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 811-5360
Oppenheimer Main Street 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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Oil & Gas 9.0%
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Pharmaceuticals 9.0
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Commercial Banks 8.7
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Diversified Financial Services 8.6
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Industrial Conglomerates 5.4
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Software 4.6
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Insurance 4.6
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Computers & Peripherals 4.4
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Diversified Telecommunication Services 3.7
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Communications Equipment 3.4
Portfolio's holdings and allocations are subject to change. Percentages are as
of August 31, 2004, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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General Electric Co. 4.2%
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Exxon Mobil Corp. 4.1
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Citigroup, Inc. 3.4
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Pfizer, Inc. 3.3
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Microsoft Corp. 3.2
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Bank of America Corp. 2.7
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American International Group, Inc. 2.3
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Johnson & Johnson 2.3
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JPMorgan Chase & Co. 2.1
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Intel Corp. 2.0
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.
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8 | OPPENHEIMER MAIN STREET FUND
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SECTOR ALLOCATION
o Financials 24.5%
o Information Technology 16.2
[GRAPHIC] o Health Care 13.9
o Consumer Staples 10.4
o Consumer Discretionary 9.7
o Energy 9.3
o Industrials 9.2
o Telecommunication Services 4.7
o Materials 1.7
o Utilities 0.4
Portfolio's holdings and allocations are subject to change. Percentages are as
of August 31, 2004, and are based on common stocks.
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9 | OPPENHEIMER MAIN STREET 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. During its fiscal year ended August
31, 2004, Oppenheimer Main Street Fund provided higher total returns than its
benchmark, the Standard & Poor's 500 Index, and its Lipper peer group, the
large-cap core funds category.
The Fund benefited during the first half of the reporting period from its
focus on stocks with market capitalizations toward the lower end of the
large-cap range. As had been the case for some time, smaller-cap stocks
consistently outperformed their larger-cap counterparts over the reporting
period's first half. During the reporting period's second half, however, a
number of factors considered by our models--including the five-year reversal
factor, interest rate spread indicators and relative valuation components--
began to favor larger stocks over smaller ones.
As a result, during the second half of the reporting period we
substantially increased the Fund's investments in higher-quality companies with
larger market capitalizations. As of August 31, 2004, the Fund's weighted
average market capitalization was 1.25 times that of the S&P 500 Index up from
..83 times at the end of December 2003. Similarly, at the end of August 2004 the
Fund had a greater percentage of higher-quality companies (by S&P Quality
Rating) relative to the S&P 500 Index than when compared to the Fund's
composition at the end of December 2003.
Because the Fund was in a period of transition, it underperformed its
benchmark during the second calendar quarter of 2004, which detracted from its
relative performance for the overall reporting period. It typically takes some
time for our models to adjust to fundamental changes in market conditions, and
in order to manage transaction costs effectively, we tend to make substantial
changes to the Fund's portfolio slowly.
Nonetheless, the Fund's stock selection strategy contributed positively to
its overall performance for the reporting period. Because our stock scoring
system assigned higher rankings to a number of companies in the
better-performing energy, financials and telecommunications services sectors,
the Fund had greater exposure to these groups than the S&P 500 Index, benefiting
its performance. On the other hand, the Fund's models found fewer opportunities
in the utilities sector, which hurt its relative performance when utilities
stocks fared relatively well. Although the Fund's weightings in the technology,
consumer discretionary and health care sectors were roughly equivalent to their
representation in the S&P 500 Index, the Fund's stocks in each of these sectors
produced lower returns than their corresponding holdings in the S&P 500 Index.
10 | OPPENHEIMER MAIN STREET FUND
The Fund ended the reporting period with a larger percentage of its assets
invested in financial and energy stocks than the S&P 500 Index, and a smaller
percentage allocated to utilities and industrial stocks. As always, we are
committed to remaining fully invested in large-cap stocks and to maintaining a
well-diversified portfolio. We will adjust the portfolio as needed and indicated
by our quantitative models.
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 and Class C shares,
performance is measured over a ten-fiscal-year period. For Class B shares,
performance is measured from inception of the class on October 3, 1994. In the
case of Class N shares, performance is measured from inception of the class on
March 1, 2001. In the case of Class Y shares, performance is measured from
inception of the class on November 1, 1996. 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.
The S&P 500 Index is 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.
11 | OPPENHEIMER MAIN STREET FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund(R) (Class A)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Main Street Fund(R)
(Class A Shares)
06/30/1994 $ 9,425 $10,000
09/30/1994 9,975 10,488
12/31/1994 9,816 10,486
03/31/1995 10,593 11,506
06/30/1995 11,359 12,603
09/30/1995 12,350 13,604
12/31/1995 12,836 14,422
03/31/1996 13,557 15,196
06/30/1996 13,888 15,877
08/31/1996 1 13,436 15,497
11/30/1996 15,138 18,089
02/28/1997 15,663 18,986
05/31/1997 16,538 20,473
08/31/1997 17,613 21,792
11/30/1997 18,426 23,246
02/28/1998 19,904 25,629
05/31/1998 21,003 26,749
08/31/1998 18,260 23,562
11/30/1998 21,853 28,751
02/28/1999 23,212 30,693
05/31/1999 24,545 32,375
08/31/1999 25,312 32,941
11/30/1999 25,950 34,758
02/29/2000 26,083 34,293
05/31/2000 27,481 35,764
08/31/2000 29,804 38,312
11/30/2000 24,823 33,289
02/28/2001 23,922 31,482
05/31/2001 24,584 31,992
08/31/2001 22,396 28,973
11/30/2001 22,334 29,224
02/28/2002 22,164 28,489
05/31/2002 22,199 27,566
08/31/2002 19,507 23,762
11/30/2002 19,276 24,400
02/28/2003 17,578 22,030
05/31/2003 20,007 25,342
08/31/2003 20,859 26,627
11/30/2003 22,289 28,079
02/29/2004 24,010 30,511
05/31/2004 23,471 29,985
08/31/2004 23,230 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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4.97% -2.86% 8.03%
1. The Fund changed its fiscal year end from June 30 to August 31.
12 | OPPENHEIMER MAIN STREET FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund(R) (Class B)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Main Street Fund(R)
(Class B Shares)
10/03/1994 $10,000 $10,000
12/31/1994 9,846 9,998
03/31/1995 10,599 10,971
06/30/1995 11,341 12,017
09/30/1995 12,305 12,971
12/31/1995 12,766 13,751
03/31/1996 13,459 14,489
06/30/1996 13,762 15,138
08/31/1996 1 13,293 14,776
11/30/1996 14,951 17,248
02/28/1997 15,439 18,103
05/31/1997 16,273 19,521
08/31/1997 17,297 20,778
11/30/1997 18,063 22,164
02/28/1998 19,473 24,437
05/31/1998 20,505 25,505
08/31/1998 17,792 22,466
11/30/1998 21,259 27,414
02/28/1999 22,540 29,265
05/31/1999 23,787 30,869
08/31/1999 24,485 31,408
11/30/1999 25,056 33,141
02/29/2000 25,129 32,697
05/31/2000 26,428 34,101
08/31/2000 28,607 36,530
11/30/2000 23,811 31,741
02/28/2001 22,947 30,018
05/31/2001 23,582 30,504
08/31/2001 21,484 27,626
11/30/2001 21,424 27,864
02/28/2002 21,260 27,164
05/31/2002 21,294 26,283
08/31/2002 18,712 22,657
11/30/2002 18,491 23,265
02/28/2003 16,861 21,005
05/31/2003 19,192 24,163
08/31/2003 20,009 25,388
11/30/2003 21,381 26,773
02/29/2004 23,031 29,092
05/31/2004 22,515 28,590
08/31/2004 22,284 28,294
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year Since Inception (10/3/94)
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5.43% -2.80% 8.42%
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, SINCE-INCEPTION RETURNS FOR CLASS B
SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
1. The Fund changed its fiscal year end from June 30 to August 31.
13 | OPPENHEIMER MAIN STREET FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund(R) (Class C)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Main Street Fund(R)
(Class C Shares)
06/30/1994 $10,000 $10,000
09/30/1994 10,564 10,488
12/31/1994 10,375 10,486
03/31/1995 11,172 11,506
06/30/1995 11,963 12,603
09/30/1995 12,978 13,604
12/31/1995 13,463 14,422
03/31/1996 14,198 15,196
06/30/1996 14,517 15,877
08/31/1996 1 14,027 15,497
11/30/1996 15,772 18,089
02/28/1997 16,291 18,986
05/31/1997 17,165 20,473
08/31/1997 18,245 21,792
11/30/1997 19,057 23,246
02/28/1998 20,550 25,629
05/31/1998 21,638 26,749
08/31/1998 18,776 23,562
11/30/1998 22,429 28,751
02/28/1999 23,780 30,693
05/31/1999 25,102 32,375
08/31/1999 25,833 32,941
11/30/1999 26,436 34,758
02/29/2000 26,520 34,293
05/31/2000 27,883 35,764
08/31/2000 30,190 38,312
11/30/2000 25,095 33,289
02/28/2001 24,141 31,482
05/31/2001 24,759 31,992
08/31/2001 22,517 28,973
11/30/2001 22,409 29,224
02/28/2002 22,195 28,489
05/31/2002 22,188 27,566
08/31/2002 19,459 23,762
11/30/2002 19,193 24,400
02/28/2003 17,472 22,030
05/31/2003 19,848 25,342
08/31/2003 20,654 26,627
11/30/2003 22,022 28,079
02/29/2004 23,685 30,511
05/31/2004 23,109 29,985
08/31/2004 22,828 29,675
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year 10-Year
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9.53% -2.44% 7.85%
1. The Fund changed its fiscal year end from June 30 to August 31.
14 | OPPENHEIMER MAIN STREET FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund(R) (Class N)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Main Street Fund(R)
(Class N Shares)
03/01/2001 $10,000 $10,000
05/31/2001 10,259 10,162
08/31/2001 9,339 9,203
11/30/2001 9,307 9,283
02/28/2002 9,229 9,049
05/31/2002 9,235 8,756
08/31/2002 8,111 7,548
11/30/2002 8,024 7,750
02/28/2003 7,312 6,998
05/31/2003 8,313 8,050
08/31/2003 8,661 8,458
11/30/2003 9,243 8,919
02/29/2004 9,951 9,692
05/31/2004 9,717 9,524
08/31/2004 9,607 9,426
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year Since Inception (3/1/01)
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9.93% -1.14%
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 17 FOR FURTHER
INFORMATION.
15 | OPPENHEIMER MAIN STREET FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund(R) (Class Y)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index
Main Street Fund(R)
(Class Y Shares)
11/01/1996 $10,000 $10,000
11/30/1996 10,623 10,755
02/28/1997 11,007 11,288
05/31/1997 11,632 12,172
08/31/1997 12,398 12,957
11/30/1997 12,976 13,821
02/28/1998 14,025 15,238
05/31/1998 14,804 15,904
08/31/1998 12,879 14,009
11/30/1998 15,418 17,094
02/28/1999 16,375 18,249
05/31/1999 17,333 19,249
08/31/1999 17,882 19,585
11/30/1999 18,339 20,666
02/29/2000 18,443 20,389
05/31/2000 19,432 21,264
08/31/2000 21,101 22,779
11/30/2000 17,583 19,792
02/28/2001 16,949 18,718
05/31/2001 17,422 19,021
08/31/2001 15,877 17,226
11/30/2001 15,843 17,375
02/28/2002 15,728 16,939
05/31/2002 15,763 16,389
08/31/2002 13,854 14,128
11/30/2002 13,691 14,507
02/28/2003 12,495 13,098
05/31/2003 14,226 15,067
08/31/2003 14,840 15,831
11/30/2003 15,862 16,695
02/29/2004 17,108 18,141
05/31/2004 16,736 17,828
08/31/2004 16,575 17,643
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1-Year 5-Year Since Inception (11/1/1996)
- ------ ------ ---------------------------
11.69% -1.51% 6.66%
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 17 FOR FURTHER
INFORMATION.
16 | OPPENHEIMER MAIN STREET 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 2/3/88. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 10/3/94. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 12/1/93. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 11/1/96. Class Y
shares are offered only to certain institutional investors under special
agreements with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
17 | OPPENHEIMER MAIN STREET 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
18 | OPPENHEIMER MAIN STREET FUND
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.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(3/1/04) (8/31/04) AUGUST 31, 2004
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 967.50 $4.56
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.51 4.68
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 963.50 8.73
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.29 8.96
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 963.80 8.33
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.69 8.55
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 965.40 6.29
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,018.75 6.46
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 968.80 2.87
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,022.22 2.95
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 0.92%
- -------------------------
Class B 1.76
- -------------------------
Class C 1.68
- -------------------------
Class N 1.27
- -------------------------
Class Y 0.58
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.
- --------------------------------------------------------------------------------
19 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF INVESTMENTS August 31, 2004
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--98.8%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--9.6%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--0.2%
Aftermarket Technology
Corp. 1 10,201 $ 135,163
- --------------------------------------------------------------------------------
Autoliv, Inc. 126,100 5,327,725
- --------------------------------------------------------------------------------
Dana Corp. 572,000 10,793,640
- --------------------------------------------------------------------------------
Lear Corp. 46,200 2,489,256
------------
18,745,784
- --------------------------------------------------------------------------------
AUTOMOBILES--0.4%
Ford Motor Co. 2,232,426 31,499,531
- --------------------------------------------------------------------------------
General Motors Corp. 241,800 9,988,758
- --------------------------------------------------------------------------------
Harley-Davidson, Inc. 51,200 3,124,224
------------
44,612,513
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.1%
Applebee's
International, Inc. 224,187 5,396,181
- --------------------------------------------------------------------------------
Caesars Entertainment,
Inc. 1 382,800 5,914,260
- --------------------------------------------------------------------------------
CBRL Group, Inc. 194,300 6,194,284
- --------------------------------------------------------------------------------
CEC Entertainment,
Inc. 1 201,100 6,771,037
- --------------------------------------------------------------------------------
Choice Hotels
International, Inc. 28,200 1,462,452
- --------------------------------------------------------------------------------
Harrah's
Entertainment, Inc. 133,500 6,433,365
- --------------------------------------------------------------------------------
International Game
Technology 742,400 21,418,240
- --------------------------------------------------------------------------------
Isle of Capri Casinos,
Inc. 1 11,800 215,468
- --------------------------------------------------------------------------------
Jack in the Box, Inc. 1 43,100 1,217,144
- --------------------------------------------------------------------------------
Mandalay Resort Group 167,800 11,383,552
- --------------------------------------------------------------------------------
Marriott International,
Inc., Cl. A 179,600 8,522,020
- --------------------------------------------------------------------------------
McDonald's Corp. 1,415,500 38,246,810
- --------------------------------------------------------------------------------
Rare Hospitality
International, Inc. 1 55,200 1,492,608
- --------------------------------------------------------------------------------
Ruby Tuesday, Inc. 20,700 559,935
- --------------------------------------------------------------------------------
Yum! Brands, Inc. 486,300 19,310,973
------------
134,538,329
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.6%
Cavco Industries, Inc. 1 14,370 547,784
- --------------------------------------------------------------------------------
D.R. Horton, Inc. 163,450 5,057,143
- --------------------------------------------------------------------------------
Harman International
Industries, Inc. 6,100 589,809
- --------------------------------------------------------------------------------
Hovnanian Enterprises,
Inc., Cl. A 1 265,500 9,138,510
- --------------------------------------------------------------------------------
KB Home 152,900 10,514,933
- --------------------------------------------------------------------------------
Lennar Corp., Cl. B 108,200 4,593,090
- --------------------------------------------------------------------------------
M.D.C. Holdings, Inc. 140,659 9,684,372
- --------------------------------------------------------------------------------
Meritage Corp. 1 56,900 3,801,489
- --------------------------------------------------------------------------------
NVR, Inc. 1 800 401,800
- --------------------------------------------------------------------------------
Pulte Homes, Inc. 76,530 4,511,444
- --------------------------------------------------------------------------------
Ryland Group, Inc.
(The) 121,600 10,719,040
- --------------------------------------------------------------------------------
Standard Pacific Corp. 86,000 4,340,420
- --------------------------------------------------------------------------------
Stanley Works (The) 84,900 3,672,774
- --------------------------------------------------------------------------------
Technical Olympic
USA, Inc. 8,700 222,024
- --------------------------------------------------------------------------------
Toll Brothers, Inc. 1 44,600 1,979,794
- --------------------------------------------------------------------------------
Whirlpool Corp. 60,200 3,680,628
- --------------------------------------------------------------------------------
Yankee Candle, Inc.
(The) 1 30,800 834,988
------------
74,290,042
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.4%
Amazon.com, Inc. 1 273,800 10,442,732
- --------------------------------------------------------------------------------
eBay, Inc. 1 455,000 39,375,700
------------
49,818,432
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--0.1%
Action Performance
Cos., Inc. 343,600 3,752,112
- --------------------------------------------------------------------------------
Brunswick Corp. 130,600 5,133,886
- --------------------------------------------------------------------------------
Hasbro, Inc. 187,700 3,478,081
- --------------------------------------------------------------------------------
Marvel Enterprises, Inc. 1 68,100 999,027
- --------------------------------------------------------------------------------
Polaris Industries, Inc. 55,600 2,622,096
------------
15,985,202
20 | OPPENHEIMER MAIN STREET FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA--2.7%
Clear Channel
Communications, Inc. 285,200 $ 9,557,052
- --------------------------------------------------------------------------------
Comcast Corp., Cl. A 1 2,714,155 76,457,746
- --------------------------------------------------------------------------------
Cox Communications,
Inc., Cl. A 1 42,600 1,399,836
- --------------------------------------------------------------------------------
McGraw-Hill Cos.,
Inc. (The) 293,600 22,234,328
- --------------------------------------------------------------------------------
Time Warner, Inc. 1 4,894,300 80,021,805
- --------------------------------------------------------------------------------
Viacom, Inc., Cl. B 2,140,248 71,291,661
- --------------------------------------------------------------------------------
Walt Disney Co. (The) 2,453,300 55,076,585
------------
316,039,013
- --------------------------------------------------------------------------------
MULTILINE RETAIL--0.6%
Dillard's, Inc., Cl. A 80,800 1,535,200
- --------------------------------------------------------------------------------
Federated Department
Stores, Inc. 244,400 10,606,960
- --------------------------------------------------------------------------------
J.C. Penney Co., Inc.
(Holding Co.) 206,700 7,920,744
- --------------------------------------------------------------------------------
May Department
Stores Co. 99,000 2,426,490
- --------------------------------------------------------------------------------
Neiman Marcus
Group, Inc. (The), Cl. A 37,600 2,000,320
- --------------------------------------------------------------------------------
Nordstrom, Inc. 163,700 6,078,181
- --------------------------------------------------------------------------------
Sears Roebuck & Co. 244,500 9,359,460
- --------------------------------------------------------------------------------
Target Corp. 776,400 34,611,912
------------
74,539,267
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--3.2%
Abercrombie &
Fitch Co., Cl. A 235,300 6,588,400
- --------------------------------------------------------------------------------
Aeropostale, Inc. 1 134,500 4,189,675
- --------------------------------------------------------------------------------
American Eagle
Outfitters, Inc. 1 193,200 6,433,560
- --------------------------------------------------------------------------------
AnnTaylor Stores Corp. 1 302,200 7,304,174
- --------------------------------------------------------------------------------
AutoNation, Inc. 1 318,300 5,232,852
- --------------------------------------------------------------------------------
Barnes & Noble, Inc. 1 38,100 1,316,736
- --------------------------------------------------------------------------------
Best Buy Co., Inc. 361,600 16,821,632
- --------------------------------------------------------------------------------
Borders Group, Inc. 306,700 7,330,130
- --------------------------------------------------------------------------------
Circuit City Stores, Inc./
Circuit City Group 235,400 3,053,138
- --------------------------------------------------------------------------------
Claire's Stores, Inc. 448,700 10,921,358
- --------------------------------------------------------------------------------
Electronics Boutique
Holdings Corp. 1 7,400 225,922
- --------------------------------------------------------------------------------
Finish Line, Inc. (The),
Cl. A 1 18,200 527,982
- --------------------------------------------------------------------------------
Foot Locker, Inc. 104,400 2,335,428
- --------------------------------------------------------------------------------
Gap, Inc. (The) 1,702,900 31,912,346
- --------------------------------------------------------------------------------
Hollywood
Entertainment Corp. 1 101,900 1,028,171
- --------------------------------------------------------------------------------
Home Depot, Inc. 4,262,100 155,822,376
- --------------------------------------------------------------------------------
Limited Brands, Inc. 179,200 3,598,336
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 489,400 24,323,180
- --------------------------------------------------------------------------------
Michaels Stores, Inc. 34,800 1,995,084
- --------------------------------------------------------------------------------
Office Depot, Inc. 1 400,000 6,404,000
- --------------------------------------------------------------------------------
Pacific Sunwear of
California, Inc. 1 454,000 8,698,640
- --------------------------------------------------------------------------------
RadioShack Corp. 100,000 2,694,000
- --------------------------------------------------------------------------------
Sherwin-Williams Co. 187,500 7,743,750
- --------------------------------------------------------------------------------
Staples, Inc. 1,448,600 41,545,848
- --------------------------------------------------------------------------------
Talbots, Inc. (The) 204,700 5,488,007
- --------------------------------------------------------------------------------
TJX Cos., Inc. (The) 610,900 12,926,644
- --------------------------------------------------------------------------------
Zale Corp. 1 240,200 6,153,924
------------
382,615,293
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.3%
Jones Apparel
Group, Inc. 75,700 2,701,733
- --------------------------------------------------------------------------------
Nike, Inc., Cl. B 228,900 17,238,459
- --------------------------------------------------------------------------------
Timberland Co., Cl. A 1 173,100 9,667,635
------------
29,607,827
- --------------------------------------------------------------------------------
CONSUMER STAPLES--10.3%
- --------------------------------------------------------------------------------
BEVERAGES--3.1%
Anheuser-Busch
Cos., Inc. 798,900 42,181,920
- --------------------------------------------------------------------------------
Coca-Cola Co. (The) 3,700,200 165,435,942
- --------------------------------------------------------------------------------
Pepsi Bottling Group,
Inc. (The) 249,000 6,670,710
- --------------------------------------------------------------------------------
PepsiAmericas, Inc. 14,700 291,648
- --------------------------------------------------------------------------------
PepsiCo, Inc. 3,151,530 157,576,500
------------
372,156,720
21 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--2.3%
Albertson's Inc. 270,700 $ 6,653,806
- --------------------------------------------------------------------------------
Costco Wholesale Corp. 666,500 27,439,805
- --------------------------------------------------------------------------------
Sysco Corp. 688,600 22,131,604
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 4,041,700 212,876,339
------------
269,101,554
- --------------------------------------------------------------------------------
FOOD PRODUCTS--0.5%
Campbell Soup Co. 45,600 1,183,776
- --------------------------------------------------------------------------------
Heinz (H.J.) Co. 866,200 32,837,642
- --------------------------------------------------------------------------------
Hershey Foods Corp. 121,100 5,846,708
- --------------------------------------------------------------------------------
Kellogg Co. 334,800 14,054,904
- --------------------------------------------------------------------------------
Kraft Foods, Inc., Cl. A 14,600 456,688
- --------------------------------------------------------------------------------
Sara Lee Corp. 104,100 2,303,733
- --------------------------------------------------------------------------------
Smithfield Foods, Inc. 1 123,800 3,181,660
- --------------------------------------------------------------------------------
Tyson Foods, Inc., Cl. A 328,700 5,416,976
------------
65,282,087
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--2.2%
Chattem, Inc. 1 12,300 375,027
- --------------------------------------------------------------------------------
Colgate-Palmolive Co. 478,200 25,822,800
- --------------------------------------------------------------------------------
Energizer Holdings, Inc. 1 58,400 2,414,256
- --------------------------------------------------------------------------------
Kimberly-Clark Corp. 279,400 18,635,980
- --------------------------------------------------------------------------------
Procter & Gamble Co.
(The) 3,792,900 212,288,613
------------
259,536,676
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.5%
Estee Lauder Cos.,
Inc. (The), Cl. A 171,300 7,528,635
- --------------------------------------------------------------------------------
Gillette Co. 1,195,000 50,787,500
------------
58,316,135
- --------------------------------------------------------------------------------
TOBACCO--1.7%
Altria Group, Inc. 3,871,200 189,495,240
- --------------------------------------------------------------------------------
Reynolds American, Inc. 161,700 12,208,350
------------
201,703,590
- --------------------------------------------------------------------------------
ENERGY--9.2%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.2%
Halliburton Co. 397,800 11,603,826
- --------------------------------------------------------------------------------
Oil States
International, Inc. 1 282,600 4,549,860
- --------------------------------------------------------------------------------
Precision Drilling Corp. 1 50,600 2,493,769
- --------------------------------------------------------------------------------
Schlumberger Ltd. 129,200 7,984,560
------------
26,632,015
- --------------------------------------------------------------------------------
OIL & GAS--9.0%
Amerada Hess Corp. 98,300 7,913,150
- --------------------------------------------------------------------------------
Apache Corp. 340,000 15,194,600
- --------------------------------------------------------------------------------
Burlington Resources,
Inc. 847,300 30,697,679
- --------------------------------------------------------------------------------
Canadian Natural
Resources Ltd. 483,570 15,732,232
- --------------------------------------------------------------------------------
Chesapeake Energy
Corp. 422,600 5,971,338
- --------------------------------------------------------------------------------
ChevronTexaco Corp. 2,065,804 201,415,890
- --------------------------------------------------------------------------------
Cimarex Energy Co. 1 40,410 1,209,471
- --------------------------------------------------------------------------------
ConocoPhillips 1,058,991 78,820,700
- --------------------------------------------------------------------------------
EOG Resources, Inc. 162,800 9,404,956
- --------------------------------------------------------------------------------
Esprit Exploration Ltd. 1 2,165,000 5,837,980
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 10,658,596 491,361,276
- --------------------------------------------------------------------------------
Frontier Oil Corp. 2 1,510,700 30,848,494
- --------------------------------------------------------------------------------
Houston Exploration
Co. 1 93,700 4,811,495
- --------------------------------------------------------------------------------
Kerr-McGee Corp. 136,700 7,215,026
- --------------------------------------------------------------------------------
Marathon Oil Corp. 596,900 21,649,563
- --------------------------------------------------------------------------------
Newfield Exploration
Co. 1 73,800 4,084,830
- --------------------------------------------------------------------------------
Noble Energy, Inc. 204,300 10,517,364
- --------------------------------------------------------------------------------
Occidental Petroleum
Corp. 669,900 34,600,335
- --------------------------------------------------------------------------------
OMI Corp. 277,900 3,534,888
- --------------------------------------------------------------------------------
Paramount Resources
Ltd. 1 1,447,400 19,845,521
- --------------------------------------------------------------------------------
Pioneer Natural
Resources Co. 47,300 1,582,185
- --------------------------------------------------------------------------------
Pogo Producing Co. 74,100 3,258,918
- --------------------------------------------------------------------------------
Sunoco, Inc. 178,500 10,977,750
- --------------------------------------------------------------------------------
Talisman Energy, Inc. 740,000 16,944,241
- --------------------------------------------------------------------------------
Teekay Shipping Corp. 156,400 5,481,820
22 | OPPENHEIMER MAIN STREET FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
OIL & GAS Continued
Tesoro Petroleum
Corp. 1 88,700 $ 2,100,416
- --------------------------------------------------------------------------------
Unocal Corp. 357,600 13,352,784
- --------------------------------------------------------------------------------
Valero Energy Corp. 157,100 10,373,313
- --------------------------------------------------------------------------------
Williams Cos., Inc. (The) 617,900 7,346,831
--------------
1,072,085,046
- --------------------------------------------------------------------------------
FINANCIALS--24.2%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--0.4%
Bank of New York
Co., Inc. (The) 834,800 24,877,040
- --------------------------------------------------------------------------------
Mellon Financial Corp. 365,200 10,539,672
- --------------------------------------------------------------------------------
Northern Trust Corp. 198,200 8,532,510
--------------
43,949,222
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--8.7%
Astoria Financial Corp. 60,500 2,198,570
- --------------------------------------------------------------------------------
Bank of America Corp. 7,107,212 319,682,396
- --------------------------------------------------------------------------------
Banknorth Group, Inc. 288,800 9,810,536
- --------------------------------------------------------------------------------
BB&T Corp. 450,900 18,031,491
- --------------------------------------------------------------------------------
Charter One
Financial, Inc. 566,771 25,204,306
- --------------------------------------------------------------------------------
City National Corp. 25,600 1,689,088
- --------------------------------------------------------------------------------
Colonial BancGroup,
Inc. (The) 800 16,144
- --------------------------------------------------------------------------------
Comerica, Inc. 169,400 10,189,410
- --------------------------------------------------------------------------------
Fifth Third Bancorp 236,100 11,760,141
- --------------------------------------------------------------------------------
Flagstar Bancorp, Inc. 27,100 585,089
- --------------------------------------------------------------------------------
Golden West
Financial Corp. 13,800 1,493,574
- --------------------------------------------------------------------------------
Greenpoint Financial
Corp. 460,950 20,304,848
- --------------------------------------------------------------------------------
Huntington
Bancshares, Inc. 267,500 6,599,225
- --------------------------------------------------------------------------------
Independence
Community Bank
Corp. 137,900 5,411,196
- --------------------------------------------------------------------------------
Indymac Mortgage
Holdings, Inc. 117,600 4,057,200
- --------------------------------------------------------------------------------
KeyCorp 452,500 14,185,875
- --------------------------------------------------------------------------------
MAF Bancorp, Inc. 2,600 108,758
- --------------------------------------------------------------------------------
National City Corp. 1,129,800 42,695,142
- --------------------------------------------------------------------------------
PNC Financial Services
Group, Inc. 554,600 29,765,382
- --------------------------------------------------------------------------------
R&G Financial Corp.,
Cl. B 19,900 688,142
- --------------------------------------------------------------------------------
Regions Financial Corp. 337,325 10,892,224
- --------------------------------------------------------------------------------
Sterling Financial
Corp., Western US 9,000 298,440
- --------------------------------------------------------------------------------
SunTrust Banks, Inc. 467,800 31,857,180
- --------------------------------------------------------------------------------
U.S. Bancorp 4,399,170 129,775,515
- --------------------------------------------------------------------------------
UnionBanCal Corp. 178,300 10,601,718
- --------------------------------------------------------------------------------
Wachovia Corp. 2,835,500 133,013,305
- --------------------------------------------------------------------------------
Webster Financial Corp. 71,700 3,527,640
- --------------------------------------------------------------------------------
Wells Fargo & Co. 3,254,000 191,172,500
- --------------------------------------------------------------------------------
Zions Bancorp 91,600 5,704,848
--------------
1,041,319,883
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--8.6%
Affiliated Managers
Group, Inc. 1 35,200 1,726,560
- --------------------------------------------------------------------------------
American Capital
Strategies Ltd. 30,200 942,240
- --------------------------------------------------------------------------------
American Express Co. 1,360,600 68,057,212
- --------------------------------------------------------------------------------
Bear Stearns Cos.,
Inc. (The) 146,200 12,853,904
- --------------------------------------------------------------------------------
Capital One
Financial Corp. 286,500 19,413,240
- --------------------------------------------------------------------------------
Chicago Mercantile
Exchange (The) 46,200 6,150,606
- --------------------------------------------------------------------------------
CIT Group, Inc. 244,700 8,745,578
- --------------------------------------------------------------------------------
Citigroup, Inc. 8,630,546 402,010,833
- --------------------------------------------------------------------------------
CompuCredit Corp. 1 11,600 218,196
- --------------------------------------------------------------------------------
E*TRADE Financial
Corp. 1 617,300 7,271,794
- --------------------------------------------------------------------------------
Franklin Resources, Inc. 3,900 207,753
- --------------------------------------------------------------------------------
JPMorgan Chase & Co. 6,408,196 253,636,398
- --------------------------------------------------------------------------------
Knight Trading
Group, Inc. 1 244,300 2,213,358
- --------------------------------------------------------------------------------
MBNA Corp. 1,402,200 33,849,108
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 1,450,900 74,097,463
- --------------------------------------------------------------------------------
Morgan Stanley 2,021,500 102,550,695
23 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES Continued
Principal Financial
Group, Inc. (The) 706,100 $ 24,508,731
--------------
1,018,453,669
- --------------------------------------------------------------------------------
INSURANCE--4.6%
ACE Ltd. 170,800 6,584,340
- --------------------------------------------------------------------------------
AFLAC, Inc. 504,300 20,222,430
- --------------------------------------------------------------------------------
Allmerica Financial
Corp. 1 181,200 5,254,800
- --------------------------------------------------------------------------------
Allstate Corp. 1,169,400 55,207,374
- --------------------------------------------------------------------------------
AMBAC Financial
Group, Inc. 3,100 234,050
- --------------------------------------------------------------------------------
American International
Group, Inc. 3,896,905 277,615,512
- --------------------------------------------------------------------------------
Aon Corp. 390,700 10,138,665
- --------------------------------------------------------------------------------
Chubb Corp. 257,300 17,498,973
- --------------------------------------------------------------------------------
Cincinnati Financial
Corp. 12,600 508,410
- --------------------------------------------------------------------------------
Fidelity National
Financial, Inc. 312,484 11,765,023
- --------------------------------------------------------------------------------
First American Corp.
(The) 36,900 1,068,993
- --------------------------------------------------------------------------------
Genworth Financial,
Inc., Cl.A 1 192,600 4,377,798
- --------------------------------------------------------------------------------
Hartford Financial
Services Group, Inc.
(The) 441,200 26,983,792
- --------------------------------------------------------------------------------
LandAmerica Financial
Group, Inc. 63,000 2,711,520
- --------------------------------------------------------------------------------
Lincoln National Corp. 250,100 11,329,530
- --------------------------------------------------------------------------------
Loews Corp. 209,500 11,899,600
- --------------------------------------------------------------------------------
Marsh & McLennan
Cos., Inc. 54,800 2,449,012
- --------------------------------------------------------------------------------
MBIA, Inc. 109,100 6,248,157
- --------------------------------------------------------------------------------
MetLife, Inc. 446,600 16,635,850
- --------------------------------------------------------------------------------
Nationwide Financial
Services, Inc., Cl. A 73,600 2,560,544
- --------------------------------------------------------------------------------
Progressive Corp. 390,600 31,365,180
- --------------------------------------------------------------------------------
Reinsurance Group
of America, Inc. 187,800 7,483,830
- --------------------------------------------------------------------------------
RenaissanceRe
Holdings Ltd. 157,200 7,564,464
- --------------------------------------------------------------------------------
Safeco Corp. 132,200 6,368,074
- --------------------------------------------------------------------------------
StanCorp Financial
Group, Inc. 22,900 1,660,250
- --------------------------------------------------------------------------------
Universal American
Financial Corp. 1 8,200 93,562
--------------
545,829,733
- --------------------------------------------------------------------------------
REAL ESTATE--0.0%
St. Joe Co. (The) 19,400 938,960
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--1.9%
Countrywide
Financial Corp. 984,800 35,009,640
- --------------------------------------------------------------------------------
Doral Financial Corp. 91,675 3,728,422
- --------------------------------------------------------------------------------
Fannie Mae 1,801,800 134,144,010
- --------------------------------------------------------------------------------
Freddie Mac 431,300 28,948,856
- --------------------------------------------------------------------------------
Fremont General Corp. 419,300 8,453,088
- --------------------------------------------------------------------------------
MGIC Investment Corp. 159,400 10,882,238
- --------------------------------------------------------------------------------
New Century
Financial Corp. 78,350 4,202,694
--------------
225,368,948
- --------------------------------------------------------------------------------
HEALTH CARE--13.8%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--1.5%
Amgen, Inc. 1 1,695,600 100,532,124
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 17,800 642,580
- --------------------------------------------------------------------------------
Genentech, Inc. 1 410,600 20,029,068
- --------------------------------------------------------------------------------
Wyeth 1,443,900 52,803,423
--------------
174,007,195
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.5%
Bausch & Lomb, Inc. 154,100 10,162,895
- --------------------------------------------------------------------------------
Becton, Dickinson
& Co. 350,500 16,866,060
- --------------------------------------------------------------------------------
Bio-Rad Laboratories,
Inc., Cl.A 1 8,100 407,754
- --------------------------------------------------------------------------------
Dade Behring
Holdings, Inc. 1 20,200 1,061,914
- --------------------------------------------------------------------------------
Guidant Corp. 161,800 9,675,640
- --------------------------------------------------------------------------------
Hospira, Inc. 1 412,580 11,428,466
- --------------------------------------------------------------------------------
Medtronic, Inc. 1,948,000 96,913,000
- --------------------------------------------------------------------------------
PerkinElmer, Inc. 98,500 1,721,780
24 | OPPENHEIMER MAIN STREET FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES Continued
Stryker Corp. 716,100 $ 32,439,330
- --------------------------------------------------------------------------------
Thermo Electron Corp. 1 97,900 2,571,833
- --------------------------------------------------------------------------------
VISX, Inc. 1 89,100 1,806,948
--------------
185,055,620
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--1.8%
Advisory Board Co.
(The) 1 43,500 1,394,610
- --------------------------------------------------------------------------------
Aetna, Inc. 273,500 25,339,775
- --------------------------------------------------------------------------------
Andrx Corp. 1 339,800 6,850,368
- --------------------------------------------------------------------------------
CIGNA Corp. 123,800 8,240,128
- --------------------------------------------------------------------------------
Covance, Inc. 1 160,200 5,999,490
- --------------------------------------------------------------------------------
Coventry Health
Care, Inc. 1 198,000 10,054,440
- --------------------------------------------------------------------------------
DaVita, Inc. 1 41,250 1,250,288
- --------------------------------------------------------------------------------
Dendrite
International, Inc. 1 18,000 232,200
- --------------------------------------------------------------------------------
eResearch
Technology, Inc. 1 10,350 208,139
- --------------------------------------------------------------------------------
IMS Health, Inc. 260,870 6,086,097
- --------------------------------------------------------------------------------
Laboratory Corp. of
America Holdings 1 142,700 5,934,893
- --------------------------------------------------------------------------------
LifePoint Hospitals, Inc. 1 13,400 387,126
- --------------------------------------------------------------------------------
Medco Health
Solutions, Inc. 1 560,929 17,517,813
- --------------------------------------------------------------------------------
Pediatrix Medical
Group, Inc. 1 144,900 10,157,490
- --------------------------------------------------------------------------------
Quest Diagnostics, Inc. 69,600 5,957,760
- --------------------------------------------------------------------------------
Select Medical Corp. 70,200 932,256
- --------------------------------------------------------------------------------
Sunrise Senior Living,
Inc. 1 39,000 1,381,380
- --------------------------------------------------------------------------------
UnitedHealth Group,
Inc. 501,842 33,186,811
- --------------------------------------------------------------------------------
WellChoice, Inc. 1 60,100 2,142,565
- --------------------------------------------------------------------------------
WellPoint Health Networks, Inc. 1 723,200 71,003,776
--------------
214,257,405
- --------------------------------------------------------------------------------
PHARMACEUTICALS--9.0%
Abbott Laboratories 2,040,800 85,080,952
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,740,200 41,294,946
- --------------------------------------------------------------------------------
Eli Lilly & Co. 1,279,300 81,171,585
- --------------------------------------------------------------------------------
Endo Pharmaceuticals
Holdings, Inc. 1 408,000 6,919,680
- --------------------------------------------------------------------------------
Eon Labs, Inc. 1 94,900 2,387,684
- --------------------------------------------------------------------------------
Johnson & Johnson 4,635,344 269,313,486
- --------------------------------------------------------------------------------
Merck & Co., Inc. 4,061,400 182,641,158
- --------------------------------------------------------------------------------
Pfizer, Inc. 12,169,545 397,579,035
--------------
1,066,388,526
- --------------------------------------------------------------------------------
INDUSTRIALS--9.1%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.3%
Boeing Co. 1,000,700 52,256,554
- --------------------------------------------------------------------------------
General Dynamics
Corp. 104,300 10,183,852
- --------------------------------------------------------------------------------
Honeywell
International, Inc. 536,000 19,285,280
- --------------------------------------------------------------------------------
Precision Castparts
Corp. 111,800 6,159,062
- --------------------------------------------------------------------------------
United Defense
Industries, Inc. 1 143,400 5,482,182
- --------------------------------------------------------------------------------
United Technologies
Corp. 593,500 55,735,585
--------------
149,102,515
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.6%
EGL, Inc. 1 67,000 1,623,410
- --------------------------------------------------------------------------------
United Parcel Service,
Inc., Cl. B 949,500 69,360,975
--------------
70,984,385
- --------------------------------------------------------------------------------
BUILDING PRODUCTS--0.1%
Masco Corp. 381,500 12,257,595
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.4%
Apollo Group, Inc.,
Cl. A 1 185,300 14,453,400
- --------------------------------------------------------------------------------
Cendant Corp. 336,900 7,287,147
- --------------------------------------------------------------------------------
ITT Educational Services, Inc. 1 134,700 4,656,579
- --------------------------------------------------------------------------------
Republic Services, Inc. 270,200 7,552,090
25 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
Robert Half
International, Inc. 243,100 $ 5,955,950
- --------------------------------------------------------------------------------
School Specialty, Inc. 1 6,800 241,060
- --------------------------------------------------------------------------------
Waste Management,
Inc. 86,000 2,389,940
--------------
42,536,166
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.4%
Cooper Industries Ltd.,
Cl. A 57,300 3,164,106
- --------------------------------------------------------------------------------
Emerson Electric Co. 441,500 27,483,375
- --------------------------------------------------------------------------------
Hubbell, Inc., Cl. B 12,100 522,115
- --------------------------------------------------------------------------------
Molex, Inc., Cl. A 299,600 7,481,012
- --------------------------------------------------------------------------------
Rockwell Automation,
Inc. 68,100 2,655,900
- --------------------------------------------------------------------------------
Thomas & Betts Corp. 1,200 29,520
--------------
41,336,028
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--5.4%
3M Co. 1,643,700 135,375,132
- --------------------------------------------------------------------------------
General Electric Co. 15,293,600 501,477,144
- --------------------------------------------------------------------------------
Textron, Inc. 83,700 5,314,113
--------------
642,166,389
- --------------------------------------------------------------------------------
MACHINERY--0.7%
Briggs & Stratton Corp. 77,900 5,850,290
- --------------------------------------------------------------------------------
Caterpillar, Inc. 273,000 19,847,100
- --------------------------------------------------------------------------------
Cummins, Inc. 96,500 6,493,485
- --------------------------------------------------------------------------------
Deere & Co. 217,400 13,754,898
- --------------------------------------------------------------------------------
Ingersoll-Rand Co., Cl. A 216,400 14,068,164
- --------------------------------------------------------------------------------
Paccar, Inc. 308,650 18,577,644
- --------------------------------------------------------------------------------
Pall Corp. 116,100 2,828,196
- --------------------------------------------------------------------------------
Parker-Hannifin Corp. 107,400 5,839,338
- --------------------------------------------------------------------------------
SPX Corp. 41,300 1,507,037
--------------
88,766,152
- --------------------------------------------------------------------------------
ROAD & RAIL--0.2%
CNF Transportation, Inc. 55,800 2,288,916
- --------------------------------------------------------------------------------
Genesee & Wyoming,
Inc., Cl. A 1 8,600 192,468
- --------------------------------------------------------------------------------
Hunt (J.B.) Transport
Services, Inc. 244,500 8,288,550
- --------------------------------------------------------------------------------
Norfolk Southern Corp. 228,500 6,489,400
- --------------------------------------------------------------------------------
Ryder Systems, Inc. 212,900 9,327,149
--------------
26,586,483
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.0%
Hughes Supply, Inc. 22,100 1,339,039
- --------------------------------------------------------------------------------
W.W. Grainger, Inc. 57,400 3,065,734
--------------
4,404,773
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--16.0%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.4%
ADTRAN, Inc. 59,300 1,588,054
- --------------------------------------------------------------------------------
Brocade
Communications Systems, Inc. 1 216,200 1,065,866
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1 10,560,700 198,118,732
- --------------------------------------------------------------------------------
Comverse Technology,
Inc. 1 28,500 499,035
- --------------------------------------------------------------------------------
Corning, Inc. 1 1,013,900 10,260,668
- --------------------------------------------------------------------------------
Harris Corp. 84,100 4,050,256
- --------------------------------------------------------------------------------
Lucent Technologies, Inc. 1 5,507,300 17,237,849
- --------------------------------------------------------------------------------
Motorola, Inc. 3,155,000 50,953,250
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 2,939,775 111,858,439
- --------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 351,800 9,583,032
--------------
405,215,181
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--4.4%
Apple Computer, Inc. 1 568,400 19,604,116
- --------------------------------------------------------------------------------
Dell, Inc. 1 4,714,200 164,242,728
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 4,913,700 87,906,093
- --------------------------------------------------------------------------------
International Business
Machines Corp. 2,488,900 210,784,941
- --------------------------------------------------------------------------------
Lexmark International, Inc., Cl. A 1 326,500 28,878,925
- --------------------------------------------------------------------------------
NCR Corp. 1 115,100 5,083,967
- --------------------------------------------------------------------------------
Storage Technology
Corp. 1 248,700 6,030,975
--------------
522,531,745
26 | OPPENHEIMER MAIN STREET FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.2%
Agilent Technologies,
Inc. 1 207,700 $ 4,257,850
- --------------------------------------------------------------------------------
Arrow Electronics, Inc. 1 269,800 5,838,472
- --------------------------------------------------------------------------------
Dionex Corp. 1 8,500 391,510
- --------------------------------------------------------------------------------
Molex, Inc. 122,400 3,533,688
- --------------------------------------------------------------------------------
MTS Systems Corp. 9,000 195,750
- --------------------------------------------------------------------------------
Sanmina-SCI Corp. 1 560,300 3,877,276
- --------------------------------------------------------------------------------
Tech Data Corp. 1 79,000 2,975,140
- --------------------------------------------------------------------------------
Tektronix, Inc. 67,000 1,914,190
---------------
22,983,876
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.0%
EarthLink, Inc. 1 135,100 1,352,351
- --------------------------------------------------------------------------------
United Online, Inc. 1 327,200 3,134,576
---------------
4,486,927
- --------------------------------------------------------------------------------
IT SERVICES--0.4%
Acxiom Corp. 77,500 1,741,425
- --------------------------------------------------------------------------------
Automatic Data
Processing, Inc. 775,300 30,833,681
- --------------------------------------------------------------------------------
BISYS Group, Inc. (The) 1 93,300 1,324,860
- --------------------------------------------------------------------------------
CheckFree Corp. 1 162,300 4,422,675
- --------------------------------------------------------------------------------
Convergys Corp. 1 412,800 5,737,920
- --------------------------------------------------------------------------------
CSG Systems
International, Inc. 1 46,500 672,855
---------------
44,733,416
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3.0%
Altera Corp. 1 446,100 8,440,212
- --------------------------------------------------------------------------------
Analog Devices, Inc. 841,700 29,223,824
- --------------------------------------------------------------------------------
Applied Materials, Inc. 1 598,600 9,511,754
- --------------------------------------------------------------------------------
Atmel Corp. 1 1,208,500 4,217,665
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 78,100 2,119,634
- --------------------------------------------------------------------------------
Cree, Inc. 1 144,000 3,601,440
- --------------------------------------------------------------------------------
Intel Corp. 11,100,800 236,336,032
- --------------------------------------------------------------------------------
Lam Research Corp. 1 66,000 1,422,300
- --------------------------------------------------------------------------------
Maxim Integrated
Products, Inc. 24,800 1,077,064
- --------------------------------------------------------------------------------
Microchip Technology,
Inc. 201,300 5,312,307
- --------------------------------------------------------------------------------
National
Semiconductor Corp. 1 571,800 7,622,094
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 2,458,700 48,042,998
---------------
356,927,324
- --------------------------------------------------------------------------------
SOFTWARE--4.6%
Adobe Systems, Inc. 187,600 8,605,212
- --------------------------------------------------------------------------------
Amdocs Ltd. 1 220,800 4,438,080
- --------------------------------------------------------------------------------
Autodesk, Inc. 188,000 8,349,080
- --------------------------------------------------------------------------------
BMC Software, Inc. 1 419,200 6,275,424
- --------------------------------------------------------------------------------
Computer Associates
International, Inc. 302,000 7,314,440
- --------------------------------------------------------------------------------
Compuware Corp. 1 520,300 2,356,959
- --------------------------------------------------------------------------------
McAfee, Inc. 1 178,800 3,536,664
- --------------------------------------------------------------------------------
Microsoft Corp. 13,780,400 376,204,920
- --------------------------------------------------------------------------------
Oracle Corp. 1 8,581,400 85,556,558
- --------------------------------------------------------------------------------
Siebel Systems, Inc. 1 268,600 2,044,046
- --------------------------------------------------------------------------------
Sybase, Inc. 1 539,700 7,194,201
- --------------------------------------------------------------------------------
Symantec Corp. 1 580,100 27,821,596
- --------------------------------------------------------------------------------
Take-Two Interactive
Software, Inc. 1 117,000 3,831,750
- --------------------------------------------------------------------------------
TIBCO Software, Inc. 1 510,400 3,225,728
- --------------------------------------------------------------------------------
Veritas Software Corp. 1 395,600 6,614,432
---------------
553,369,090
- --------------------------------------------------------------------------------
MATERIALS--1.6%
- --------------------------------------------------------------------------------
CHEMICALS--0.7%
Cabot Corp. 43,700 1,741,008
- --------------------------------------------------------------------------------
Dow Chemical Co. 807,000 34,547,670
- --------------------------------------------------------------------------------
E.I. DuPont de
Nemours & Co. 477,000 20,158,020
- --------------------------------------------------------------------------------
Eastman Chemical Co. 56,700 2,638,251
- --------------------------------------------------------------------------------
Engelhard Corp. 64,900 1,834,723
- --------------------------------------------------------------------------------
FMC Corp. 1 20,900 966,207
- --------------------------------------------------------------------------------
Monsanto Co. 409,300 14,980,380
- --------------------------------------------------------------------------------
OM Group, Inc. 1 89,300 3,040,665
---------------
79,906,924
27 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.0%
Eagle Materials, Inc. 62,096 $ 3,899,629
- --------------------------------------------------------------------------------
Vulcan Materials Co. 24,400 1,163,148
---------------
5,062,777
- --------------------------------------------------------------------------------
METALS & MINING--0.6%
Alcoa, Inc. 1,610,000 52,131,800
- --------------------------------------------------------------------------------
Carpenter Technology
Corp. 11,800 522,740
- --------------------------------------------------------------------------------
Nucor Corp. 141,400 11,070,206
- --------------------------------------------------------------------------------
Phelps Dodge Corp. 1 150,400 12,266,624
- --------------------------------------------------------------------------------
Southern Peru
Copper Corp. 13,400 596,300
---------------
76,587,670
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.3%
Georgia-Pacific Corp. 375,000 12,742,500
- --------------------------------------------------------------------------------
Louisiana-Pacific Corp. 436,400 10,779,080
- --------------------------------------------------------------------------------
MeadWestvaco Corp. 75,100 2,264,265
- --------------------------------------------------------------------------------
Weyerhaeuser Co. 131,700 8,232,567
---------------
34,018,412
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.6%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.7%
Alltel Corp. 406,900 22,237,085
- --------------------------------------------------------------------------------
BellSouth Corp. 2,520,000 67,435,200
- --------------------------------------------------------------------------------
CenturyTel, Inc. 157,400 5,066,706
- --------------------------------------------------------------------------------
Citizens
Communications Co. 1 1,140,000 14,398,200
- --------------------------------------------------------------------------------
SBC Communications,
Inc. 6,197,000 159,820,630
- --------------------------------------------------------------------------------
Verizon
Communications, Inc. 4,392,410 172,402,093
---------------
441,359,914
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.9%
AT&T Wireless
Services, Inc. 1 5,155,700 75,376,334
- --------------------------------------------------------------------------------
Nextel Communications,
Inc., Cl. A 1 1,358,100 31,494,339
---------------
106,870,673
- --------------------------------------------------------------------------------
UTILITIES--0.4%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.4%
Constellation Energy
Group, Inc. 167,000 6,863,700
- --------------------------------------------------------------------------------
Duke Energy Corp. 389,800 8,630,172
- --------------------------------------------------------------------------------
Edison International,
Inc. 352,300 9,469,824
- --------------------------------------------------------------------------------
Exelon Corp. 627,850 23,136,273
- --------------------------------------------------------------------------------
PG&E Corp. 1 1,900 55,461
- --------------------------------------------------------------------------------
Progress Energy, Inc.,
Contingent Value
Obligation 1,3 700,000 157,500
- --------------------------------------------------------------------------------
Wisconsin Energy Corp. 14,400 471,600
---------------
48,784,530
- --------------------------------------------------------------------------------
GAS UTILITIES--0.0%
Energen Corp. 12,900 611,976
- --------------------------------------------------------------------------------
ONEOK, Inc. 39,400 928,262
---------------
1,540,238
---------------
Total Common Stocks
(Cost $10,220,591,656) 11,763,693,869
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.0%
- --------------------------------------------------------------------------------
Wachovia Corp.,
Dividend Equalization
Preferred Shares 1
(Cost $0) 100,000 100
UNITS
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------
Dime Bancorp, Inc.
Wts., Exp. 1/2/10 1
(Cost $0) 500,000 65,000
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
SHORT-TERM NOTES--0.2%
- --------------------------------------------------------------------------------
Countrywide Home
Loans, 1.60%, 9/1/04
(Cost $30,000,000) $30,000,000 30,000,000
28 | OPPENHEIMER MAIN STREET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.9%
- --------------------------------------------------------------------------------
Undivided interest of 15.28% 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 $106,252,604 on 9/1/04, collateralized
by Federal National Mortgage Assn.,
5%, 3/1/34, with a value
of $710,873,503
(Cost $106,248,000) $106,248,000 $ 106,248,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $10,356,839,656) 99.9% 11,900,006,969
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 6,331,209
------------------------------
NET ASSETS 100.0% $11,906,338,178
==============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended August 31, 2004.
The aggregate fair value of securities of affiliated companies held by the Fund
as of August 31, 2004 amounts to $30,848,494. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
AUGUST 31, 2003 ADDITIONS REDUCTIONS AUGUST 31, 2004
- -----------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Frontier Oil Corp. 1,842,100 -- 331,400 1,510,700
UNREALIZED DIVIDEND REALIZED
APPRECIATION INCOME GAIN
- --------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Frontier Oil Corp. $22,931,755 $349,715 $4,199,342
3. Illiquid security. See Note 6 of Notes to Financial Statements.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (including securities loaned
of approximately $13,729,000)
- --see accompanying statement:
Unaffiliated companies (cost $10,348,922,917) $11,869,158,475
Affiliated companies (cost $7,916,739) 30,848,494
----------------
11,900,006,969
- --------------------------------------------------------------------------------
Cash 5,376,298
- --------------------------------------------------------------------------------
Collateral for securities loaned 13,955,843
- --------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 23,006,633
Investments sold 3,351,262
Shares of capital stock sold 112,087
Other 178,758
----------------
Total assets 11,945,987,850
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Return of collateral for securities loaned 13,955,843
- --------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 16,636,974
Distribution and service plan fees 4,734,482
Transfer and shareholder servicing agent fees 2,189,176
Shareholder communications 1,714,390
Directors' compensation 137,907
Other 280,900
----------------
Total liabilities 39,649,672
- --------------------------------------------------------------------------------
NET ASSETS $11,906,338,178
================
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Par value of shares of capital stock $ 3,672,024
- --------------------------------------------------------------------------------
Additional paid-in capital 11,640,054,889
- --------------------------------------------------------------------------------
Accumulated net investment income 45,932,414
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (1,326,494,687)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 1,543,173,538
----------------
NET ASSETS $11,906,338,178
================
30 | OPPENHEIMER MAIN STREET FUND
- -----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$7,384,255,903 and 225,255,289 shares of capital stock outstanding) $32.78
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $34.78
- -----------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $2,558,206,282 and
80,782,165 shares of capital stock outstanding) $31.67
- -----------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $1,241,929,788 and
39,167,322 shares of capital stock outstanding) $31.71
- -----------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $150,955,370 and
4,659,976 shares of capital stock outstanding) $32.39
- -----------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $570,990,835 and 17,337,667 shares of capital stock outstanding) $32.93
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER MAIN STREET FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding
taxes of $81,912) $204,951,788
Affiliated companies 349,715
- --------------------------------------------------------------------------------
Interest 1,979,343
- --------------------------------------------------------------------------------
Portfolio lending fees 413,232
-------------
Total investment income 207,694,078
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 56,464,750
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 18,465,500
Class B 28,859,643
Class C 12,778,948
Class N 611,038
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 15,599,767
Class B 7,560,878
Class C 2,670,027
Class N 405,978
Class Y 798,178
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 1,593,623
Class B 1,265,034
Class C 281,783
Class N 9,443
- --------------------------------------------------------------------------------
Directors' compensation 226,355
- --------------------------------------------------------------------------------
Custodian fees and expenses 207,100
- --------------------------------------------------------------------------------
Other 756,052
-------------
Total expenses 148,554,097
Less reduction to custodian expenses (12,756)
Less payments and waivers of expenses (372,120)
-------------
Net expenses 148,169,221
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 59,524,857
32 | OPPENHEIMER MAIN STREET FUND
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies $1,292,608,164
Affiliated companies 4,199,342
Foreign currency transactions 6,575,706
Net increase from payments by affiliates 6,827,748
---------------
Net realized gain 1,310,210,960
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments (70,296,327)
Translation of assets and liabilities denominated in foreign
currencies (2,651,372)
---------------
Net change in unrealized appreciation (72,947,699)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,296,788,118
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER MAIN STREET FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2004 2003
- -----------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------
Net investment income $ 59,524,857 $ 59,505,325
- -----------------------------------------------------------------------------------------
Net realized gain (loss) 1,310,210,960 (854,192,996)
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (72,947,699) 1,475,128,700
----------------------------------
Net increase in net assets resulting from operations 1,296,788,118 680,441,029
- -----------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (47,938,253) (44,773,361)
Class B -- --
Class C -- --
Class N (486,743) (497,131)
Class Y (4,473,289) (1,922,959)
- -----------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital stock transactions:
Class A (415,275,359) 178,709,918
Class B (688,965,854) (700,117,179)
Class C (71,809,797) (72,176,143)
Class N 62,792,249 29,863,069
Class Y 91,154,911 192,963,219
- -----------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------
Total increase 221,785,983 262,490,462
- -----------------------------------------------------------------------------------------
Beginning of period 11,684,552,195 11,422,061,733
----------------------------------
End of period (including accumulated net investment
income of $45,932,414 and $32,558,166,respectively) $11,906,338,178 $11,684,552,195
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 29.62 $ 27.90 $ 32.15 $ 45.41 $ 42.89
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .26 .22 .16 .14 .21
Net realized and unrealized gain (loss) 3.10 1.69 (4.29) (11.18) 6.79
---------------------------------------------------------------------------
Total from investment operations 3.36 1.91 (4.13) (11.04) 7.00
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.20) (.19) (.07) (.12) --
Distributions from net realized gain -- -- (.05) (2.10) (4.48)
---------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.20) (.19) (.12) (2.22) (4.48)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.78 $ 29.62 $27.90 $ 32.15 $ 45.41
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.37% 6.93% (12.90)% (24.85)% 17.74%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $7,384,256 $7,033,312 $6,443,983 $7,320,747 $9,264,943
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $7,521,103 $6,310,359 $7,203,226 $7,954,409 $8,428,173
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.75% 0.87% 0.52% 0.47% 0.54%
Total expenses 0.93% 3,4 0.97% 3 0.99% 3 0.86% 3 0.90% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 76% 94% 78% 76% 73%
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.
35 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.68 $ 27.04 $ 31.34 $ 44.50 $ 42.42
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.21) (.13) (.20) (.13) (.08)
Net realized and unrealized gain (loss) 3.20 1.77 (4.05) (10.93) 6.64
---------------------------------------------------------------------------
Total from investment operations 2.99 1.64 (4.25) (11.06) 6.56
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- -- (.05) (2.10) (4.48)
---------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.05) (2.10) (4.48)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 31.67 $ 28.68 $ 27.04 $ 31.34 $ 44.50
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.43% 6.06% (13.58)% (25.39)% 16.84%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,558,206 $2,941,765 $3,510,800 $5,404,510 $8,367,040
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,884,434 $2,964,666 $4,607,653 $6,630,335 $7,628,232
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.10)% 0.04% (0.25)% (0.29)% (0.22)%
Total expenses 1.78% 3,4 1.81% 3 1.75% 3 1.61% 3 1.66% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 76% 94% 78% 76% 73%
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.
36 | OPPENHEIMER MAIN STREET FUND
CLASS C YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.69 $ 27.03 $ 31.33 $ 44.50 $ 42.41
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) -- (.11) (.11) (.08)
Net realized and unrealized gain (loss) 3.05 1.66 (4.14) (10.96) 6.65
---------------------------------------------------------------------------
Total from investment operations 3.02 1.66 (4.25) (11.07) 6.57
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain -- -- (.05) (2.10) (4.48)
---------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.05) (2.10) (4.48)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 31.71 $ 28.69 $ 27.03 $ 31.33 $ 44.50
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.53% 6.14% (13.58)% (25.42)% 16.87%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,241,930 $1,188,826 $1,198,517 $1,562,452 $2,213,568
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,278,659 $1,111,131 $1,432,566 $1,825,540 $2,004,263
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.01)% 0.09% (0.24)% (0.29)% (0.23)%
Total expenses 1.70% 3,4 1.74% 3 1.75% 3 1.61% 3 1.67% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 76% 94% 78% 76% 73%
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.
37 | OPPENHEIMER MAIN STREET FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS N YEAR ENDED AUGUST 31, 2004 2003 2002 2001 1
- --------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 29.33 $ 27.72 $ 32.09 $34.36
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .15 .20 .12 .02
Net realized and unrealized gain (loss) 3.05 1.65 (4.31) (2.29)
-------------------------------------------
Total from investment operations 3.20 1.85 (4.19) (2.27)
- --------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.14) (.24) (.13) --
Distributions from net realized gain -- -- (.05) --
-------------------------------------------
Total dividends and/or distributions to shareholders (.14) (.24) (.18) --
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.39 $ 29.33 $ 27.72 $32.09
===========================================
- --------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 10.93% 6.78% (13.15)% (6.61)%
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $150,955 $79,188 $43,464 $7,641
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $122,478 $60,950 $28,141 $2,672
- --------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.38% 0.65% 0.28% 0.36%
Total expenses 1.31% 1.23% 1.24% 1.16%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4,5 1.18% N/A 4 N/A 4
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate 76% 94% 78% 76%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER MAIN STREET FUND
CLASS Y YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 29.75 $ 28.02 $ 32.28 $ 45.64 $ 43.00
- -----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 .11 .19 .17 .24
Net realized and unrealized gain (loss) 3.13 1.86 (4.28) (11.22) 6.88
---------------------------------------------------------
Total from investment operations 3.47 1.97 (4.09) (11.05) 7.12
- -----------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.29) (.24) (.12) (.21) --
Distributions from net realized gain -- -- (.05) (2.10) (4.48)
---------------------------------------------------------
Total dividends and/or distributions
to shareholders (.29) (.24) (.17) (2.31) (4.48)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.93 $ 29.75 $ 28.02 $ 32.28 $ 45.64
=========================================================
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.69% 7.11% (12.74)% (24.76)% 18.00%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $570,991 $441,460 $225,298 $225,475 $260,289
- -----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $558,130 $242,029 $227,835 $239,222 $205,586
- -----------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 1.07% 1.01% 0.74% 0.60% 0.77%
Total expenses 0.60% 0.87% 0.92% 0.79% 3 0.66%
Expenses after payments and waivers
and reduction to custodian expenses N/A 4 0.83% 0.78% 0.73% N/A 4
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 76% 94% 78% 76% 73%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Added since August 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
4. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Fund (the Fund) is a separate series of Oppenheimer Main
Street Funds, Inc., an open-end management investment company registered under
the Investment Company Act of 1940, as amended. The Fund's investment objective
is to seek a high total return. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, 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 Directors. 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 Directors. Short-term "money
market type" debt securities with
40 | OPPENHEIMER MAIN STREET FUND
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 for
business. 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 Directors.
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 not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
41 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
----------------------------------------------------------------------------
$46,036,430 $-- $1,226,238,124 $1,442,916,973
1. As of August 31, 2004, the Fund had $1,226,228,046 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 carryforward were as follows:
EXPIRING
-------------------------
2011 $1,226,228,046
2. The Fund had $10,078 of post-October foreign currency losses which were
deferred.
3. During the fiscal year ended August 31, 2004, the Fund utilized $941,293,880
of capital loss carryforward to offset capital gains realized in that fiscal
year. a
a. Includes $485,908 of capital loss carryforward acquired in the September
4, 2003 merger of Oppenheimer Trinity Core Fund.
4. 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 INCREASE TO
ACCUMULATED ACCUMULATED NET
INCREASE TO NET INVESTMENT REALIZED LOSS
PAID-IN CAPITAL INCOME ON INVESTMENTS
--------------------------------------------------
$473,744 $6,747,676 $7,221,420
The tax character of distributions paid during the years ended August 31, 2004
and August 31, 2003 was as follows:
YEAR ENDED YEAR ENDED
AUGUST 31, 2004 AUGUST 31, 2003
------------------------------------------------------------
Distributions paid from:
Ordinary income $52,898,285 $47,193,451
42 | OPPENHEIMER MAIN STREET FUND
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 $10,457,096,221
================
Gross unrealized appreciation $ 1,691,386,489
Gross unrealized depreciation (248,469,516)
----------------
Net unrealized appreciation $ 1,442,916,973
================
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Board of Directors has adopted a deferred
compensation plan for independent directors that enables directors 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
Director 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 Director. The Fund purchases shares of the funds selected for
deferral by the Director 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 directors' fees under the plan
will not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable,
represents earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that
43 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF CAPITAL STOCK
The Fund has authorized 840 million shares of $.01 par value capital stock.
Transactions in shares of capital stock were as follows:
YEAR ENDED AUGUST 31, 2004 YEAR ENDED AUGUST 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
CLASS A
Sold 44,245,000 $ 1,438,726,778 57,515,190 $ 1,539,439,975
Dividends and/or
distributions reinvested 1,388,214 44,020,257 1,539,850 40,960,045
Acquisition-note 8 484,771 14,962,004 -- --
Redeemed (58,289,882) (1,912,984,398) (52,631,425) (1,401,690,102)
--------------------------------------------------------------
Net increase (decrease) (12,171,897) $ (415,275,359) 6,423,615 $ 178,709,918
==============================================================
- -----------------------------------------------------------------------------------------
CLASS B
Sold 9,896,057 $ 310,880,353 13,771,522 $ 359,570,385
Dividends and/or
distributions reinvested -- -- -- --
Acquisition-note 8 345,711 10,354,684 -- --
Redeemed (32,038,724) (1,010,200,891) (41,047,235) (1,059,687,564)
--------------------------------------------------------------
Net decrease (21,796,956) $ (688,965,854) (27,275,713) $ (700,117,179)
==============================================================
- -----------------------------------------------------------------------------------------
CLASS C
Sold 5,098,506 $ 160,379,276 6,240,812 $ 163,131,858
Dividends and/or
distributions reinvested -- -- -- --
Acquisition-note 8 367,578 11,042,894 -- --
Redeemed (7,733,394) (243,231,967) (9,141,515) (235,308,001)
--------------------------------------------------------------
Net decrease (2,267,310) $ (71,809,797) (2,900,703) $ (72,176,143)
==============================================================
- -----------------------------------------------------------------------------------------
CLASS N
Sold 2,668,652 $ 86,070,838 1,754,034 $ 46,435,446
Dividends and/or
distributions reinvested 15,059 473,180 18,620 491,777
Acquisition-note 8 677,940 20,916,882 -- --
Redeemed (1,401,462) (44,668,651) (640,941) (17,064,154)
--------------------------------------------------------------
Net increase 1,960,189 $ 62,792,249 1,131,713 $ 29,863,069
==============================================================
44 | OPPENHEIMER MAIN STREET FUND
YEAR ENDED AUGUST 31, 2004 YEAR ENDED AUGUST 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------
CLASS Y
Sold 15,199,324 $ 503,145,210 9,608,142 $268,159,273
Dividends and/or
distributions reinvested 140,639 4,469,511 71,957 1,919,814
Acquisition-note 8 5,635 171,061 -- --
Redeemed (12,846,991) (416,630,871) (2,880,960) (77,115,868)
--------------------------------------------------------
Net increase 2,498,607 $ 91,154,911 6,799,139 $192,963,219
========================================================
- --------------------------------------------------------------------------------
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
$9,230,161,004 and $10,253,900,804, 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 0.65% of the first $200 million of average annual net assets of
the Fund, 0.60% of the next $150 million, 0.55% of the next $150 million, and
0.45% of average annual net assets in excess of $500 million.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
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
$26,996,636 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
45 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 shares and on Class C shares and 0.25% per year on Class N shares. The
Distributor also receives a service fee of up to 0.25% per year under each plan.
If either the Class B, Class C or Class N plan is terminated by the Fund or by
the shareholders of a class, the Board of Directors and its independent
directors 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 $44,830,396,
$28,487,977 and $2,254,663, 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 $3,171,006 $74,864 $5,944,314 $95,439 $116,888
- --------------------------------------------------------------------------------
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 $6,827,748, 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 $193,803,
$145,386, $31,121 and $1,810 for Class A, Class B, Class C and Class N shares,
respectively. This undertaking may be amended or withdrawn at any time.
46 | OPPENHEIMER MAIN STREET FUND
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Uunrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation or
depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of August 31, 2004, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of August 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. The aggregate value
of illiquid securities subject to this limitation as of August 31, 2004 was
$157,500, which represents less than 0.01% of the funds net assets.
- --------------------------------------------------------------------------------
7. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of US
Treasury obligations or cash, against the loaned securities and maintains
collateral in an amount not less than 100% of the market value of the loaned
securities during the period of the loan. The market value of the loaned
securities is determined at the close of business of the funds and any
additional required collateral is delivered to the Fund on the next business
day. If the borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the Fund could experience delays and
cost in recovering the securities loaned or in gaining access to the collateral.
Cash collateral is invested in cash equivalents. The Fund retains a portion of
the interest earned from the collateral. The Fund also continues to receive
interest or dividends paid on the securities loaned. As of August 31, 2004, the
Fund had on loan securities valued at approximately $13,729,000. Cash of
$13,955,843 was received as collateral for the loans, and has been invested in
approved instruments.
47 | OPPENHEIMER MAIN STREET FUND
NOTES TO FINANCIAL STATEMENTS Continued
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8. ACQUISITIONS OF OPPENHEIMER TRINITY CORE FUND AND OPPENHEIMER SELECT MANAGERS
MERCURY ADVISORS S&P 500 INDEX FUND
OPPENHEIMER TRINITY CORE FUND
On September 4, 2003, the Fund acquired all of the net assets of Oppenheimer
Trinity Core Fund, pursuant to an Agreement and Plan of Reorganization approved
by the Oppenheimer Trinity Core Fund shareholders on August 29, 2003. The Fund
issued (at an exchange ratio of 0.253882 for Class A, 0.253734 for Class B,
0.254265 for Class C, 0.254948 for Class N and 0.261826 for Class Y of the Fund
to one share of Oppenheimer Main Street Fund), 172,551; 87,563; 62,625; 25,461
and 5,604 shares of beneficial interest for Class A, Class B, Class C, Class N
and Class Y, respectively, valued at $5,214,489, $2,561,203, $1,833,025,
$761,793 and $170,083 in exchange for the net assets, resulting in combined
Class A net assets of $7,168,850,638, Class B net assets of $2,939,047,258,
Class C net assets of $1,205,256,245, Class N net assets of $81,166,505 and
Class Y net assets of $465,470,533 on September 4, 2003. The net assets acquired
included net unrealized appreciation of $1,073,398 and unused capital loss
carryforward of $2,604,388 potential utilization subject to tax limitation. The
exchange qualified as a tax-free reorganization for federal income tax purposes.
- --------------------------------------------------------------------------------
OPPENHEIMER SELECT MANAGERS MERCURY ADVISORS S&P 500 INDEX FUND
On October 16, 2003, the Fund acquired all of the net assets of Oppenheimer
Select Managers Mercury Advisors S&P 500 Index Fund, pursuant to an Agreement
and Plan of Reorganization approved by the Oppenheimer Select Managers Mercury
Advisors S&P 500 Index Fund shareholders on October 10, 2003. The Fund issued
(at an exchange ratio of 0.254787 for Class A, 0.260413 for Class B, 0.260086
for Class C, 0.256107 for Class N and 0.258975 for Class Y of the Fund to one
share of Oppenheimer Main Street Fund), 312,220; 258,148; 304,963; 652,479 and
31 shares of beneficial interest for Class A, Class B, Class C, Class N and
Class Y, respectively, valued at $9,747,515, $7,793,481, $9,209,869, $20,155,089
and $978 in exchange for the net assets, resulting in combined Class A net
assets of $7,382,484,399, Class B net assets of $2,980,592,414, Class C net
assets of $1,240,922,954, Class N net assets of $107,133,453 and Class Y net
assets of $474,429,948 on October 16, 2003. The net assets acquired included net
unrealized appreciation of $497,974 and no unused capital loss carryforward. The
exchange qualified as a tax-free reorganization for federal income tax purposes.
- --------------------------------------------------------------------------------
9. 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 other than this Fund
(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
48 | OPPENHEIMER MAIN STREET FUND
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.
49 | OPPENHEIMER MAIN STREET FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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TO THE BOARD OF DIRECTORS AND SHAREHOLDERS
OF OPPENHEIMER MAIN STREET FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Fund, a series of Oppenheimer Main Street Funds, Inc.,
including the statement of investments, as of August 31, 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 the periods indicated. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with 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; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Main Street Fund as of August 31, 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 the
periods presented, in conformity with accounting principles generally accepted
in the United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
October 14, 2004
50 | OPPENHEIMER MAIN STREET 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.
Dividends of $0.1999, $0.1397 and $0.2879 per share were paid to Class A,
Class N and Class Y shareholders, respectively, on December 5, 2003, all of
which was designated as ordinary income for federal income tax purposes.
Dividends, if any, paid by the Fund during the fiscal year ended August 31,
2004 which are not designated as capital gain distributions should be multiplied
by 100% to arrive at the amount eligible for the corporate dividend-received
deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal year
ended August 31, 2004 which are not designated as capital gain distributions are
eligible for lower individual income tax rates to the extent that the Fund has
received qualified dividend income as stipulated by recent tax legislation.
$203,232,351 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2005, shareholders of record will
receive information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
51 | OPPENHEIMER MAIN STREET FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENT 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.
52 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited
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- --------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS;
FUND, LENGTH OF SERVICE, AGE OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY
DIRECTOR; NUMBER OF PORTFOLIOS IN FUND COMPLEX
CURRENTLY OVERSEEN BY DIRECTOR
INDEPENDENT THE ADDRESS OF EACH DIRECTOR IN THE CHART BELOW
DIRECTORS IS 6803 S. TUCSON WAY, CENTENNIAL, CO
80112-3924. EACH DIRECTOR SERVES FOR AN
INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage
Chairman of the Board of banking companies: Cherry Creek Mortgage
Directors (since 2003) and Company (since 1991), Centennial State Mortgage
Director (since 2001) Company (since 1994), The El Paso Mortgage
Age: 67 Company (since 1993), Transland Financial
Services, Inc. (since 1997); Chairman of the
following private companies: Great Frontier
Insurance (insurance agency) (since 1995),
Ambassador Media Corporation and Broadway
Ventures (since 1984); a director of the
following public companies: Helmerich & Payne,
Inc. (oil and gas drilling/production company)
(since 1992) and UNUMProvident (insurance
company) (since 1991). Mr. Armstrong is also a
Director/Trustee of Campus Crusade for Christ
and the Bradley Foundation. Formerly a director
of the following: Storage Technology
Corporation (a publicly held computer equipment
company) (1991-February 2003), and
International Family Entertainment (television
channel) (1992-1997), Frontier Real Estate,
Inc. (residential real estate brokerage)
(1994-1999), and Frontier Title (title
insurance agency) (1995-June 1999); a U.S.
Senator (January 1979-January 1991). Oversees
38 portfolios in the OppenheimerFunds complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards
Director (since 1993) Capital, Inc. (General Partner of private equity
Age: 73 funds) (until February 2001); Chairman,
President and Chief Executive Officer of A.G.
Edwards Capital, Inc. (until March 2000); Vice
Chairman and Director of A.G. Edwards, Inc. and
Vice Chairman of A.G. Edwards & Sons, Inc. (its
brokerage company subsidiary) (until March
1999); Chairman of A.G. Edwards Trust Company
and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March
2000) of A.G. Edwards & Sons and A.G. Edwards
Trust Company. Oversees 38 portfolios in the
OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly Assistant Secretary and a director
Director (since 1998) (December 1991-April 1999) of Centennial Asset
Age: 67 Management Corporation; President, Treasurer and
a director (June 1989-April 1999) of Centennial
Capital Corporation; Chief Executive Officer
and a director of MultiSource Services, Inc.
(March 1996-April 1999). Until April 1999 Mr.
Bowen held several positions in subsidiary or
affiliated companies of the Manager. Oversees 38
portfolios in the OppenheimerFunds complex.
EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon,
Director (since 2001) George Washington's home (since June 2000).
Age: 66 Formerly Director (March 2001-May 2002) of
Genetic ID, Inc. and its subsidiaries (a
privately held biotech company); a partner (July
1974-June 1999) with PricewaterhouseCoopers LLP
(an accounting firm); and Chairman (July
1994-June 1998) of Price Waterhouse LLP Global
Investment Management Industry Services Group.
Oversees 38 portfolios in the OppenheimerFunds
complex.
JON S. FOSSEL, Director (since February 1998) of Rocky
Director (since 1990) Mountain Elk Foundation (a not-for-profit
Age: 62 foundation); a director (since 1997) of Putnam
Lovell Finance (finance company); a director
(since June 2002) of UNUMProvident (an
insurance company). Formerly a director (October
1999-October 2003) of P.R. Pharmaceuticals (a
privately held company); Chairman and a director
(until October 1996) and President and Chief
Executive Officer (until October 1995) of the
Manager; President, Chief Executive Officer and
a director (until October 1995) of
53 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited / Continued
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JON S. FOSSEL, Oppenheimer Acquisition Corp., Shareholders
Continued Services Inc. and Shareholder Financial
Services, Inc. Oversees 38 portfolios in the
OppenheimerFunds complex.
SAM FREEDMAN, Director of Colorado Uplift (a non-profit
Director (since 1996) charity) (since September 1984). Formerly
Age: 63 (until October 1994) Mr. Freedman held several
positions in subsidiary or affiliated companies
of the Manager. Oversees 38 portfolios in the
OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee of Monterey International Studies (an
Director (since 2002) educational organization) (since February
Age: 57 2000); a director of The California Endowment
(a philanthropic organization) (since April
2002) and of Community Hospital of Monterey
Peninsula (educational organization) (since
February 2002); a director of America Funds
Emerging Markets Growth Fund (since October
1991) (an investment company); an advisor to
Credit Suisse First Boston's Sprout venture
capital unit. Mrs. Hamilton also is a member of
the investment committees of the Rockefeller
Foundation and of the University of Michigan.
Formerly, Trustee of MassMutual Institutional
Funds (open-end investment company) (1996-May
2004); a director of MML Series Investment Fund
(April 1989-May 2004) and MML Services (April
1987-May 2004) (investment companies); member
of the investment committee (2000-2003) of
Hartford Hospital; an advisor (2000-2003) to
Unilever (Holland)'s pension fund; and
President (February 1991-April 2000) of ARCO
Investment Management Company. Oversees 37
portfolios in the OppenheimerFunds complex.
ROBERT J. MALONE, Chairman, Chief Executive Officer and Director
Director (since 2002) of Steele Street State Bank (a commercial
Age: 59 banking entity) (since August 2003); director
of Colorado UpLIFT (a non-profit organization)
(since 1986); trustee (since 2000) of the
Gallagher Family Foundation (non-profit
organization). Formerly, Chairman of U.S. Bank-
Colorado (a subsidiary of U.S. Bancorp and
formerly Colorado National Bank,) (July
1996-April 1, 1999), a director of: Commercial
Assets, Inc. (a REIT) (1993-2000), Jones
Knowledge, Inc. (a privately held company)
(2001-July 2004) and U.S. Exploration, Inc.
(oil and gas exploration) (1997-February 2004).
Oversees 37 portfolios in the OppenheimerFunds
complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Institutional Funds
Director (since 2001) (since 1996) and MML Series Investment Fund
Age: 62 (since 1987) (both open-end investment
companies) and the Springfield Library and
Museum Association (since 1995) (museums) and
the Community Music School of Springfield
(music school) (since 1996); Trustee (since
1987), Chairman of the Board (since 2003) and
Chairman of the investment committee (since
1994) for the Worcester Polytech Institute
(private university); and President and
Treasurer (since January 1999) of the SIS Fund
(a private not for profit charitable fund).
Formerly, member of the investment committee of
the Community Foundation of Western
Massachusetts (1998 - 2003); Chairman (January
1999-July 1999) of SIS & Family Bank, F.S.B.
(formerly SIS Bank) (commercial bank); and
Executive Vice President (January 1999-July
1999) of Peoples Heritage Financial Group, Inc.
(commercial bank). Oversees 38 portfolios in the
OppenheimerFunds complex.
54 | OPPENHEIMER MAIN STREET FUND
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INTERESTED DIRECTOR THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS
AND OFFICER TWO WORLD FINANCIAL 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
President and Director (since June 2001) and President (since September
(since 2001) 2000) of the Manager; President and a director
Age: 55 or trustee of other Oppenheimer funds; President
and a 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
Insitute'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.
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW
IS AS FOLLOWS: FOR MESSRS. MONOYIOS, REINGANUM,
AND ZACK, TWO WORLD FINANCIAL CENTER, 225
LIBERTY STREET, 11TH FLOOR, NEW YORK, NY
10281-1008, FOR MESSRS. VANDEHEY AND WIXTED 6803
S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH
OFFICER SERVES FOR AN ANNUAL TERM OR UNTIL HIS
OR HER EARLIER RESIGNATION, DEATH OR REMOVAL.
NIKOLAOS D. MONOYIOS, Senior Vice President of the Manager since July
Vice President and 2004; a Certified Financial Analyst. Formerly
Portfolio Manager Vice President of the Manager (April 1998-July
(since 2000) 2004). An officer of 6 portfolios in the
Age: 55 OppenheimerFunds complex.
MARC REINGANUM, Vice President of the Manager since September
Vice President and 2002; a Director of Quantitative Research and
Portfolio Manager Portfolio Strategist for Equities; an officer
(since 2003) of 3 portfolios in the OppenheimerFunds
Age: 51 complex. Formerly the Mary Jo Vaughn Rauscher
Chair in Financial Investments at Southern
Methodist University since 1995. At Southern
Methodist University he also served as the
Director of the Finance Institute, Chairman of
the Finance Department, President of the
Faculty at the Cox School of Business and
member of the Board of Trustee Investment
Committee.
55 | OPPENHEIMER MAIN STREET FUND
DIRECTORS AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Senior Vice President and Treasurer (since
Treasurer (since 1999) March 1999) of the Manager; Treasurer of
Age: 44 HarbourView Asset Management Corporation,
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)
Vice President and Secretary and General Counsel (since February 2002) of the
(since 2001) Manager; General Counsel and a director (since
Age: 56 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.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance
Vice President and Officer (since March 2004) of the Manager; Vice
Chief Compliance Officer President (since June 1983) of OppenheimerFunds
(since 2004) Distributor, Inc., Centennial Asset Management
Age: 53 Corporation and Shareholder Services, Inc.
Formerly (until February 2004) Vice 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 DIRECTORS AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST BY
CALLING 1.800.525.7048.
56 | OPPENHEIMER MAIN STREET 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 Directors of the registrant has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a
member of the Board's Audit Committee, possess the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit
committee financial experts," and has designated Messrs. Cameron and Bowen as
the Audit Committee's financial experts. Messrs. Cameron and Bowen are
"independent" Directors pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $68,000 in fiscal 2004 and $67,000 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 during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and
$40,259 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 $4,500 in fiscal 2004 and no such fees
in fiscal 2003 to the registrant.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and
$10,448 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 to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and $3,500
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 services provided to the registrant's
Board of Directors with respect to the annual renewal of the
registrant's investment advisory agreement.
(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 $4,500 in fiscal 2004 and $54,207 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
The members of the Governance Committee are Robert Malone (Chairman),
William Armstrong, Beverly Hamilton and F. William Marshall, Jr. Each member of
the Committee is independent, meaning each person is not "interested person" as
defined in the Act. The Governance Committee was established in August 2004. The
Governance Committee is expected to consider general governance matters,
including a formal process for shareholders to send communications to the Board
and the qualifications of candidates for board positions including consideration
of any candidate recommended by shareholders.
The Governance Committee has not yet adopted a charter, but anticipates that it
will do so by the end of this calendar year. The Committee has temporarily
adopted the process previously adopted by the Audit Committee regarding
shareholder submission of nominees for board positions. That policy is as
follows. To date, the Committee has been able to identify from its own resources
an ample number of qualified candidates. Nonetheless, shareholders may submit
names of individuals, accompanied by complete and properly supported resumes,
for the Governance Committee's consideration by mailing such information to the
Committee in care of the Fund. The Committee may consider such persons at such
time as it meets to consider possible nominees. The Committee, however, reserves
sole discretion to determine the candidates to present to the Board and/or
shareholders when it meets for the purpose of considering potential nominees.
This Committee also will select and nominate, to the full Board, nominees for
election as Directors, and select and nominate Independent Directors for
election. The Committee may, but need not, consider the advice and
recommendation of the Manager and its affiliates in selecting nominees. The full
Board elects new directors except for those instances when a shareholder vote is
required.
Shareholders who desire to communicate with the Board should address
correspondence to the Board or an individual Board member and may submit their
correspondence electronically at www.oppenheimerfunds.com
http://www.oppenheimerfunds.com/ under the caption "contact us" or by mail to
the Fund at the address above. The Governance Committee will consider if a
different process should be recommended to the Board.
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)