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 811-07265
Oppenheimer Enterprise Fund
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(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: August 31
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Date of reporting period: September 1, 2003 - August 31, 2004
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Software 13.2%
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Biotechnology 9.3
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Computers & Peripherals 6.7
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Semiconductors & Semiconductor Equipment 6.2
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Specialty Retail 5.9
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Communications Equipment 5.6
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Health Care Equipment & Supplies 5.2
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Pharmaceuticals 5.2
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Insurance 5.0
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Industrial Conglomerates 4.7
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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Microsoft Corp. 6.1%
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General Electric Co. 4.7
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Marvell Technology Group Ltd. 3.9
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Symantec Corp. 3.8
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EMC Corp. 3.7
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American Express Co. 3.2
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Dell, Inc. 3.0
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Amgen, Inc. 2.9
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AFLAC, Inc. 2.7
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Marvel Enterprises, Inc. 2.5
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.
8 | OPPENHEIMER ENTERPRISE FUND
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SECTOR ALLOCATION
o Information Technology 39.8%
Software 13.5
Computers & Peripherals 6.8
[GRAPHIC] Semiconductors & Semiconductor Equipment 6.4
Communications Equipment 5.8
IT Services 2.6
Electronic Equipment & Instruments 2.6
Internet Software & Services 2.1
o Health Care 20.3
o Consumer Discretionary 15.9
o Financials 10.6
o Industrials 7.8
o Consumer Staples 4.7
o Energy 0.9
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 ENTERPRISE 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. Over the 12-month period ended
August 31, 2004, the Fund's performance trailed that of its benchmarks. Despite
relatively strong gains from several technology holdings, disappointing results
among individual stock selections in other sectors undermined returns.
The Fund's investment strategy focuses on the market's higher growth
companies, regardless of their size. In particular, we target companies that we
believe are distinguished by proven management, innovative products or services,
strong earnings and revenue growth, and sustainable growth rates.
During the reporting period, we found a relatively large number of
investment opportunities meeting these criteria in technology. Although the
technology sector proved to be one of the market's weakest performing areas
during the period, the Fund's technology holdings delivered slightly better
returns, albeit the performance was still negative. In fact, four of the Fund's
top six performers were technology stocks. These included software developers
Symantec Corp. and AutoDesk, Inc.; semiconductor maker Marvell Technology Group
Ltd.; and Internet service provider Yahoo!, Inc. Other technology holdings, such
as EMC Corp., declined along with the sector, but on average the Fund's gains in
technology surpassed its losses.
Unfortunately, the Fund's individual stock selections in other sectors
proved less favorable. For example, among consumer discretionary holdings, the
strong performance of retailer Urban Outfitter, Inc. was undermined by
disappointing performance from various media and entertainment related holdings
including: Marvel Enterprises, Inc. and InterActiveCorp. Similarly, in the
health care area, the Fund's positive returns from its investment in
biotechnology company Genentech, Inc. were overbalanced by declines in other
biotechnology holdings, such as Gilead Sciences, Inc. Finally, among financial
stocks, the Fund's holding in mortgage guarantee provider Radian Group, Inc. was
hurt by a drop in refinancing activity resulting from an increase in interest
rates.
As of the end of the period, we have trimmed the Fund's exposure to
technology, although the Fund continues to hold an overweighted position in that
sector. We have also reduced the Fund's consumer discretionary holdings,
primarily among media companies, an area the Fund has had a relatively light
exposure. We have increased the Fund's industrial exposure, focusing on
conglomerates, such as General Electric Co., a diversified company that has
recently moved to emphasize growth-oriented areas of its business, such as
entertainment and medical.
10 | OPPENHEIMER ENTERPRISE FUND
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 2004. In the case of Class A, Class B, and Class C
shares, performance is measured from the inception date of November 7, 1995; in
the case of Class N shares, from the inception of the Class on March 1, 2001,
and in the case of Class Y shares, from the inception of the Class on April 1,
1999. 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 has changed its secondary benchmark index from the Russell 2000
Index to the Russell 3000 Growth Index. The Fund believes that the Russell 3000
Growth Index, a multi-cap index, is a more appropriate benchmark reflecting the
types of multi-cap securities in which the Fund invests. The Fund will continue
to compare its performance to the Standard & Poor's (S&P) 500 Index.
The Fund's performance is compared to the performance of the S&P 500
Index, the Russell 3000 Growth Index, and its previous secondary benchmark, the
Russell 2000 Index. The S&P 500 Index is a broad-based index of equity
securities widely regarded as a general measure of the performance of the U.S.
equity securities market. The Russell 3000 Growth index is a multi-cap index of
U.S. equity securities with greater-than-average growth orientation. The Russell
2000 Index is a capitalization-weighted index of 2,000 U.S. issuers whose common
stocks are traded on The New York and American Stock Exchanges and NASDAQ, and
is widely recognized as a measure of the performance of mid-capitalization
stocks. 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 indices.
11 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class A)
S&P 500 Index
Russell 2000 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index Russell 2000 Russell 3000
Enterprise Fund Index Growth Index
(Class A Shares)
11/07/1995 $ 9,425 $10,000 $10,000 $10,000
11/30/1995 10,848 10,438 10,420 10,394
02/29/1996 12,743 11,104 11,017 11,002
05/31/1996 16,136 11,669 12,309 11,801
08/31/1996 14,590 11,432 11,398 11,303
11/30/1996 14,185 13,345 12,141 12,968
02/28/1997 14,423 14,007 12,400 13,440
05/31/1997 14,200 15,104 13,166 14,506
08/31/1997 17,198 16,077 14,698 15,536
11/30/1997 17,745 17,149 14,983 16,264
02/28/1998 18,993 18,907 16,114 18,140
05/31/1998 19,919 19,734 15,963 18,493
08/31/1998 16,226 17,382 11,847 16,257
11/30/1998 20,007 21,211 13,992 20,347
02/28/1999 23,831 22,643 13,835 22,312
05/31/1999 26,670 23,884 15,534 22,961
08/31/1999 29,587 24,301 15,207 24,056
11/30/1999 41,178 25,642 16,183 26,770
02/29/2000 58,877 25,299 20,653 30,146
05/31/2000 35,624 26,385 17,074 28,615
08/31/2000 45,826 28,264 19,336 32,202
11/30/2000 26,665 24,559 16,089 23,638
02/28/2001 22,968 23,226 17,175 20,515
05/31/2001 21,521 23,602 18,045 20,374
08/31/2001 19,448 21,375 17,088 17,835
11/30/2001 17,884 21,559 16,865 18,470
02/28/2002 15,551 21,018 17,234 17,380
05/31/2002 14,378 20,336 17,955 16,198
08/31/2002 11,614 17,530 14,450 13,838
11/30/2002 11,940 18,000 15,077 14,310
02/28/2003 11,054 16,253 13,426 12,918
05/31/2003 13,504 18,696 16,485 14,908
08/31/2003 14,990 19,644 18,652 15,967
11/30/2003 15,003 20,715 20,549 16,902
02/29/2004 15,629 22,509 22,073 17,949
05/31/2004 15,629 22,121 21,479 17,715
08/31/2004 14,717 21,892 20,769 16,793
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1 Year 5 Year Since Inception
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-7.47% -14.06% 4.48%
12 | OPPENHEIMER ENTERPRISE FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class B)
S&P 500 Index
Russell 2000 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index Russell 2000 Russell 3000
Enterprise Fund Index Growth Index
(Class B Shares)
11/07/1995 $10,000 $10,000 $10,000 $10,000
11/30/1995 11,500 10,438 10,420 10,394
02/29/1996 13,490 11,104 11,017 11,002
05/31/1996 17,060 11,669 12,309 11,801
08/31/1996 15,390 11,432 11,398 11,303
11/30/1996 14,940 13,345 12,141 12,968
02/28/1997 15,151 14,007 12,400 13,440
05/31/1997 14,893 15,104 13,166 14,506
08/31/1997 18,011 16,077 14,698 15,536
11/30/1997 18,538 17,149 14,983 16,264
02/28/1998 19,806 18,907 16,114 18,140
05/31/1998 20,743 19,734 15,963 18,493
08/31/1998 16,853 17,382 11,847 16,257
11/30/1998 20,755 21,211 13,992 20,347
02/28/1999 24,680 22,643 13,835 22,312
05/31/1999 27,568 23,884 15,534 22,961
08/31/1999 30,527 24,301 15,207 24,056
11/30/1999 42,414 25,642 16,183 26,770
02/29/2000 60,531 25,299 20,653 30,146
05/31/2000 36,548 26,385 17,074 28,615
08/31/2000 46,928 28,264 19,336 32,202
11/30/2000 27,255 24,559 16,089 23,638
02/28/2001 23,438 23,226 17,175 20,515
05/31/2001 21,918 23,602 18,045 20,374
08/31/2001 19,769 21,375 17,088 17,835
11/30/2001 18,153 21,559 16,865 18,470
02/28/2002 15,785 21,018 17,234 17,380
05/31/2002 14,594 20,336 17,955 16,198
08/31/2002 11,789 17,530 14,450 13,838
11/30/2002 12,120 18,000 15,077 14,310
02/28/2003 11,220 16,253 13,426 12,918
05/31/2003 13,707 18,696 16,485 14,908
08/31/2003 15,216 19,644 18,652 15,967
11/30/2003 15,229 20,715 20,549 16,902
02/29/2004 15,864 22,509 22,073 17,949
05/31/2004 15,864 22,121 21,479 17,715
08/31/2004 14,938 21,892 20,769 16,793
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1 Year 5 Year Since Inception
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-7.47% -13.99% 4.66%
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. 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.
13 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund (Class C)
S&P 500 Index
Russell 2000 Index
Russell 3000 Growth Index
Oppenheimer S&P 500 Index Russell 2000 Russell 3000
Enterprise Fund Index Growth Index
(Class C Shares)
11/07/1995 $10,000 $10,000 $10,000 $10,000
11/30/1995 11,500 10,438 10,420 10,394
02/29/1996 13,490 11,104 11,017 11,002
05/31/1996 17,050 11,669 12,309 11,801
08/31/1996 15,390 11,432 11,398 11,303
11/30/1996 14,940 13,345 12,141 12,968
02/28/1997 15,152 14,007 12,400 13,440
05/31/1997 14,883 15,104 13,166 14,506
08/31/1997 18,001 16,077 14,698 15,536
11/30/1997 18,528 17,149 14,983 16,264
02/28/1998 19,807 18,907 16,114 18,140
05/31/1998 20,733 19,734 15,963 18,493
08/31/1998 16,853 17,382 11,847 16,257
11/30/1998 20,745 21,211 13,992 20,347
02/28/1999 24,693 22,643 13,835 22,312
05/31/1999 27,581 23,884 15,534 22,961
08/31/1999 30,541 24,301 15,207 24,056
11/30/1999 42,452 25,642 16,183 26,770
02/29/2000 60,582 25,299 20,653 30,146
05/31/2000 36,587 26,385 17,074 28,615
08/31/2000 46,979 28,264 19,336 32,202
11/30/2000 27,293 24,559 16,089 23,638
02/28/2001 23,464 23,226 17,175 20,515
05/31/2001 21,943 23,602 18,045 20,374
08/31/2001 19,795 21,375 17,088 17,835
11/30/2001 18,163 21,559 16,865 18,470
02/28/2002 15,763 21,018 17,234 17,380
05/31/2002 14,550 20,336 17,955 16,198
08/31/2002 11,732 17,530 14,450 13,838
11/30/2002 12,039 18,000 15,077 14,310
02/28/2003 11,118 16,253 13,426 12,918
05/31/2003 13,559 18,696 16,485 14,908
08/31/2003 15,024 19,644 18,652 15,967
11/30/2003 15,010 20,715 20,549 16,902
02/29/2004 15,610 22,509 22,073 17,949
05/31/2004 15,582 22,121 21,479 17,715
08/31/2004 14,633 21,892 20,769 16,793
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1 Year 5 Year Since Inception
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-3.57% -13.68% 4.41%
14 | OPPENHEIMER ENTERPRISE FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class N)
S&P 500 Index
Russell 2000 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index Russell 2000 Russell 3000
Enterprise Fund Index Growth Index
(Class N Shares)
03/01/2001 $10,000 $10,000 $10,000 $10,000
05/31/2001 9,295 10,162 10,507 9,931
08/31/2001 8,399 9,203 9,949 8,694
11/30/2001 7,711 9,283 9,819 9,003
02/28/2002 6,708 9,049 10,034 8,472
05/31/2002 6,195 8,756 10,454 7,896
08/31/2002 5,000 7,548 8,413 6,745
11/30/2002 5,141 7,750 8,779 6,975
02/28/2003 4,752 6,998 7,817 6,297
05/31/2003 5,800 8,050 9,599 7,267
08/31/2003 6,432 8,458 10,860 7,783
11/30/2003 6,437 8,919 11,965 8,239
02/29/2004 6,702 9,692 12,852 8,749
05/31/2004 6,697 9,524 12,506 8,635
08/31/2004 6,302 9,426 12,093 8,186
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1 Year Since Inception
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-3.00% -12.36%
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 ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class Y)
S&P 500 Index
Russell 2000 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer S&P 500 Index Russell 2000 Russell 3000
Enterprise Fund Index Growth Index
(Class Y Shares)
04/01/1999 $10,000 $10,000 $10,000 $10,000
05/31/1999 10,115 10,142 11,055 9,787
08/31/1999 11,234 10,319 10,822 10,254
11/30/1999 15,649 10,889 11,517 11,411
02/29/2000 22,407 10,743 14,698 12,850
05/31/2000 13,570 11,204 12,151 12,197
08/31/2000 17,477 12,002 13,761 13,727
11/30/2000 10,165 10,429 11,450 10,076
02/28/2001 8,760 9,863 12,223 8,745
05/31/2001 8,222 10,022 12,842 8,684
08/31/2001 7,432 9,077 12,161 7,603
11/30/2001 6,839 9,155 12,002 7,873
02/28/2002 5,955 8,925 12,265 7,408
05/31/2002 5,511 8,636 12,778 6,905
08/31/2002 4,454 7,444 10,283 5,899
11/30/2002 4,578 7,644 10,730 6,100
02/28/2003 4,247 6,902 9,555 5,506
05/31/2003 5,190 7,939 11,732 6,355
08/31/2003 5,763 8,342 13,274 6,806
11/30/2003 5,777 8,797 14,624 7,205
02/29/2004 6,024 9,558 15,709 7,651
05/31/2004 6,034 9,394 15,286 7,551
08/31/2004 5,689 9,296 14,781 7,158
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES WITH SALES CHARGE OF THE FUND AT
8/31/04
1 Year 5 Year Since Inception
------ ------ ---------------
-1.29% -12.72% -9.89%
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 ENTERPRISE 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 11/7/95. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 11/7/95. 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 11/7/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 4/1/99. 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 ENTERPRISE 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 ENTERPRISE 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.
- --------------------------------------------------------------------------------
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING 6 MONTHS
(3/1/04) (8/31/04) ENDED AUGUST 31, 2004
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 941.60 $ 7.00
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.95 7.28
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 938.20 10.98
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.88 11.40
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 937.40 10.68
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.18 11.10
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 940.30 8.23
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,016.69 8.55
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 944.30 4.80
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.21 4.99
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/366
(to reflect the one-half year period). Those expense ratios for the 6-month
period ended August 31, 2004 are as follows:
CLASS EXPENSE RATIOS
- -----------------------
Class A 1.43%
- -----------------------
Class B 2.24
- -----------------------
Class C 2.18
- -----------------------
Class N 1.68
- -----------------------
Class Y 0.98
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 ENTERPRISE FUND
STATEMENT OF INVESTMENTS August 31, 2004
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--97.1%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--15.5%
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.9%
Royal Caribbean
Cruises Ltd. 50,000 $ 2,065,000
- --------------------------------------------------------------------------------
Scientific Games
Corp., Cl. A 1 72,100 1,227,863
------------
3,292,863
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--2.5%
Marvel Enterprises, Inc. 1 300,000 4,401,000
- --------------------------------------------------------------------------------
MEDIA--1.7%
Univision
Communications,
Inc., Cl. A 1 90,000 2,970,000
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.2%
Target Corp. 45,900 2,046,222
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--5.9%
Gap, Inc. (The) 175,700 3,292,618
- --------------------------------------------------------------------------------
PetsMart, Inc. 91,100 2,556,266
- --------------------------------------------------------------------------------
Tractor Supply Co. 1 47,700 1,660,914
- --------------------------------------------------------------------------------
Urban Outfitters, Inc. 1 96,200 2,919,670
------------
10,429,468
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--2.3%
Coach, Inc. 1 65,200 2,748,180
- --------------------------------------------------------------------------------
Polo Ralph Lauren Corp. 36,800 1,344,304
------------
4,092,484
- --------------------------------------------------------------------------------
CONSUMER STAPLES--4.5%
- --------------------------------------------------------------------------------
BEVERAGES--2.0%
PepsiCo, Inc. 71,000 3,550,000
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--2.5%
Wal-Mart Stores, Inc. 83,400 4,392,678
- --------------------------------------------------------------------------------
ENERGY--0.8%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.8%
BJ Services Co. 1 31,700 1,523,185
- --------------------------------------------------------------------------------
FINANCIALS--10.3%
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--1.3%
Commerce Bancorp, Inc. 42,300 2,219,481
- --------------------------------------------------------------------------------
CONSUMER FINANCE--0.8%
First Marblehead Corp.
(The) 1 33,500 1,385,895
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS--3.2%
American Express Co. 113,500 5,677,270
- --------------------------------------------------------------------------------
INSURANCE--5.0%
AFLAC, Inc. 118,200 4,739,820
- --------------------------------------------------------------------------------
AMBAC Financial
Group, Inc. 53,700 4,054,350
------------
8,794,170
- --------------------------------------------------------------------------------
HEALTH CARE--19.7%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--9.3%
Amgen, Inc. 1 85,000 5,039,650
- --------------------------------------------------------------------------------
Celgene Corp. 1 33,600 1,906,800
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 39,200 1,415,120
- --------------------------------------------------------------------------------
Genentech, Inc. 1 34,500 1,682,910
- --------------------------------------------------------------------------------
Genzyme Corp.
(General Division) 1 18,400 993,600
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 50,000 3,456,500
- --------------------------------------------------------------------------------
Martek Biosciences
Corp. 1 34,900 1,863,660
------------
16,358,240
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.2%
Boston Scientific Corp. 1 100,000 3,573,000
- --------------------------------------------------------------------------------
Immucor, Inc. 1 70,500 1,441,725
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 124,400 4,123,860
------------
9,138,585
- --------------------------------------------------------------------------------
PHARMACEUTICALS--5.2%
Allergan, Inc. 21,600 1,612,440
- --------------------------------------------------------------------------------
Elan Corp. plc, ADR 1 37,600 850,888
- --------------------------------------------------------------------------------
Eli Lilly & Co. 41,300 2,620,485
- --------------------------------------------------------------------------------
MGI Pharma, Inc. 1 52,800 1,226,544
- --------------------------------------------------------------------------------
Pfizer, Inc. 85,300 2,786,751
------------
9,097,108
- --------------------------------------------------------------------------------
INDUSTRIALS--7.6%
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.8%
Corporate Executive
Board Co. 24,500 1,442,070
- --------------------------------------------------------------------------------
Stericycle, Inc. 1 38,000 1,792,840
------------
3,234,910
20 | OPPENHEIMER ENTERPRISE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--4.7%
General Electric Co. 250,000 $ 8,197,500
- --------------------------------------------------------------------------------
MACHINERY--1.1%
Donaldson Co., Inc. 68,200 1,936,880
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--38.7%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.6%
Cisco Systems, Inc. 1 200,000 3,752,000
- --------------------------------------------------------------------------------
Comverse Technology,
Inc. 1 147,400 2,580,974
- --------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
Sponsored ADR 1 131,000 3,542,240
--------------
9,875,214
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--6.7%
Dell, Inc. 1 150,000 5,226,000
- --------------------------------------------------------------------------------
EMC Corp. 1 600,000 6,462,000
--------------
11,688,000
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.5%
CDW Corp. 75,000 4,387,500
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--2.0%
Yahoo!, Inc. 1 125,000 3,563,750
- --------------------------------------------------------------------------------
IT SERVICES--2.5%
Accenture Ltd., Cl. A 1 69,800 1,821,780
- --------------------------------------------------------------------------------
Fiserv, Inc. 1 74,200 2,580,676
--------------
4,402,456
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--6.2%
ATMI, Inc. 1 53,800 1,013,592
- --------------------------------------------------------------------------------
Intel Corp. 88,000 1,873,520
- --------------------------------------------------------------------------------
Marvell Technology
Group Ltd. 1 298,900 6,910,568
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 60,600 1,184,124
--------------
10,981,804
- --------------------------------------------------------------------------------
SOFTWARE--13.2%
Autodesk, Inc. 90,500 4,019,105
- --------------------------------------------------------------------------------
Microsoft Corp. 390,000 10,647,000
- --------------------------------------------------------------------------------
SAP AG, Sponsored ADR 48,200 1,757,372
- --------------------------------------------------------------------------------
Symantec Corp. 1 140,000 6,714,400
--------------
23,137,877
--------------
Total Common Stocks
(Cost $156,831,161) 170,774,540
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.2%
Axsun Technologies,
Inc., Cv., Series C 1,2,3 514,139 207,866
- --------------------------------------------------------------------------------
Multiplex, Inc., Cv.,
Series C 1,2,3 543,478 109,239
--------------
Total Preferred Stocks
(Cost $10,000,000) 317,105
UNITS
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
American Banknote Corp.:
Series 1 Wts., Exp. 10/1/071 777 --
Series 2 Wts., Exp. 10/1/071 777 --
--------------
Total Rights, Warrants
and Certificates (Cost $0) --
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--2.8%
Undivided interest of 0.72% 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 $4,978,216 on 9/1/04, collateralized
by Federal National Mortgage Assn.,
5%, 3/1/34, with a value
of $710,873,503
(Cost $4,978,000) $ 4,978,000 4,978,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $171,809,161) 100.1% 176,069,645
- --------------------------------------------------------------------------------
LIABILITIES
IN EXCESS OF
OTHER ASSETS (0.1) (226,054)
-----------------------------
NET ASSETS 100.0% $ 175,843,591
=============================
21 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Illiquid or restricted security. See Note 5 of Notes to Financial Statements.
3. 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 $317,105. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES UNREALIZED
AUGUST 31, 2003 ADDITIONS REDUCTIONS AUGUST 31, 2004 DEPRECIATION
- -------------------------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Axsun Technologies, Inc.,
Cv., Series C 514,139 -- -- 514,139 $5,792,136
Multiplex, Inc., Cv., Series C 543,478 -- -- 543,478 3,890,759
----------
$9,682,895
==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2004
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $161,809,161) $ 175,752,540
Affiliated companies (cost $10,000,000) 317,105
--------------
176,069,645
- -------------------------------------------------------------------------------------
Cash 356,565
- -------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 126,524
Shares of beneficial interest sold 96,967
Other 8,957
--------------
Total assets 176,658,658
- -------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 476,435
Shareholder communications 112,553
Trustees' compensation 79,716
Distribution and service plan fees 67,394
Transfer and shareholder servicing agent fees 53,695
Other 25,274
--------------
Total liabilities 815,067
- -------------------------------------------------------------------------------------
NET ASSETS $ 175,843,591
==============
- -------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------
Paid-in capital $ 538,787,540
- -------------------------------------------------------------------------------------
Accumulated net investment loss (78,723)
- -------------------------------------------------------------------------------------
Accumulated net realized loss on investments (367,125,710)
- -------------------------------------------------------------------------------------
Net unrealized appreciation on investments 4,260,484
--------------
NET ASSETS $ 175,843,591
==============
23 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $101,934,034 and
9,025,655 shares of beneficial interest outstanding) $11.29
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $11.98
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $45,903,770 and 4,379,954 shares of
beneficial interest outstanding) $10.48
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $12,790,356 and 1,218,774 shares of
beneficial interest outstanding) $10.49
- -----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $839,174 and 75,063 shares of
beneficial interest outstanding) $11.18
- -----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $14,376,257 and 1,248,089 shares of beneficial interest outstanding) $11.52
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $5,677) $ 707,556
- --------------------------------------------------------------------------------
Interest 44,379
-------------
Total investment income 751,935
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 1,509,454
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 269,192
Class B 548,713
Class C 139,759
Class N 3,885
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 645,624
Class B 361,791
Class C 104,598
Class N 5,932
Class Y 46,795
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 64,210
Class B 47,324
Class C 7,939
Class N 465
- --------------------------------------------------------------------------------
Trustees' compensation 10,880
- --------------------------------------------------------------------------------
Custodian fees and expenses 7,137
- --------------------------------------------------------------------------------
Other 49,466
-------------
Total expenses 3,823,164
Less reduction to custodian expenses (501)
Less payments and waivers of expenses (467,835)
-------------
Net expenses 3,354,828
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,602,893)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments 33,116,748
Net increase from payment by affiliate 34,012
-------------
Net realized gain 33,150,760
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (33,391,546)
- --------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (2,843,679)
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER ENTERPRISE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2004 2003
- -------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------
Net investment loss $ (2,602,893) $ (2,156,289)
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) 33,150,760 (36,003,130)
- -------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (33,391,546) 86,514,925
----------------------------------
Net increase (decrease) in net assets resulting from operations (2,843,679) 48,355,506
- -------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (16,438,579) (9,615,427)
Class B (15,321,229) (4,005,525)
Class C (1,474,060) (512,633)
Class N 165,189 71,137
Class Y (8,254,492) 1,925,857
- -------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------
Total increase (decrease) (44,166,850) 36,218,915
- -------------------------------------------------------------------------------------------------------
Beginning of period 220,010,441 183,791,526
----------------------------------
End of period (including accumulated net investment loss of
$78,723 and $72,047, respectively) $ 175,843,591 $ 220,010,441
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.50 $ 8.91 $ 14.92 $ 39.08 $ 26.37
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.12) 1 (.06) (.09) (.18) (.15)
Net realized and unrealized gain (loss) (.09) 1 2.65 (5.92) (21.40) 14.52
--------------------------------------------------------------------------
Total from investment operations (.21) 2.59 (6.01) (21.58) 14.37
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain -- -- -- (2.58) (1.66)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.29 $ 11.50 $ 8.91 $ 14.92 $ 39.08
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.83)% 29.07% (40.28)% (57.56)% 54.89%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $101,934 $120,101 $103,105 $233,045 $624,971
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $111,924 $100,922 $166,632 $357,113 $563,739
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.07)% (0.93)% (1.09)% (0.81)% (0.37)%
Total expenses 1.66% 1.83% 1.95% 1.33% 1.24%
Expenses after payments and waivers
and reduction to custodian expenses 1.44% 1.29% 1.60% N/A 4 N/A 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 103% 150% 160% 142%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER ENTERPRISE 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 $ 10.76 $ 8.40 $ 14.17 $ 37.57 $ 25.58
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.20) 1 (.20) (.41) (.30) (.39)
Net realized and unrealized gain (loss) (.08) 1 2.56 (5.36) (20.52) 14.04
--------------------------------------------------------------------------
Total from investment operations (.28) 2.36 (5.77) (20.82) 13.65
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- (2.58) (1.66)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.48 $ 10.76 $ 8.40 $ 14.17 $ 37.57
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (2.60)% 28.10% (40.72)% (57.87)% 53.73%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 45,904 $ 62,170 $ 52,633 $125,772 $310,972
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 54,878 $ 52,441 $ 86,628 $181,217 $294,487
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.86)% (1.69)% (1.85)% (1.58)% (1.13)%
Total expenses 2.53% 2.79% 2.71% 2.10% 2.00%
Expenses after payments and waivers
and reduction to custodian expenses 2.23% 2.05% 2.36% N/A 4 N/A 4
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 103% 150% 160% 142%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER ENTERPRISE FUND
CLASS C YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.77 $ 8.41 $ 14.19 $ 37.61 $ 25.59
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.20) 1 (.17) (.37) (.32) (.39)
Net realized and unrealized gain (loss) (.08) 1 2.53 (5.41) (20.52) 14.07
---------------------------------------------------------------------
Total from investment operations (.28) 2.36 (5.78) (20.84) 13.68
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- (2.58) (1.66)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.49 $ 10.77 $ 8.41 $ 14.19 $ 37.61
=====================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (2.60)% 28.06% (40.73)% (57.86)% 53.83%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $12,790 $14,594 $11,578 $25,468 $64,522
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $13,979 $12,521 $18,550 $37,410 $60,868
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.83)% (1.70)% (1.85)% (1.57)% (1.13)%
Total expenses 2.59% 2.80% 2.71% 2.10% 2.00%
Expenses after payments and waivers
and reduction to custodian expenses 2.20% 2.06% 2.36% N/A 4 N/A 4
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 103% 150% 160% 142%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER ENTERPRISE 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 $ 11.41 $ 8.87 $ 14.90 $ 17.74
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.15) 2 (.13) (.28) (.01)
Net realized and unrealized gain (loss) (.08) 2 2.67 (5.75) (2.83)
------------------------------------------------------
Total from investment operations (.23) 2.54 (6.03) (2.84)
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.18 $ 11.41 $ 8.87 $ 14.90
======================================================
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.02)% 28.64% (40.47)% (16.01)%
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 839 $ 685 $ 456 $ 83
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 781 $ 537 $ 249 $ 12
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.32)% (1.24)% (1.44)% (0.94)%
Total expenses 2.10% 2.09% 2.25% 1.75%
Expenses after payments and waivers and reduction
to custodian expenses 1.70% 1.60% 1.90% N/A 5
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 103% 150% 160%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER ENTERPRISE FUND
CLASS Y YEAR ENDED AUGUST 31, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.67 $ 9.02 $ 15.05 $ 39.32 $ 26.41
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.07) 1 (.10) (.10) (.09) (.04)
Net realized and unrealized gain (loss) (.08) 1 2.75 (5.93) (21.60) 14.61
---------------------------------------------------------------------
Total from investment operations (.15) 2.65 (6.03) (21.69) 14.57
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- (2.58) (1.66)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.52 $ 11.67 $ 9.02 $ 15.05 $ 39.32
=====================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.29)% 29.38% (40.07)% (57.48)% 55.58%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $14,376 $22,461 $16,020 $25,450 $91,656
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $19,642 $16,675 $19,590 $49,978 $80,415
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:3
Net investment income (loss) (0.62)% (0.67)% (0.70)% (0.67)% 0.04%
Total expenses 0.98% 1.72% 2.16% 1.36% 4 0.91%
Expenses after payments and waivers
and reduction to custodian expenses N/A 5 1.03% 1.19% 1.20% N/A 5
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 103% 150% 160% 142%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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. Added since August 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
5. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Enterprise Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic or foreign exchanges are
valued based on the last sale price of the security traded on that exchange
prior to the time when the Fund's assets are valued. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ prior to the time when
the Fund's assets are valued. In the absence of a sale, the security is valued
at the last sale price on the prior trading day, if it is within the spread of
the closing bid and asked prices, and if not, at the closing bid price.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with
32 | OPPENHEIMER ENTERPRISE 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 Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
33 | OPPENHEIMER ENTERPRISE 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 TAX PURPOSES
- --------------------------------------------------------------------------------
$-- $-- $367,000,131 $4,136,221
1. As of August 31, 2004, the Fund had $367,000,131 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of August 31, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
-----------------------
2009 $ 30,357,712
2010 257,289,240
2011 79,353,179
------------
Total $367,000,131
============
2. During the fiscal year ended August 31, 2004, the Fund utilized $16,574,046
of capital loss carryforward to offset capital gains realized in that fiscal
year.
3. During the fiscal year ended August 31, 2003, the Fund did not utilize any
capital loss carryforward.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for August 31, 2004. Net assets of the
Fund were unaffected by the reclassifications.
INCREASE TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO ACCUMULATED NET REALIZED LOSS
PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS
-------------------------------------------------------------------
$2,562,205 $2,596,217 $34,012
No distributions were paid during the years ended August 31, 2004 and August 31,
2003.
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,
34 | OPPENHEIMER ENTERPRISE FUND
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 $171,933,424
============
Gross unrealized appreciation $ 25,016,667
Gross unrealized depreciation (20,880,446)
------------
Net unrealized appreciation $ 4,136,221
============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended August
31, 2004, the Fund's projected benefit obligations were increased by $4,119 and
payments of $4,391 were made to retired trustees, resulting in an accumulated
liability of $71,775 as of August 31, 2004.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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.
35 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
YEAR ENDED AUGUST 31, 2004 YEAR ENDED AUGUST 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------
CLASS A
Sold 2,293,436 $ 26,926,960 3,692,019 $ 35,803,356
Redeemed (3,712,460) (43,365,539) (4,817,067) (45,418,783)
------------------------------------------------------------------
Net decrease (1,419,024) $(16,438,579) (1,125,048) $ (9,615,427)
==================================================================
- -----------------------------------------------------------------------------------------------
CLASS B
Sold 668,395 $ 7,283,657 1,371,862 $ 12,295,804
Redeemed (2,068,855) (22,604,886) (1,858,129) (16,301,329)
------------------------------------------------------------------
Net decrease (1,400,460) $(15,321,229) (486,267) $ (4,005,525)
==================================================================
- -----------------------------------------------------------------------------------------------
CLASS C
Sold 280,027 $ 3,055,473 812,619 $ 7,044,476
Redeemed (416,728) (4,529,533) (834,067) (7,557,109)
------------------------------------------------------------------
Net decrease (136,701) $ (1,474,060) (21,448) $ (512,633)
==================================================================
- -----------------------------------------------------------------------------------------------
CLASS N
Sold 41,224 $ 468,639 51,546 $ 487,334
Redeemed (26,171) (303,450) (42,916) (416,197)
------------------------------------------------------------------
Net increase 15,053 $ 165,189 8,630 $ 71,137
==================================================================
- -----------------------------------------------------------------------------------------------
CLASS Y
Sold 631,010 $ 7,496,024 1,446,844 $ 14,331,551
Redeemed (1,306,902) (15,750,516) (1,298,227) (12,405,694)
------------------------------------------------------------------
Net increase (decrease) (675,892) $ (8,254,492) 148,617 $ 1,925,857
==================================================================
- --------------------------------------------------------------------------------
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
$240,867,458 and $278,076,037, respectively.
36 | OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, 0.60% of the next $700 million, and 0.58% of average annual
net assets over $1.5 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended August 31, 2004, the Fund paid
$702,371 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 for
assets of $10 million or more. The Class Y shares are subject to the minimum
fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans for Class B, Class C and Class N
shares to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% per year on
Class B and Class C shares and 0.25% per year on Class N shares. The Distributor
also receives a service fee of up to 0.25% per year under each plan. If either
the Class B, Class C or Class N plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at August 31, 2004
for Class B, Class C and Class N shares were $1,157,182, $335,644 and $11,475,
respectively. Fees incurred by the Fund under the plans are detailed in the
Statement of Operations.
37 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------------------------
August 31, 2004 $71,197 $2,536 $110,178 $4,496 $920
- --------------------------------------------------------------------------------------------------------------------
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 $34,012, 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 $245,427,
$164,669, $54,577 and $3,162 for Class A, Class B, Class C and Class N shares,
respectively. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID OR RESTRICTED SECURITIES
As of August 31, 2004, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also 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 or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
The aggregate value of illiquid or restricted securities subject to this
limitation as of August 31, 2004 was $317,105, which represents 0.18% of the
Fund's net assets, all of which is considered restricted. Information concerning
restricted securities is as follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATES COST AUGUST 31, 2004 DEPRECIATION
- -----------------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Axsun Technologies, Inc., Cv., Series C 12/13/00 $6,000,002 $207,866 $5,792,136
Multiplex, Inc., Cv., Series C 2/9/01 3,999,998 109,239 3,890,759
38 | OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
6. LITIGATION
Six complaints have been filed as putative derivative and class actions against
the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"), as well
as 51 of the Oppenheimer funds (collectively, the "Funds") including this Fund,
and nine directors/trustees of certain of the Funds (collectively, the
"Directors/Trustees"). The complaints allege that the Manager charged excessive
fees for distribution and other costs, improperly used assets of the Funds in
the form of directed brokerage commissions and 12b-1 fees to pay brokers to
promote sales of the Funds, and failed to properly disclose the use of Fund
assets to make those payments in violation of the Investment Company Act of 1940
and the Investment Advisers Act of 1940. The complaints further allege that by
permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law.
OppenheimerFunds believes that it is premature to render any opinion as to
the likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
39 | OPPENHEIMER ENTERPRISE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER ENTERPRISE FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Enterprise Fund, including the statement of investments, as of
August 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of August 31, 2004, by correspondence with
the custodian. 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 Enterprise Fund as of August 31, 2004, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended, in conformity with U.S. generally accepted
accounting principles.
KPMG LLP
Denver, Colorado
September 22, 2004
40 | OPPENHEIMER ENTERPRISE FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
- --------------------------------------------------------------------------------
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (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.
41 | OPPENHEIMER ENTERPRISE FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
FUND, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a director (since
Chairman of the Board 2002) of Danielson Holding Corp. Formerly a director of Weyerhaeuser Corp.
of Trustees (since 2003); (1999-April 2004), Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Trustee (since 1995) (1993-2001), Texas Instruments (1993-2001) and FMC Corporation (1993-2001).
Age: 73 Oversees 25 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in the
Trustee (since 1995) OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J.,
Trustee (since 1999) a director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 65 Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A
member of: the National Academy of Sciences (since 1979), American Academy
of Arts and Sciences (since 1995), American Philosophical Society (since 1996)
and Council on Foreign Relations (since 2002). Formerly a director of Bankers
Trust New York Corporation (1994-1999). Oversees 25 portfolios in the
OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since January 2002) Carmona Motley, Inc.
Age: 52 (privately-held financial adviser). Formerly a Managing Director of Carmona
Motley Hoffman Inc. (privately-held financial adviser) (January 1998-December
2001). Oversees 25 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion Resources, Inc. (electric utility
Trustee (since 1995) holding company); formerly a director of Prime Retail, Inc. (real estate investment
Age: 77 trust) and Dominion Energy, Inc. (electric power and oil & gas producer),
President and Chief Executive Officer of The Conference Board, Inc. (international
economic and business research) and a director of Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and American Manufacturers Mutual Insurance
Company. Oversees 25 portfolios in the OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset (real estate manager);
Trustee (since 1995) a director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 74 and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for the City of New York, New
York State Comptroller and Trustee of New York State and Local Retirement
Fund. Oversees 25 investment companies in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate governance
Trustee (since 1995) consulting and executive recruiting); a Life Trustee of International House
Age: 72 (non-profit educational organization); a former trustee of The Historical Society of
the Town of Greenwich. Oversees 25 portfolios in the OppenheimerFunds complex.
42 | OPPENHEIMER ENTERPRISE FUND
DONALD W. SPIRO,* Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the
Board of Trustees, OppenheimerFunds complex.
Trustee (since 1995)
Age: 78
*Mr. Spiro is expected to retire as Trustee of the Board I Funds effective
October 31, 2004.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER,
AND OFFICER 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR
AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Trustee (since September 2000) of the Manager; President and a director or trustee
(since 2001) of other Oppenheimer funds; President and a director (since July 2001) of
Age: 55 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and
of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of OppenheimerFunds Distributor,
Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and a director (since July 2001) of
OppenheimerFunds Legacy Program (a charitable trust program established by
the Manager); a director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management
Corporation, Trinity Investment Management Corporation and Tremont
Capital Management, Inc. (since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and a director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; Executive Vice President (since February 1997) of
Massachusetts Mutual Life Insurance Company (the Manager's parent company);
a director (since June 1995) of DLB Acquisition Corporation (a holding
company that owns the shares of Babson Capital Management LLC); a member
of the Investment Company Institute's Board of Governors (elected to serve
from October 3, 2003 through September 30, 2006). Formerly, Chief Operating
Officer (September 2000-June 2001) of the Manager; President and trustee
(November 1999-November 2001) of MML Series Investment Fund and
MassMutual Institutional Funds (open-end investment companies); a director
(September 1999-August 2000) of C.M. Life Insurance Company; President,
Chief Executive Officer and director (September 1999-August 2000) of MML
Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald
Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald
Isle Bancorp). Oversees 73 portfolios as Trustee/Director and 10 portfolios as
Officer in the OppenheimerFunds complex.
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MR. GILSTON AND
MR. ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY
10281-1008, AND FOR MR. WIXTED AND MR. VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL,
CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL TERM OR UNTIL HIS OR HER EARLIER
RESIGNATION, DEATH OR REMOVAL.
ALAN GILSTON, Vice President of the Manager since September 1997; an officer of 1 portfolio
Vice President and in the OppenheimerFunds complex.
Portfolio Manager
(since 2004)
Age: 46
43 | OPPENHEIMER ENTERPRISE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 44 Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999),
of OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May 2000), of OFI Institutional
Asset Management, Inc. (since November 2000), and of OppenheimerFunds
Legacy Program (a Colorado non-profit corporation) (since June 2003); Treasurer
and Chief Financial Officer (since May 2000) of OFI Trust Company (a trust
company subsidiary of the Manager); Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. Formerly Assistant Treasurer of Centennial Asset
Management Corporation (March 1999-October 2003) and OppenheimerFunds
Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer
(March 1995-March 1999) at Bankers Trust Company-Mutual Fund Services
Division. An officer of 83 portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) February 2002) of the Manager; General Counsel and a director (since November
Age: 56 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 Officer (since March 2004) of the
Vice President and Manager; Vice President (since June 1983) of OppenheimerFunds Distributor,
Chief Compliance Officer Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) Formerly (until February 2004) Vice President and Director of Internal Audit of
Age: 53 OppenheimerFunds, Inc. An officer of 83 portfolios in the Oppenheimer funds
complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST BY
CALLING 1.800.525.7048.
44 | OPPENHEIMER ENTERPRISE FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the registrant has determined that Edward V.
Regan, the Chairman of the Board's Audit Committee, possesses the technical
attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as
an "audit committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $13,000 in fiscal 2004 and $10,000 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 $39,500 in fiscal 2004 and no such
fees in fiscal 2003 to the registrant's investment adviser or any
entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $6,000 in fiscal 2004 and $5,000 in
fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice
includes assistance with tax audits and appeals, tax advice
related to mergers and acquisitions and requests for rulings or
technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and $42 in
fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees during the last two
fiscal years to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include consultations regarding the registrant's
retirement plan with respect to its directors.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the
registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized
by the registrant at the time of engagement as non-audit services
and 3) such services are promptly brought to the attention of the
audit committee of the registrant and approved prior to the
completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $45,500 in fiscal 2004 and $5,042 in
fiscal 2003 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not
include any prohibited non-audit services as defined by the
Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal account's independence.
No such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 10. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of August 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances that information required to be
disclosed by registrant in the reports that it files under the
Securities Exchange Act of 1934 (a) is accumulated and
communicated to registrant's management, including its principal
executive officer and principal financial officer, to allow timely
decisions regarding required disclosure, and (b) is recorded,
processed, summarized and reported, within the time periods
specified in the rules and forms adopted by the U.S. Securities
and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
(c) 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)