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 811-490
OPPENHEIMER EQUITY FUND, INC.
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: DECEMBER
Date of reporting period: 06/30/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK INDUSTRIES
- --------------------------------------------------------------------------------
Software 7.6%
- --------------------------------------------------------------------------------
Insurance 6.7
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Oil & Gas 5.7
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Communications Equipment 5.1
- --------------------------------------------------------------------------------
Capital Markets 5.0
- --------------------------------------------------------------------------------
Internet Software & Services 4.2
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies 4.2
- --------------------------------------------------------------------------------
Pharmaceuticals 3.7
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Computers & Peripherals 3.6
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Media 3.5
Portfolio holdings and allocations are subject to change. Percentages are as of
June 30, 2006, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 3.7%
- --------------------------------------------------------------------------------
Siemens AG, Sponsored ADR 3.1
- --------------------------------------------------------------------------------
UBS AG 2.7
- --------------------------------------------------------------------------------
United Technologies Corp. 2.7
- --------------------------------------------------------------------------------
Altria Group, Inc. 2.4
- --------------------------------------------------------------------------------
Capital One Financial Corp. 2.4
- --------------------------------------------------------------------------------
Wachovia Corp. 2.4
- --------------------------------------------------------------------------------
Everest Re Group Ltd. 2.2
- --------------------------------------------------------------------------------
Bank of America Corp. 2.0
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1.9
Portfolio holdings and allocations are subject to change. Percentages are as of
June 30, 2006, and are based on net assets.
For up-to-date Top 10 Fund Holdings, please visit www.oppenheimerfunds.com.
9 | OPPENHEIMER EQUITY FUND, INC.
TOP HOLDINGS AND ALLOCATIONS
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- --------------------------------------------------------------------------------
SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 23.6%
Financials 21.9
Health Care 11.3
Consumer Discretionary 11.1
Industrials 8.4
Energy 7.9
Consumer Staples 7.3
Telecommunication Services 2.9
Utilities 2.9
Materials 2.7
Portfolio holdings and allocations are subject to change. Percentages are as of
June 30, 2006, and are based on the total market value of common stocks.
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10 | OPPENHEIMER EQUITY FUND, INC.
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 10/2/47. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%. The Fund's maximum sales charge for Class A shares was higher
prior to 4/1/91, so actual performance may have been lower.
CLASS B shares of the Fund were first publicly offered on 5/3/93. 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 10-year 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 8/29/95. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
11 | OPPENHEIMER EQUITY FUND, INC.
NOTES
- --------------------------------------------------------------------------------
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 6/1/94. Class Y shares
are offered only to certain institutional investors under special agreements
with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 | OPPENHEIMER EQUITY FUND, INC.
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended June 30, 2006.
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
13 | OPPENHEIMER EQUITY FUND, INC.
FUND EXPENSES
- --------------------------------------------------------------------------------
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(1/1/06) (6/30/06) JUNE 30, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 994.30 $ 4.31
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.48 4.37
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 989.10 8.77
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.02 8.89
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 990.10 8.77
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.02 8.89
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 991.30 6.49
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,018.30 6.58
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 995.20 3.67
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.12 3.72
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 June 30, 2006 are as follows:
CLASS EXPENSE RATIOS
- -------------------------------
Class A 0.87%
- -------------------------------
Class B 1.77
- -------------------------------
Class C 1.77
- -------------------------------
Class N 1.31
- -------------------------------
Class Y 0.74
14 | OPPENHEIMER EQUITY FUND, INC.
STATEMENT OF INVESTMENTS June 30, 2006 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.2%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--11.0%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--0.5%
Autoliv, Inc. 217,500 $ 12,303,975
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--0.9%
Panera Bread Co., Cl. A 1 94,500 6,354,180
- --------------------------------------------------------------------------------
Starbucks Corp. 1 433,000 16,350,080
---------------
22,704,260
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.5%
Harman International
Industries, Inc. 140,200 11,968,874
- --------------------------------------------------------------------------------
MEDIA--3.5%
Comcast Corp., Cl. A 1 467,900 15,319,046
- --------------------------------------------------------------------------------
Liberty Global, Inc.,
Series A 984,355 21,163,633
- --------------------------------------------------------------------------------
Liberty Global, Inc.,
Series C 1 2,222,787 45,722,729
- --------------------------------------------------------------------------------
News Corp., Inc., Cl. A 388,720 7,455,650
---------------
89,661,058
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.2%
Kohl's Corp. 1 213,900 12,645,768
- --------------------------------------------------------------------------------
Target Corp. 379,600 18,551,052
---------------
31,196,820
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--3.2%
Chico's FAS, Inc. 1 430,700 11,620,286
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 322,800 19,584,276
- --------------------------------------------------------------------------------
Staples, Inc. 1,514,100 36,822,912
- --------------------------------------------------------------------------------
Urban Outfitters, Inc. 1 375,600 6,569,244
- --------------------------------------------------------------------------------
Williams-Sonoma, Inc. 281,800 9,595,290
---------------
84,192,008
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.2%
Nike, Inc., Cl. B 211,400 17,123,400
- --------------------------------------------------------------------------------
Polo Ralph Lauren
Corp. 269,800 14,812,020
---------------
31,935,420
- --------------------------------------------------------------------------------
CONSUMER STAPLES--7.2%
- --------------------------------------------------------------------------------
BEVERAGES--0.8%
PepsiCo, Inc. 349,900 21,007,996
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.3%
Wal-Mart Stores, Inc. 432,100 $ 20,814,257
- --------------------------------------------------------------------------------
Whole Foods Market,
Inc. 187,300 12,107,072
---------------
32,921,329
- --------------------------------------------------------------------------------
FOOD PRODUCTS--0.9%
ConAgra Foods, Inc. 1,041,500 23,027,565
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.8%
Colgate-Palmolive Co. 351,700 21,066,830
- --------------------------------------------------------------------------------
Procter & Gamble
Co. (The) 460,095 25,581,282
---------------
46,648,112
- --------------------------------------------------------------------------------
TOBACCO--2.4%
Altria Group, Inc. 859,570 63,118,225
- --------------------------------------------------------------------------------
ENERGY--7.8%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--2.1%
Halliburton Co. 279,300 20,726,853
- --------------------------------------------------------------------------------
National Oilwell
Varco, Inc. 1 246,800 15,627,376
- --------------------------------------------------------------------------------
Transocean, Inc. 1 208,600 16,754,752
---------------
53,108,981
- --------------------------------------------------------------------------------
OIL & GAS--5.7%
Apache Corp. 181,100 12,360,075
- --------------------------------------------------------------------------------
BP plc, ADR 227,610 15,843,932
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 1,551,550 95,187,593
- --------------------------------------------------------------------------------
Hess Corp. 216,300 11,431,455
- --------------------------------------------------------------------------------
TotalFinaElf SA,
Sponsored ADR 207,240 13,578,365
---------------
148,401,420
- --------------------------------------------------------------------------------
FINANCIALS--21.7%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--5.0%
Bear Stearns Cos.,
Inc. (The) 95,900 13,433,672
- --------------------------------------------------------------------------------
E*TRADE Financial
Corp. 1 179,600 4,098,472
- --------------------------------------------------------------------------------
Goldman Sachs
Group, Inc. (The) 83,900 12,621,077
- --------------------------------------------------------------------------------
Legg Mason, Inc. 191,600 19,068,032
15 | OPPENHEIMER EQUITY FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CAPITAL MARKETS Continued
TD Ameritrade Holding
Corp. 647,500 $ 9,589,475
- --------------------------------------------------------------------------------
UBS AG 643,320 70,572,204
---------------
129,382,932
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--3.4%
Wachovia Corp. 1,142,020 61,760,442
- --------------------------------------------------------------------------------
Wells Fargo & Co. 389,690 26,140,405
---------------
87,900,847
- --------------------------------------------------------------------------------
CONSUMER FINANCE--2.4%
Capital One Financial
Corp. 731,240 62,484,458
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--2.6%
Bank of America Corp. 1,088,542 52,358,870
- --------------------------------------------------------------------------------
Chicago Mercantile
Exchange (The) 27,600 13,555,740
---------------
65,914,610
- --------------------------------------------------------------------------------
INSURANCE--6.7%
AFLAC, Inc. 263,200 12,199,320
- --------------------------------------------------------------------------------
American International
Group, Inc. 704,900 41,624,345
- --------------------------------------------------------------------------------
Everest Re Group Ltd. 665,590 57,620,126
- --------------------------------------------------------------------------------
Genworth Financial,
Inc., Cl. A 1,060,730 36,955,833
- --------------------------------------------------------------------------------
Marsh & McLennan
Cos., Inc. 360,200 9,685,778
- --------------------------------------------------------------------------------
Platinum Underwriters
Holdings Ltd. 487,040 13,627,379
---------------
171,712,781
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--1.6%
Countrywide Financial
Corp. 609,600 23,213,568
- --------------------------------------------------------------------------------
Freddie Mac 338,320 19,287,623
---------------
42,501,191
- --------------------------------------------------------------------------------
HEALTH CARE--11.2%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--2.8%
Celgene Corp. 1 255,900 12,137,337
- --------------------------------------------------------------------------------
Genentech, Inc. 1 239,100 19,558,380
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Genzyme Corp.
(General Division) 1 301,400 $ 18,400,470
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 246,000 14,553,360
- --------------------------------------------------------------------------------
PDL BioPharma, Inc. 1 347,600 6,399,316
---------------
71,048,863
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.2%
Alcon, Inc. 239,200 23,573,160
- --------------------------------------------------------------------------------
Bard (C.R.), Inc. 171,000 12,527,460
- --------------------------------------------------------------------------------
Fisher Scientific
International, Inc. 1 136,300 9,956,715
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 151,900 8,199,562
- --------------------------------------------------------------------------------
Medtronic, Inc. 501,200 23,516,304
- --------------------------------------------------------------------------------
Varian Medical
Systems, Inc. 1 647,300 30,649,655
---------------
108,422,856
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.5%
UnitedHealth
Group, Inc. 311,500 13,948,970
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.7%
Novartis AG, ADR 429,100 23,137,072
- --------------------------------------------------------------------------------
Pfizer, Inc. 1,562,370 36,668,824
- --------------------------------------------------------------------------------
Sanofi-Aventis SA, ADR 719,400 35,034,780
---------------
94,840,676
- --------------------------------------------------------------------------------
INDUSTRIALS--8.3%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--3.3%
General Dynamics
Corp. 148,600 9,727,356
- --------------------------------------------------------------------------------
Rockwell Collins, Inc. 121,900 6,810,553
- --------------------------------------------------------------------------------
United Technologies
Corp. 1,078,910 68,424,472
---------------
84,962,381
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.4%
UTi Worldwide, Inc. 422,900 10,669,767
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.5%
Cendant Corp. 809,560 13,187,732
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.5%
Rockwell Automation,
Inc. 183,300 13,199,433
16 | OPPENHEIMER EQUITY FUND, INC.
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--3.1%
Siemens AG, Sponsored
ADR 919,000 $ 79,787,580
- --------------------------------------------------------------------------------
MACHINERY--0.5%
Oshkosh Truck Corp. 252,200 11,984,544
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--23.5%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.1%
Cisco Systems, Inc. 1 2,558,900 49,975,317
- --------------------------------------------------------------------------------
Corning, Inc. 1 1,614,300 39,049,917
- --------------------------------------------------------------------------------
F5 Networks, Inc. 1 199,700 10,679,956
- --------------------------------------------------------------------------------
Motorola, Inc. 947,200 19,086,080
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 311,300 12,473,791
---------------
131,265,061
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--3.6%
Apple Computer, Inc. 1 612,700 34,997,424
- --------------------------------------------------------------------------------
EMC Corp. 1 3,787,800 41,552,166
- --------------------------------------------------------------------------------
Hutchinson
Technology, Inc. 1 530,000 11,463,900
- --------------------------------------------------------------------------------
Network Appliance,
Inc. 1 129,100 4,557,230
---------------
92,570,720
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--4.2%
Aquantive, Inc. 1 229,400 5,810,702
- --------------------------------------------------------------------------------
eBay, Inc. 1 1,304,200 38,200,018
- --------------------------------------------------------------------------------
Google, Inc., Cl. A 1 86,300 36,188,179
- --------------------------------------------------------------------------------
Yahoo!, Inc. 1 879,900 29,036,700
---------------
109,235,599
- --------------------------------------------------------------------------------
IT SERVICES--0.7%
Cognizant Technology
Solutions Corp. 1 250,800 16,896,396
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--2.3%
ASML Holding NV 1 636,500 12,870,030
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 836,400 25,133,820
- --------------------------------------------------------------------------------
International Rectifier
Corp. 1 154,300 6,030,044
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 460,300 13,942,487
---------------
57,976,381
- --------------------------------------------------------------------------------
SOFTWARE--7.6%
Adobe Systems, Inc. 1 341,454 10,366,543
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE Continued
Amdocs Ltd. 1 181,900 $ 6,657,540
- --------------------------------------------------------------------------------
Autodesk, Inc. 1 351,100 12,098,906
- --------------------------------------------------------------------------------
Compuware Corp. 1 1,833,097 12,281,750
- --------------------------------------------------------------------------------
Electronic Arts, Inc. 1 401,900 17,297,776
- --------------------------------------------------------------------------------
Microsoft Corp. 1,678,810 39,116,273
- --------------------------------------------------------------------------------
NAVTEQ Corp. 1 244,600 10,928,728
- --------------------------------------------------------------------------------
Novell, Inc. 1 2,493,855 16,534,259
- --------------------------------------------------------------------------------
SAP AG, Sponsored
ADR 278,400 14,621,568
- --------------------------------------------------------------------------------
Synopsys, Inc. 1 2,072,563 38,902,008
- --------------------------------------------------------------------------------
Take-Two Interactive
Software, Inc. 1 1,686,854 17,981,864
---------------
196,787,215
- --------------------------------------------------------------------------------
MATERIALS--2.7%
- --------------------------------------------------------------------------------
CHEMICALS--2.0%
Dow Chemical Co.
(The) 171,680 6,700,670
- --------------------------------------------------------------------------------
Monsanto Co. 366,500 30,855,635
- --------------------------------------------------------------------------------
Praxair, Inc. 244,800 13,219,200
---------------
50,775,505
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.3%
Cemex SA de CV,
Sponsored ADR 152,900 8,710,713
- --------------------------------------------------------------------------------
METALS & MINING--0.4%
Phelps Dodge Corp. 118,120 9,704,739
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--2.9%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--0.9%
IDT Corp., Cl. B 1 899,727 12,407,235
- --------------------------------------------------------------------------------
NeuStar, Inc., Cl. A 1 350,400 11,826,000
---------------
24,233,235
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--2.0%
NII Holdings, Inc. 1 35,400 1,995,852
- --------------------------------------------------------------------------------
Sprint Nextel Corp. 2,455,030 49,076,050
---------------
51,071,902
- --------------------------------------------------------------------------------
UTILITIES--2.9%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.3%
Reliant Energy, Inc. 1 552,060 6,613,679
17 | OPPENHEIMER EQUITY FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
ENERGY TRADERS--1.0%
AES Corp. (The) 1 1,412,410 $ 26,058,965
- --------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--1.6%
CMS Energy Corp. 1 1,060,670 13,725,070
- --------------------------------------------------------------------------------
PG&E Corp. 385,790 15,153,831
- --------------------------------------------------------------------------------
Sempra Energy 294,070 13,374,302
---------------
42,253,203
---------------
Total Common Stocks
(Cost $2,261,163,155) 2,558,298,977
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.9%
- --------------------------------------------------------------------------------
Undivided interest of 1.37% in joint
repurchase agreement (Principal Amount/
Value $1,732,960,000, with a maturity value
of $1,733,645,963) with UBS Warburg LLC,
4.75%, dated 6/30/06, to be repurchased at
$23,706,380 on 7/3/06, collateralized by
Federal National Mortgage Assn., 4.50%-5%,
3/1/20-4/1/35, with a value of $620,732,225
and Federal Home Loan Mortgage Corp., 5.50%,
5/1/35-6/1/36, with a value of $1,151,835,293
(Cost $23,697,000) $ 23,697,000 23,697,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $2,284,860,155) 100.1% 2,581,995,977
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.1) (2,229,849)
-------------------------------
NET ASSETS 100.0% $2,579,766,128
===============================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER EQUITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
June 30, 2006
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $2,284,860,155)--
see accompanying statement of investments $ 2,581,995,977
- --------------------------------------------------------------------------------
Cash 777,023
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 5,958,914
Shares of capital stock sold 2,775,357
Interest and dividends 2,102,998
Other 113,895
-----------------
Total assets 2,593,724,164
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 9,377,600
Shares of capital stock redeemed 2,584,621
Distribution and service plan fees 1,388,270
Transfer and shareholder servicing agent fees 299,308
Shareholder communications 242,546
Directors' compensation 44,685
Other 21,006
-----------------
Total liabilities 13,958,036
- --------------------------------------------------------------------------------
NET ASSETS $ 2,579,766,128
=================
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Par value of shares of capital stock $ 24,811,223
- --------------------------------------------------------------------------------
Additional paid-in capital 2,128,376,293
- --------------------------------------------------------------------------------
Accumulated net investment income 8,086,070
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments 121,356,720
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 297,135,822
-----------------
NET ASSETS $ 2,579,766,128
=================
19 | OPPENHEIMER EQUITY FUND, INC.
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 $2,248,519,489 and 215,250,455 shares of capital
stock outstanding) $ 10.45
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $ 11.09
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $176,562,818 and 17,688,718
shares of capital stock outstanding) $ 9.98
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $76,996,440 and 7,709,366
shares of capital stock outstanding) $ 9.99
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $21,867,119 and 2,124,974
shares of capital stock outstanding) $ 10.29
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $55,820,262 and 5,338,719
shares of capital stock outstanding) $ 10.46
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER EQUITY FUND, INC.
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2006
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $519,834) $ 19,376,352
- --------------------------------------------------------------------------------
Interest 559,284
-----------------
Total investment income 19,935,636
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 7,061,448
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,391,256
Class B 970,944
Class C 391,529
Class N 53,316
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,309,997
Class B 175,097
Class C 80,383
Class N 28,322
Class Y 57,681
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 197,001
Class B 50,546
Class C 10,625
Class N 1,071
- --------------------------------------------------------------------------------
Directors' compensation 15,759
- --------------------------------------------------------------------------------
Custodian fees and expenses 9,470
- --------------------------------------------------------------------------------
Administration service fees 750
- --------------------------------------------------------------------------------
Other 106,658
-----------------
Total expenses 12,911,853
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 7,023,783
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on investments 97,548,871
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (120,123,964)
- --------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (15,551,310)
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER EQUITY FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DECEMBER 31,
(UNAUDITED) 2005
- --------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------
Net investment income $ 7,023,783 $ 7,307,294
- --------------------------------------------------------------------------------------------------------
Net realized gain 97,548,871 253,224,426
- --------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (120,123,964) (59,842,214)
-----------------------------------
Net increase (decrease) in net assets resulting from operations (15,551,310) 200,689,506
- --------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (8,377,228)
Class B -- --
Class C -- --
Class N -- (9,984)
Class Y -- (291,835)
- --------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (235,402,558)
Class B -- (21,960,062)
Class C -- (8,113,958)
Class N -- (1,928,967)
Class Y -- (5,988,136)
- --------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital stock
transactions:
Class A (35,362,567) 94,842,730
Class B (29,473,319) (48,827,246)
Class C 1,123,255 2,158,473
Class N 3,332,683 4,151,479
Class Y (2,835,364) 3,850,529
- --------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------
Total decrease (78,766,622) (25,207,257)
- --------------------------------------------------------------------------------------------------------
Beginning of period 2,658,532,750 2,683,740,007
-----------------------------------
End of period (including accumulated net investment income
of $8,086,070 and $1,062,287, respectively) $ 2,579,766,128 $ 2,658,532,750
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DEC. 31,
CLASS A (UNAUDITED) 2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.51 $ 10.84 $ 10.77 $ 8.53 $ 10.40 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .03 1 .04 1 .07 1 .02 .03 .08
Net realized and unrealized gain (loss) (.09) .86 1.07 2.22 (1.88) (1.31)
-------------------------------------------------------------------------------------------
Total from investment operations (.06) .90 1.14 2.24 (1.85) (1.23)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- (.04) (.07) -- (.02) (.11)
Distributions from net realized gain -- (1.19) (1.00) -- -- (.04)
-------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.23) (1.07) -- (.02) (.15)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.45 $ 10.51 $ 10.84 $ 10.77 $ 8.53 $ 10.40
===========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (0.57)% 8.16% 10.73% 3 26.26% (17.80)% (10.43)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $2,248,520 $2,297,161 $2,270,477 $2,283,036 $1,933,397 $2,665,614
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,342,793 $2,238,135 $2,248,969 $2,035,816 $2,255,746 $2,847,999
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.62% 0.38% 0.61% 0.19% 0.29% 0.66%
Total expenses 0.87% 0.89% 5 0.89% 5 0.90% 5,6 0.96% 5 0.90% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 42% 75% 91% 108% 95% 116%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Less than 0.01% of the Fund's return consists of a voluntary payment to the
Fund by the Manager.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DEC. 31,
CLASS B (UNAUDITED) 2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.09 $ 10.51 $ 10.51 $ 8.39 $ 10.30 $ 11.65
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.01) 1 (.05) 1 (.04) 1 (.08) (.05) (.01)
Net realized and unrealized gain (loss) (.10) .82 1.04 2.20 (1.86) (1.29)
-------------------------------------------------------------------------------------------
Total from investment operations (.11) .77 1.00 2.12 (1.91) (1.30)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- -- -- -- (.01)
Distributions from net realized gain -- (1.19) (1.00) -- -- (.04)
-------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.19) (1.00) -- -- (.05)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.98 $ 10.09 $ 10.51 $ 10.51 $ 8.39 $ 10.30
===========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (1.09)% 7.16% 9.70% 3 25.27% (18.54)% (11.15)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 176,563 $ 206,957 $ 263,376 $ 327,809 $ 334,345 $ 570,715
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 195,964 $ 224,966 $ 283,662 $ 315,065 $ 430,844 $ 658,336
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.28)% (0.52)% (0.35)% (0.73)% (0.55)% (0.13)%
Total expenses 1.77% 1.79% 5 1.81% 5,6 1.83% 5,6 1.80% 5 1.69% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 42% 75% 91% 108% 95% 116%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. 0.11% of the Fund's return consists of a voluntary payment to the Fund by the
Manager. Excluding this payment, total return would have been 9.59%.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER EQUITY FUND, INC.
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DEC. 31,
CLASS C (UNAUDITED) 2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.09 $ 10.51 $ 10.51 $ 8.40 $ 10.30 $ 11.67
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.01) 1 (.05) 1 (.03) 1 (.07) (.06) (.01)
Net realized and unrealized gain (loss) (.09) .82 1.03 2.18 (1.84) (1.30)
-------------------------------------------------------------------------------------------
Total from investment operations (.10) .77 1.00 2.11 (1.90) (1.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- -- -- -- (.02)
Distributions from net realized gain -- (1.19) (1.00) -- -- (.04)
-------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.19) (1.00) -- -- (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.99 $ 10.09 $ 10.51 $ 10.51 $ 8.40 $ 10.30
===========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (0.99)% 7.16% 9.70% 3 25.12% (18.45)% (11.24)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 76,996 $ 76,679 $ 77,438 $ 75,620 $ 62,561 $ 90,440
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 79,052 $ 75,144 $ 74,618 $ 66,739 $ 74,785 $ 98,104
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.28)% (0.52)% (0.31)% (0.74)% (0.56)% (0.13)%
Total expenses 1.77% 1.79% 5 1.80% 5 1.84% 5,6 1.81% 5 1.69% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 42% 75% 91% 108% 95% 116%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Less than 0.01% of the Fund's return consists of a voluntary payment to the
Fund by the Manager.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DEC. 31,
CLASS N (UNAUDITED) 2005 2004 2003 2002 2001 1
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.38 $ 10.73 $ 10.68 $ 8.48 $ 10.36 $ 11.38
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) .01 2 -- 2,3 .02 2 -- 3 .07 .02
Net realized and unrealized gain (loss) (.10) .85 1.05 2.20 (1.95) (.88)
-------------------------------------------------------------------------------------------
Total from investment operations (.09) .85 1.07 2.20 (1.88) (.86)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- (.01) (.02) -- -- (.12)
Distributions from net realized gain -- (1.19) (1.00) -- -- (.04)
-------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.20) (1.02) -- -- (.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.29 $ 10.38 $ 10.73 $ 10.68 $ 8.48 $ 10.36
===========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 (0.87)% 7.72% 10.19% 5 25.94% (18.15)% (7.54)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 21,867 $ 18,814 $ 15,347 $ 13,145 $ 4,278 $ 1,368
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 21,533 $ 16,262 $ 14,488 $ 9,062 $ 3,519 $ 593
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 6
Net investment income (loss) 0.17% (0.02)% 0.16% (0.20)% (0.10)% 0.20%
Total expenses 1.31% 1.29% 7 1.35% 7 1.33% 7,8 1.30% 7 1.23% 7
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 42% 75% 91% 108% 95% 116%
1. For the period from March 1, 2001 (inception of offering) to December 31,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. Assumes a investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
5. 0.10% of the Fund's return consists of a voluntary payment to the Fund by the
Manager. Excluding this payment, total return would have been 10.09%.
6. Annualized for periods of less than one full year.
7. Reduction to custodian expenses less than 0.01%.
8. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER EQUITY FUND, INC.
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2006 DEC. 31,
CLASS Y (UNAUDITED) 2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.51 $ 10.85 $ 10.78 $ 8.52 $ 10.40 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .04 1 .06 1 .08 1 .03 .03 .09
Net realized and unrealized gain (loss) (.09) .85 1.07 2.23 (1.88) (1.31)
-------------------------------------------------------------------------------------------
Total from investment operations (.05) .91 1.15 2.26 (1.85) (1.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- (.06) (.08) -- (.03) (.12)
Distributions from net realized gain -- (1.19) (1.00) -- -- (.04)
-------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (1.25) (1.08) -- (.03) (.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.46 $ 10.51 $ 10.85 $ 10.78 $ 8.52 $ 10.40
===========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (0.48)% 8.20% 10.87% 3 26.53% (17.79)% (10.29)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 55,820 $ 58,922 $ 57,103 $ 56,098 $ 43,016 $ 49,223
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 58,214 $ 54,643 $ 54,905 $ 48,017 $ 45,669 $ 50,147
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.75% 0.51% 0.74% 0.27% 0.36% 0.80%
Total expenses 0.74% 0.75% 0.76% 0.84% 0.97% 0.80%
Expenses after payments and waivers
and reduction to custodian expenses 0.74% 0.75% 0.76% 0.84% 0.88% 0.76%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 42% 75% 91% 108% 95% 116%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. 0.10% of the Fund's return consists of a voluntary payment to the Fund by the
Manager. Excluding this payment, total return would have been 10.77%.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Equity Fund, Inc. (the Fund), is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek a high total return. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Directors. Securities listed or traded on National
Stock Exchanges or other domestic 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. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
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
28 | OPPENHEIMER EQUITY FUND, INC.
trading session 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).
- --------------------------------------------------------------------------------
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.
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.
29 | OPPENHEIMER EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Board of Directors has adopted a deferred
compensation plan for independent directors that enables directors to elect to
defer receipt of all or a portion of the annual compensation they are entitled
to receive from the Fund. For purposes of determining the amount owed to the
Director under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or in other Oppenheimer funds
selected by the Director. The Fund purchases shares of the funds selected for
deferral by the Director in amounts equal to his or her deemed investment,
resulting in a Fund asset equal to the deferred compensation liability. Such
assets are included as a component of "Other" within the asset section of the
Statement of Assets and Liabilities. Deferral of directors' fees under the plan
will not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the
30 | OPPENHEIMER EQUITY FUND, INC.
Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to
custodian expenses" line item, if applicable, represents earnings on cash
balances maintained by the Fund during the period. At June 30, 2006, the Fund
had $628 of such earnings on cash balances available to offset future custodian
fees or interest expenses incurred during the next fiscal year.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
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 860 million shares of $0.10 par value capital stock.
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED JUNE 30, 2006 YEAR ENDED DECEMBER 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS A
Sold 14,093,869 $ 152,643,037 19,117,161 $ 210,257,636
Dividends and/or
distributions reinvested -- -- 21,344,622 227,960,561
Redeemed (17,405,018) (188,005,604) (31,315,542) (343,375,467)
----------------------------------------------------------------
Net increase (decrease) (3,311,149) $ (35,362,567) 9,146,241 $ 94,842,730
================================================================
- --------------------------------------------------------------------------------------------
CLASS B
Sold 1,473,809 $ 15,277,860 2,073,392 $ 21,912,342
Dividends and/or
distributions reinvested -- -- 2,061,271 21,148,674
Redeemed (4,300,480) (44,751,179) (8,682,017) (91,888,262)
----------------------------------------------------------------
Net decrease (2,826,671) $ (29,473,319) (4,547,354) $ (48,827,246)
================================================================
31 | OPPENHEIMER EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF CAPITAL STOCK Continued
SIX MONTHS ENDED JUNE 30, 2006 YEAR ENDED DECEMBER 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS C
Sold 1,050,175 $ 10,874,161 1,101,782 $ 11,640,730
Dividends and/or
distributions reinvested -- -- 748,437 7,678,961
Redeemed (937,658) (9,750,906) (1,619,832) (17,161,218)
----------------------------------------------------------------
Net increase 112,517 $ 1,123,255 230,387 $ 2,158,473
================================================================
- --------------------------------------------------------------------------------------------
CLASS N
Sold 681,062 $ 7,276,348 723,526 $ 7,879,430
Dividends and/or
distributions reinvested -- -- 183,266 1,933,460
Redeemed (369,199) (3,943,665) (524,199) (5,661,411)
----------------------------------------------------------------
Net increase 311,863 $ 3,332,683 382,593 $ 4,151,479
================================================================
- --------------------------------------------------------------------------------------------
CLASS Y
Sold 834,884 $ 9,074,669 1,103,271 $ 12,277,652
Dividends and/or
distributions reinvested -- -- 588,012 6,279,970
Redeemed (1,100,844) (11,910,033) (1,351,687) (14,707,093)
----------------------------------------------------------------
Net increase (decrease) (265,960) $ (2,835,364) 339,596 $ 3,850,529
================================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended June 30, 2006, were as
follows:
PURCHASES SALES
----------------------------------------------------------
Investment securities $1,117,770,278 $1,174,672,823
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
-------------------------------------------
Up to $100 million of net assets 0.75%
Next $100 million of net assets 0.70
Next $100 million of net assets 0.65
Next $100 million of net assets 0.60
Next $100 million of net assets 0.55
Over $500 million of net assets 0.50
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year
for preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per
32 | OPPENHEIMER EQUITY FUND, INC.
account fee. For the six months ended June 30, 2006, the Fund paid $1,670,259 to
OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
periodically 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 periodically 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
periods. 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 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 June 30, 2006 for Class C and Class N
shares were $2,224,017 and $326,478, 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 following table for the period
indicated.
33 | OPPENHEIMER EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
- ---------------------------------------------------------------------------------------------------
June 30, 2006 $ 301,598 $ 500 $ 159,583 $ 4,963 $ 1,570
- --------------------------------------------------------------------------------
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. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
34 | OPPENHEIMER EQUITY FUND, INC.
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 the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
35 | OPPENHEIMER EQUITY FUND, INC.
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. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES 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.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's background, skills, and
experience; whether the individual is
an "interested person" as defined in the Investment Company Act of 1940;
and whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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 06/30/2006, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
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 Equity Fund, Inc.
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: 08/08/2006
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: 08/08/2006
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: 08/08/2006