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
(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: AUGUST 31
Date of reporting period: SEPTEMBER 1, 2004 - FEBRUARY 28, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK INDUSTRIES
- --------------------------------------------------------------------------------
Software 11.1%
- --------------------------------------------------------------------------------
Biotechnology 7.9
- --------------------------------------------------------------------------------
Computers & Peripherals 7.5
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment 5.7
- --------------------------------------------------------------------------------
Communications Equipment 5.6
- --------------------------------------------------------------------------------
Diversified Financial Services 5.4
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies 5.2
- --------------------------------------------------------------------------------
Specialty Retail 5.1
- --------------------------------------------------------------------------------
Industrial Conglomerates 4.8
- --------------------------------------------------------------------------------
Leisure Equipment & Products 3.8
Portfolio holdings and allocations are subject to change. Percentages are as of
February 28, 2005, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Microsoft Corp. 5.4%
- --------------------------------------------------------------------------------
General Electric Co. 4.8
- --------------------------------------------------------------------------------
EMC Corp. 4.2
- --------------------------------------------------------------------------------
Rockwell Collins, Inc. 3.6
- --------------------------------------------------------------------------------
American Express Co. 3.4
- --------------------------------------------------------------------------------
Dell, Inc. 3.3
- --------------------------------------------------------------------------------
Autodesk, Inc. 2.9
- --------------------------------------------------------------------------------
Walt Disney Co. (The) 2.5
- --------------------------------------------------------------------------------
Varian Medical Systems, Inc. 2.5
- --------------------------------------------------------------------------------
Marvell Technology Group Ltd. 2.4
Portfolio holdings and allocations are subject to change. Percentages are as of
February 28, 2005, and are based on net assets.
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER ENTERPRISE FUND
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
SECTOR ALLOCATION
Information Technology 34.5%
Software 11.2
Computers & Peripherals 7.5
Semiconductors & Semiconductor Equipment 5.7
Communications Equipment 5.6
Internet Software & Services 3.0
IT Services 1.5
Consumer Discretionary 19.6
Health Care 16.3
Industrials 13.1
Financials 10.4
Consumer Staples 3.5
Energy 1.7
Telecommunication Services 0.9
Portfolio holdings and allocations are subject to change. Percentages are as of
February 28, 2005, and are based on total market value of common stocks.
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9 | OPPENHEIMER ENTERPRISE 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 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.
10 | OPPENHEIMER ENTERPRISE FUND
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.
11 | OPPENHEIMER ENTERPRISE 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. The following 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 February 28, 2005.
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
12 | OPPENHEIMER ENTERPRISE FUND
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
(9/1/04) (2/28/05) FEBRUARY 28, 2005
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,123.10 $ 7.45
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.80 7.08
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,118.30 11.51
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.98 10.94
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,118.20 11.51
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,013.98 10.94
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,120.80 8.97
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,016.36 8.53
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,124.10 5.54
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,019.59 5.27
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 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended February 28, 2005 are as follows:
CLASS EXPENSE RATIOS
- --------------------------
Class A 1.41%
- --------------------------
Class B 2.18
- --------------------------
Class C 2.18
- --------------------------
Class N 1.70
- --------------------------
Class Y 1.05
The expense ratios reflect voluntary waivers or 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
waivers or reimbursements.
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13 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS February 28, 2005 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--19.5%
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.4%
Scientific Games
Corp., Cl. A 1 101,000 $ 2,597,720
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.8%
eBay, Inc. 1 34,000 1,456,560
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--3.8%
Brunswick Corp. 78,400 3,656,576
- --------------------------------------------------------------------------------
Marvel Enterprises, Inc. 1 192,000 3,383,040
----------------
7,039,616
- --------------------------------------------------------------------------------
MEDIA--3.8%
Univision
Communications,
Inc., Cl. A 1 90,000 2,375,100
- --------------------------------------------------------------------------------
Walt Disney Co. (The) 164,000 4,582,160
----------------
6,957,260
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.8%
Target Corp. 63,200 3,211,824
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--5.1%
Best Buy Co., Inc. 15,000 810,300
- --------------------------------------------------------------------------------
Chico's FAS, Inc. 1 68,400 2,014,380
- --------------------------------------------------------------------------------
Gap, Inc. (The) 175,700 3,747,681
- --------------------------------------------------------------------------------
Urban Outfitters, Inc. 1 65,900 2,740,781
----------------
9,313,142
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--2.8%
Coach, Inc. 1 65,200 3,620,556
- --------------------------------------------------------------------------------
Polo Ralph Lauren Corp. 36,800 1,449,920
----------------
5,070,476
- --------------------------------------------------------------------------------
CONSUMER STAPLES--3.5%
- --------------------------------------------------------------------------------
BEVERAGES--2.1%
PepsiCo, Inc. 71,000 3,824,060
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.4%
Wal-Mart Stores, Inc. 50,600 2,611,466
- --------------------------------------------------------------------------------
ENERGY--1.7%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.7%
Smith International, Inc. 1 47,000 3,020,220
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FINANCIALS--10.4%
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--1.4%
Commerce Bancorp, Inc. 42,300 $ 2,592,144
- --------------------------------------------------------------------------------
CONSUMER FINANCE--1.3%
First Marblehead
Corp. (The) 1 33,500 2,329,925
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--5.4%
American Express Co. 113,500 6,146,025
- --------------------------------------------------------------------------------
Goldman Sachs Group,
Inc. (The) 34,000 3,699,200
----------------
9,845,225
- --------------------------------------------------------------------------------
INSURANCE--2.3%
AMBAC Financial
Group, Inc. 53,700 4,176,786
- --------------------------------------------------------------------------------
HEALTH CARE--16.2%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--7.9%
Amgen, Inc. 1 50,600 3,117,466
- --------------------------------------------------------------------------------
Celgene Corp. 1 67,200 1,839,600
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 39,200 1,995,672
- --------------------------------------------------------------------------------
Genentech, Inc. 1 34,500 1,628,400
- --------------------------------------------------------------------------------
Genzyme Corp.
(General Division) 1 18,400 1,032,056
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 73,000 2,522,150
- --------------------------------------------------------------------------------
Martek Biosciences
Corp. 1 34,900 2,338,300
----------------
14,473,644
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.2%
Boston Scientific Corp. 1 56,000 1,828,960
- --------------------------------------------------------------------------------
Immucor, Inc. 1 105,750 3,141,304
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 124,400 4,469,692
----------------
9,439,956
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.6%
Lincare Holdings, Inc. 1 25,000 1,014,500
- --------------------------------------------------------------------------------
PHARMACEUTICALS--2.5%
Allergan, Inc. 21,600 1,623,888
- --------------------------------------------------------------------------------
Elan Corp. plc, ADR 1 37,600 300,800
- --------------------------------------------------------------------------------
Pfizer, Inc. 103,300 2,715,757
----------------
4,640,445
14 | OPPENHEIMER ENTERPRISE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--13.1%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--3.6%
Rockwell Collins, Inc. 142,000 $ 6,539,100
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--2.5%
Corporate Executive
Board Co. 24,500 1,532,475
- --------------------------------------------------------------------------------
Stericycle, Inc. 1 65,100 2,993,298
----------------
4,525,773
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--4.8%
General Electric Co. 250,000 8,800,000
- --------------------------------------------------------------------------------
MACHINERY--1.2%
Donaldson Co., Inc. 68,200 2,174,898
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--1.0%
Fastenal Co. 31,000 1,812,260
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--34.4%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.6%
Avaya, Inc. 1 95,000 1,330,000
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1 175,500 3,057,210
- --------------------------------------------------------------------------------
Comverse Technology,
Inc. 1 147,400 3,421,154
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 67,000 2,419,370
----------------
10,227,734
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--7.5%
Dell, Inc. 1 150,000 6,013,500
- --------------------------------------------------------------------------------
EMC Corp. 1 600,000 7,596,000
----------------
13,609,500
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--3.0%
VeriSign, Inc. 1 49,000 1,343,580
- --------------------------------------------------------------------------------
Yahoo!, Inc. 1 125,000 4,033,750
----------------
5,377,330
- --------------------------------------------------------------------------------
IT SERVICES--1.5%
Fiserv, Inc. 1 74,200 2,815,148
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.7%
Broadcom Corp., Cl. A 1 90,000 2,902,500
- --------------------------------------------------------------------------------
Marvell Technology
Group Ltd. 1 119,900 4,387,141
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 118,600 3,139,342
----------------
10,428,983
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE--11.1%
Amdocs Ltd. 1 108,000 $ 3,169,800
- --------------------------------------------------------------------------------
Autodesk, Inc. 181,000 5,379,320
- --------------------------------------------------------------------------------
Microsoft Corp. 390,000 9,820,200
- --------------------------------------------------------------------------------
SAP AG, Sponsored ADR 48,200 1,954,510
----------------
20,323,830
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--0.9%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.9%
SpectraSite, Inc. 1 26,800 1,656,240
----------------
Total Common Stocks
(Cost $154,747,851) 181,905,765
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.1%
- --------------------------------------------------------------------------------
Multiplex, Inc., Cv.,
Series C 1,2,3
(Cost $3,999,998) 543,478 69,891
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.1%
- --------------------------------------------------------------------------------
Undivided interest of 0.01% in joint
repurchase agreement (Principal Amount/
Value $1,752,409,000, with a maturity
value of $1,752,535,563) with UBS Warburg
LLC, 2.60%, dated 2/28/05, to be repurchased
at $247,018 on 3/1/05, collateralized by
Federal National Mortgage Assn.,
6%, 2/1/34, with a value of
$1,789,443,338
(Cost $247,000) $ 247,000 247,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $158,994,849) 99.9% 182,222,656
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 176,132
------------------------------
NET ASSETS 100.0% $ 182,398,788
==============================
15 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of February 28, 2005 was $69,891, which represents
0.04% of the Fund's net assets, of which $69,891 is considered restricted. 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 February 28, 2005.
The aggregate fair value of securities of affiliated companies held by the Fund
as of February 28, 2005 amounts to $69,891. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
AUGUST 31, 2004 ADDITIONS REDUCTIONS FEB. 28, 2005
- ----------------------------------------------------------------------------------------------------
Multiplex, Inc., Cv., Series C 543,478 -- -- 543,478
UNREALIZED DIVIDEND
DEPRECIATION INCOME
- ----------------------------------------------------------------------------------------------------
Multiplex, Inc., Cv., Series C $ 3,930,107 $ --
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
February 28, 2005
- -----------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $154,994,851) $ 182,152,765
Affiliated companies (cost $3,999,998) 69,891
---------------
182,222,656
- -----------------------------------------------------------------------------------------------------
Cash 606,969
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 155,205
Shares of beneficial interest sold 122,436
Other 11,972
---------------
Total assets 183,119,238
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 414,381
Shareholder communications 90,935
Trustees' compensation 77,637
Distribution and service plan fees 67,495
Transfer and shareholder servicing agent fees 51,547
Other 18,455
---------------
Total liabilities 720,450
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 182,398,788
===============
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Paid-in capital $ 524,421,747
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 126,480
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (365,377,246)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 23,227,807
---------------
NET ASSETS $ 182,398,788
===============
17 | OPPENHEIMER ENTERPRISE 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 $109,847,847
and 8,665,533 shares of beneficial interest outstanding) $ 12.68
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $ 13.45
- ------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $43,821,926 and 3,739,440 shares of
beneficial interest outstanding) $ 11.72
- ------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $13,365,051 and 1,138,949 shares of
beneficial interest outstanding) $ 11.73
- ------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $1,103,579 and 88,075 shares of
beneficial interest outstanding) $ 12.53
- ------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $14,260,385 and 1,101,006 shares of beneficial interest outstanding) $ 12.95
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended February 28, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends $ 1,675,695
- --------------------------------------------------------------------------------
Interest 38,126
---------------
Total investment income 1,713,821
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 690,969
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 131,467
Class B 229,015
Class C 66,932
Class N 2,391
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 293,802
Class B 111,548
Class C 40,114
Class N 3,411
Class Y 19,029
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 29,665
Class B 22,510
Class C 4,565
Class N 414
Class Y 1,112
- --------------------------------------------------------------------------------
Trustees' compensation 2,710
- --------------------------------------------------------------------------------
Custodian fees and expenses 491
- --------------------------------------------------------------------------------
Other 14,493
---------------
Total expenses 1,664,638
Less reduction to custodian expenses (259)
Less payments and waivers of expenses (155,761)
---------------
Net expenses 1,508,618
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 205,203
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 1,748,464
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 18,967,323
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,920,990
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER ENTERPRISE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
(UNAUDITED) 2004
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 205,203 $ (2,602,893)
- ---------------------------------------------------------------------------------------------------------------
Net realized gain 1,748,464 33,150,760
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 18,967,323 (33,391,546)
----------------------------------
Net increase (decrease) in net assets resulting from operations 20,920,990 (2,843,679)
- ---------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A (4,494,291) (16,438,579)
Class B (7,335,262) (15,321,229)
Class C (916,109) (1,474,060)
Class N 173,025 165,189
Class Y (1,793,156) (8,254,492)
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) 6,555,197 (44,166,850)
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 175,843,591 220,010,441
----------------------------------
End of period (including accumulated net investment income
(loss) of $126,480 and $(78,723), respectively) $ 182,398,788 $ 175,843,591
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.29 $ 11.50 $ 8.91 $ 14.92 $ 39.08 $ 26.37
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 1,2 (.12) 1 (.06) (.09) (.18) (.15)
Net realized and unrealized gain (loss) 1.39 (.09) 1 2.65 (5.92) (21.40) 14.52
-------------------------------------------------------------------------------
Total from investment operations 1.39 (.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 $ 12.68 $ 11.29 $ 11.50 $ 8.91 $ 14.92 $ 39.08
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 12.31% (1.83)% 29.07% (40.28)% (57.56)% 54.89%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 109,848 $ 101,934 $ 120,101 $ 103,105 $ 233,045 $ 624,971
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 110,770 $ 111,924 $ 100,922 $ 166,632 $ 357,113 $ 563,739
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment gain (loss) 0.44% (1.07)% (0.93)% (1.09)% (0.81)% (0.37)%
Total expenses 1.60% 1.66% 1.83% 1.95% 1.33% 1.24%
Expenses after payments and waivers and
reduction to custodian expenses 1.41% 1.44% 1.29% 1.60% N/A 5 N/A 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 123% 103% 150% 160% 142%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
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.
21 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.48 $ 10.76 $ 8.40 $ 14.17 $ 37.57 $ 25.58
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.02) 1 (.20) 1 (.20) (.41) (.30) (.39)
Net realized and unrealized gain (loss) 1.26 (.08) 1 2.56 (5.36) (20.52) 14.04
-------------------------------------------------------------------------------
Total from investment operations 1.24 (.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 $ 11.72 $ 10.48 $ 10.76 $ 8.40 $ 14.17 $ 37.57
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 11.83% (2.60)% 28.10% (40.72)% (57.87)% 53.73%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 43,822 $ 45,904 $ 62,170 $ 52,633 $ 125,772 $ 310,972
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 46,439 $ 54,878 $ 52,441 $ 86,628 $ 181,217 $ 294,487
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.32)% (1.86)% (1.69)% (1.85)% (1.58)% (1.13)%
Total expenses 2.34% 2.53% 2.79% 2.71% 2.10% 2.00%
Expenses after payments and waivers and
reduction to custodian expenses 2.18% 2.23% 2.05% 2.36% N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 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.
22 | OPPENHEIMER ENTERPRISE FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.49 $ 10.77 $ 8.41 $ 14.19 $ 37.61 $ 25.59
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.02) 1 (.20) 1 (.17) (.37) (.32) (.39)
Net realized and unrealized gain (loss) 1.26 (.08) 1 2.53 (5.41) (20.52) 14.07
-------------------------------------------------------------------------------
Total from investment operations 1.24 (.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 $ 11.73 $ 10.49 $ 10.77 $ 8.41 $ 14.19 $ 37.61
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 11.82% (2.60)% 28.06% (40.73)% (57.86)% 53.83%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 13,365 $ 12,790 $ 14,594 $ 11,578 $ 25,468 $ 64,522
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 13,561 $ 13,979 $ 12,521 $ 18,550 $ 37,410 $ 60,868
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.31)% (1.83)% (1.70)% (1.85)% (1.57)% (1.13)%
Total expenses 2.43% 2.59% 2.80% 2.71% 2.10% 2.00%
Expenses after payments and waivers and
reduction to custodian expenses 2.18% 2.20% 2.06% 2.36% N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 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.
23 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.18 $ 11.41 $ 8.87 $ 14.90 $ 17.74
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 2,3 (.15) 3 (.13) (.28) (.01)
Net realized and unrealized gain (loss) 1.35 (.08) 3 2.67 (5.75) (2.83)
-----------------------------------------------------------------------
Total from investment operations 1.35 (.23) 2.54 (6.03) (2.84)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.53 $ 11.18 $ 11.41 $ 8.87 $ 14.90
=======================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 12.08% (2.02)% 28.64% (40.47)% (16.01)%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,104 $ 839 $ 685 $ 456 $ 83
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 976 $ 781 $ 537 $ 249 $ 12
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment gain (loss) 0.03% (1.32)% (1.24)% (1.44)% (0.94)%
Total expenses 2.05% 2.10% 2.09% 2.25% 1.75%
Expenses after payments and waivers and
reduction to custodian expenses 1.70% 1.70% 1.60% 1.90% N/A 6
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 123% 103% 150% 160%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Less than $0.005 per share.
3. Per share amounts calculated based on the average shares outstanding during
the period.
4. 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.
5. Annualized for periods of less than one full year.
6. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER ENTERPRISE FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS Y (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.52 $ 11.67 $ 9.02 $ 15.05 $ 39.32 $ 26.41
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .05 1 (.07) 1 (.10) (.10) (.09) (.04)
Net realized and unrealized gain (loss) 1.38 (.08) 1 2.75 (5.93) (21.60) 14.61
-------------------------------------------------------------------------------
Total from investment operations 1.43 (.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 $ 12.95 $ 11.52 $ 11.67 $ 9.02 $ 15.05 $ 39.32
===============================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 12.41% (1.29)% 29.38% (40.07)% (57.48)% 55.58%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 14,260 $ 14,376 $ 22,461 $ 16,020 $ 25,450 $ 91,656
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 14,418 $ 19,642 $ 16,675 $ 19,590 $ 49,978 $ 80,415
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.81% (0.62)% (0.67)% (0.70)% (0.67)% 0.04%
Total expenses 1.05% 0.98% 1.72% 2.16% 1.36% 4 0.91%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 1.03% 1.19% 1.20% N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 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.
25 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 sixty 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
26 | OPPENHEIMER ENTERPRISE FUND
the supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
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.
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.
As of February 28, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $365,251,667 expiring by
2013. This estimated capital loss carryforward represents carryforward as of the
end of the last fiscal year, increased for losses deferred under tax accounting
rules to the current fiscal year and is increased or decreased by capital losses
or gains realized in the first six months of the current fiscal year. As of
February 28, 2005, it is estimated that the Fund will utilize $1,748,464 of
capital loss carryforward to offset realized capital gains. During the year
ended August 31, 2004, the Fund utilized $16,574,046 of capital loss
carryforward to offset capital gains realized in that fiscal year.
27 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
As of August 31, 2004, the Fund had available for federal income tax purposes
and unused capital loss carryforwards as follows:
EXPIRING
------------------------
2009 $ 30,357,712
2010 257,289,240
2011 79,353,179
-------------
Total $ 367,000,131
=============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
February 28, 2005, the Fund's projected benefit obligations were increased by
$279 and payments of $4,008 were made to retired trustees, resulting in an
accumulated liability of $68,046 as of February 28, 2005.
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 shareholder redemption activity. The Fund pays
interest to its custodian on such cash
28 | OPPENHEIMER ENTERPRISE FUND
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 FEBRUARY 28, 2005 YEAR ENDED AUGUST 31, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
CLASS A
Sold 1,014,356 $ 12,652,395 2,293,436 $ 26,926,960
Redeemed (1,374,478) (17,146,686) (3,712,460) (43,365,539)
-----------------------------------------------------------------
Net decrease (360,122) $ (4,494,291) (1,419,024) $ (16,438,579)
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS B
Sold 245,086 $ 2,847,916 668,395 $ 7,283,657
Redeemed (885,600) (10,183,178) (2,068,855) (22,604,886)
-----------------------------------------------------------------
Net decrease (640,514) $ (7,335,262) (1,400,460) $ (15,321,229)
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS C
Sold 101,339 $ 1,180,613 280,027 $ 3,055,473
Redeemed (181,164) (2,096,722) (416,728) (4,529,533)
-----------------------------------------------------------------
Net decrease (79,825) $ (916,109) (136,701) $ (1,474,060)
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS N
Sold 26,188 $ 331,387 41,224 $ 468,639
Redeemed (13,176) (158,362) (26,171) (303,450)
-----------------------------------------------------------------
Net increase 13,012 $ 173,025 15,053 $ 165,189
=================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 152,079 $ 1,949,498 631,010 $ 7,496,024
Redeemed (299,162) (3,742,654) (1,306,902) (15,750,516)
-----------------------------------------------------------------
Net decrease (147,083) $ (1,793,156) (675,892) $ (8,254,492)
=================================================================
29 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended February 28, 2005, were
$46,226,917 and $55,703,899, 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, 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 six months ended February 28, 2005, the Fund paid
$314,291 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum 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
30 | OPPENHEIMER ENTERPRISE FUND
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at February 28,
2005 for Class B, Class C and Class N shares were $931,322, $334,228 and
$11,948, 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
- -------------------------------------------------------------------------------------------------------------
February 28, 2005 $ 27,856 $ 8,702 $ 56,782 $ 1,998 $ 653
- -------------------------------------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS 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 February 28,
2005, OFS waived $99,957, $37,448, $16,665 and $1,691 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 February 28, 2005, 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.
Information concerning restricted securities is as follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST FEBRUARY 28, 2005 DEPRECIATION
- -----------------------------------------------------------------------------------------------
Multiplex, Inc., Cv., Series C 2/9/01 $ 3,999,998 $ 69,891 $ 3,930,107
31 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. 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, 30 present and former Directors or Trustees and
8 present and former officers of the funds. This complaint, initially filed in
the U.S. District Court for the Southern District of New York on January 10,
2005 and amended on March 4, 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. 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.
32 | OPPENHEIMER ENTERPRISE 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 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 voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing 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.
33 | OPPENHEIMER ENTERPRISE 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. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. 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 11. 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 February 28, 2005,
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 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Enterprise Fund
By: ____________________________
John V. Murphy
Chief Executive Officer
Date: April 11, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: ____________________________
John V. Murphy
Chief Executive Officer
Date: April 11, 2005
By: ____________________________
Brian W. Wixted
Chief Financial Officer
Date: April 11, 2005