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 811-3346
OPPENHEIMER DISCIPLINED ALLOCATION FUND
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: OCTOBER 31
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Date of reporting period: NOVEMBER 1, 2004 - APRIL 30, 2005
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Media 5.7%
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Software 5.5
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Diversified Financial Services 4.8
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Aerospace & Defense 4.7
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Oil & Gas 3.4
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Pharmaceuticals 3.4
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Insurance 3.3
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Commercial Services & Supplies 2.3
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Tobacco 2.3
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Semiconductors & Semiconductor Equipment 2.0
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Liberty Media Corp., Cl. A 2.7%
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UnitedGlobalCom, Inc., Cl. A 2.6
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Take-Two Interactive Software, Inc. 2.4
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Altria Group, Inc. 2.3
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Cendant Corp. 2.2
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Raytheon Co. 2.0
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BP plc, ADR 1.9
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Citigroup, Inc. 1.7
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Honeywell International, Inc. 1.6
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IDT Corp., Cl. B 1.5
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on net assets.
For up-to-date Top 10 Fund Holdings, please visit www.oppenheimerfunds.com.
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9 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
TOP HOLDINGS AND ALLOCATIONS
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PORTFOLIO ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Stocks 49.3%
Bonds and Notes 48.6
Cash Equivalents 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on total value of investments.
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10 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES
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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 9/16/85. 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 10/2/95. 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. 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 5/1/96. 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.
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.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended April 30, 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 in
12 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(11/1/04) (4/30/05) APRIL 30, 2005
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Class A Actual $1,000.00 $1,041.50 $ 5.48
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Class A Hypothetical 1,000.00 1,019.44 5.42
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Class B Actual 1,000.00 1,036.90 9.95
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Class B Hypothetical 1,000.00 1,015.08 9.84
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Class C Actual 1,000.00 1,036.80 10.00
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Class C Hypothetical 1,000.00 1,015.03 9.89
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Class N Actual 1,000.00 1,038.70 7.66
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Class N Hypothetical 1,000.00 1,017.31 7.58
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 April 30, 2005 are as follows:
CLASS EXPENSE RATIOS
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Class A 1.08%
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Class B 1.96
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Class C 1.97
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Class N 1.51
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13 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS April 30, 2005 / Unaudited
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--55.8%
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CONSUMER DISCRETIONARY--7.7%
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HOTELS, RESTAURANTS & LEISURE--0.8%
McDonald's Corp. 33,900 $ 993,609
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HOUSEHOLD DURABLES--0.4%
WCI Communities, Inc. 1 16,600 465,298
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INTERNET & CATALOG RETAIL--0.8%
IAC/InterActiveCorp 1 49,000 1,065,260
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MEDIA--5.7%
Liberty Media Corp., Cl. A 339,400 3,407,576
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Liberty Media International, Inc., Cl. A 1 13,938 578,009
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UnitedGlobalCom, Inc., Cl. A 1 369,850 3,310,158
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7,295,743
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CONSUMER STAPLES--3.7%
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BEVERAGES--0.7%
Constellation Brands, Inc., Cl. A 1 17,200 906,612
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FOOD & STAPLES RETAILING--0.7%
Wal-Mart Stores, Inc. 18,600 876,804
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TOBACCO--2.3%
Altria Group, Inc. 44,600 2,898,554
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ENERGY--4.1%
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ENERGY EQUIPMENT & SERVICES--0.7%
Halliburton Co. 20,400 848,436
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OIL & GAS--3.4%
BP plc, ADR 39,800 2,423,820
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Kinder Morgan, Inc. 7,700 588,742
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LUKOIL, Sponsored ADR 10,400 1,409,200
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4,421,762
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FINANCIALS--11.2%
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COMMERCIAL BANKS--2.0%
Bank of America Corp. 24,102 1,085,554
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Wachovia Corp. 13,988 715,906
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Wells Fargo & Co. 12,800 767,232
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2,568,692
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DIVERSIFIED FINANCIAL SERVICES--4.8%
Alliance Capital Management Holding LP 8,100 364,014
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Capital One Financial Corp. 15,000 1,063,350
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Citigroup, Inc. 45,277 2,126,208
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JPMorgan Chase & Co. 19,500 692,055
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Lehman Brothers Holdings, Inc. 15,900 1,458,348
14 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
VALUE
SHARES SEE NOTE 1
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DIVERSIFIED FINANCIAL SERVICES Continued
Morgan Stanley 7,400 $ 389,388
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6,093,363
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INSURANCE--3.3%
American International Group, Inc. 6,700 340,695
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Aspen Insurance Holdings Ltd. 14,500 395,850
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Assured Guaranty Ltd. 40,500 771,930
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Everest Re Group Ltd. 7,900 649,380
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Genworth Financial, Inc., Cl. A 63,800 1,783,210
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Phoenix Cos., Inc. (The) 27,100 307,043
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4,248,108
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THRIFTS & MORTGAGE FINANCE--1.1%
Countrywide Financial Corp. 18,300 662,277
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Freddie Mac 11,700 719,784
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1,382,061
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HEALTH CARE--6.3%
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BIOTECHNOLOGY--1.4%
MedImmune, Inc. 1 27,200 690,064
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Wyeth 24,000 1,078,560
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1,768,624
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HEALTH CARE EQUIPMENT & SUPPLIES--0.5%
Boston Scientific Corp. 1 22,600 668,508
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HEALTH CARE PROVIDERS & SERVICES--1.0%
Manor Care, Inc. 10,600 353,510
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Tenet Healthcare Corp. 1 77,600 928,872
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1,282,382
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PHARMACEUTICALS--3.4%
GlaxoSmithKline plc, ADR 18,900 955,395
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Pfizer, Inc. 45,900 1,247,103
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Schering-Plough Corp. 2 44,800 934,976
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Watson Pharmaceuticals, Inc. 1 38,000 1,140,000
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4,277,474
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INDUSTRIALS--9.0%
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AEROSPACE & DEFENSE--4.7%
Honeywell International, Inc. 58,300 2,084,808
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Orbital Sciences Corp. 1 131,300 1,223,716
15 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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VALUE
SHARES SEE NOTE 1
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AEROSPACE & DEFENSE Continued
Raytheon Co. 69,200 $ 2,602,612
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5,911,136
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COMMERCIAL SERVICES & SUPPLIES--2.3%
Cendant Corp. 139,400 2,775,454
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Corinthian Colleges, Inc. 1 12,800 181,888
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2,957,342
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ELECTRICAL EQUIPMENT--0.1%
GrafTech International Ltd. 1 41,100 156,591
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INDUSTRIAL CONGLOMERATES--1.9%
General Electric Co. 24,500 886,900
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Tyco International Ltd. 49,600 1,552,976
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2,439,876
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INFORMATION TECHNOLOGY--9.7%
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COMMUNICATIONS EQUIPMENT--0.0%
Geotek Communications, Inc., Series B, Escrow Shares 3, 4 100 --
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COMPUTERS & PERIPHERALS--1.3%
Dell, Inc. 1 23,500 818,505
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Hewlett-Packard Co. 43,100 882,257
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1,700,762
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ELECTRONIC EQUIPMENT & INSTRUMENTS--0.4%
Flextronics International Ltd. 1 44,700 498,405
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INTERNET SOFTWARE & SERVICES--0.1%
Net2Phone, Inc. 1 118,500 206,190
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IT SERVICES--0.4%
CSG Systems International, Inc. 1 27,900 479,601
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SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--2.0%
Freescale Semiconductor, Inc., Cl. A 1 62,500 1,170,000
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Intel Corp. 19,300 453,936
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MEMC Electronic Materials, Inc. 1 82,100 963,033
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2,586,969
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SOFTWARE--5.5%
Computer Associates International, Inc. 121 3,255
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Compuware Corp. 1 60,800 361,760
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Microsoft Corp. 63,300 1,601,490
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Novell, Inc. 1 146,000 862,860
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Oracle Corp. 1 47,100 544,476
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Synopsys, Inc. 1 32,200 529,368
16 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
VALUE
SHARES SEE NOTE 1
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SOFTWARE Continued
Take-Two Interactive Software, Inc. 1 131,550 $ 3,095,372
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6,998,581
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MATERIALS--0.7%
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CHEMICALS--0.5%
Praxair, Inc. 14,300 669,669
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PAPER & FOREST PRODUCTS--0.2%
Bowater, Inc. 8,100 263,169
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TELECOMMUNICATION SERVICES--1.5%
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DIVERSIFIED TELECOMMUNICATION SERVICES--1.5%
IDT Corp., Cl. B 1 141,400 1,988,084
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UTILITIES--1.9%
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ELECTRIC UTILITIES--1.9%
AES Corp. (The) 1 115,200 1,852,416
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Reliant Energy, Inc. 1 55,200 561,384
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2,413,800
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Total Common Stocks (Cost $62,682,186) 71,331,465
PRINCIPAL
AMOUNT
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ASSET-BACKED SECURITIES--6.8%
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Aesop Funding II LLC, Automobile Asset-Backed Certificates,
Series 2005-1A, Cl. A2, 3.05%, 4/20/08 3,5 $ 80,000 79,872
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Bank One Auto Securitization Trust, Automobile Receivable Certificates,
Series 2003-1, Cl. A2, 1.29%, 8/21/06 15,848 15,842
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BMW Vehicle Owner Trust, Automobile Loan Certificates:
Series 2004-A, Cl. A2, 1.88%, 10/25/06 126,227 125,907
Series 2005-A, Cl. A2, 3.65%, 12/26/07 290,000 289,866
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Capital Auto Receivables Asset Trust, Automobile Mtg.-Backed Nts.,
Series 2004-2, Cl. A3, 3.58%, 1/15/09 270,000 266,836
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Centex Home Equity Co. LLC, Home Equity Loan Asset-Backed Certificates:
Series 2004-A, Cl. AF1, 2.03%, 6/25/19 13,077 13,056
Series 2004-D, Cl. AF1, 2.98%, 4/25/20 3 95,149 94,646
Series 2005-B, Cl. AF1, 4.02%, 3/26/35 3 88,032 88,015
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Chase Funding Mortgage Loan Asset-Backed Certificates, Home Equity
Mtg. Obligations:
Series 2002-4, Cl. 1A3, 3.44%, 4/25/23 3,718 3,713
Series 2003-1, Cl. 1A3, 3.14%, 7/25/23 41,428 41,360
Series 2003-4, Cl. 1A2, 2.138%, 7/25/18 108,973 108,716
Series 2003-5, Cl. 1A2, 2.451%, 11/25/18 60,000 59,696
Series 2004-1, Cl. 1A2, 2.427%, 6/25/19 110,000 109,345
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Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through
Certificates, Series 2002-A, Cl. A4, 4.24%, 9/15/08 38,448 38,608
17 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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ASSET-BACKED SECURITIES Continued
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CIT Equipment Collateral, Equipment Receivable-Backed Nts.,
Series 2004-DFS, Cl. A2, 2.66%, 11/20/06 3 $ 190,000 $ 188,897
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Citibank Credit Card Issuance Trust, Credit Card Receivable Nts.:
Series 2001-A6, Cl. A6, 5.65%, 6/16/08 250,000 255,218
Series 2002-A3, Cl. A3, 4.40%, 5/15/07 200,000 200,232
Series 2003-C4, Cl. C4, 5%, 6/10/15 40,000 40,025
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CitiFinancial Mortgage Securities, Inc., Home Equity Collateralized Mtg.
Obligations, Series 2003-3, Cl. AF1, 3.14%, 8/25/33 5 24,074 24,088
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Citigroup Mortgage Loan Trust, Inc., Home Equity Mtg. Obligations,
Series 2004-OPT1, Cl. A1B, 2.388%, 9/1/34 3 32,214 32,173
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Countrywide Asset-Backed Certificates, Inc., Home Equity Asset-Backed
Certificates, Series 2002-4, Cl. A1, 3.39%, 2/25/33 5 26,420 26,750
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DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates:
Series 2001-D, Cl. A4, 3.78%, 2/6/07 47,433 47,505
Series 2002-A, Cl. A4, 4.49%, 10/6/08 90,138 90,550
Series 2003-B, Cl. A2, 1.61%, 7/10/06 83,688 83,659
Series 2004-B, Cl. A2, 2.48%, 2/8/07 3 84,121 83,942
Series 2004-C, Cl. A2, 2.62%, 6/8/07 380,000 378,661
Series 2005-A, Cl. A2, 3.17%, 9/8/07 3 320,000 319,259
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Equity One ABS, Inc., Home Equity Mtg. Pass-Through Certificates,
Series 2004-3, Cl. AF2, 3.80%, 7/25/34 50,000 49,631
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Ford Credit Auto Owner Trust, Automobile Loan Pass-Through Certificates:
Series 2004-A, Cl. A2, 2.13%, 10/15/06 243,984 243,185
Series 2005-A, Cl. A3, 3.48%, 11/17/08 190,000 188,820
Series 2005-B, Cl. A2, 3.77%, 9/15/07 210,000 210,174
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Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts.,
Series 2003-3, Cl. A1, 1.50%, 1/15/08 96,349 96,007
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Honda Auto Receivables Owner Trust, Automobile Receivable Obligations:
Series 2003-3, Cl. A2, 1.52%, 4/21/06 18,701 18,693
Series 2003-4, Cl. A2, 1.58%, 7/17/06 93,026 92,902
Series 2005-1, Cl. A2, 3.21%, 5/21/07 3 130,000 129,743
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Litigation Settlement Monetized Fee Trust, Asset-Backed Certificates,
Series 2001-1A, Cl. A1, 8.33%, 4/25/31 3 646,835 705,451
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M&I Auto Loan Trust, Automobile Loan Certificates:
Series 2002-1, Cl. A3, 2.49%, 10/22/07 44,101 44,074
Series 2003-1, Cl. A2, 1.60%, 7/20/06 857 857
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MBNA Credit Card Master Note Trust, Credit Card Receivables,
Series 2003-C7, Cl. C7, 4.304%, 3/15/16 5 360,000 382,034
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National City Auto Receivables Trust, Automobile Receivable Obligations,
Series 2004-A, Cl. A2, 1.50%, 2/15/07 81,415 81,207
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Nissan Auto Lease Trust, Automobile Lease Obligations, Series 2004-A,
Cl. A2, 2.55%, 1/15/07 180,000 179,284
18 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES Continued
- -------------------------------------------------------------------------------------------------------------
Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.:
Series 2002-A, Cl. A4, 4.28%, 10/16/06 $ 22,623 $ 22,662
Series 2003-C, Cl. A2, 1.62%, 4/17/06 8,433 8,432
Series 2004-A, Cl. A2, 1.40%, 7/17/06 90,540 90,262
- -------------------------------------------------------------------------------------------------------------
Option One Mortgage Loan Trust, Home Equity Mtg. Obligations,
Series 2004-3, Cl. A2, 3.17%, 11/25/34 3,5 65,728 65,776
- -------------------------------------------------------------------------------------------------------------
Popular ABS Mortgage Pass-Through Trust, Home Equity
Pass-Through Certificates:
Series 2004-5, Cl. A F2, 3.735%, 11/10/34 3 70,000 69,410
Series 2005-1, Cl. A F2, 3.914%, 5/25/35 60,000 59,575
Series 2005-2, Cl. A F2, 4.415%, 4/25/35 3 90,000 90,000
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Structured Asset Securities Corp., Collateralized Mtg. Obligations,
Mtg. Pass-Through Certificates, Series 2005-4XS, Cl. 3A1, 5.18%, 3/26/35 457,722 460,803
- -------------------------------------------------------------------------------------------------------------
Toyota Auto Receivables Owner Trust, Automobile Mtg.-Backed Obligations,
Series 2002-B, Cl. A4, 4.39%, 5/15/09 386,963 388,429
- -------------------------------------------------------------------------------------------------------------
USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.:
Series 2002-1, Cl. A3, 2.41%, 10/16/06 11,015 11,016
Series 2004-1, Cl. A2, 1.43%, 9/15/06 176,674 176,332
Series 2004-2, Cl. A2, 2.41%, 2/15/07 185,150 184,659
Series 2004-3, Cl. A2, 2.79%, 6/15/07 180,000 179,389
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Volkswagen Auto Lease Trust, Automobile Lease Asset-Backed Securities:
Series 2004-A, Cl. A2, 2.47%, 1/22/07 220,000 219,081
Series 2005-A, Cl. A2, 3.52%, 4/20/07 230,000 229,854
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Volkswagen Auto Loan Enhanced Trust, Automobile Loan Receivable
Certificates, Series 2003-2, Cl. A2, 1.55%, 6/20/06 40,384 40,345
- -------------------------------------------------------------------------------------------------------------
Wachovia Auto Owner Trust, Automobile Receivable Nts., Series 2004-B,
Cl. A2, 2.40%, 5/21/07 160,000 159,448
- -------------------------------------------------------------------------------------------------------------
Wells Fargo Home Equity Trust, Collateralized Mtg. Obligations,
Series 2004-2, Cl. AI1B, 2.94%, 9/25/18 267,644 265,783
- -------------------------------------------------------------------------------------------------------------
WFS Financial Owner Trust, Automobile Receivable Obligations,
Series 2002-2, Cl. A4, 4.50%, 2/20/10 80,000 80,501
- -------------------------------------------------------------------------------------------------------------
Whole Auto Loan Trust, Automobile Loan Receivable Certificates:
Series 2002-1, Cl. A3, 2.60%, 8/15/06 118,924 118,836
Series 2003-1, Cl. A2A, 1.40%, 4/15/06 30,676 30,670
Series 2004-1, Cl. A2A, 2.59%, 5/15/07 230,000 228,972
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Total Asset-Backed Securities (Cost $8,674,583) 8,708,734
19 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS--28.3%
- -------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--23.9%
- -------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED--23.6%
Federal Home Loan Mortgage Corp.:
6%, 7/1/24-9/1/34 $ 2,515,708 $ 2,583,896
6.50%, 4/1/18 6 108,571 113,112
6.50%, 7/1/28-4/1/34 261,438 272,588
7%, 6/1/29-11/1/32 1,044,036 1,103,507
7%, 5/1/35 6 346,000 365,138
8%, 4/1/16 102,327 109,186
9%, 8/1/22-5/1/25 29,217 31,903
- -------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment
Conduit Multiclass Pass-Through Certificates:
Series 1669, Cl. G, 6.50%, 2/15/23 36,581 36,738
Series 2034, Cl. Z, 6.50%, 2/15/28 85,045 88,844
Series 2053, Cl. Z, 6.50%, 4/15/28 97,964 102,027
Series 2055, Cl. ZM, 6.50%, 5/15/28 132,294 137,415
Series 2075, Cl. D, 6.50%, 8/15/28 266,320 277,293
Series 2080, Cl. Z, 6.50%, 8/15/28 83,222 86,306
Series 2387, Cl. PD, 6%, 4/15/30 147,024 149,358
Series 2466, Cl. PD, 6.50%, 4/15/30 2,153 2,152
Series 2498, Cl. PC, 5.50%, 10/15/14 18,031 18,138
Series 2500, Cl. FD, 3.454%, 3/15/32 5 46,435 46,587
Series 2526, Cl. FE, 3.354%, 6/15/29 5 56,652 57,100
Series 2550, Cl. QK, 4.50%, 4/15/22 52,596 52,658
Series 2551, Cl. FD, 3.354%, 1/15/33 5 45,460 45,815
Series 2583, Cl. KA, 5.50%, 3/15/22 350,414 353,696
- -------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 176, Cl. IO, 8.518%, 6/1/26 7 81,941 16,344
Series 183, Cl. IO, 6.30%, 4/1/27 7 126,685 24,963
Series 184, Cl. IO, 11.02%, 12/1/26 7 133,622 26,200
Series 192, Cl. IO, 12.572%, 2/1/28 7 38,711 7,282
Series 200, Cl. IO, 12.325%, 1/1/29 7 46,970 9,304
Series 2130, Cl. SC, 13.484%, 3/15/29 7 105,634 8,681
Series 2796, Cl. SD, 20.552%, 7/15/26 7 137,847 13,998
Series 2920, Cl. S, 30.158%, 1/15/35 7 919,601 55,647
- -------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Principal-Only Stripped
Mtg.-Backed Security, Series 176, Cl. PO, 5.423%, 6/1/26 8 45,751 39,588
- -------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
5%, 6/1/18-7/1/18 763,869 770,589
5%, 5/1/20-5/1/35 6 4,424,000 4,409,290
5.50%, 5/1/20-5/12/35 6 6,228,000 6,314,077
5.50%, 2/1/33-1/1/34 1,593,010 1,610,629
6%, 5/1/20 6 1,182,000 1,224,848
6%, 3/1/23 898,138 921,845
6.50%, 3/1/26-10/1/30 106,169 110,829
6.50%, 5/14/31 6 3,897,000 4,052,880
20 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED Continued
Federal National Mortgage Assn.: Continued
7%, 11/1/17-2/25/22 $ 512,810 $ 532,860
7%, 5/1/31 6 639,000 674,744
7.50%, 1/1/08-8/1/29 127,182 135,626
8.50%, 7/1/32 10,560 11,495
- -------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates:
Trust 1993-87, Cl. Z, 6.50%, 6/25/23 222,507 232,302
Trust 1996-35, Cl. Z, 7%, 7/25/26 339,220 355,954
Trust 1998-63, Cl. PG, 6%, 3/25/27 36,031 36,099
Trust 2001-50, Cl. NE, 6%, 8/25/30 84,992 86,039
Trust 2001-70, Cl. LR, 6%, 9/25/30 81,438 82,863
Trust 2001-72, Cl. NH, 6%, 4/25/30 63,923 64,831
Trust 2001-74, Cl. PD, 6%, 5/25/30 24,875 25,144
Trust 2002-77, Cl. WF, 3.37%, 12/18/32 5 71,043 71,511
Trust 2002-94, Cl. MA, 4.50%, 8/25/09 88,576 88,581
Trust 2002-T1, Cl. A2, 7%, 11/25/31 293,468 310,526
Trust 2003-10, Cl. HP, 5%, 2/25/18 350,000 353,290
Trust 2004-101, Cl. BG, 5%, 1/25/20 236,000 238,730
- -------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Interest-Only Stripped Mtg.-Backed Security:
Trust 319, Cl. 2, 6.798%, 2/1/32 7 88,649 17,446
Trust 1993-223, Cl. P M, 3.265%, 10/25/23 7 77,567 8,014
Trust 2002-38, Cl. SO, 16.272%, 4/25/32 7 109,668 7,762
Trust 2002-47, Cl. NS, 12.53%, 4/25/32 7 172,594 17,396
Trust 2002-51, Cl. S, 12.782%, 8/25/32 7 158,559 15,984
Trust 2002-77, Cl. IS, 14.451%, 12/18/32 7 186,842 19,681
- -------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Trust 222, Cl. 2, 6.33%, 6/1/23 7 269,606 54,472
Trust 240, Cl. 2, 8.98%, 9/1/23 7 417,375 82,461
Trust 247, Cl. 2, 8.011%, 10/1/23 7 470,231 107,013
Trust 252, Cl. 2, 2.429%, 11/1/23 7 205,484 41,821
Trust 254, Cl. 2, 5.659%, 1/1/24 7 100,169 20,591
Trust 273, Cl. 2, 8.745%, 7/1/26 7 59,271 11,701
Trust 321, Cl. 2, 1.12%, 3/1/32 7 858,947 172,635
Trust 329, Cl. 2, 9.378%, 1/1/33 7 129,531 27,062
Trust 331, Cl. 9, (13.349)%, 12/1/32 7 241,142 47,579
Trust 333, Cl. 2, 10.28%, 3/1/33 7 931,170 196,958
Trust 334, Cl. 17, (5.194)%, 2/1/33 7 143,192 28,048
Trust 2001-81, Cl. S, 17.012%, 1/25/32 7 89,358 9,066
Trust 2002-9, Cl. MS, 14.101%, 3/25/32 7 124,589 13,193
Trust 2002-52, Cl. SD, 8.349%, 9/25/32 7 198,978 19,348
Trust 2002-77, Cl. SH, 22.494%, 12/18/32 7 115,063 11,578
Trust 2004-54, Cl. DS, 17.68%, 11/25/30 7 165,498 13,433
Trust 2005-6, Cl. SE, 27.136%, 2/25/35 7 611,956 38,942
Trust 2005-19, Cl. SA, 26.97%, 3/25/35 7 2,513,413 154,227
Trust 2005-40, Cl. SA, 27.355%, 5/25/35 7 568,000 33,377
21 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED Continued
Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed
Security, Trust 1993-184, Cl. M, 7.391%, 9/25/23 8 $ 86,553 $ 73,987
-------------
30,194,821
- -------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--0.3%
Government National Mortgage Assn.:
7%, 4/15/09-2/15/24 149,660 157,813
7.50%, 3/15/09 82,713 86,369
8%, 5/15/17 55,651 60,498
8.50%, 8/15/17-12/15/17 37,142 40,453
- -------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security:
Series 2001-21, Cl. SB, 9.217%, 1/16/27 7 256,562 24,656
Series 2002-76, Cl. SY, 6.698%, 12/16/26 7 342,159 35,192
Series 2004-11, Cl. SM, 4.425%, 1/17/30 7 132,495 11,141
-------------
416,122
- -------------------------------------------------------------------------------------------------------------
NON-AGENCY--4.4%
- -------------------------------------------------------------------------------------------------------------
COMMERCIAL--4.1%
Banc of America Commercial Mortgage, Inc., Commercial Mtg.
Pass-Through Certificates, Series 2004-6, Cl. A3, 4.512%, 12/10/42 210,000 208,198
- -------------------------------------------------------------------------------------------------------------
Bank of America Mortgage Securities, Inc., Collateralized Mtg.
Obligations Pass-Through Certificates:
Series 2004-E, Cl. 2A9, 3.712%, 6/25/34 136,102 136,146
Series 2004-G, Cl. 2A1, 2.469%, 8/25/34 5 47,453 47,402
Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 270,614 275,341
Series 2004-8, Cl. 5A1, 6.50%, 5/25/32 226,241 233,028
- -------------------------------------------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mtg.
Obligations, Series 2005-PWR7, Cl. A2, 4.945%, 2/11/41 100,000 101,454
- -------------------------------------------------------------------------------------------------------------
Countrywide Alternative Loan Trust, Collateralized Mtg. Obligations,
Series 2004-J9, Cl. 1A1, 3.20%, 10/25/34 5 199,535 199,752
- -------------------------------------------------------------------------------------------------------------
First Union National Bank/Lehman Brothers/Bank of America Commercial
Mtg. Trust, Pass-Through Certificates, Series 1998-C2, Cl. A2, 6.56%, 11/18/35 140,000 147,760
- -------------------------------------------------------------------------------------------------------------
GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations,
Series 2005-C1, Cl. A3, 4.578%, 6/10/48 90,000 89,661
- -------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Commercial Mtg.
Obligations, Series 2004-C3, Cl. A4, 4.547%, 12/10/41 140,000 139,118
- -------------------------------------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities, Inc., Commercial Mtg.
Pass-Through Certificates, Series 1997-C1, Cl. A3, 6.869%, 7/15/29 87,524 91,709
- -------------------------------------------------------------------------------------------------------------
Greenwich Capital Commercial Funding Corp., Commercial Mtg.
Pass-Through Certificates, Series 2005-G G3, Cl. A2, 4.305%, 8/10/42 190,000 188,884
- -------------------------------------------------------------------------------------------------------------
GS Mortgage Securities Corp. II, Commercial Mtg. Pass-Through
Certificates, Series 2004-C1, Cl. A1, 3.659%, 10/10/28 148,425 145,250
- -------------------------------------------------------------------------------------------------------------
GSR Mortgage Loan Trust, Collateralized Mtg. Obligations,
Series 04-12, Cl. 3A1, 4.504%, 12/25/34 3,5 272,950 272,478
22 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
COMMERCIAL Continued
Mastr Alternative Loan Trust, Pass-Through Collateralized Mtg. Obligations,
Series 2004-6, Cl. 10A1, 6%, 7/25/34 $ 365,039 $ 375,118
- -------------------------------------------------------------------------------------------------------------
Mastr Asset Securitization Trust, Pass-Through Collateralized Mtg.
Obligations, Series 2004-9, Cl. A3, 4.70%, 8/25/34 5 543,496 544,169
- -------------------------------------------------------------------------------------------------------------
Nomura Asset Securities Corp., Commercial Mtg. Pass-Through
Certificates, Series 1998-D6, Cl. A1B, 6.59%, 3/15/30 160,000 169,949
- -------------------------------------------------------------------------------------------------------------
Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through
Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 192,000 217,778
- -------------------------------------------------------------------------------------------------------------
Wachovia Bank Commercial Mortgage Trust, Commercial Mtg. Obligations:
Series 2005-C16, Cl. A2, 4.38%, 10/15/41 270,000 268,911
Series 2005-C17, Cl. A2, 4.763%, 3/15/42 300,000 303,404
- -------------------------------------------------------------------------------------------------------------
Washington Mutual Mortgage Securities Corp., Collateralized Mtg.
Pass-Through Certificates, Series 2005-AR5, Cl. A1, 4.852%, 4/25/35 290,000 291,205
- -------------------------------------------------------------------------------------------------------------
Wells Fargo Mortgage-Backed Securities Trust, Collateralized Mtg. Obligations:
Series 2004-DD, Cl. 2A1, 4.544%, 1/25/35 5 410,422 412,127
Series 2004-N, Cl. A10, 3.803%, 8/25/34 3 242,652 243,103
Series 2004-W, Cl. A2, 4.616%, 11/25/34 5 127,413 127,280
-------------
5,229,225
- -------------------------------------------------------------------------------------------------------------
RESIDENTIAL--0.3%
Countrywide Alternative Loan Trust, Collateralized Mtg. Obligations,
Series 2005-J1, Cl. 3A1, 6.50%, 8/25/32 330,405 335,694
-------------
Total Mortgage-Backed Obligations (Cost $36,050,177) 36,175,862
- -------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--5.1%
- -------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Unsec. Nts.:
3.625%, 9/15/06 1,065,000 1,063,318
6.625%, 9/15/09 470,000 515,980
- -------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. Unsec. Nts.:
3.75%, 5/17/07 460,000 458,121
4.25%, 7/15/07 550,000 554,132
7.25%, 1/15/10 9 1,350,000 1,523,283
7.25%, 5/15/30 170,000 225,912
- -------------------------------------------------------------------------------------------------------------
Tennessee Valley Authority Bonds:
5.375%, 11/13/08 109,000 113,790
7.125%, 5/1/30 203,000 267,188
Series A, 6.79%, 5/23/12 950,000 1,086,299
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
STRIPS, 2.99%, 2/15/10 10 125,000 104,196
STRIPS, 4.96%, 2/15/16 10 171,000 106,484
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 2.50%, 9/30/06-10/31/06 410,000 404,246
-------------
Total U.S. Government Obligations (Cost $6,425,908) 6,422,949
23 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--0.1%
- -------------------------------------------------------------------------------------------------------------
United Mexican States Nts., 7.50%, 1/14/12 (Cost $110,895) $ 110,000 $ 122,375
- -------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--14.8%
- -------------------------------------------------------------------------------------------------------------
Aetna, Inc., 7.375% Sr. Unsec. Nts., 3/1/06 250,000 256,887
- -------------------------------------------------------------------------------------------------------------
AIG SunAmerica Global Financing II, 7.60% Sr. Sec. Nts., 6/15/05 11 100,000 100,470
- -------------------------------------------------------------------------------------------------------------
Albertson's, Inc.:
8% Sr. Unsec. Debs., 5/1/31 125,000 146,174
8.70% Sr. Unsec. Debs., 5/1/30 64,000 80,020
- -------------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 8.875% Sr. Nts., Series B, 4/1/08 110,000 113,575
- -------------------------------------------------------------------------------------------------------------
Allstate Financial Global Funding LLC, 4.25% Nts., 9/10/08 11 50,000 49,821
- -------------------------------------------------------------------------------------------------------------
Allstate Life Global Funding II, 3.50% Nts., 7/30/07 65,000 64,205
- -------------------------------------------------------------------------------------------------------------
American Express Centurion Bank, 4.375% Nts., 7/30/09 250,000 250,413
- -------------------------------------------------------------------------------------------------------------
American Honda Finance Corp., 3.85% Nts., 11/6/08 11 180,000 176,907
- -------------------------------------------------------------------------------------------------------------
AT&T Wireless Services, Inc., 8.125% Sr. Unsec. Nts., 5/1/12 205,000 242,701
- -------------------------------------------------------------------------------------------------------------
AXA, 8.60% Unsec. Sub. Nts., 12/15/30 190,000 254,386
- -------------------------------------------------------------------------------------------------------------
Bank of America Corp., 4.875% Sr. Unsec. Nts., 1/15/13 3,000 3,033
- -------------------------------------------------------------------------------------------------------------
Bankers Trust Corp., 7.375% Unsec. Sub. Nts., 5/1/08 20,000 21,793
- -------------------------------------------------------------------------------------------------------------
Beazer Homes USA, Inc., 8.625% Sr. Unsec. Nts., 5/15/11 115,000 122,475
- -------------------------------------------------------------------------------------------------------------
Boeing Capital Corp., 5.75% Sr. Nts., 2/15/07 21,000 21,582
- -------------------------------------------------------------------------------------------------------------
British Telecommunications plc, 8.625% Bonds, 12/15/30 125,000 171,209
- -------------------------------------------------------------------------------------------------------------
Canadian National Railway Co., 4.25% Nts., 8/1/09 32,000 31,886
- -------------------------------------------------------------------------------------------------------------
CenterPoint Energy, Inc.:
5.875% Sr. Nts., 6/1/08 135,000 139,819
8.125% Unsec. Nts., Series B, 7/15/05 60,000 60,567
- -------------------------------------------------------------------------------------------------------------
Chancellor Media CCU, 8% Sr. Unsec. Nts., 11/1/08 230,000 248,685
- -------------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp., 7.50% Sr. Nts., 6/15/14 120,000 126,300
- -------------------------------------------------------------------------------------------------------------
CIGNA Corp., 7.40% Unsec. Nts., 5/15/07 295,000 312,128
- -------------------------------------------------------------------------------------------------------------
CIT Group, Inc., 7.75% Sr. Unsec. Unsub. Nts., 4/2/12 200,000 233,532
- -------------------------------------------------------------------------------------------------------------
Citigroup, Inc., 6.625% Unsec. Sub. Nts., 6/15/32 260,000 299,934
- -------------------------------------------------------------------------------------------------------------
Citizens Communications Co., 9.25% Sr. Nts., 5/15/11 60,000 65,250
- -------------------------------------------------------------------------------------------------------------
ConAgra Foods, Inc., 6% Nts., 9/15/06 130,000 133,209
- -------------------------------------------------------------------------------------------------------------
Conectiv, Inc., 5.30% Unsec. Unsub. Nts., Series B, 6/1/05 33,000 33,040
- -------------------------------------------------------------------------------------------------------------
Constellation Energy Group, Inc., 7% Unsec. Nts., 4/1/12 205,000 230,241
- -------------------------------------------------------------------------------------------------------------
Cox Communications, Inc., 7.875% Unsec. Nts., 8/15/09 30,000 33,448
- -------------------------------------------------------------------------------------------------------------
Cox Enterprises, Inc., 7.375% Unsec. Debs., 6/15/09 11 130,000 140,466
- -------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston (USA), Inc., 5.50% Nts., 8/15/13 290,000 303,196
- -------------------------------------------------------------------------------------------------------------
CSX Corp., 6.25% Unsec. Nts., 10/15/08 120,000 127,083
- -------------------------------------------------------------------------------------------------------------
D.R. Horton, Inc., 6.125% Nts., 1/15/14 110,000 111,437
- -------------------------------------------------------------------------------------------------------------
DaimlerChrysler NA Holdings Corp., 7.20% Unsec. Nts., 9/1/09 285,000 302,326
24 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES Continued
- -------------------------------------------------------------------------------------------------------------
Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 $ 110,000 $ 130,155
- -------------------------------------------------------------------------------------------------------------
Delphi Corp., 6.55% Nts., 6/15/06 145,000 136,300
- -------------------------------------------------------------------------------------------------------------
Deutsche Telekom International Finance BV, 8.50% Unsub. Nts., 6/15/10 155,000 179,951
- -------------------------------------------------------------------------------------------------------------
Dominion Resources, Inc., 8.125% Sr. Unsub. Nts., 6/15/10 135,000 155,653
- -------------------------------------------------------------------------------------------------------------
DTE Energy Co., 6.45% Sr. Unsub. Nts., 6/1/06 120,000 123,055
- -------------------------------------------------------------------------------------------------------------
Duke Capital LLC, 5.668% Nts., 8/15/14 135,000 139,094
- -------------------------------------------------------------------------------------------------------------
EOP Operating LP, 8.10% Unsec. Nts., 8/1/10 205,000 235,508
- -------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 6.625% Sr. Unsec. Nts., 9/1/08 160,000 170,002
- -------------------------------------------------------------------------------------------------------------
FedEx Corp., 2.65% Unsec. Nts., 4/1/07 275,000 267,387
- -------------------------------------------------------------------------------------------------------------
FirstEnergy Corp.:
5.50% Sr. Unsub. Nts., Series A, 11/15/06 105,000 106,981
7.375% Sr. Unsub. Nts., Series C, 11/15/31 120,000 141,874
- -------------------------------------------------------------------------------------------------------------
Ford Holdings, Inc., 9.30% Unsec. Unsub. Debs., 3/1/30 55,000 52,711
- -------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
6.50% Unsec. Nts., 1/25/07 125,000 125,038
7.375% Nts., 10/28/09 55,000 52,959
- -------------------------------------------------------------------------------------------------------------
France Telecom SA:
8% Sr. Unsec. Nts., 3/1/11 5 135,000 155,764
8.75% Sr. Unsec. Nts., 3/1/31 5 45,000 61,108
- -------------------------------------------------------------------------------------------------------------
Franklin Resources, Inc., 3.70% Nts., 4/15/08 80,000 79,236
- -------------------------------------------------------------------------------------------------------------
Gap, Inc. (The):
6.90% Nts., 9/15/07 3 135,000 140,641
10.05% Unsub. Nts., 12/15/08 5 29,000 33,538
- -------------------------------------------------------------------------------------------------------------
General Mills, Inc., 3.875% Nts., 11/30/07 190,000 188,361
- -------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
7.25% Nts., 3/2/11 250,000 224,485
8% Bonds, 11/1/31 210,000 177,134
- -------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The), 5.70% Sr. Unsec. Nts., 9/1/12 280,000 293,990
- -------------------------------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. (The), 2.375% Nts., 6/1/06 70,000 68,624
- -------------------------------------------------------------------------------------------------------------
HCA Healthcare Corp., 6.91% Sr. Sub. Nts., 6/15/05 98,000 98,346
- -------------------------------------------------------------------------------------------------------------
HCA, Inc., 7.125% Sr. Unsec. Nts., 6/1/06 22,000 22,686
- -------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), 6.35% Nts., 6/15/10 340,000 333,002
- -------------------------------------------------------------------------------------------------------------
Hilton Hotels Corp., 7.95% Sr. Nts., 4/15/07 95,000 101,364
- -------------------------------------------------------------------------------------------------------------
HSBC Finance Corp., 4.75% Sr. Unsec. Nts., 7/15/13 305,000 302,149
- -------------------------------------------------------------------------------------------------------------
IPALCO Enterprises, Inc., 8.375% Sr. Sec. Nts., 11/14/08 3,5 110,000 118,800
- -------------------------------------------------------------------------------------------------------------
iStar Financial, Inc., 4.875% Sr. Unsec. Nts., Series B, 1/15/09 175,000 173,622
- -------------------------------------------------------------------------------------------------------------
J. C. Penney Co., Inc., 7.40% Nts., 4/1/37 130,000 130,000
- -------------------------------------------------------------------------------------------------------------
John Hancock Global Funding II, 7.90% Nts., 7/2/10 11 111,000 128,404
- -------------------------------------------------------------------------------------------------------------
Kinder Morgan, Inc., 6.50% Sr. Unsec. Nts., 9/1/12 150,000 164,125
- -------------------------------------------------------------------------------------------------------------
Kraft Foods, Inc., 5.25% Nts., 6/1/07 300,000 305,897
25 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES Continued
- -------------------------------------------------------------------------------------------------------------
Kroger Co. (The), 7.80% Sr. Nts., 8/15/07 $ 180,000 $ 192,854
- -------------------------------------------------------------------------------------------------------------
Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 210,000 212,313
- -------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 7% Nts., 2/1/08 165,000 177,009
- -------------------------------------------------------------------------------------------------------------
Lehman Brothers, Inc., 6.625% Sr. Sub. Nts., 2/15/08 25,000 26,526
- -------------------------------------------------------------------------------------------------------------
Lennar Corp., 5.95% Sr. Unsec. Nts., 3/1/13 125,000 131,134
- -------------------------------------------------------------------------------------------------------------
Liberty Media Corp., 5.70% Sr. Unsec. Nts., 5/15/13 150,000 142,060
- -------------------------------------------------------------------------------------------------------------
Liberty Property Trust, 5.65% Sr. Nts., 8/15/14 130,000 134,255
- -------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp., 7.65% Unsec. Unsub. Debs., 5/1/16 94,000 114,375
- -------------------------------------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc., 5.375% Sr. Unsec. Nts., 3/15/07 175,000 178,137
- -------------------------------------------------------------------------------------------------------------
May Department Stores Co.:
3.95% Nts., 7/15/07 111,000 109,987
7.90% Unsec. Debs., 10/15/07 105,000 112,745
- -------------------------------------------------------------------------------------------------------------
MBNA Corp., 7.50% Sr. Nts., Series F, 3/15/12 230,000 262,033
- -------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp., 6.875% Unsec. Unsub. Nts., 11/1/06 34,000 35,318
- -------------------------------------------------------------------------------------------------------------
Mellon Bank NA, 4.75% Unsec. Sub. Nts., 12/15/14 240,000 238,155
- -------------------------------------------------------------------------------------------------------------
Merck & Co., Inc., 4.726% Nts., 2/22/06 11 245,000 246,375
- -------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5% Sr. Unsub. Nts., Series C, 2/3/14 295,000 296,952
- -------------------------------------------------------------------------------------------------------------
MidAmerican Energy Holdings Co., 5.875% Sr. Unsec. Nts., 10/1/12 265,000 279,555
- -------------------------------------------------------------------------------------------------------------
Morgan Stanley, 6.60% Nts., 4/1/12 155,000 169,978
- -------------------------------------------------------------------------------------------------------------
National City Bank, 6.20% Sub. Nts., 12/15/11 17,000 18,463
- -------------------------------------------------------------------------------------------------------------
Nationwide Financial Services, Inc., 5.90% Nts., 7/1/12 95,000 101,699
- -------------------------------------------------------------------------------------------------------------
NiSource Finance Corp., 7.875% Sr. Unsec. Nts., 11/15/10 190,000 219,642
- -------------------------------------------------------------------------------------------------------------
Northrop Grumman Corp., 7.125% Sr. Nts., 2/15/11 150,000 168,914
- -------------------------------------------------------------------------------------------------------------
Pemex Project Funding Master Trust, 7.875% Unsec. Unsub. Nts., 2/1/09 80,000 87,000
- -------------------------------------------------------------------------------------------------------------
PF Export Receivables Master Trust, 3.748% Sr. Nts., Series B, 6/1/13 11 69,825 66,927
- -------------------------------------------------------------------------------------------------------------
Portland General Electric Co., 8.125% First Mortgage Nts., 2/1/10 11 95,000 105,795
- -------------------------------------------------------------------------------------------------------------
Prudential Holdings LLC, 8.695% Bonds, Series C, 12/18/23 11 195,000 253,713
- -------------------------------------------------------------------------------------------------------------
Prudential Insurance Co. of America, 8.30% Nts., 7/1/25 260,000 348,228
- -------------------------------------------------------------------------------------------------------------
PSE&G Power LLC, 6.875% Sr. Unsec. Nts., 4/15/06 130,000 133,469
- -------------------------------------------------------------------------------------------------------------
PSE&G Energy Holdings LLC, 7.75% Unsec. Nts., 4/16/07 3 115,000 118,450
- -------------------------------------------------------------------------------------------------------------
Safeway, Inc., 4.80% Sr. Unsec. Nts., 7/16/07 300,000 301,917
- -------------------------------------------------------------------------------------------------------------
Sempra Energy, 7.95% Sr. Unsec. Unsub. Nts., 3/1/10 127,000 144,498
- -------------------------------------------------------------------------------------------------------------
Simon Property Group LP:
5.45% Unsec. Nts., 3/15/13 115,000 117,525
5.625% Unsec. Unsub. Nts., 8/15/14 115,000 117,883
- -------------------------------------------------------------------------------------------------------------
Sprint Capital Corp.:
6% Sr. Unsec. Nts., 1/15/07 135,000 138,634
8.75% Nts., 3/15/32 100,000 134,882
- -------------------------------------------------------------------------------------------------------------
Starwood Hotels & Resorts Worldwide, Inc., 7.375% Nts., 5/1/07 190,000 197,600
26 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES Continued
- -------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc.:
4% Nts., 10/15/08 $ 135,000 $ 134,249
7.75% Unsec. Sub. Nts., 5/1/10 11,000 12,621
- -------------------------------------------------------------------------------------------------------------
TCI Communications, Inc., 9.80% Sr. Unsec. Debs., 2/1/12 245,000 312,560
- -------------------------------------------------------------------------------------------------------------
Telefonos de Mexico SA de CV, 4.75% Nts., 1/27/10 11 165,000 162,328
- -------------------------------------------------------------------------------------------------------------
Time Warner Cos., Inc., 9.125% Debs., 1/15/13 130,000 163,443
- -------------------------------------------------------------------------------------------------------------
Time Warner Entertainment Co. LP, 10.15% Sr. Nts., 5/1/12 65,000 83,977
- -------------------------------------------------------------------------------------------------------------
Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 115,000 123,481
- -------------------------------------------------------------------------------------------------------------
Travelers Property Casualty Corp., 3.75% Sr. Unsec. Nts., 3/15/08 225,000 221,110
- -------------------------------------------------------------------------------------------------------------
TXU Corp., 4.80% Nts., 11/15/09 11 115,000 112,840
- -------------------------------------------------------------------------------------------------------------
Tyco International Group SA:
6.375% Sr. Unsec. Unsub. Nts., 2/15/06 180,000 183,470
6.75% Sr. Unsub. Nts., 2/15/11 76,000 83,538
- -------------------------------------------------------------------------------------------------------------
UnitedHealth Group, Inc., 4.875% Bonds, 3/15/15 71,000 71,381
- -------------------------------------------------------------------------------------------------------------
Univision Communications, Inc.:
2.875% Sr. Unsec. Nts., 10/15/06 32,000 31,442
3.50% Sr. Unsec. Nts., 10/15/07 165,000 161,836
- -------------------------------------------------------------------------------------------------------------
Vornado Realty LP, 5.625% Sr. Unsec. Unsub. Nts., 6/15/07 245,000 252,055
- -------------------------------------------------------------------------------------------------------------
Walt Disney Co. (The), 5.375% Sr. Unsec. Nts., 6/1/07 115,000 117,581
- -------------------------------------------------------------------------------------------------------------
Waste Management, Inc.:
7% Sr. Nts., 7/15/28 90,000 102,850
7.125% Sr. Unsec. Nts., 10/1/07 175,000 186,096
- -------------------------------------------------------------------------------------------------------------
Yum! Brands, Inc., 8.50% Sr. Unsec. Nts., 4/15/06 260,000 270,954
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $18,800,505) 18,948,954
- -------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--2.3%
- -------------------------------------------------------------------------------------------------------------
Undivided interest of 0.23% in joint repurchase agreement (Principal Amount/
Value $1,318,039,000, with a maturity value of $1,318,355,329) with UBS Warburg
LLC, 2.88%, dated 4/29/05, to be repurchased at $2,970,713 on 5/2/05,
collateralized by Federal National Mortgage Assn., 5%--6%, 3/1/34--8/1/34,
with a value of $1,345,611,059 (Cost $2,970,000) 2,970,000 2,970,000
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $135,714,254) 113.2% 144,680,339
- -------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (13.2) (16,849,330)
---------------------------
NET ASSETS 100.0% $127,831,009
===========================
27 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
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 DATE PRICE RECEIVED SEE NOTE 1
- -----------------------------------------------------------------------------------
Schering-Plough Corp. 127 1/23/06 $22.50 $15,589 $17,145
3. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of April 30, 2005 was $2,840,656, which represents
2.22% of the Fund's net assets, none of which is considered restricted. See Note
9 of Notes to Financial Statements.
4. Received as the result of issuer reorganization.
5. Represents the current interest rate for a variable or increasing rate
security.
6. When-issued security or forward commitment to be delivered and settled after
April 30, 2005. See Note 1 of Notes to Financial Statements.
7. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows. These securities amount to $1,403,196 or 1.10% of the Fund's net assets
as of April 30, 2005.
8. Principal-Only Strips represent the right to receive the monthly principal
payments on an underlying pool of mortgage loans. The value of these securities
generally increases as interest rates decline and prepayment rates rise. The
price of these securities is typically more volatile than that of coupon-bearing
bonds of the same maturity. Interest rates disclosed represent current yields
based upon the current cost basis and estimated timing of future cash flows.
These securities amount to $113,575 or 0.09% of the Fund's net assets as of
April 30, 2005.
9. All or a portion of the security is held in collateralized accounts to cover
initial margin requirements on open futures sales contracts. The aggregate
market value of such securities is $248,239. See Note 6 of Notes to Financial
Statements.
10. Zero coupon bond reflects effective yield on the date of purchase.
11. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $1,544,046 or 1.21% of the Fund's net
assets as of April 30, 2005.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2005
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value (cost $135,714,254)--see accompanying statement of investments $144,680,339
- ---------------------------------------------------------------------------------------------------------
Cash 165,024
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold (including $1,163,089 sold on a when-issued basis or forward commitment) 1,178,678
Interest, dividends and principal paydowns 613,121
Shares of capital stock sold 75,789
Futures margins 39,875
Other 8,377
-------------
Total assets 146,761,203
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $15,589)
- --see accompanying statement of investments 17,145
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $18,094,432 purchased on a when-issued basis
or forward commitment) 18,712,992
Shares of capital stock redeemed 77,993
Shareholder communications 34,265
Directors' compensation 28,598
Distribution and service plan fees 26,106
Transfer and shareholder servicing agent fees 19,120
Other 13,975
-------------
Total liabilities 18,930,194
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $127,831,009
=============
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 8,955
- ---------------------------------------------------------------------------------------------------------
Additional paid-in capital 127,514,693
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment income 65,804
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (8,771,918)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 9,013,475
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $127,831,009
=============
29 | OPPENHEIMER DISCIPLINED ALLOCATION 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 $105,572,644 and
7,400,159 shares of capital stock outstanding) $14.27
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $15.14
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $13,273,170 and 917,272 shares of
capital stock outstanding) $14.47
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $7,356,106 and 522,639 shares of
capital stock outstanding) $14.07
- ----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $1,629,089 and 114,624 shares of
capital stock outstanding) $14.21
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 1,107,755
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $372) 655,171
-------------
Total investment income 1,762,926
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 401,203
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 130,836
Class B 68,601
Class C 34,136
Class N 3,865
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 80,290
Class B 17,400
Class C 9,507
Class N 2,607
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 18,688
Class B 4,411
Class C 1,688
Class N 259
- --------------------------------------------------------------------------------
Accounting service fees 7,500
- --------------------------------------------------------------------------------
Directors' compensation 1,930
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,489
- --------------------------------------------------------------------------------
Other 5,201
-------------
Total expenses 789,611
Less reduction to custodian expenses (943)
-------------
Net expenses 788,668
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 974,258
31 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments $ 2,444,968
Closing of futures contracts 380,732
Swap contracts (8,405)
-------------
Net realized gain 2,817,295
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 1,473,893
Translation of assets and liabilities denominated in foreign
currencies (113)
Futures contracts (182,268)
Option contracts (1,556)
Swap contracts (8,105)
-------------
Net change in unrealized appreciation 1,281,851
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,073,404
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCTOBER 31,
(UNAUDITED) 2004
- ---------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------
Net investment income $ 974,258 $ 920,493
- ---------------------------------------------------------------------------------------------
Net realized gain 2,817,295 12,129,756
- ---------------------------------------------------------------------------------------------
Net change in unrealized appreciation 1,281,851 (4,860,509)
------------------------------
Net increase in net assets resulting from operations 5,073,404 8,189,740
- ---------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (1,153,484) (888,024)
Class B (86,020) (1,401)
Class C (44,062) (3,750)
Class N (13,171) (4,892)
- ---------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital stock transactions:
Class A (830,218) (2,841,650)
Class B (765,871) (1,999,035)
Class C 754,644 1,447,054
Class N 98,866 1,061,292
- ---------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------
Total increase 3,034,088 4,959,334
- ---------------------------------------------------------------------------------------------
Beginning of period 124,796,921 119,837,587
------------------------------
End of period (including accumulated net investment income
of $65,804 and $388,283, respectively) $127,831,009 $124,796,921
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.85 $ 13.04 $ 11.56 $ 12.54 $ 14.23 $ 15.03
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .12 1 .12 1 .14 .22 .26 .44
Net realized and unrealized gain (loss) .46 .81 1.48 (.94) (1.69) .68
--------------------------------------------------------------------------------
Total from investment operations .58 .93 1.62 (.72) (1.43) 1.12
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.16) (.12) (.14) (.26) (.26) (.44)
Distributions from net realized gain -- -- -- -- -- (1.48)
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.16) (.12) (.14) (.26) (.26) (1.92)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.27 $ 13.85 $ 13.04 $ 11.56 $ 12.54 $ 14.23
================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 4.15% 7.12% 14.17% (5.86)% (10.12)% 8.27%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $105,573 $103,268 $100,032 $ 92,806 $112,864 $144,244
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $107,211 $103,979 $ 94,811 $104,415 $128,477 $172,514
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.66% 0.88% 1.18% 1.73% 1.88% 2.88%
Total expenses 1.08% 4 1.13% 4,5 1.26% 4,5 1.21% 4,5 1.19% 4 1.11% 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 6 79% 6 275% 193% 164% 34%
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%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
6. The portfolio turnover rate excludes purchases and sales of To Be Announced
(TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS
- -------------------------------------------------------------------
April 30, 2005 $155,211,539 $159,793,485
October 31, 2004 316,759,702 306,486,129
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.04 $ 13.23 $ 11.73 $ 12.72 $ 14.43 $ 15.20
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .06 1 -- 1 .04 .11 .15 .30
Net realized and unrealized gain (loss) .46 .81 1.50 (.94) (1.70) .73
--------------------------------------------------------------------------------
Total from investment operations .52 .81 1.54 (.83) (1.55) 1.03
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.09) -- 2 (.04) (.16) (.16) (.32)
Distributions from net realized gain -- -- -- -- -- (1.48)
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.09) -- (.04) (.16) (.16) (1.80)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.47 $ 14.04 $ 13.23 $ 11.73 $ 12.72 $ 14.43
================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 3.69% 6.13% 13.21% (6.61)% (10.79)% 7.48%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 13,273 $ 13,619 $ 14,747 $ 12,204 $ 14,770 $ 17,892
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 13,894 $ 14,875 $ 12,776 $ 13,639 $ 16,569 $ 19,643
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.79% (0.01)% 0.31% 0.94% 1.14% 2.12%
Total expenses 1.96% 2.02% 2.15% 2.00% 1.94% 1.87%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 2.11% N/A 5, 6 N/A 5 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 7 79% 7 275% 193% 164% 34%
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%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchases and sales of To Be Announced
(TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS
- -------------------------------------------------------------------
April 30, 2005 $155,211,539 $159,793,485
October 31, 2004 316,759,702 306,486,129
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.66 $ 12.88 $ 11.43 $ 12.41 $ 14.08 $ 14.88
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .06 1 -- 1 .07 .13 .13 .28
Net realized and unrealized gain (loss) .44 .79 1.43 (.94) (1.64) .72
-------------------------------------------------------------------------------
Total from investment operations .50 .79 1.50 (.81) (1.51) 1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.09) (.01) (.05) (.17) (.16) (.32)
Distributions from net realized gain -- -- -- -- -- (1.48)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.09) (.01) (.05) (.17) (.16) (1.80)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.07 $ 13.66 $ 12.88 $ 11.43 $ 12.41 $ 14.08
===============================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.68% 6.13% 13.18% (6.64)% (10.76)% 7.44%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 7,356 $ 6,422 $ 4,666 $ 2,984 $ 2,893 $ 3,931
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 6,919 $ 5,726 $ 3,806 $ 2,961 $ 3,280 $ 4,255
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.76% 0.00% 0.29% 0.93% 1.14% 2.13%
Total expenses 1.97% 2.02% 2.17% 2.00% 1.94% 1.86%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4 N/A 4 2.12% N/A 4, 5 N/A 4 N/A 4
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 6 79% 6 275% 193% 164% 34%
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%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
6. The portfolio turnover rate excludes purchases and sales of To Be Announced
(TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS
- -------------------------------------------------------------------
April 30, 2005 $155,211,539 $159,793,485
October 31, 2004 316,759,702 306,486,129
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.80 $ 13.00 $ 11.52 $ 12.52 $ 13.74
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .09 2 .06 2 .12 .16 .12
Net realized and unrealized gain (loss) .45 .81 1.46 (.91) (1.20)
--------------------------------------------------------------------
Total from investment operations .54 .87 1.58 (.75) (1.08)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.13) (.07) (.10) (.25) (.14)
Distributions from net realized gain -- -- -- -- --
--------------------------------------------------------------------
Total dividends and/or distributions to shareholders (.13) (.07) (.10) (.25) (.14)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.21 $ 13.80 $ 13.00 $ 11.52 $ 12.52
====================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 3.87% 6.68% 13.81% (6.17)% (7.90)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,629 $ 1,488 $ 392 $ 241 $ 2
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,562 $ 1,030 $ 342 $ 160 $ 1
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.22% 0.46% 0.79% 1.28% 1.04%
Total expenses 1.51% 1.61% 2.04% 1.60% 1.68%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5, 6 1.55% 1.58% N/A 5, 6 N/A 5
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 7 79% 7 275% 193% 164%
1. For the period from March 1, 2001 (inception of offering) to October 31,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchases and sales of To Be Announced
(TBA) mortgage-related securities as follows:
PURCHASE TRANSACTIONS SALE TRANSACTIONS
- -------------------------------------------------------------------
April 30, 2005 $155,211,539 $159,793,485
October 31, 2004 316,759,702 306,486,129
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Disciplined Allocation Fund (the Fund), a series of Oppenheimer
Series Fund, Inc. (the Company), 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 to maximize total investment return (including
capital appreciation and income) principally by allocating its assets among
stocks, corporate bonds, U.S. government securities and money market
instruments, according to changing market conditions. 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 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. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. Securities may be valued primarily using
dealer-supplied valuations or a portfolio pricing service authorized by the
Board of Directors. Futures contracts traded on a commodities or futures
exchange will be valued at the final settlement price or official closing price
on the principal exchange as reported by such principal exchange at its trading
session
38 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
ending at, or most recently prior to, the time when the Fund's assets are
valued. Securities (including restricted securities) for which market quotations
are not readily available are valued at their fair value. Foreign and domestic
securities whose values have been materially affected by what the Manager
identifies as a significant event occurring before the Fund's assets are valued
but after the close of their respective exchanges will be fair valued. Fair
value is determined in good faith using consistently applied procedures under
the supervision of the Board of Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of April 30, 2005, the Fund had purchased $18,094,432
of securities issued on a when-issued basis or forward commitment and sold
$1,163,089 of securities issued on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income 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. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Directors.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
39 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
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 April 30, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $8,439,824 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
April 30, 2005, it is estimated that the Fund will utilize $2,817,295 of capital
loss carryforward to offset realized capital gains. During the year ended
October 31, 2004, the Fund utilized $11,697,830 of capital loss carryforward to
offset capital gains realized in that fiscal year.
40 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
As of October 31, 2004, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
-----------------------
2009 $ 1,037,238
2010 10,219,881
------------
Total $ 11,257,119
============
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the six months
ended April 30, 2005, the Fund's projected benefit obligations were increased by
$89 and payments of $1,574 were made to retired directors, resulting in an
accumulated liability of $23,424 as of April 30, 2005.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Director under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Director. The
Fund purchases shares of the funds selected for deferral by the Director in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of directors' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
and paid quarterly. 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 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
41 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 CAPITAL STOCK
The Fund has authorized 550 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED APRIL 30, 2005 YEAR ENDED OCTOBER 31, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS A
Sold 456,108 $ 6,585,612 1,031,614 $ 14,122,521
Dividends and/or
distributions reinvested 76,865 1,110,736 62,731 854,672
Redeemed (590,476) (8,526,566) (1,307,401) (17,818,843)
-------------------------------------------------------------
Net decrease (57,503) $ (830,218) (213,056) $ (2,841,650)
=============================================================
- ------------------------------------------------------------------------------------------
CLASS B
Sold 133,642 $ 1,959,321 290,346 $ 4,026,294
Dividends and/or
distributions reinvested 5,501 80,789 96 1,314
Redeemed (191,780) (2,805,981) (435,276) (6,026,643)
-------------------------------------------------------------
Net decrease (52,637) $ (765,871) (144,834) $ (1,999,035)
=============================================================
- ------------------------------------------------------------------------------------------
CLASS C
Sold 103,089 $ 1,473,467 221,557 $ 2,977,259
Dividends and/or
distributions reinvested 2,982 42,589 267 3,610
Redeemed (53,411) (761,412) (114,094) (1,533,815)
-------------------------------------------------------------
Net increase 52,660 $ 754,644 107,730 $ 1,447,054
=============================================================
- ------------------------------------------------------------------------------------------
CLASS N
Sold 16,969 $ 243,996 85,506 $ 1,165,275
Dividends and/or
distributions reinvested 913 13,161 357 4,887
Redeemed (11,144) (158,291) (8,146) (108,870)
-------------------------------------------------------------
Net increase 6,738 $ 98,866 77,717 $ 1,061,292
=============================================================
42 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than U.S. government obligations and short-term obligations, for the six months
ended April 30, 2005, were $40,926,935 and $32,332,301, respectively. There were
purchases of $3,086,796 and sales of $4,229,854 of U.S. government and
government agency obligations for the six months ended April 30, 2005. In
addition, there were purchases of $155,211,539 and sales of $159,793,485 of To
Be Announced (TBA) mortgage-related securities for the six months ended April
30, 2005.
- --------------------------------------------------------------------------------
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 0.625% of the first $300 million of average annual net assets of
the Fund, 0.50% of the next $100 million, and 0.45% of average annual net assets
in excess of $400 million.
- --------------------------------------------------------------------------------
ACCOUNTING FEES. The Manager acts as the accounting agent for the Fund at an
annual fee of $15,000, plus out-of-pocket costs and expenses reasonably
incurred.
- --------------------------------------------------------------------------------
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 April 30, 2005, the Fund paid
$114,563 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 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% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of 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
43 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
class, the Board of Directors and its independent directors must determine
whether the Distributor shall be entitled to payment from the Fund of all or a
portion of the service fee and/or asset-based sales charge in respect to shares
sold prior to the effective date of such termination. The Distributor's
aggregate uncompensated expenses under the plan at April 30, 2005 for Class B,
Class C and Class N shares were $419,724, $142,800 and $15,301, 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
- ---------------------------------------------------------------------------------------------
April 30, 2005 $42,146 $261 $15,357 $604 $153
- --------------------------------------------------------------------------------
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. 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.
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 April 30, 2005, the Fund had no outstanding foreign currency
contracts.
44 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
- --------------------------------------------------------------------------------
6. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a negotiated price on a stipulated future
date. Futures contracts are traded on a commodity exchange. The Fund may buy and
sell futures contracts that relate to broadly based securities indices
(financial futures) or debt securities (interest rate futures) in order to gain
exposure to or protection from changes in market value of stocks and bonds or
interest rates. The Fund may also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts as a hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to market changes as it may
be more efficient or cost effective than actually buying securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or has expired.
Cash held by the broker to cover initial margin requirements on open
futures contracts is noted in the Statement of Assets and Liabilities.
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a receivable and/or payable for the
daily mark to market for variation margin. Realized gains and losses are
reported in the Statement of Operations as the closing and expiration of futures
contracts. The net change in unrealized appreciation or depreciation is reported
in the Statement of Operations.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of April 30, 2005, the Fund had outstanding futures contracts as follows:
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATES CONTRACTS APRIL 30, 2005 (DEPRECIATION)
- -----------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
U.S. Long Bonds 6/21/05 38 $ 4,364,063 $ 110,153
U.S. Treasury Nts., 10 yr. 6/21/05 12 1,337,063 14,956
---------------
125,109
---------------
CONTRACTS TO SELL
U.S. Treasury Nts., 2 yr. 6/30/05 84 17,447,063 (19,296)
U.S. Treasury Nts., 5 yr. 6/21/05 116 12,580,563 (57,286)
---------------
(76,582)
---------------
$ 48,527
===============
45 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. 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 April 30, 2005 was as follows:
CALL OPTIONS
--------------------------
NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS
- --------------------------------------------------------
Options outstanding as of
October 31, 2004 -- $ --
Options written 127 15,589
--------------------------
Options outstanding as of
April 30, 2005 127 $ 15,589
==========================
- --------------------------------------------------------------------------------
8. TOTAL RETURN SWAP CONTRACTS
The Fund may enter into a total return swap transaction to maintain a total
return on a particular investment, or portion of its portfolio, or for other
non-speculative purposes. Because the principal amount is not exchanged, it
represents neither an asset nor a liability to either counterparty, and is
referred to as notional. The Fund records an increase or decrease to unrealized
gain (loss), in the amount due to or owed by the Fund at
46 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
termination or settlement. Total return swaps are subject to risks (if the
counterparty fails to meet its obligations).
As of April 30, 2005, the Fund had no total return swap agreements
outstanding.
- --------------------------------------------------------------------------------
9. ILLIQUID OR RESTRICTED SECURITIES
As of April 30, 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 Directors 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.
Securities that are illiquid or restricted are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities is as follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST APRIL 30, 2005 DEPRECIATION
- --------------------------------------------------------------------------------
Geotek Communications, Inc.,
Series B, Escrow Shares 1/4/01 $400 $-- $400
- --------------------------------------------------------------------------------
10. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor, 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.
47 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
10. LITIGATION Continued
The defendants believe that the allegations contained in the Complaints
are without merit and that they have meritorious defenses against the claims
asserted. The defendants intend to defend these lawsuits vigorously and to
contest any claimed liability. The 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.
48 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerFunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file 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 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 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.
49 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Directors (the "Board"), including a majority of the
independent Directors, is required to determine whether to renew the advisory
agreement. The Investment Company Act of 1940, as amended, requires that the
Board request and evaluate, and that the Manager provide, such information as
may be reasonably necessary to evaluate the terms of the advisory agreement. The
Board employs an independent consultant to prepare a report that provides
information, including comparative information, that the Board requests for this
purpose. In addition, the Board receives information throughout the year
regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio managers and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board noted that the relatively low
redemption rate for funds advised by the Manager provided an indication of
shareholder satisfaction with the overall level of services provided by the
Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Christopher Leavy, Emmanuel Ferreira and Angelo Manioudakis and
the Manager's Value and Investment Grade investment teams and analysts. Messrs.
Leavy and Ferreira have had over 12 and 11 years, respectively, of experience
managing equity investments and Mr. Manioudakis has had over 12 years of
experience managing fixed-income investments. Mr. Leavy has been a Senior Vice
President of the Manager since September 2000
50 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
and was a portfolio manager at Morgan Stanley Dean Witter Investment Management
from 1997 through September 2000. Mr. Ferreira has been a Vice President of the
Manager since January 2003 and was a Portfolio Manager at Lashire Investments
from July 1999 through December 2002. Mr. Manioudakis has been a Senior Vice
President of the Manager and of HarbourView Asset Management Corporation since
April 2002 and a Senior Vice President of OFI Institutional Asset Management,
Inc. since June 2002. He was Executive Director and portfolio manager for
Miller, Anderson & Sherrerd, a division of Morgan Stanley Investment Management
from August 1993 through April 2002.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other flexible portfolio funds
(including both funds advised by the Manager and funds advised by other
investment advisers). The Board also receives and reviews comparative
performance information regarding the Fund and other funds at each Board
meeting. The Board noted that the Fund's three-year and five-year performance
were better than its peer group average. However, its one-year performance was
below its peer group average and its ten-year performance was disappointing.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other flexible portfolio funds and other funds with comparable assets
levels and distribution features. The Board noted that the Fund's contractual
and actual management fees and its total expenses are all lower than its peer
group average. In addition, the Board evaluated the comparability of the fees
charged and the services provided to the Fund to the fees charged and services
provided to other types of entities advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information that was provided regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates and research
provided to the Manager in connection with permissible brokerage arrangements
(soft dollar arrangements).
51 | OPPENHEIMER DISCIPLINED ALLOCATION FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board noted that the fund has not recently experienced any
asset growth and that, based on current asset levels, the Fund is not yet
approaching its last management fee breakpoint.
CONCLUSIONS. These factors were also considered by the independent
Directors meeting separately from the full Board, assisted by experienced
counsel to the Fund. Fund counsel is independent of the Manager within the
meaning and intent of the Securities and Exchange Commission Rules. The Board
was aware that there are alternatives to retaining the Manager.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Directors,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the investment
advisory agreement for another year. In arriving at this decision, the Board did
not single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
52 | OPPENHEIMER DISCIPLINED ALLOCATION 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 Directors 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
directors, 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 April 30, 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)
(C) EXHIBITS ATTACHED HERETO. (ATTACH PORTFOLIO PROXY VOTING POLICIES AND
PROCEDURES AS REQUIRED BY ITEM 7)
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 Disciplined Allocation Fund
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 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: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 2005
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Chief Financial Officer
Date: June 15, 2005