UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-3694
Oppenheimer Gold & Special Minerals Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: June 30
Date of reporting period: July 1, 2004 - December 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Companhia Vale do Rio Doce, Sponsored ADR 5.4%
- --------------------------------------------------------------------------------
Companhia de Minas Buenaventura SA, Sponsored ADR, B Shares 5.2
- --------------------------------------------------------------------------------
AngloGold Ashanti Ltd., Sponsored ADR 4.8
- --------------------------------------------------------------------------------
Impala Platinum Holdings Ltd. 4.7
- --------------------------------------------------------------------------------
Glamis Gold Ltd. 4.3
- --------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 4.2
- --------------------------------------------------------------------------------
Newcrest Mining Ltd. 3.7
- --------------------------------------------------------------------------------
Newmont Mining Corp. (Holding Co.) 3.6
- --------------------------------------------------------------------------------
IAMGOLD Corp. 3.4
- --------------------------------------------------------------------------------
Placer Dome, Inc. 3.2
Portfolio holdings and allocations are subject to change. Percentages are as of
December 31, 2004, and are based on net assets.
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
GEOGRAPHIC HOLDINGS
Canada 44.7%
United States 21.7
South Africa 14.6
Brazil 5.4
Peru 5.2
Australia 3.6
United Kingdom 2.1
Hong Kong 1.9
Ireland 0.8
Portfolio holdings and allocations are subject to change. Percentages are as of
December 31, 2004, and are based on total investments.
- --------------------------------------------------------------------------------
9 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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 7/19/83. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Unless otherwise noted, Class A returns include
the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 11/1/95. Unless
otherwise noted, 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. The ending account
value shown in the graph is net of the applicable 1% contingent deferred sales
charge. Class B shares are subject to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/1/95. Unless
otherwise noted, 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.
10 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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 one-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 December 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
12 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
described in 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 EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(7/1/04) (12/31/04) DECEMBER 31, 2004
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,185.30 $ 7.00
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,018.75 6.46
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,180.30 11.34
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.78 10.49
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,180.50 11.01
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.08 10.18
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,183.00 8.70
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.19 8.04
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 annualized expense ratios based on
the 6-month period ended December 31, 2004 are as follows:
CLASS EXPENSE RATIOS
- --------------------------
Class A 1.27%
- --------------------------
Class B 2.06
- --------------------------
Class C 2.00
- --------------------------
Class N 1.58
- --------------------------------------------------------------------------------
13 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS December 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--98.9%
- --------------------------------------------------------------------------------
ENERGY--3.3%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.3%
FMC Technologies,
Inc. 1 61,500 $ 1,980,300
- --------------------------------------------------------------------------------
Global Industries Ltd. 1 170,000 1,409,300
- --------------------------------------------------------------------------------
Unit Corp. 1 40,000 1,528,400
----------------
4,918,000
- --------------------------------------------------------------------------------
OIL & GAS--2.0%
ATP Oil & Gas Corp. 1 120,000 2,229,600
- --------------------------------------------------------------------------------
Plains Exploration &
Production Co. 1 80,000 2,080,000
- --------------------------------------------------------------------------------
Whiting Petroleum
Corp. 1 110,100 3,330,525
----------------
7,640,125
- --------------------------------------------------------------------------------
MATERIALS--95.6%
- --------------------------------------------------------------------------------
CHEMICALS--0.4%
Westlake Chemical
Corp. 50,000 1,670,000
- --------------------------------------------------------------------------------
METALS & MINING--95.2%
Agnico-Eagle Mines
Ltd. 350,900 4,824,875
- --------------------------------------------------------------------------------
Alcan, Inc. 2 68,400 3,354,336
- --------------------------------------------------------------------------------
Alcoa, Inc. 223,700 7,028,654
- --------------------------------------------------------------------------------
Aleris International,
Inc. 1 244,500 4,136,940
- --------------------------------------------------------------------------------
Anglo American
Platinum Corp. Ltd. 28,673 585,293
- --------------------------------------------------------------------------------
Anglo American
Platinum Corp. Ltd. 155,626 5,718,142
- --------------------------------------------------------------------------------
AngloGold Ashanti
Ltd., Sponsored ADR 501,293 18,222,001
- --------------------------------------------------------------------------------
Antofagasta plc 308,800 6,646,024
- --------------------------------------------------------------------------------
Barrick Gold Corp. 2 391,900 9,491,818
- --------------------------------------------------------------------------------
Bema Gold Corp. 1,3 2,220,000 6,793,200
- --------------------------------------------------------------------------------
Cambior, Inc. 1 2,200,000 5,894,085
- --------------------------------------------------------------------------------
Celtic Resources
Holdings plc 1 400,000 3,122,912
- --------------------------------------------------------------------------------
Centerra Gold, Inc. 1 450,000 8,290,907
- --------------------------------------------------------------------------------
Coeur d'Alene
Mines Corp. 1 1,095,500 4,305,315
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
METALS & MINING Continued
Companhia de
Minas Buenaventura
SA, Sponsored ADR,
B Shares 860,000 $ 19,694,000
- --------------------------------------------------------------------------------
Companhia Vale do
Rio Doce, Sponsored
ADR 838,000 20,430,440
- --------------------------------------------------------------------------------
Eldorado Gold Corp. 1 1,860,600 5,512,774
- --------------------------------------------------------------------------------
Falconbridge Ltd. 160,000 4,153,069
- --------------------------------------------------------------------------------
First Quantum
Minerals Ltd. 1 618,800 9,632,033
- --------------------------------------------------------------------------------
FNX Mining Co., Inc. 1 638,300 2,759,583
- --------------------------------------------------------------------------------
Foundation Coal
Holdings, Inc. 1 36,400 839,384
- --------------------------------------------------------------------------------
Freeport-McMoRan
Copper & Gold, Inc.,
Cl. B 420,000 16,056,600
- --------------------------------------------------------------------------------
Fujian Zijin Mining
Industry Co. Ltd. 15,600,000 7,074,762
- --------------------------------------------------------------------------------
Glamis Gold Ltd. 1 955,200 16,391,232
- --------------------------------------------------------------------------------
Gold Fields Ltd.,
Sponsored ADR 540,000 6,739,200
- --------------------------------------------------------------------------------
Goldcorp, Inc. 310,000 4,662,400
- --------------------------------------------------------------------------------
Golden Star
Resources Ltd. 1 1,452,800 5,825,728
- --------------------------------------------------------------------------------
Harmony Gold
Mining Co. Ltd.,
Sponsored ADR 723,000 6,702,210
- --------------------------------------------------------------------------------
IAMGOLD Corp. 5 1,971,000 13,028,310
- --------------------------------------------------------------------------------
IAMGOLD Corp. 5 150,000 1,002,796
- --------------------------------------------------------------------------------
Impala Platinum
Holdings Ltd. 208,800 17,752,864
- --------------------------------------------------------------------------------
Ivanhoe Mines Ltd. 1 1,100,000 7,931,000
- --------------------------------------------------------------------------------
Kinross Gold Corp. 1 1,475,290 10,386,042
- --------------------------------------------------------------------------------
Meridian Gold, Inc. 1 383,900 7,286,138
- --------------------------------------------------------------------------------
Meridian Gold, Inc. 1 480,000 9,105,600
- --------------------------------------------------------------------------------
Newcrest Mining Ltd. 1,014,850 13,882,188
- --------------------------------------------------------------------------------
Newmont Mining
Corp. (Holding Co.) 2 304,005 13,500,862
- --------------------------------------------------------------------------------
Northern Orion
Resources, Inc. 1 280,000 815,591
14 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
METALS & MINING Continued
NovaGold Resources,
Inc. 1 690,000 $ 5,347,500
- --------------------------------------------------------------------------------
Peter Hambro
Mining plc 1 160,000 1,562,800
- --------------------------------------------------------------------------------
Placer Dome, Inc. 647,300 12,208,078
- --------------------------------------------------------------------------------
Randgold Resources
Ltd., ADR 1 665,800 7,590,120
- --------------------------------------------------------------------------------
Royal Gold, Inc. 2 550,000 10,032,000
- --------------------------------------------------------------------------------
Southwestern
Resources Corp. 1 267,100 2,764,295
- --------------------------------------------------------------------------------
Wheaton River
Minerals Ltd. 1 2,300,000 7,486,542
- --------------------------------------------------------------------------------
Yamana Gold, Inc. 1 1,489,600 4,475,700
----------------
361,046,343
----------------
Total Common Stocks
(Cost $310,092,310) 375,274,468
----------------
UNITS
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.2%
- --------------------------------------------------------------------------------
Eldorado Gold Corp.
Wts., Exp. 8/25/05 1 240,000 66,102
- --------------------------------------------------------------------------------
Goldcorp, Inc. Wts.,
Exp. 4/30/07 1,4 7,500 63,675
- --------------------------------------------------------------------------------
Nevsun Resources Ltd.
Wts., Exp. 12/19/08 1 70,000 78,491
VALUE
UNITS SEE NOTE 1
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES Continued
- --------------------------------------------------------------------------------
Wheaton River
Minerals Ltd. Wts.:
Exp. 5/30/07 1 125,000 $ 246,213
Exp. 8/25/08 1 150,000 206,568
----------------
Total Rights, Warrants
and Certificates (Cost $213,334) 661,049
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--1.3%
- --------------------------------------------------------------------------------
Undivided interest of 0.44% in joint repurchase
agreement (Principal Amount/Value $1,103,300,000,
with a maturity value of $1,103,498,594) with
UBS Warburg LLC, 2.16%, dated 12/31/04, to be
repurchased at $4,848,873 on 1/3/05,
collateralized by Federal National Mortgage
Assn., 5%, 3/1/34, with a value of
$1,127,561,486 (Cost $4,848,000) $ 4,848,000 4,848,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $315,153,644) 100.4% 380,783,517
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.4) (1,611,705)
------------------------------
NET ASSETS 100.0% $ 379,171,812
==============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. A sufficient amount of liquid assets has been designated to cover outstanding
written call options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE
SUBJECT TO CALL DATES PRICE RECEIVED SEE NOTE 1
- ----------------------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 1,000 2/21/05 $ 15.00 $ 61,249 $ 20,000
Alcan, Inc. 500 1/24/05 45.00 50,999 205,000
Barrick Gold Corp. 1,000 1/24/05 25.00 48,998 30,000
Barrick Gold Corp. 1,000 1/24/05 22.50 55,184 180,000
Newmont Mining Corp.
(Holding Co.) 500 1/24/05 45.00 83,556 42,500
Newmont Mining Corp.
(Holding Co.) 1,000 1/24/05 50.00 94,248 5,000
Royal Gold, Inc. 2,000 1/24/05 17.50 107,781 190,000
Royal Gold, Inc. 1,000 4/18/05 20.00 75,618 95,000
-------------------------
$ 577,631 $ 767,500
=========================
15 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
3. A sufficient amount of securities has been designated to cover outstanding
written put options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE
SUBJECT TO PUT DATES PRICE RECEIVED SEE NOTE 1
- ----------------------------------------------------------------------------------------------------
AMCOL International Corp. 500 3/21/05 $ 15.00 $ 44,298 $ --
AngloGold Ashanti Ltd.,
Sponsored ADR 500 1/24/05 35.00 23,249 17,500
AngloGold Ashanti Ltd.,
Sponsored ADR 1,000 4/18/05 30.00 116,148 45,000
Apex Silver Mines Ltd. 500 1/24/05 15.00 22,889 --
Apex Silver Mines Ltd. 1,000 1/24/05 17.50 111,997 75,000
Glamis Gold Ltd. 490 1/24/05 20.00 59,779 134,750
Glamis Gold Ltd. 500 2/21/05 20.00 73,893 145,000
Glamis Gold Ltd. 1,000 2/21/05 17.50 98,128 110,000
Harmony Gold Mining Co.
Ltd., Sponsored ADR 500 2/21/05 10.00 34,499 52,500
IAMGOLD Corp. 500 3/21/05 7.50 53,499 57,500
Ivanhoe Mines Ltd. 1,000 3/21/05 5.00 30,299 --
Placer Dome, Inc. 1,000 3/21/05 17.50 80,498 60,000
Tiffany & Co. 500 2/21/05 30.00 98,498 27,500
-------------------------
$ 847,674 $ 724,750
=========================
4. Illiquid security. The aggregate value of illiquid securities as of December
31, 2004 was $63,675, which represents 0.02% of the Fund's net assets. See Note
7 of Notes to Financial Statements.
5. The Fund holds securities which have been issued by the same entity and that
trade on separate exchanges.
- --------------------------------------------------------------------------------
GEOGRAPHIC HOLDINGS
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE
OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
Canada $ 170,084,681 44.7%
United States 82,566,000 21.7
South Africa 55,719,710 14.6
Brazil 20,430,440 5.4
Peru 19,694,000 5.2
Australia 13,882,188 3.6
United Kingdom 8,208,824 2.1
Hong Kong 7,074,762 1.9
Ireland 3,122,912 0.8
---------------------------------
Total $ 380,783,517 100.0%
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
December 31, 2004
- ------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------
Investments, at value (cost $315,153,644)--see accompanying statement of investments $ 380,783,517
- ------------------------------------------------------------------------------------------------------
Cash 304,474
- ------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 861,427
Interest and dividends 192,238
Other 6,951
---------------
Total assets 382,148,607
- ------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $1,425,305)
- --see accompanying statement of investments 1,492,250
- ------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 1,038,266
Distribution and service plan fees 229,460
Transfer and shareholder servicing agent fees 70,979
Shareholder communications 58,788
Trustees' compensation 29,453
Investments purchased 20,010
Other 37,589
---------------
Total liabilities 2,976,795
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 379,171,812
===============
- ------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------
Paid-in capital $ 306,151,568
- ------------------------------------------------------------------------------------------------------
Accumulated net investment loss (8,157,344)
- ------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 15,610,789
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 65,566,799
---------------
NET ASSETS $ 379,171,812
===============
17 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $252,686,844
and 13,596,255 shares of beneficial interest outstanding) $ 18.59
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 19.72
- -------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $63,178,165 and 3,475,474 shares
of beneficial interest outstanding) $ 18.18
- -------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $58,291,993 and 3,212,996 shares
of beneficial interest outstanding) $ 18.14
- -------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $5,014,810 and 272,943 shares of
beneficial interest outstanding) $ 18.37
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended December 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $86,514) $ 1,958,009
- --------------------------------------------------------------------------------
Interest 63,502
---------------
Total investment income 2,021,511
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 1,294,286
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 275,905
Class B 304,580
Class C 268,787
Class N 10,737
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 255,792
Class B 74,024
Class C 54,345
Class N 5,829
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 34,080
Class B 11,860
Class C 6,401
Class N 684
- --------------------------------------------------------------------------------
Custodian fees and expenses 41,473
- --------------------------------------------------------------------------------
Trustees' compensation 6,324
- --------------------------------------------------------------------------------
Other 27,016
---------------
Total expenses 2,672,123
Less reduction to custodian expenses (2,791)
Less payments and waivers of expenses (17)
---------------
Net expenses 2,669,315
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (647,804)
19 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- -----------------------------------------------------------------------------------------------------
Net realized gain on:
Investments (including premiums on options exercised) $ 9,155,330
Closing and expiration of option contracts written 3,100,082
Foreign currency transactions 4,031,702
--------------
Net realized gain 16,287,114
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 39,295,679
Translation of assets and liabilities denominated in foreign currencies 2,525,352
--------------
Net change in unrealized appreciation 41,821,031
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 57,460,341
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2004 JUNE 30,
(UNAUDITED) 2004
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net investment loss $ (647,804) $ (1,973,393)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain 16,287,114 48,604,521
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 41,821,031 4,999,790
----------------------------------
Net increase in net assets resulting from operations 57,460,341 51,630,918
- ---------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (5,465,989) (7,773,469)
Class B (900,623) (2,018,639)
Class C (919,499) (1,584,832)
Class N (88,623) (111,401)
- ---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (12,252,400) (4,608,810)
Class B (3,132,535) (1,416,397)
Class C (2,879,443) (1,068,266)
Class N (226,219) (67,330)
- ---------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 25,779,250 54,822,865
Class B 660,249 7,547,612
Class C 5,546,230 17,117,407
Class N 802,563 2,392,497
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Total increase 64,383,302 114,862,155
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 314,788,510 199,926,355
----------------------------------
End of period (including accumulated net investment loss of
$8,157,344 and $134,806, respectively) $ 379,171,812 $ 314,788,510
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2004 JUNE 30,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 16.89 $ 13.79 $ 13.37 $ 9.91 $ 8.80 $ 9.85
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.01) 1 (.07) 1 .07 .19 .14 .06
Net realized and unrealized gain (loss) 3.09 4.37 1 .50 3.74 1.20 (.91)
----------------------------------------------------------------------------------------
Total from investment operations 3.08 4.30 .57 3.93 1.34 (.85)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.43) (.75) (.15) (.47) (.23) (.20)
Distributions from net realized gain (.95) (.45) -- -- -- --
----------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.38) (1.20) (.15) (.47) (.23) (.20)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.59 $ 16.89 $ 13.79 $ 13.37 $ 9.91 $ 8.80
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 18.53% 29.93% 4.35% 3 41.56% 15.60% (8.83)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 252,687 $ 206,696 $ 131,183 $ 117,794 $ 57,294 $ 61,298
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 230,937 $ 195,859 $ 128,266 $ 76,482 $ 54,347 $ 72,512
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.12)% (0.40)% 0.46% 0.34% 1.82% 0.66%
Total expenses 1.27% 5,6 1.27% 5,6 1.40% 5 1.45% 5,6 1.34% 5 1.41% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 108% 134% 60% 25% 36%
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 less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on Fund distributions or the redemption of Fund shares.
3. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 4.28%.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2004 JUNE 30,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 16.48 $ 13.50 $ 13.10 $ 9.73 $ 8.63 $ 9.67
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) 1 (.21) 1 (.01) .16 .09 .01
Net realized and unrealized gain (loss) 3.00 4.28 1 .47 3.62 1.16 (.92)
----------------------------------------------------------------------------------------
Total from investment operations 2.92 4.07 .46 3.78 1.25 (.91)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.64) (.06) (.41) (.15) (.13)
Distributions from net realized gain (.95) (.45) -- -- -- --
----------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.22) (1.09) (.06) (.41) (.15) (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.18 $ 16.48 $ 13.50 $ 13.10 $ 9.73 $ 8.63
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 18.03% 28.91% 3.57% 3 40.46% 14.76% (9.52)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 63,178 $ 56,502 $ 41,426 $ 36,585 $ 16,990 $ 15,907
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 60,727 $ 57,639 $ 38,243 $ 23,133 $ 14,554 $ 16,624
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.90)% (1.19)% (0.34)% (0.51)% 0.98% (0.17)%
Total expenses 2.06% 5,6 2.06% 5,6 2.18% 5 2.22% 5,6 2.11% 5 2.19% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 108% 134% 60% 25% 36%
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 less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on Fund distributions or the redemption of Fund shares.
3. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 3.50%.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2004 JUNE 30,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 16.47 $ 13.51 $ 13.11 $ 9.74 $ 8.66 $ 9.69
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) 1 (.20) 1 .09 .15 .13 .01
Net realized and unrealized gain (loss) 3.00 4.27 1 .38 3.63 1.12 (.91)
----------------------------------------------------------------------------------------
Total from investment operations 2.92 4.07 .47 3.78 1.25 (.90)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.66) (.07) (.41) (.17) (.13)
Distributions from net realized gain (.95) (.45) -- -- -- --
----------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.25) (1.11) (.07) (.41) (.17) (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.14 $ 16.47 $ 13.51 $ 13.11 $ 9.74 $ 8.66
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 18.05% 28.90% 3.63% 3 40.46% 14.71% (9.42)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 58,292 $ 47,810 $ 25,899 $ 17,526 $ 8,344 $ 6,279
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 53,643 $ 44,168 $ 21,672 $ 11,090 $ 6,714 $ 6,579
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.85)% (1.11)% (0.26)% (0.38)% 1.01% (0.13)%
Total expenses 2.00% 5 1.99% 5,6 2.13% 5 2.22% 5,6 2.11% 5 2.19% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 108% 134% 60% 25% 36%
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 less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on Fund distributions or the redemption of Fund shares.
3. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 3.56%.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
SIX MONTHS YEAR
ENDED ENDED
DECEMBER 31, 2004 JUNE 30,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 16.69 $ 13.68 $ 13.31 $ 9.89 $ 9.11
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.04) 2 (.13) 2 .01 .47 (.06)
Net realized and unrealized gain 3.04 4.33 2 .53 3.40 .84
---------------------------------------------------------------------------
Total from investment operations 3.00 4.20 .54 3.87 .78
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.37) (.74) (.17) (.45) --
Distributions from net realized gain (.95) (.45) -- -- --
---------------------------------------------------------------------------
Total dividends and/or distributions to shareholders (1.32) (1.19) (.17) (.45) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.37 $ 16.69 $ 13.68 $ 13.31 $ 9.89
===========================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 18.30% 29.40% 4.17% 4 40.97% 8.56%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 5,015 $ 3,781 $ 1,419 $ 130 $ 1
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 4,291 $ 2,857 $ 775 $ 34 $ 1
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) (0.43)% (0.71)% 0.13% 1.87% (2.09)%
Total expenses 1.58% 1.62% 1.80% 1.69% 1.11%
Expenses after payments and waivers and
reduction to custodian expenses N/A 6,7 N/A 6,7 1.69% N/A 6,7 N/A 6
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 41% 108% 134% 60% 25%
1. For the period from March 1, 2001 (inception of offering) to June 30, 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 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. For the year ended June 30, 2003, 0% of the Fund's total return consists of a
voluntary reimbursement by the Manager for a realized loss on investments not
meeting the Fund's investment restrictions, and another 0.07% consists of a gain
on investments not meeting the Fund's investment restrictions. Excluding these
items, the total return would have been 4.10%.
5. Annualized for periods of less than one full year.
6. Reduction to custodian expenses less than 0.01%.
7. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Gold & Special Minerals Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Fund's investment objective is to seek
capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class N shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B, Class C and Class N shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class N shares are sold only through retirement plans. Retirement plans
that offer Class N shares may impose charges on those accounts. All classes of
shares have identical rights and voting privileges with respect to the Fund in
general and exclusive voting rights on matters that affect that class alone.
Earnings, net assets and net asset value per share may differ 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. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The Fund assesses a 2% fee on the proceeds of fund shares that are redeemed
(either by selling or exchanging to another Oppenheimer fund) within 30 days of
their purchase. The fee, which is retained by the Fund, is accounted for as an
addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. 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
26 | OPPENHEIMER GOLD & SPECIAL MINERALS 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.
27 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
At December 31, 2004 the Fund will not utilize any capital loss
carryforward to offset realized capital gains. During the year ended June 30,
2004, the Fund did not utilize any capital loss carryforward.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
December 31, 2004, the Fund's projected benefit obligations were increased by
$2,043 resulting in an accumulated liability of $20,971 as of December 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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated share-
28 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
holder redemption activity. The Fund pays interest to its custodian on such cash
overdrafts at a rate equal to the Federal Funds Rate plus 0.50%. The Reduction
to Custodian Expenses line item, if applicable, represents earnings on cash
balances maintained by the Fund during the period. Such interest expense and
other custodian fees may be paid with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
SIX MONTHS ENDED DECEMBER 31, 2004 YEAR ENDED JUNE 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
CLASS A
Sold 2,932,633 $ 54,875,898 9,143,688 $ 167,740,128
Dividends and/or
distributions reinvested 803,481 14,422,496 496,368 9,778,451
Redeemed (2,376,277) (43,519,144) 1 (6,913,367) (122,695,714)
-----------------------------------------------------------------
Net increase 1,359,837 $ 25,779,250 2,726,689 $ 54,822,865
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS B
Sold 470,920 $ 8,462,942 1,951,802 $ 35,619,578
Dividends and/or
distributions reinvested 197,784 3,475,029 154,954 2,990,617
Redeemed (621,529) (11,277,722) 1 (1,746,193) (31,062,583)
-----------------------------------------------------------------
Net increase 47,175 $ 660,249 360,563 $ 7,547,612
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS C
Sold 550,879 $ 10,037,525 2,881,536 $ 51,615,696
Dividends and/or
distributions reinvested 172,550 3,024,851 99,688 1,922,988
Redeemed (412,839) (7,516,146) 1 (1,996,342) (36,421,277)
-----------------------------------------------------------------
Net increase 310,590 $ 5,546,230 984,882 $ 17,117,407
=================================================================
29 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
SIX MONTHS ENDED DECEMBER 31, 2004 YEAR ENDED JUNE 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
CLASS N
Sold 149,745 $ 2,793,017 232,615 $ 4,367,770
Dividends and/or
distributions reinvested 14,862 263,812 9,048 176,533
Redeemed (118,133) (2,254,266) 1 (118,946) (2,151,806)
---------------------------------------------------------------
Net increase 46,474 $ 802,563 122,717 $ 2,392,497
===============================================================
1. Net of redemption fees of $3,011, $752, $695, and $60 for Class A, Class B,
Class C and Class N, respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended December 31, 2004, were
$161,904,787 and $142,527,023, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million, and 0.60% of average annual net assets in excess of $800
million.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended December 31, 2004, the Fund paid
$379,016 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
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
30 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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 December 31,
2004 for Class B, Class C and Class N shares were $1,554,723, $748,971 and
$54,582, respectively. Fees incurred by the Fund under the plans are detailed in
the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------------
December 31, 2004 $ 74,832 $ 4,458 $ 88,927 $ 40,566 $ 5,637
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. During the six months ended December 31, 2004, OFS waived
$4, $1 and $12 for Class A, Class B and Class N shares, respectively. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation or
depreciation.
31 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS Continued
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of December 31, 2004, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Contracts subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market does
not exist.
Written option activity for the six months ended December 31, 2004 was as
follows:
CALL OPTIONS PUT OPTIONS
----------------------------- -----------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
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Options outstanding as of
June 30, 2004 17,400 $ 1,556,267 16,000 $ 1,204,544
Options written 12,500 1,080,861 34,400 3,088,199
Options closed or expired (14,791) (1,403,491) (37,100) (3,108,500)
Options exercised (7,109) (656,006) (4,310) (336,569)
--------------------------------------------------------
Options outstanding as of
December 31, 2004 8,000 $ 577,631 8,990 $ 847,674
========================================================
32 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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7. ILLIQUID SECURITIES
As of December 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities.
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8. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 31 present and former Directors or Trustees and
9 present and former officers of the funds. This complaint, filed in the U.S.
District Court for the Southern District of New York on January 10, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the complaint alleges 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 assets of the funds to make
those payments in violation of the Investment Company Act of 1940 and the
Investment Advisers Act of 1940. Also, like those prior complaints, the
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds under the Investment Company Act of 1940 and at
common law. The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting of all
fees paid, and an award of attorneys' fees and litigation expenses.
The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability, and they have retained
legal counsel to defend such suits. The Oppenheimer defendants believe that it
is premature to render any opinion as to the likelihood of an outcome
unfavorable to them and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
33 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file new Form N-PX, with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. The Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
34 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
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 December 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)