,
Inc. 1 520,000 10,519,600
---------------
20,589,400
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--6.2%
General Electric Co. 2,200,000 72,138,000
- --------------------------------------------------------------------------------
Tyco International Ltd. 532,900 16,690,428
---------------
88,828,428
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--35.5%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.9%
Cisco Systems, Inc. 1 2,011,500 37,735,740
- --------------------------------------------------------------------------------
Corning, Inc. 1 1,373,900 13,903,868
- --------------------------------------------------------------------------------
Nortel Networks
Corp. 1 2,549,200 9,584,992
- --------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
Sponsored ADR 1 850,000 22,984,000
---------------
84,208,600
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--5.3%
Dell, Inc. 1 621,800 21,663,512
- --------------------------------------------------------------------------------
EMC Corp. 1 2,714,800 29,238,396
- --------------------------------------------------------------------------------
International Business
Machines Corp. 218,100 18,470,889
- --------------------------------------------------------------------------------
Sun Microsystems,
Inc. 1 1,967,100 7,553,664
---------------
76,926,461
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.2%
Agilent Technologies,
Inc. 1 500,000 10,250,000
- --------------------------------------------------------------------------------
AU Optronics Corp.,
ADR 602,600 7,466,214
---------------
17,716,214
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.6%
Opsware, Inc. 1 1,273,400 8,022,420
- --------------------------------------------------------------------------------
Yahoo!, Inc. 1 6,900 196,719
---------------
8,219,139
- --------------------------------------------------------------------------------
IT SERVICES--2.4%
Accenture Ltd., Cl. A 1 873,100 22,787,910
- --------------------------------------------------------------------------------
NAVTEQ Corp. 1 339,400 11,159,472
---------------
33,947,382
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--6.5%
ASML Holding NV 1 743,500 9,620,890
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 372,500 10,109,650
- --------------------------------------------------------------------------------
Intel Corp. 1,839,000 39,152,310
- --------------------------------------------------------------------------------
International Rectifier
Corp. 1 250,000 8,215,000
- --------------------------------------------------------------------------------
Marvell Technology
Group Ltd. 1 490,000 11,328,800
22 | OPPENHEIMER GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
Continued
Silicon Laboratories,
Inc. 1 451,600 $ 14,807,964
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 14,800 289,192
---------------
93,523,806
- --------------------------------------------------------------------------------
SOFTWARE--13.6%
Adobe Systems, Inc. 167,700 7,692,399
- --------------------------------------------------------------------------------
Computer Associates
International, Inc. 715,500 17,329,410
- --------------------------------------------------------------------------------
Mercury Interactive
Corp. 1 356,300 12,295,913
- --------------------------------------------------------------------------------
Microsoft Corp. 2,710,800 74,004,840
- --------------------------------------------------------------------------------
Novell, Inc. 1 1,064,000 6,277,600
- --------------------------------------------------------------------------------
Red Hat, Inc. 1 562,200 6,892,572
- --------------------------------------------------------------------------------
SAP AG,
Sponsored ADR 537,700 19,604,542
- --------------------------------------------------------------------------------
Siebel Systems, Inc. 1 1,305,800 9,937,138
- --------------------------------------------------------------------------------
Symantec Corp. 1 555,400 26,636,984
- --------------------------------------------------------------------------------
Veritas Software
Corp. 1 900,100 15,049,672
---------------
195,721,070
---------------
Total Common Stocks
(Cost $1,416,768,271) 1,433,597,982
DATE STRIKE CONTRACTS
- --------------------------------------------------------------------------------
OPTIONS PURCHASED--0.0%
- --------------------------------------------------------------------------------
EMC Corp. Put
(Cost $388,425) 9/20/04 $ 10 17,679 353,580
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.0%
- --------------------------------------------------------------------------------
Undivided interest of 0.02% in joint repurchase
agreement (Principal Amount/ Value $695,366,000,
with a maturity value of $695,396,133) with UBS
Warburg LLC, 1.56%, dated 8/31/04, to be
repurchased at $141,006 on 9/1/04,
collateralized by Federal National Mortgage
Assn., 5%, 3/1/34, with a value of $710,873,503
(Cost $141,000) $ 141,000 141,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $1,417,297,696) 99.6% 1,434,092,562
- --------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.4 5,455,532
-----------------------------
NET ASSETS 100.0% $ 1,439,548,094
=============================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------
Investments, at value (cost $1,417,297,696)--see accompanying statement
of investments $ 1,434,092,562
- ------------------------------------------------------------------------------------------
Cash 750,180
- ------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 20,886,744
Interest and dividends 1,247,319
Shares of beneficial interest sold 645,979
Other 43,004
----------------
Total assets 1,457,665,788
- ------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 13,873,648
Shares of beneficial interest redeemed 2,401,847
Distribution and service plan fees 563,293
Trustees' compensation 465,928
Transfer and shareholder servicing agent fees 383,402
Shareholder communications 332,551
Other 97,025
----------------
Total liabilities 18,117,694
- ------------------------------------------------------------------------------------------
NET ASSETS $ 1,439,548,094
----------------
- ------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 58,864
- ------------------------------------------------------------------------------------------
Additional paid-in capital 2,090,136,802
- ------------------------------------------------------------------------------------------
Accumulated net investment loss (457,780)
- ------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (666,984,657)
- ------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 16,794,865
----------------
NET ASSETS $ 1,439,548,094
================
24 | OPPENHEIMER GROWTH FUND
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,074,311,691 and 43,288,133 shares of beneficial interest outstanding) $ 24.82
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 26.33
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $212,774,256 and
9,257,844 shares of beneficial interest outstanding) $ 22.98
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $75,459,037 and
3,227,994 shares of beneficial interest outstanding) $ 23.38
- -----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $12,998,340 and
525,272 shares of beneficial interest outstanding) $ 24.75
- -----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $64,004,770 and 2,565,064 shares of beneficial interest outstanding) $ 24.95
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $39,422) $ 9,252,828
- --------------------------------------------------------------------------------
Interest 199,975
---------------
Total investment income 9,452,803
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 10,409,779
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,730,726
Class B 2,543,854
Class C 831,159
Class N 59,833
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 3,227,988
Class B 1,234,516
Class C 373,135
Class N 62,400
Class Y 230,587
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 165,754
Class B 193,241
Class C 31,425
Class N 1,529
- --------------------------------------------------------------------------------
Trustees' compensation 78,563
- --------------------------------------------------------------------------------
Custodian fees and expenses 23,986
- --------------------------------------------------------------------------------
Other 174,810
---------------
Total expenses 22,373,285
Less reduction to custodian expenses (1,376)
Less payments and waivers of expenses (492,107)
---------------
Net expenses 21,879,802
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (12,426,999)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments 211,581,741
Net increase from payment by affiliate 417,397
---------------
Net realized gain 211,999,138
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (245,925,191)
- --------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (46,353,052)
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
26 | OPPENHEIMER GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2004 2003
- ----------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment loss $ (12,426,999) $ (13,287,123)
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) 211,999,138 (203,565,467)
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (245,925,191) 293,432,431
----------------------------------
Net increase (decrease) in net assets resulting from operations (46,353,052) 76,579,841
- ----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (58,098,836) (66,779,155)
Class B (50,353,104) (56,820,589)
Class C 1,009,300 (1,142,158)
Class N 5,813,503 4,873,766
Class Y (246,732) (3,927,695)
- ----------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------
Total decrease (148,228,921) (47,215,990)
- ----------------------------------------------------------------------------------------------------
Beginning of period 1,587,777,015 1,634,993,005
----------------------------------
End of period (including accumulated net investment loss of
$457,780 and $411,119, respectively) $ 1,439,548,094 $ 1,587,777,015
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.57 $ 24.19 $ 29.20 $ 62.31 $ 39.77
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.14) (.15) (.13) .18 (.02)
Net realized and unrealized gain (loss) (.61) 1.53 (4.74) (30.05) 25.42
--------------------------------------------------------------------------------
Total from investment operations (.75) 1.38 (4.87) (29.87) 25.40
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- (.14) -- (.03)
Distributions from net realized gain -- -- -- (3.24) (2.83)
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.14) (3.24) (2.86)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.82 $ 25.57 $ 24.19 $ 29.20 $ 62.31
================================================================================
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 (2.93)% 5.70% (16.77)% (49.87)% 67.10%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,074,312 $ 1,165,627 $ 1,173,027 $ 1,553,066 $ 3,176,435
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,178,435 $ 1,095,830 $ 1,430,735 $ 2,149,795 $ 2,390,125
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.59)% (0.69)% (0.54)% 0.45% (0.01)%
Total expenses 1.18% 3,4 1.22% 3 1.31% 3 1.06% 3 1.01% 3
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 82% 60% 92% 49%
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%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER GROWTH FUND
CLASS B YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 23.90 $ 22.80 $ 27.60 $ 59.55 $ 38.37
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.71) (.58) (.54) (.10) (.21)
Net realized and unrealized gain
(loss) (.21) 1.68 (4.26) (28.61) 24.22
-----------------------------------------------------------------
Total from investment operations (.92) 1.10 (4.80) (28.71) 24.01
- --------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- -- -- (3.24) (2.83)
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- -- (3.24) (2.83)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.98 $ 23.90 $ 22.80 $ 27.60 $ 59.55
=================================================================
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 (3.85)% 4.83% (17.39)% (50.26)% 65.82%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 212,774 $ 270,715 $ 317,725 $ 483,298 $ 996,000
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 254,295 $ 276,668 $ 415,965 $ 692,159 $ 676,485
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.51)% (1.52)% (1.30)% (0.31)% (0.78)%
Total expenses 2.24% 2.29% 2.08% 1.83% 1.78%
Expenses after payments and waivers
and reduction to custodian expenses 2.11% 2.06% N/A 3,4 N/A 4 N/A 4
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 82% 60% 92% 49%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 24.30 $ 23.18 $ 28.06 $ 60.48 $ 38.92
- -----------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.37) (.36) (.43) (.04) (.09)
Net realized and unrealized gain
(loss) (.55) 1.48 (4.45) (29.14) 24.48
--------------------------------------------------------------
Total from investment operations (.92) 1.12 (4.88) (29.18) 24.39
- -----------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- -- -- (3.24) (2.83)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- -- (3.24) (2.83)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.38 $ 24.30 $ 23.18 $ 28.06 $ 60.48
==============================================================
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 (3.79)% 4.83% (17.39)% (50.26)% 65.87%
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 75,459 $ 77,548 $ 75,229 $ 102,144 $ 176,150
- -----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 83,103 $ 72,165 $ 93,082 $ 133,823 $ 103,076
- -----------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.47)% (1.52)% (1.31)% (0.32)% (0.77)%
Total expenses 2.16% 2.22% 2.08% 1.84% 1.78%
Expenses after payments and waivers
and reduction to custodian expenses 2.07% 2.06% N/A 3,4 N/A 4 N/A 4
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 82% 60% 92% 49%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Voluntary waiver of transfer agent fees less than 0.01%.
4. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER GROWTH FUND
CLASS N YEAR ENDED AUGUST 31, 2004 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 (.27) (.04) (.13) 2 (.01)
Net realized and unrealized gain (loss) (.57) 1.64 (4.78) 2 (6.25)
----------------------------------------------
Total from investment operations (.84) 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 $ 24.75 $ 25.59 $ 23.99 $ 29.13
==============================================
- ------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (3.28)% 6.67% (17.00)% (17.69)%
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 12,998 $ 7,766 $ 2,243 $ 274
- ------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 11,987 $ 5,016 $ 1,623 $ 70
- ------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.94)% (0.39)% (0.90)% (0.33)%
Total expenses 1.70% 1.33% 1.57% 1.40%
Expenses after payments and waivers
and reduction to custodian expenses 1.53% 1.23% N/A 5,6 N/A 6
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 82% 60% 92%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Voluntary waiver of transfer agent fees less than 0.01%.
6. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.66 $ 24.24 $ 29.27 $ 62.33 $ 39.76
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.10) (.12) (.06) .28 .16
Net realized and unrealized gain
(loss) (.61) 1.54 (4.73) (30.10) 25.37
------------------------------------------------------------
Total from investment operations (.71) 1.42 (4.79) (29.82) 25.53
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- (.24) -- (.13)
Distributions from net realized gain -- -- -- (3.24) (2.83)
------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.24) (3.24) (2.96)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.95 $ 25.66 $ 24.24 $ 29.27 $ 62.33
============================================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 (2.77)% 5.86% (16.50)% (49.77)% 67.56%
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 64,005 $ 66,121 $ 66,769 $ 88,284 $ 191,267
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 68,569 $ 61,965 $ 81,127 $ 124,168 $ 134,650
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.40)% (0.55)% (0.25)% 0.67% 0.27%
Total expenses 1.01% 1.17% 1.13% 0.86% 0.73%
Expenses after payments and waivers
and reduction to custodian expenses N/A 3 1.08% 1.02% N/A 3 N/A 3
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 82% 60% 92% 49%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Growth Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The
Fund's investment objective is to seek capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
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 due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. 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.
Foreign and domestic 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 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
33 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 as of the close of The New York Stock Exchange (the
Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open.
Amounts related to the purchase and sale of foreign securities and investment
income are translated at the rates of exchange prevailing on the respective
dates of such transactions. Foreign exchange rates may be valued primarily using
dealer supplied valuations or a portfolio pricing service authorized by the
Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
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. 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
34 | OPPENHEIMER GROWTH FUND
not offset by capital loss carryforwards, if any, to shareholders, therefore, no
federal income or excise tax provision is required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED BASED ON COST OF
NET INVESTMENT LONG-TERM LOSS SECURITIES FOR FEDERAL
INCOME GAIN CARRYFORWARD 1,2,3 INCOME TAX PURPOSES
-----------------------------------------------------------------------------
$-- $-- $662,870,343 $12,584,848
1. As of August 31, 2004, the Fund had $662,870,343 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of August 31, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
--------------------------
2010 $ 340,711,507
2011 322,158,836 a
---------------
Total $ 662,870,343
===============
a. Includes $95,764 of capital loss carryforwards acquired in the November
6, 2003 merger of Oppenheimer Select Managers-Mercury Advisors Focus
Growth Fund.
2. During the fiscal year ended August 31, 2004, the Fund utilized $104,426,196
of capital loss carryforward to offset capital gains realized in that fiscal
year. b,c,d
b. Includes $628,445 of capital loss carryforwards acquired in the October
16, 2003 merger of Oppenheimer Select Managers-Jennison Growth Fund.
c. Includes $1,489,835 of capital loss carryforwards acquired in the
September 18, 2003 merger of Oppenheimer Trinity Large Cap Growth Fund.
d. Includes $339,688 of capital loss carryforwards acquired in the October
12, 2001 merger of Oppenheimer Trinity Growth Fund into Oppenheimer
Trinity Large Cap Growth Fund.
3. During the fiscal year ended August 31, 2003, the Fund did not utilize any
capital loss carryforward.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for August 31, 2004. Net assets of the
Fund were unaffected by the reclassifications.
INCREASE TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO ACCUMULATED NET REALIZED LOSS
PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS
---------------------------------------------------
$9,499,359 $12,380,338 $2,880,979
No distributions were paid during the years ended August 31, 2004 and August 31,
2003.
35 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of August 31, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 1,421,507,714
================
Gross unrealized appreciation $ 123,479,319
Gross unrealized depreciation (110,894,471)
----------------
Net unrealized appreciation $ 12,584,848
================
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended August
31, 2004, the Fund's projected benefit obligations were increased by $32,282 and
payments of $24,789 were made to retired trustees, resulting in an accumulated
liability of $418,678 as of August 31, 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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
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.
36 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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 U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
YEAR ENDED AUGUST 31, 2004 YEAR ENDED AUGUST 31, 2003
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------
CLASS A
Sold 7,640,372 $ 200,447,005 7,473,993 $ 175,173,916
Acquisition--Note 5 1,087,441 28,622,869 -- --
Redeemed (11,017,595) (287,168,710) (10,385,203) (241,953,071)
------------------------------------------------------------
Net decrease (2,289,782) $ (58,098,836) (2,911,210) $ (66,779,155)
============================================================
- --------------------------------------------------------------------------------------
CLASS B
Sold 2,214,980 $ 53,994,622 2,646,013 $ 58,067,246
Acquisition--Note 5 690,353 16,977,089 -- --
Redeemed (4,973,427) (121,324,815) (5,257,802) (114,887,835)
------------------------------------------------------------
Net decrease (2,068,094) $ (50,353,104) (2,611,789) $ (56,820,589)
============================================================
- --------------------------------------------------------------------------------------
CLASS C
Sold 886,442 $ 21,970,173 1,014,973 $ 22,640,168
Acquisition--Note 5 399,809 9,988,803 -- --
Redeemed (1,249,401) (30,949,676) (1,069,585) (23,782,326)
------------------------------------------------------------
Net increase (decrease) 36,850 $ 1,009,300 (54,612) $ (1,142,158)
============================================================
- --------------------------------------------------------------------------------------
CLASS N
Sold 280,601 $ 7,342,742 286,041 $ 6,661,490
Acquisition--Note 5 118,019 3,107,869 -- --
Redeemed (176,804) (4,637,108) (76,061) (1,787,724)
------------------------------------------------------------
Net increase 221,816 $ 5,813,503 209,980 $ 4,873,766
============================================================
- --------------------------------------------------------------------------------------
CLASS Y
Sold 906,908 $ 23,931,916 859,150 $ 20,232,976
Acquisition--Note 5 7,946 209,931 -- --
Redeemed (926,259) (24,388,579) (1,037,240) (24,160,671)
------------------------------------------------------------
Net decrease (11,405) $ (246,732) (178,090) $ (3,927,695)
============================================================
37 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended August 31, 2004, were
$1,624,232,652 and $1,676,782,625, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, 0.60% of the next $700 million, 0.58% of the next $1.0
billion, 0.56% of the next $2.0 billion, and 0.54% of the average annual net
assets in excess of $4.5 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended August 31, 2004, the Fund paid
$4,651,995 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $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.
- --------------------------------------------------------------------------------
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 all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
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 those 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 and 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
38 | OPPENHEIMER GROWTH FUND
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 August 31, 2004 for Class B, Class C and Class N shares were $11,061,923,
$2,331,100 and $765,271, 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
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------------------------------------------------------------------------------------
August 31, 2004 $670,536 $14,124 $612,923 $31,656 $7,751
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. Following a review of its use of brokerage
commissions for sales that is permitted under its investment advisory agreement,
the Fund's Manager terminated that practice in July 2003. Subsequently, the
Manager paid the Fund $417,397, an amount equivalent to certain of such
commissions incurred in prior years.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average daily net assets per fiscal year
for all classes. During the year ended August 31, 2004, OFS waived $60,035,
$333,120, $78,937 and $20,015 for Class A, Class B, Class C and Class N shares,
respectively. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
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,
39 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. ACQUISITIONS OF OPPENHEIMER TRINITY LARGE CAP GROWTH FUND, OPPENHEIMER SELECT
MANAGERS MERCURY ADVISORS FOCUS GROWTH FUND AND OPPENHEIMER SELECT MANAGERS
JENNISON GROWTH FUND Continued
$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 $15,721,086 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 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.
40 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
6. LITIGATION
Six complaints have been filed as putative derivative and class actions against
the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"), as well
as 51 of the Oppenheimer funds (collectively, the "Funds") including this Fund,
and nine directors/ trustees of certain of the Funds (collectively, the
"Directors/Trustees"). The complaints allege that the Manager charged excessive
fees for distribution and other costs, improperly used assets of the Funds in
the form of directed brokerage commissions and 12b-1 fees to pay brokers to
promote sales of the Funds, and failed to properly disclose the use of Fund
assets to make those payments in violation of the Investment Company Act of 1940
and the Investment Advisers Act of 1940. The complaints further allege that by
permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law.
OppenheimerFunds believes that it is premature to render any opinion as to
the likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
41 | OPPENHEIMER GROWTH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER GROWTH FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Growth Fund, including the statement of investments, as of August
31, 2004, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of August 31, 2004, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Growth Fund as of August 31, 2004, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with U.S. generally accepted accounting
principles.
KPMG LLP
Denver, Colorado
September 22, 2004
42 | OPPENHEIMER GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
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In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
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PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF
INVESTMENTS Unaudited
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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
1.800.525.7048, (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 is 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
43 | OPPENHEIMER GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER
FUND, LENGTH OF SERVICE, AGE TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE; NUMBER OF PORTFOLIOS IN
FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
TRUSTEES CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE
TERM, UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a director
Chairman of the Board (since 2002) of Danielson Holding Corp. Formerly a director of
of Trustees (since 2003); Weyerhaeuser Corp. (1999-April 2004), Caterpillar, Inc.
Trustee (since 1993) (1993-December 2002), ConAgra Foods (1993-2001), Texas Instruments
Age: 73 (1993-2001) and FMC Corporation (1993-2001). Oversees 25 portfolios
in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35
Trustee (since 1993) portfolios in the OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study,
Trustee (since 1999) Princeton, N.J., a director (since 2001) of GSI Lumonics, a trustee
Age: 65 (since 1983) of Woodward Academy, a Senior Advisor (since 2001) of
The Andrew W. Mellon Foundation. A member of: the National Academy of
Sciences (since 1979), American Academy of Arts and Sciences (since
1995), American Philosophical Society (since 1996) and Council on
Foreign Relations (since 2002). Formerly a director of Bankers Trust
New York Corporation (1994-1999). Oversees 25 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Formerly a Senior Vice President and General Auditor, American
Trustee (since 2004) Express Company (July 1998-February 2003). Member of Trustees of the
Age: 61 American Symphony Orchestra (October 1998 to present). Oversees 14
portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial Corp.
Trustee (since 2002) (privately-held financial adviser); Managing Director (since January
Age: 52 2002) Carmona Motley, Inc. (privately-held financial adviser).
Formerly a Managing Director of Carmona Motley Hoffman Inc.
(privately-held financial adviser) (January 1998-December 2001).
Oversees 25 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion Resources, Inc.
Trustee (since 1985) (electric utility holding company); formerly a director of Prime
Age: 77 Retail, Inc. (real estate investment trust) and Dominion Energy,
Inc. (electric power and oil & gas producer), President and Chief
Executive Officer of The Conference Board, Inc. (international
economic and business research) and a director of Lumbermens Mutual
Casualty Company, American Motorists Insurance Company and American
Manufacturers Mutual Insurance Company. Oversees 25 portfolios in the
OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset (real estate
Trustee (since 1993) manager); a director of OffitBank; formerly Trustee, Financial
Age: 74 Accounting Foundation (FASB and GASB), Senior Fellow of Jerome Levy
Economics Institute, Bard College, Chairman of Municipal Assistance
Corporation for the City of New York, New York State Comptroller and
Trustee of New York State and Local Retirement Fund. Oversees 25
investment companies in the OppenheimerFunds complex.
44 | OPPENHEIMER GROWTH FUND
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc.
Trustee (since 1989) (corporate governance consulting and executive recruiting); a Life
Age: 72 Trustee of International House (non-profit educational organization);
a former trustee of The Historical Society of the Town of Greenwich.
Oversees 25 portfolios in the OppenheimerFunds complex.
DONALD W. SPIRO,* Chairman Emeritus (since January 1991) of the Manager. Formerly a
Vice Chairman of the director (January 1969-August 1999) of the Manager. Oversees 25
Board of Trustees, portfolios in the OppenheimerFunds complex.
Trustee (since 1985)
Age: 78
*Mr. Spiro is expected to retire as Trustee of the Board I Funds
effective October 31, 2004.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL
AND OFFICER CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008. MR.
MURPHY SERVES FOR AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR
REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and
President and Trustee President (since September 2000) of the Manager; President and a
(since 2001) director or trustee of other Oppenheimer funds; President and a
Age: 55 director (since July 2001) of Oppenheimer Acquisition Corp. (the
Manager's parent holding company) and of Oppenheimer Partnership
Holdings, Inc. (a holding company subsidiary of the Manager); a
director (since November 2001) of OppenheimerFunds Distributor, Inc.
(a subsidiary of the Manager); Chairman and a director (since July
2001) of Shareholder Services, Inc. and of Shareholder Financial
Services, Inc. (transfer agent subsidiaries of the Manager);
President and a director (since July 2001) of OppenheimerFunds Legacy
Program (a charitable trust program established by the Manager); a
director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset
Management Corporation, Trinity Investment Management Corporation
and Tremont Capital Management, Inc. (since November 2001),
HarbourView Asset Management Corporation and OFI Private Investments,
Inc. (since July 2001); President (since November 1, 2001) and a
director (since July 2001) of Oppenheimer Real Asset Management,
Inc.; Executive Vice President (since February 1997) of Massachusetts
Mutual Life Insurance Company (the Manager's parent company); a
director (since June 1995) of DLB Acquisition Corporation (a holding
company that owns the shares of Babson Capital Management LLC); a
member of the Investment Company Institute's Board of Governors
(elected to serve from October 3, 2003 through September 30, 2006).
Formerly, Chief Operating Officer (September 2000-June 2001) of the
Manager; President and trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual Institutional Funds (open-end
investment companies); a director (September 1999-August 2000) of
C.M. Life Insurance Company; President, Chief Executive Officer and
director (September 1999-August 2000) of MML Bay State Life Insurance
Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and
Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle
Bancorp). Oversees 73 portfolios as Trustee/Director and 10
portfolios as Officer in the OppenheimerFunds complex.
45 | OPPENHEIMER GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MR.
POIESZ AND MR. ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
11TH FLOOR, NEW YORK, NY 10281-1008, AND FOR MR. WIXTED AND MR.
VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH OFFICER
SERVES FOR AN ANNUAL TERM OR UNTIL HIS OR HER EARLIER RESIGNATION,
DEATH OR REMOVAL.
DAVID POIESZ, Senior Vice President of the Manager since June 2004; an officer of 2
Vice President and portfolios in the OppenheimerFunds complex; formerly a senior
Portfolio Manager portfolio manager at Merrill Lynch. (October 2002-May 2004); founding
(since 2004) partner of RiverRock, a hedge fund product; (April 1999-July 2001);
Age: 46 portfolio manager at Jennison Associates (November 1992-March 1999).
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the
Treasurer (since 1999) Manager; Treasurer of HarbourView Asset Management Corporation,
Age: 44 Shareholder Financial Services, Inc., Shareholder Services, Inc.,
Oppenheimer Real Asset Management Corporation, and Oppenheimer
Partnership Holdings, Inc. (since March 1999), of OFI Private
Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May 2000), of OFI
Institutional Asset Management, Inc. (since November 2000), and of
OppenheimerFunds Legacy Program (a Colorado non-profit corporation)
(since June 2003); Treasurer and Chief Financial Officer (since May
2000) of OFI Trust Company (a trust company subsidiary of the
Manager); Assistant Treasurer (since March 1999) of Oppenheimer
Acquisition Corp. Formerly Assistant Treasurer of Centennial Asset
Management Corporation (March 1999-October 2003) and OppenheimerFunds
Legacy Program (April 2000-June 2003); Principal and Chief Operating
Officer (March 1995-March 1999) at Bankers Trust Company-Mutual Fund
Services Division. An officer of 83 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel
Secretary (since 2001) (since February 2002) of the Manager; General Counsel and a director
Age: 56 (since November 2001) of the Distributor; General Counsel (since
November 2001) of Centennial Asset Management Corporation; Senior
Vice President and General Counsel (since November 2001) of
HarbourView Asset Management Corporation; Secretary and General
Counsel (since November 2001) of Oppenheimer Acquisition Corp.;
Assistant Secretary and a director (since October 1997) of
OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice
President and a director (since November 2001) of Oppenheimer
Partnership Holdings, Inc.; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Senior Vice President,
General Counsel and a director (since November 2001) of Shareholder
Financial Services, Inc., Shareholder Services, Inc., OFI Private
Investments, Inc. and OFI Trust Company; Vice President (since
November 2001) of OppenheimerFunds Legacy Program; Senior Vice
President and General Counsel (since November 2001) of OFI
Institutional Asset Management, Inc.; a director (since June 2003) of
OppenheimerFunds (Asia) Limited. Formerly Senior Vice President (May
1985-December 2003), Acting General Counsel (November 2001-February
2002) and Associate General Counsel (May 1981-October 2001) of the
Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-
November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); and OppenheimerFunds International Ltd. (October
1997-November 2001). An officer of 83 portfolios in the
OppenheimerFunds complex.
46 | OPPENHEIMER GROWTH FUND
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004)
Vice President and of the Manager; Vice President (since June 1983) of OppenheimerFunds
Chief Compliance Officer Distributor, Inc., Centennial Asset Management Corporation and
(since 2004) Shareholder Services, Inc. Formerly (until February 2004) Vice
Age: 53 President and Director of Internal Audit of OppenheimerFunds, Inc. An
officer of 83 portfolios in the Oppenheimer funds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST BY
CALLING 1.800.525.7048.
47 | 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
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $45,000 in fiscal 2004 and $35,000 in
fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant in
fiscal 2004 and $6,375 in fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed $39,500 in fiscal 2004 and no such
fees in fiscal 2003 to the registrant's investment adviser or any
entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant in
fiscal 2004 and $6,250 in fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed $6,000 in fiscal 2004 and $5,000 in
fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice
includes assistance with tax audits and appeals, tax advice
related to mergers and acquisitions and requests for rulings or
technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and $355
in fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees during the last two
fiscal years to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include consultations regarding the registrant's
retirement plan with respect to its directors.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the
registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized
by the registrant at the time of engagement as non-audit services
and 3) such services are promptly brought to the attention of the
audit committee of the registrant and approved prior to the
completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $45,500 in fiscal 2004 and $17,980 in
fiscal 2003 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not
include any prohibited non-audit services as defined by the
Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal account's independence.
No such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
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-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of August 31, 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)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)