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 811-2306
OPPENHEIMER GROWTH FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: AUGUST
Date of reporting period: 08/31/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Communications Equipment 10.6%
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Computers & Peripherals 7.9
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Internet Software & Services 7.3
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Health Care Equipment & Supplies 7.2
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Biotechnology 5.9
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Specialty Retail 5.8
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Software 5.5
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Semiconductors & Semiconductor Equipment 5.0
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Household Products 4.0
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Energy Equipment & Services 4.0
Portfolio holdings and allocations are subject to change. Percentages are as of
August 31, 2006, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Cisco Systems, Inc. 4.4%
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EMC Corp. 3.6
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American International Group, Inc. 3.6
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Apple Computer, Inc. 3.5
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Google, Inc., Cl. A 2.9
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Corning, Inc. 2.9
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Varian Medical Systems, Inc. 2.9
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Monsanto Co. 2.8
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Staples, Inc. 2.8
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Procter & Gamble Co. (The) 2.3
Portfolio holdings and allocations are subject to change. Percentages are as of
August 31, 2006, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER GROWTH FUND
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 37.8%
Communications Equipment 10.6
Computers & Peripherals 7.9
Internet Software & Services 7.4
Software 5.5
Semiconductors & Semiconductor Equipment 5.0
IT Services 1.4
Health Care 18.6
Consumer Discretionary 15.6
Financials 8.7
Consumer Staples 6.8
Energy 5.3
Industrials 3.6
Materials 2.8
Telecommunication Services 0.8
Portfolio holdings and allocations are subject to change. Percentages are as of
August 31, 2006, and are based on the total market value of common stocks.
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9 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED AUGUST 31, 2006, FOLLOWED BY
A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. Despite a challenging period for
growth stocks, the Fund produced a net positive return but trailed its
benchmark, the S&P 500 Index. We attribute this underperformance to two
significant structural issues. First, the growth style of investing fell out of
favor as investors flocked to high performing commodity based companies. Second,
technology stocks, a sector in which the Fund maintains an overweighted
position, outperformed fundamentals and experienced intense volatility. This, in
return, produced exaggerated effects on stocks, with some stocks up or down
20-40% in a very short time frame. In contrast to the Fund's overall modest
returns, the Fund benefited from positive performance generated by individual
securities within the materials, technology, healthcare and consumer staples
sectors.
Over the period, investors' intense interest in commodity-based companies,
which many argue are currently benefiting from the growing power of China and
India, dominated the market. Money that could have flowed into growth type
companies was being diverted to commodity-based companies, which resulted in
less long-term investment capital flowing into growth stocks. And since the
Fund's fundamental investment style and strategy minimize owning these types of
investments, it clearly was at a disadvantage over the period. However, we
believe by investing in companies that have a structural advantage, and are not
in a commodity business, it will benefit the Fund over the long-term.
The technology sector proved to be the other significant detractor from
overall performance. This sector, particularly in the second half of the period,
was plagued by volatility caused by seasonal investors taking stock prices to
extreme levels along with market fears over inflation and rising interest rates.
Among the stocks that detracted most from performance were Microsoft
Corp., EMC Corp. and eBay, Inc. Microsoft, which we sold, suffered as investors
struggled to understand its future business plans along with more delays of its
Vista, an upgrade to Windows, launch. EMC Corp., a maker of data-storage
systems, experienced a slight shortfall in the second quarter but because of
intense market volatility, we believe this shortfall resulted in an overly
negative decline for the stock. Lastly, eBay, Inc. underperformed due to
negative market reaction to its expanded business model.
Additional performance detractors included securities within the
financials and consumer discretionary sectors as well as any stock caught up in
the options scandal. Within financials, Legg Mason, Inc., suffered due to
concerns over the integration of a recent acquisition. In consumer
discretionary, specialty-retailing stocks declined as investors' concern grew
over an anticipated slowdown in consumer spending. Among the performance
10 | OPPENHEIMER GROWTH FUND
detractors were Williams-Sonoma, Inc., Chico's FAS, Inc., and Urban Outfitters,
Inc. However, this weak performance was slightly offset by the strong
performance generated by Staples, Inc., Starbucks Corp. and Kohl's Corp.
On the positive side, the Fund benefited from individual holdings within
the materials, technology, healthcare and consumer staples sectors. The best
performing stock within the materials sector was Monsanto Co., an agricultural
company with strong patent protection. Monsanto's earnings growth and stock
performance continued to excel as the company successfully maintained its
competitive advantage in the seed business. Within technology, despite its
decline since January, Apple Computer, Inc.'s overall contribution was positive
primarily due to a put position we established in the second half of the period.
Internet search leader, Google, Inc., gained as the company's advertising
revenues continued to grow. And Cisco Systems, Inc., which has recently
experienced a turnaround due to strong quarterly performance, benefited the
Fund.
Strong stock selection proved to be the chief contributor to performance
within healthcare, with Varian Medical Systems, Inc., excelling the most. The
market defensive consumer staples sector proved to be an area of strength for
the Fund. Top contributors included Colgate-Palmolive Co., Procter & Gamble Co.
(The), and PepsiCo, Inc., all of which benefited from stable earnings during
turbulent market conditions.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 2006. In the case of Class A, Class B, Class C and
Class Y shares, performance is measured over a ten-fiscal-year period. In the
case of Class N shares, performance is measured from inception of the Class on
March 1, 2001. The Fund's performance reflects the deduction of the maximum
initial sales charge on Class A shares, the applicable contingent deferred sales
charge on Class B, Class C, and Class N shares, and reinvestments of all
dividends and capital gains distributions. Past performance cannot guarantee
future results.
The Fund's performance is compared to the performance of the S&P 500
Index, an unmanaged index of equity securities. Index performance reflects the
reinvestment of income but does not consider the effect of transaction costs,
and none of the data in the graphs shows the effect of taxes. The Fund's
performance reflects the effects of the Fund's business and operating expenses.
While index comparisons may be useful to provide a benchmark for the Fund's
performance, it must be noted that the Fund's investments are not limited to the
investments in the index.
11 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class A)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Growth
Fund (Class A) S&P 500 Index
08/31/1996 9,425 10,000
11/30/1996 10,670 11,673
02/28/1997 11,070 12,252
05/31/1997 11,741 13,211
08/31/1997 12,726 14,062
11/30/1997 12,560 15,001
02/28/1998 13,356 16,539
05/31/1998 13,520 17,261
08/31/1998 11,248 15,204
11/30/1998 13,245 18,553
02/28/1999 13,991 19,807
05/31/1999 14,554 20,892
08/31/1999 15,678 21,257
11/30/1999 17,814 22,429
02/29/2000 23,831 22,129
05/31/2000 20,488 23,079
08/31/2000 26,198 24,723
11/30/2000 17,995 21,482
02/28/2001 15,794 20,316
05/31/2001 14,742 20,645
08/31/2001 13,132 18,697
11/30/2001 13,424 18,858
02/28/2002 12,801 18,384
05/31/2002 12,394 17,788
08/31/2002 10,930 15,334
11/30/2002 10,560 15,745
02/28/2003 9,737 14,216
05/31/2003 10,998 16,353
08/31/2003 11,554 17,183
11/30/2003 11,576 18,120
02/29/2004 12,177 19,689
05/31/2004 12,182 19,350
08/31/2004 11,215 19,149
11/30/2004 12,082 20,447
02/28/2005 11,924 21,061
05/31/2005 12,394 20,942
08/31/2005 12,882 21,553
11/30/2005 13,614 22,173
02/28/2006 14,125 22,829
05/31/2006 13,194 22,750
08/31/2006 13,045 23,465
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
8/31/06
1-Year -4.56% 5-Year -1.31% 10-Year 2.69%
12 | OPPENHEIMER GROWTH FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class B)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Growth
Fund (Class B) S&P 500 Index
08/31/1996 10,000 10,000
11/30/1996 11,296 11,673
02/28/1997 11,697 12,252
05/31/1997 12,382 13,211
08/31/1997 13,393 14,062
11/30/1997 13,192 15,001
02/28/1998 14,001 16,539
05/31/1998 14,143 17,261
08/31/1998 11,743 15,204
11/30/1998 13,801 18,553
02/28/1999 14,548 19,807
05/31/1999 15,103 20,892
08/31/1999 16,237 21,257
11/30/1999 18,412 22,429
02/29/2000 24,582 22,129
05/31/2000 21,096 23,079
08/31/2000 26,924 24,723
11/30/2000 18,456 21,482
02/28/2001 16,169 20,316
05/31/2001 15,062 20,645
08/31/2001 13,393 18,697
11/30/2001 13,665 18,858
02/28/2002 13,005 18,384
05/31/2002 12,568 17,788
08/31/2002 11,072 15,334
11/30/2002 10,697 15,745
02/28/2003 9,864 14,216
05/31/2003 11,141 16,353
08/31/2003 11,704 17,183
11/30/2003 11,727 18,120
02/29/2004 12,336 19,689
05/31/2004 12,340 19,350
08/31/2004 11,361 19,149
11/30/2004 12,240 20,447
02/28/2005 12,079 21,061
05/31/2005 12,555 20,942
08/31/2005 13,050 21,553
11/30/2005 13,791 22,173
02/28/2006 14,308 22,829
05/31/2006 13,366 22,750
08/31/2006 13,214 23,465
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
8/31/06
1-Year -4.66% 5-Year -1.38% 10-Year 2.83%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER
INFORMATION.
13 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class C)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Growth
Fund (Class C) S&P 500 Index
08/31/1996 10,000 10,000
11/30/1996 11,296 11,673
02/28/1997 11,697 12,252
05/31/1997 12,382 13,211
08/31/1997 13,393 14,062
11/30/1997 13,192 15,001
02/28/1998 14,001 16,539
05/31/1998 14,145 17,261
08/31/1998 11,742 15,204
11/30/1998 13,800 18,553
02/28/1999 14,547 19,807
05/31/1999 15,106 20,892
08/31/1999 16,236 21,257
11/30/1999 18,414 22,429
02/29/2000 24,588 22,129
05/31/2000 21,097 23,079
08/31/2000 26,930 24,723
11/30/2000 18,461 21,482
02/28/2001 16,173 20,316
05/31/2001 15,066 20,645
08/31/2001 13,395 18,697
11/30/2001 13,667 18,858
02/28/2002 13,008 18,384
05/31/2002 12,569 17,788
08/31/2002 11,065 15,334
11/30/2002 10,664 15,745
02/28/2003 9,815 14,216
05/31/2003 11,060 16,353
08/31/2003 11,600 17,183
11/30/2003 11,600 18,120
02/29/2004 12,173 19,689
05/31/2004 12,149 19,350
08/31/2004 11,161 19,149
11/30/2004 12,001 20,447
02/28/2005 11,819 21,061
05/31/2005 12,254 20,942
08/31/2005 12,712 21,553
11/30/2005 13,404 22,173
02/28/2006 13,877 22,829
05/31/2006 12,932 22,750
08/31/2006 12,760 23,465
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
8/31/06
1-Year -0.62% 5-Year -0.97% 10-Year 2.47%
14 | OPPENHEIMER GROWTH FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class N)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Growth
Fund (Class N) S&P 500 Index
03/01/2001 10,000 10,000
05/31/2001 9,246 10,162
08/31/2001 8,231 9,203
11/30/2001 8,406 9,283
02/28/2002 8,011 9,049
05/31/2002 7,752 8,756
08/31/2002 6,823 7,548
11/30/2002 6,670 7,750
02/28/2003 6,152 6,998
05/31/2003 6,940 8,050
08/31/2003 7,288 8,458
11/30/2003 7,296 8,919
02/29/2004 7,667 9,692
05/31/2004 7,661 9,524
08/31/2004 7,049 9,426
11/30/2004 7,587 10,065
02/28/2005 7,482 10,367
05/31/2005 7,769 10,308
08/31/2005 8,068 10,609
11/30/2005 8,518 10,914
02/28/2006 8,829 11,237
05/31/2006 8,239 11,198
08/31/2006 8,139 11,550
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
8/31/06
1-Year -0.12% 5-Year -0.22% Since Inception (3/1/01) -3.67%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER
INFORMATION.
15 | OPPENHEIMER GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Growth Fund (Class Y)
S&P 500 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Growth
Fund (Class Y) S&P 500 Index
08/31/1996 10,000 10,000
11/30/1996 11,327 11,673
02/28/1997 11,758 12,252
05/31/1997 12,478 13,211
08/31/1997 13,536 14,062
11/30/1997 13,369 15,001
02/28/1998 14,225 16,539
05/31/1998 14,412 17,261
08/31/1998 11,996 15,204
11/30/1998 14,134 18,553
02/28/1999 14,938 19,807
05/31/1999 15,546 20,892
08/31/1999 16,764 21,257
11/30/1999 19,058 22,429
02/29/2000 25,507 22,129
05/31/2000 21,947 23,079
08/31/2000 28,090 24,723
11/30/2000 19,297 21,482
02/28/2001 16,948 20,316
05/31/2001 15,835 20,645
08/31/2001 14,109 18,697
11/30/2001 14,442 18,858
02/28/2002 13,779 18,384
05/31/2002 13,351 17,788
08/31/2002 11,781 15,334
11/30/2002 11,378 15,745
02/28/2003 10,503 14,216
05/31/2003 11,864 16,353
08/31/2003 12,471 17,183
11/30/2003 12,500 18,120
02/29/2004 13,157 19,689
05/31/2004 13,166 19,350
08/31/2004 12,126 19,149
11/30/2004 13,074 20,447
02/28/2005 12,909 21,061
05/31/2005 13,424 20,942
08/31/2005 13,959 21,553
11/30/2005 14,756 22,173
02/28/2006 15,315 22,829
05/31/2006 14,318 22,750
08/31/2006 14,163 23,465
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 8/31/06
1-Year 1.46% 5-Year 0.08% 10-Year 3.54%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER
INFORMATION.
16 | OPPENHEIMER GROWTH FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 3/15/73. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 8/17/93. 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, and the ending account value does not reflect the
deduction of any sales charges. Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/1/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
17 | OPPENHEIMER GROWTH FUND
NOTES
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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 agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
18 | OPPENHEIMER GROWTH FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended August 31, 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
19 | OPPENHEIMER GROWTH FUND
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
(3/1/06) (8/31/06) AUGUST 31, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 923.50 $ 5.69
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.31 5.97
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 919.50 10.07
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.77 10.57
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 919.50 10.07
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.77 10.57
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 921.90 7.49
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.44 7.86
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 924.80 4.67
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.37 4.90
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended August 31, 2006 are as follows:
CLASS EXPENSE RATIOS
- ------------------------------------
Class A 1.17%
- ------------------------------------
Class B 2.07
- ------------------------------------
Class C 2.07
- ------------------------------------
Class N 1.54
- ------------------------------------
Class Y 0.96
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager and Transfer Agent that can be terminated at any time,
without advance notice. The "Financial Highlights" tables in the Fund's
financial statements, included in this report, also show the gross expense
ratios, without such waivers or reimbursements.
- --------------------------------------------------------------------------------
20 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS August 31, 2006
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.9%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--15.6%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--1.0%
Autoliv, Inc. 215,400 $ 12,174,408
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.4%
Panera Bread Co.,
Cl. A 1 109,800 5,698,620
- --------------------------------------------------------------------------------
Starbucks Corp. 1 386,300 11,979,163
---------------
17,677,783
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--1.0%
Harman International Industries, Inc. 148,900 12,078,768
- --------------------------------------------------------------------------------
MEDIA--1.3%
Comcast Corp., Cl. A 1 436,200 15,267,000
- --------------------------------------------------------------------------------
MULTILINE RETAIL--2.4%
Kohl's Corp. 1 187,400 11,714,374
- --------------------------------------------------------------------------------
Target Corp. 378,000 18,291,420
---------------
30,005,794
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--5.8%
Chico's FAS, Inc. 1 403,500 7,440,540
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 586,700 15,876,102
- --------------------------------------------------------------------------------
Staples, Inc. 1,529,500 34,505,520
- --------------------------------------------------------------------------------
Urban Outfitters, Inc. 1 372,400 5,842,956
- --------------------------------------------------------------------------------
Williams-Sonoma, Inc. 272,700 8,033,742
---------------
71,698,860
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--2.7%
Nike, Inc., Cl. B 214,700 17,339,172
- --------------------------------------------------------------------------------
Polo Ralph Lauren Corp. 267,100 15,756,229
---------------
33,095,401
- --------------------------------------------------------------------------------
CONSUMER STAPLES--6.8%
- --------------------------------------------------------------------------------
BEVERAGES--1.8%
PepsiCo, Inc. 346,900 22,645,632
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.0%
Whole Foods Market, Inc. 234,400 12,568,528
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--4.0%
Colgate-Palmolive Co. 343,500 20,561,910
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS Continued
Procter & Gamble Co. (The) 455,950 $ 28,223,305
---------------
48,785,215
- --------------------------------------------------------------------------------
ENERGY--5.3%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--4.0%
Halliburton Co. 553,000 18,038,860
- --------------------------------------------------------------------------------
National Oilwell Varco, Inc. 1 244,300 15,952,790
- --------------------------------------------------------------------------------
Schlumberger Ltd. 240,100 14,718,130
---------------
48,709,780
- --------------------------------------------------------------------------------
OIL & GAS--1.3%
Apache Corp. 160,800 10,497,024
- --------------------------------------------------------------------------------
Hess Corp. 120,300 5,507,334
---------------
16,004,358
- --------------------------------------------------------------------------------
FINANCIALS--8.7%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--3.7%
Goldman Sachs Group, Inc. (The) 81,200 12,070,380
- --------------------------------------------------------------------------------
Legg Mason, Inc. 223,800 20,423,988
- --------------------------------------------------------------------------------
TD Ameritrade Holding Corp. 718,800 12,593,376
---------------
45,087,744
- --------------------------------------------------------------------------------
CONSUMER FINANCE--0.4%
SLM Corp. 96,300 4,673,439
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.0%
Chicago Mercantile Exchange (The) 27,400 12,056,000
- --------------------------------------------------------------------------------
INSURANCE--3.6%
American International Group, Inc. 698,700 44,591,034
- --------------------------------------------------------------------------------
HEALTH CARE--18.6%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--5.9%
Celgene Corp. 1 314,800 12,809,212
- --------------------------------------------------------------------------------
Genentech, Inc. 1 260,200 21,471,704
- --------------------------------------------------------------------------------
Genzyme Corp. (General Division) 1 247,000 16,358,810
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 245,300 15,552,020
21 | OPPENHEIMER GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
PDL BioPharma, Inc. 1 334,000 $ 6,579,800
---------------
72,771,546
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--7.2%
Alcon, Inc. 175,000 20,613,250
- --------------------------------------------------------------------------------
Bard (C.R.), Inc. 180,800 13,592,544
- --------------------------------------------------------------------------------
Fisher Scientific International, Inc. 1 135,200 10,576,696
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 151,500 7,364,415
- --------------------------------------------------------------------------------
Varian Medical Systems, Inc. 1 667,400 35,572,420
---------------
87,719,325
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--2.5%
Medco Health Solutions, Inc. 1 137,600 8,719,712
- --------------------------------------------------------------------------------
UnitedHealth Group, Inc. 428,500 22,260,575
---------------
30,980,287
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.0%
Novartis AG, ADR 425,800 24,321,696
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., Sponsored ADR 364,000 12,652,640
---------------
36,974,336
- --------------------------------------------------------------------------------
INDUSTRIALS--3.6%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--0.8%
General Dynamics Corp. 147,400 9,956,870
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.8%
UTi Worldwide, Inc. 421,900 9,724,795
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.0%
Rockwell Automation, Inc. 214,100 12,070,958
- --------------------------------------------------------------------------------
MACHINERY--1.0%
Oshkosh Truck Corp. 251,400 12,997,380
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--37.7%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--10.6%
Cisco Systems, Inc. 1 2,445,200 53,769,948
- --------------------------------------------------------------------------------
Corning, Inc. 1 1,613,000 35,873,120
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT Continued
F5 Networks, Inc. 1 218,100 $ 10,924,629
- --------------------------------------------------------------------------------
Motorola, Inc. 805,000 18,820,900
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 271,000 10,208,570
---------------
129,597,167
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--7.9%
Apple Computer, Inc. 1 634,900 43,077,965
- --------------------------------------------------------------------------------
EMC Corp. 1 3,832,800 44,652,120
- --------------------------------------------------------------------------------
Network Appliance, Inc. 1 252,400 8,642,176
---------------
96,372,261
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--7.3%
Aquantive, Inc. 1 220,300 5,463,440
- --------------------------------------------------------------------------------
eBay, Inc. 1 844,700 23,533,342
- --------------------------------------------------------------------------------
Google, Inc., Cl. A 1 95,300 36,073,909
- --------------------------------------------------------------------------------
Yahoo!, Inc. 1 872,700 25,151,214
---------------
90,221,905
- --------------------------------------------------------------------------------
IT SERVICES--1.4%
Cognizant Technology Solutions Corp. 1 250,200 17,491,482
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.0%
ASML Holding NV 1 631,000 13,919,860
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 908,500 26,746,240
- --------------------------------------------------------------------------------
International Rectifier Corp. 1 83,900 2,961,670
- --------------------------------------------------------------------------------
Marvell Technology Group Ltd. 1 239,700 4,197,147
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 433,300 14,121,247
---------------
61,946,164
- --------------------------------------------------------------------------------
SOFTWARE--5.5%
Adobe Systems, Inc. 1 369,500 11,986,580
- --------------------------------------------------------------------------------
Autodesk, Inc. 1 390,700 13,580,732
- --------------------------------------------------------------------------------
Electronic Arts, Inc. 1 476,800 24,302,496
- --------------------------------------------------------------------------------
NAVTEQ Corp. 1 304,100 8,076,896
- --------------------------------------------------------------------------------
Red Hat, Inc. 1 431,500 10,028,060
---------------
67,974,764
22 | OPPENHEIMER GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MATERIALS--2.8%
- --------------------------------------------------------------------------------
CHEMICALS--2.8%
Monsanto Co. 731,200 $ 34,688,128
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--0.8%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--0.8%
NeuStar, Inc., Cl. A 1 350,200 9,882,644
---------------
Total Common Stocks
(Cost $1,118,615,377) 1,228,489,756
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.1%
- --------------------------------------------------------------------------------
Undivided interest of 0.07% in joint repurchase
agreement (Principal Amount/Value $1,235,729,000,
with a maturity value of $1,235,908,181) with UBS
Warburg LLC, 5.22%, dated 8/31/06, to be repurchased
at $912,132 on 9/1/06, collateralized by Federal
National Mortgage Assn., 6%-7%, 3/1/36-8/1/36,
with a value of $1,262,388,232 (Cost $912,000) $ 912,000 $ 912,000
VALUE
SEE NOTE 1
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $1,119,527,377) 100.0% $1,229,401,756
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS 0.0 (423,264)
---------------------------
NET ASSETS 100.0% $1,228,978,492
===========================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2006
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,119,527,377)--see accompanying statement of investments $ 1,229,401,756
- -----------------------------------------------------------------------------------------------------------------------------
Cash 654,083
- -----------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 3,639,833
Interest and dividends 494,009
Shares of beneficial interest sold 452,783
Other 78,995
----------------
Total assets 1,234,721,459
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 2,489,512
Investments purchased 1,881,836
Distribution and service plan fees 466,177
Trustees' compensation 344,911
Transfer and shareholder servicing agent fees 291,802
Shareholder communications 200,413
Other 68,316
----------------
Total liabilities 5,742,967
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,228,978,492
================
- -----------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 43,281
- -----------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,662,962,229
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (339,260)
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (543,562,137)
- -----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 109,874,379
----------------
NET ASSETS $ 1,228,978,492
================
24 | OPPENHEIMER GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $949,432,662 and 32,882,441 shares of beneficial interest outstanding) $ 28.87
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $ 30.63
- -----------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $154,550,785 and 5,882,711 shares of beneficial interest outstanding) $ 26.27
- -----------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $70,193,308 and 2,626,302 shares of beneficial interest outstanding) $ 26.73
- -----------------------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $13,455,119 and 470,741 shares of beneficial interest outstanding) $ 28.58
- -----------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $41,346,618 and 1,419,043 shares of beneficial interest outstanding) $ 29.14
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2006
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $135,817) $ 9,052,800
- -----------------------------------------------------------------------------------------------------------------------------
Interest 231,484
- -----------------------------------------------------------------------------------------------------------------------------
Other income 127,726
----------------
Total investment income 9,412,010
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Management fees 9,002,178
- -----------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,386,409
Class B 1,821,333
Class C 747,764
Class N 69,738
- -----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,446,822
Class B 648,074
Class C 279,777
Class N 53,763
Class Y 164,186
- -----------------------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 343,738
Class B 137,728
Class C 35,223
Class N 3,722
- -----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 13,902
- -----------------------------------------------------------------------------------------------------------------------------
Other 62,185
----------------
Total expenses 18,216,542
Less waivers and reimbursements of expenses (132,004)
----------------
Net expenses 18,084,538
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (8,672,528)
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 90,446,288
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (63,673,581)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,100,179
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2006 2005
- -----------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (8,672,528) $ (773,436)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain 90,446,288 38,192,502
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (63,673,581) 156,753,095
----------------------------------
Net increase in net assets resulting from operations 18,100,179 194,172,161
- -----------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from beneficial interest transactions:
Class A (89,018,731) (198,124,572)
Class B (41,644,116) (45,151,513)
Class C (3,340,059) (11,796,834)
Class N (580,823) (871,228)
Class Y (15,398,455) (16,915,611)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Total decrease (131,882,005) (78,687,597)
- -----------------------------------------------------------------------------------------------------------------------------
Beginning of period 1,360,860,497 1,439,548,094
----------------------------------
End of period (including accumulated net investment loss
of $339,260 and $426,443, respectively) $ 1,228,978,492 $ 1,360,860,497
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.51 $ 24.82 $ 25.57 $ 24.19 $ 29.20
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.14) 1 .03 1,2 (.14) (.15) (.13)
Net realized and unrealized gain (loss) .50 3.66 (.61) 1.53 (4.74)
-----------------------------------------------------------------------
Total from investment operations .36 3.69 (.75) 1.38 (4.87)
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.14)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.87 $ 28.51 $ 24.82 $ 25.57 $ 24.19
=======================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 1.26% 14.87% (2.93)% 5.70% (16.77)%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 949,432 $1,024,199 $1,074,312 $1,165,627 $1,173,027
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,034,644 $1,061,402 $1,178,435 $1,095,830 $1,430,735
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.48)% 0.11% 2 (0.59)% (0.69)% (0.54)%
Total expenses 1.17% 1.19% 1.18% 1.22% 1.31%
Expenses after payments and waivers
and reduction to custodian expenses 1.16% 1.15% 1.18% 1.22% 1.31%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 72% 104% 82% 60%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment income per share and the net investment income ratio include
$.15 and 0.58%, respectively, resulting from a special dividend from Microsoft
Corp. in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER GROWTH FUND
CLASS B YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.18 $ 22.98 $ 23.90 $ 22.80 $ 27.60
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.37) 1 (.19) 1,2 (.71) (.58) (.54)
Net realized and unrealized gain (loss) .46 3.39 (.21) 1.68 (4.26)
--------------------------------------------------------------
Total from investment operations .09 3.20 (.92) 1.10 (4.80)
- ----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.27 $ 26.18 $ 22.98 $ 23.90 $ 22.80
==============================================================
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 0.34% 13.93% (3.85)% 4.83% (17.39)%
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $154,551 $193,897 $212,774 $270,715 $317,725
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $182,464 $201,613 $254,295 $276,668 $415,965
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.36)% (0.76)% 2 (1.51)% (1.52)% (1.30)%
Total expenses 2.10% 2.15% 2.24% 2.29% 2.08%
Expenses after payments and waivers
and reduction to custodian expenses 2.07% 2.03% 2.11% 2.06% 2.08%
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 72% 104% 82% 60%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.14
and 0.58%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002
- -----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.63 $ 23.38 $ 24.30 $ 23.18 $ 28.06
- -----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.38) 1 (.19) 1,2 (.37) (.36) (.43)
Net realized and unrealized gain (loss) .48 3.44 (.55) 1.48 (4.45)
---------------------------------------------------------
Total from investment operations .10 3.25 (.92) 1.12 (4.88)
- -----------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.73 $ 26.63 $ 23.38 $ 24.30 $ 23.18
=========================================================
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 0.38% 13.90% (3.79)% 4.83% (17.39)%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $70,193 $73,277 $75,459 $77,548 $75,229
- -----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $74,881 $73,785 $83,103 $72,165 $93,082
- -----------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.36)% (0.76)% 2 (1.47)% (1.52)% (1.31)%
Total expenses 2.09% 2.12% 2.16% 2.22% 2.08%
Expenses after payments and waivers
and reduction to custodian expenses 2.05% 2.01% 2.07% 2.06% 2.08%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 72% 104% 82% 60%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.14
and 0.58%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER GROWTH FUND
CLASS N YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.33 $ 24.75 $ 25.59 $ 23.99 $ 29.13
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.25) 1 (.07) 1,2 (.27) (.04) (.13) 1
Net realized and unrealized gain (loss) .50 3.65 (.57) 1.64 (4.78) 1
-------------------------------------------------------------------------
Total from investment operations .25 3.58 (.84) 1.60 (4.91)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.23)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.58 $ 28.33 $ 24.75 $ 25.59 $ 23.99
=========================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 0.88% 14.47% (3.28)% 6.67% (17.00)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 13,455 $ 13,892 $ 12,998 $ 7,766 $ 2,243
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 13,975 $ 13,546 $ 11,987 $ 5,016 $ 1,623
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.85)% (0.25)% 2 (0.94)% (0.39)% (0.90)%
Total expenses 1.58% 1.68% 1.70% 1.33% 1.57%
Expenses after payments and waivers
and reduction to custodian expenses 1.53% 1.51% 1.53% 1.23% 1.57%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 72% 104% 82% 60%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.15
and 0.58%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.72 $ 24.95 $ 25.66 $ 24.24 $ 29.27
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) 1 .08 1,2 (.10) (.12) (.06)
Net realized and unrealized gain (loss) .50 3.69 (.61) 1.54 (4.73)
-------------------------------------------------------------------------
Total from investment operations .42 3.77 (.71) 1.42 (4.79)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.24)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 29.14 $ 28.72 $ 24.95 $ 25.66 $ 24.24
=========================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 1.46% 15.11% (2.77)% 5.86% (16.50)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 41,347 $ 55,595 $ 64,005 $ 66,121 $ 66,769
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 54,038 $ 60,275 $ 68,569 $ 61,965 $ 81,127
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.26)% 0.31% 2 (0.40)% (0.55)% (0.25)%
Total expenses 0.97% 1.03% 1.01% 1.17% 1.13%
Expenses after payments and waivers
and reduction to custodian expenses 0.96% 0.98% 1.01% 1.08% 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 72% 104% 82% 60%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment income per share and the net investment income ratio include
$.15 and 0.58%, respectively, resulting from a special dividend from Microsoft
Corp. in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Growth Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The
Fund's investment objective is to seek capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. 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(R) 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 trading session ending at, or most
recently prior to, the time when the Fund's assets are
33 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
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 Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
34 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
--------------------------------------------------------------------------
$-- $-- $542,674,006 $108,149,943
1. As of August 31, 2006, the Fund had $539,505,177 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of August 31, 2006, details
of the capital loss carryforwards were as follows:
EXPIRING
--------------------------
2010 $ 216,605,741
2011 322,899,436 a
-------------
Total $ 539,505,177
=============
a. Includes $117,296 of capital loss carryforwards acquired in the
November 6, 2003 merger of Oppenheimer Select Managers Mercury
Advisors Focus Growth Fund. Includes $719,068 of capital loss
carryforwards acquired in the October 16, 2003 merger of Oppenheimer
Select Managers Jennison Growth Fund.
2. The Fund had $3,168,829 of straddle losses which were deferred.
3. During the fiscal year ended August 31, 2006, the Fund utilized $91,288,851
of capital loss carryforward to offset capital gains realized in that fiscal
year. b
b. Includes $1,579,207 of capital loss carryforwards acquired in the
September 18, 2003 merger of Oppenheimer Trinity Large Cap Growth
Fund. Includes $339,688 of capital loss carryforwards acquired in
the October 12, 2001 merger of Oppenheimer Trinity Growth Fund.
4. During the fiscal year ended August 31, 2005, the Fund utilized $37,586,833
of capital loss carryforward to offset capital gains realized in that fiscal
year. c
c. Includes $213,059 of capital loss carryforwards acquired in the
November 6, 2003 merger of Oppenheimer Select Managers Mercury
Advisors Focus Growth Fund.
Includes $719,068 of capital loss carryforwards acquired in the
October 16, 2003 merger of Oppenheimer Select Managers Jennison
Growth Fund.
Includes $1,579,207 of capital loss carryforwards acquired in the
September 18, 2003 merger of Oppenheimer Trinity Large Cap Growth
Fund.
Includes $339,688 of capital loss carryforwards acquired in the
October 12, 2001 merger of Oppenheimer Trinity Growth Fund.
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
35 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
fiscal year from net investment income or net realized gains may differ from
their ultimate characterization for federal income tax purposes. Also, due to
timing of dividends and distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or net realized
gain was recorded by the Fund. Accordingly, the following amounts have been
reclassified for August 31, 2006. Net assets of the Fund were unaffected by the
reclassifications.
REDUCTION TO INCREASE TO
ACCUMULATED ACCUMULATED NET
REDUCTION TO NET INVESTMENT REALIZED LOSS
PAID-IN CAPITAL LOSS ON INVESTMENTS
--------------------------------------------------
$6,840,815 $8,759,711 $1,918,896
No distributions were paid during the years ended August 31, 2006 and August 31,
2005.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of August 31, 2006 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 1,121,251,813
===============
Gross unrealized appreciation $ 167,675,092
Gross unrealized depreciation (59,525,149)
---------------
Net unrealized appreciation $ 108,149,943
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended August
31, 2006, the Fund's projected benefit obligations were decreased by $73,863 and
payments of $29,561 were made to retired trustees, resulting in an accumulated
liability of $264,705 as of August 31, 2006.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
36 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
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 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. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
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 BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
37 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED AUGUST 31, 2006 YEAR ENDED AUGUST 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------
CLASS A
Sold 4,547,599 $ 136,452,263 4,089,498 $ 108,776,676
Redeemed (7,584,067) (225,470,994) (11,458,722) (306,901,248)
--------------------------------------------------------------
Net decrease (3,036,468) $ (89,018,731) (7,369,224) $(198,124,572)
==============================================================
- --------------------------------------------------------------------------------
CLASS B
Sold 1,085,763 $ 29,715,242 1,297,985 $ 31,811,883
Redeemed (2,610,358) (71,359,358) (3,148,523) (76,963,396)
--------------------------------------------------------------
Net decrease (1,524,595) $ (41,644,116) (1,850,538) $ (45,151,513)
==============================================================
- --------------------------------------------------------------------------------
CLASS C
Sold 611,494 $ 17,072,329 597,903 $ 14,961,859
Redeemed (737,072) (20,412,388) (1,074,017) (26,758,693)
--------------------------------------------------------------
Net decrease (125,578) $ (3,340,059) (476,114) $ (11,796,834)
==============================================================
- --------------------------------------------------------------------------------
CLASS N
Sold 205,132 $ 6,057,194 230,886 $ 6,155,768
Redeemed (224,725) (6,638,017) (265,824) (7,026,996)
--------------------------------------------------------------
Net decrease (19,593) $ (580,823) (34,938) $ (871,228)
==============================================================
- --------------------------------------------------------------------------------
CLASS Y
Sold 693,778 $ 21,228,053 621,642 $ 16,805,961
Redeemed (1,210,614) (36,626,508) (1,250,827) (33,721,572)
--------------------------------------------------------------
Net decrease (516,836) $ (15,398,455) (629,185) $ (16,915,611)
==============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended August 31, 2006, were as
follows:
PURCHASES SALES
----------------------------------------------------------------
Investment securities $ 844,361,137 $ 996,279,293
- --------------------------------------------------------------------------------
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:
38 | OPPENHEIMER GROWTH FUND
FEE SCHEDULE
---------------------------------------------
Up to $200 million of net assets 0.75%
Next $200 million of net assets 0.72
Next $200 million of net assets 0.69
Next $200 million of net assets 0.66
Next $700 million of net assets 0.60
Next $1 billion of net assets 0.58
Next $2 billion of net assets 0.56
Over $4.5 billion of net assets 0.54
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended August 31, 2006, the Fund paid
$3,561,966 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 Trustees and its independent trustees must determine whether the
Distributor shall be entitled to payment from the Fund of all or a portion of
the service fee and/or asset-based sales charge in respect to shares sold prior
to the effective date of such termination. The Distributor's aggregate
uncompensated expenses under the plan at August 31, 2006 for Class B, Class C
and Class N shares were $10,671,568, $2,768,916 and $917,564, respectively. Fees
incurred by the Fund under the plans are detailed in the Statement of
Operations.
39 | OPPENHEIMER GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table for the period
indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------------------
August 31, 2006 $ 472,656 $ 9,932 $ 513,802 $ 14,545 $ 5,157
- -------------------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective January 1, 2005, the Manager
had voluntarily agreed to reduce its advisory fee rate for any quarter during
the calendar year ending December 31, 2005, by 0.05% of the Fund's average daily
net assets if the Fund's trailing one-year total return performance, measured at
the end of the prior calendar quarter, was in the fourth or fifth quintile of
the Fund's Lipper peer group. However, if the Fund's total return performance at
the end of a subsequent calendar quarter had improved to the third or higher
quintile of Fund's Lipper peer group, the advisory fee reduction would be
terminated for the remainder of the calendar year. This advisory fee reduction
was removed, based on the Fund's actual total return performance, effective
October 1, 2005. During the year ended August 31, 2006, the Manager waived
$55,879.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class.
During the year ended August 31, 2006, OFS waived $44,515, $21,982, $5,811 and
$3,817 for Class B, Class C, Class N and Class Y shares, respectively. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENT
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
August 31, 2006, the Manager is evaluating the implications of FIN 48. Its
impact in the Fund's financial statements has not yet been determined.
40 | OPPENHEIMER GROWTH FUND
- --------------------------------------------------------------------------------
6. 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.
41 | OPPENHEIMER GROWTH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER GROWTH FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Growth Fund, including the statement of investments, as of August
31, 2006, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years in the five-year
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of August 31, 2006, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Growth Fund as of August 31, 2006, the results of its operations for
the year then ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended, in conformity with U.S. generally accepted
accounting principles.
KPMG LLP
Denver, Colorado
October 16, 2006
42 | OPPENHEIMER GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
43 | OPPENHEIMER GROWTH FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in 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.
44 | OPPENHEIMER GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD; NUMBER OF
FUND, LENGTH OF SERVICE, AGE PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT TRUSTEES THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, COLORADO
80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January 2005); Attorney at Hogan &
Chairman of the Board Hartson (law firm) (since June 1993); Director of Covanta Holding Corp. (waste-to-energy company)
of Trustees (since 2003), (since 2002); Director of Weyerhaeuser Corp. (1999-April 2004); Director of Caterpillar, Inc.
Trustee (since 1993) (1993-December 2002); Director of ConAgra Foods (1993-2001); Director of Texas Instruments (1993-
Age: 75 2001); Director of FMC Corporation (1993-2001). Oversees 43 portfolios in the OppenheimerFunds
complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation) (since 2005);
Trustee (since 2005) Director of ICI Education Foundation (education foundation) (October 1991-August 2006); President
Age: 65 of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI
Mutual Insurance Company (insurance company) (October 1991-June 2004). Oversees 43 portfolios in
the OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 53 portfolios in the OppenheimerFunds
Trustee (since 1993) complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and Member (since 1979)
Trustee (since 1999) of the National Academy of Sciences; Council on Foreign Relations (since 2002); Director of GSI
Age: 68 Lumonics Inc. (precision medical equipment supplier) (since 2001); Senior Advisor of The Andrew
W. Mellon Foundation (since 2001); Chair of Science Initiative Group (since 1999); Member of the
American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Foreign
Associate of Third World Academy of Sciences; Director of the Institute for Advanced Study
(1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke
University (1983-1991). Oversees 43 portfolios in the OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and Senior Vice
Trustee (since 2004) President and General Auditor of American Express Company (financial services company) (July
Age: 63 1998-February 2003). Oversees 43 portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser) (since 2002);
Trustee (since 2002) Managing Director of Carmona Motley, Inc. (privately-held financial adviser) (since January
Age: 54 2002); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial adviser)
(January 1998-December 2001); Member of the Finance and Budget Committee of the Council on
Foreign Relations, the Investment Committee of the Episcopal Church of America, the Investment
Committee and Board of Human Rights Watch and the Investment Committee of Historic Hudson Valley.
Oversees 43 portfolios in the OppenheimerFunds complex.
45 | OPPENHEIMER GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) (February 1972-October
Trustee (since 1985) 2005); Former Director of Prime Retail, Inc. (real estate investment trust), Dominion Energy Inc.
Age: 79 (electric power and oil & gas producer), Lumberman's Mutual Casualty Company, American Motorists
Insurance Company and American Manufacturers Mutual Insurance Company; Former President and Chief
Executive Officer of The Conference Board, Inc. (international economic and business research).
Oversees 43 portfolios in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting and executive
Trustee (since 1989) recruiting) (since 1993); Life Trustee of International House (non-profit educational
Age: 74 organization); Founder, Chairman and Chief Executive Officer of Russell Reynolds Associates, Inc.
(1969-1993); Banker at J.P. Morgan & Co. (1958-1966); 1st Lt. Strategic Air Command, U.S. Air
Force (1954-1958). Oversees 43 portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and Cathco (since
Trustee (since 2005) 1996); Director of Lakes Environmental Association (since 1996); Member of the Investment
Age: 65 Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of
Fortis/Hartford mutual funds (1994-December 2001). Oversees 43 portfolios in the OppenheimerFunds
complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since
Trustee (since 2005) 1994); Vice President, Secretary and Treasurer of Wold Trona Company, Inc. (soda ash processing
Age: 58 and production) (since 1996); Vice President of Wold Talc Company, Inc. (talc mining) (since
1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and
Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and
Director of PacifiCorp. (electric utility) (1995-1999). Oversees 43 portfolios in the
OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995); Director of
Trustee (since 2005) Special Value Opportunities Fund, LLC (registered investment company) (since September 2004);
Age: 63 Member of Zurich Financial Investment Advisory Board (insurance) (since October 2004); Board of
Governing Trustees of The Jackson Laboratory (non-profit) (since August 1990); Trustee of the
Institute for Advanced Study (non-profit educational institute) (since May 1992); Special Limited
Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September
2004); Trustee of Research Foundation of AIMR (2000-2002) (investment research, non-profit);
Governor, Jerome Levy Economics Institute of Bard College (August 1990-September 2001) (economics
research); Director of Ray & Berendtson, Inc. (May 2000-April 2002) (executive search firm).
Oversees 53 portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW
AND OFFICER YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN INDEFINITE TERM, OR UNTIL HIS
RESIGNATION, RETIREMENT, DEATH OR REMOVAL AND AS AN OFFICER FOR AN INDEFINITE TERM, OR UNTIL HIS
RESIGNATION, RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS
POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
46 | OPPENHEIMER GROWTH FUND
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President (since September
Trustee, President and 2000) of the Manager; President and a director or trustee of other Oppenheimer funds; President
Principal Executive Officer and Director of Oppenheimer Acquisition Corp. ("OAC") (the Manager's parent holding company) and
(since 2001) of Oppenheimer Partnership Holdings, Inc. (holding company subsidiary of the Manager) (since July
Age: 57 2001); Director of OppenheimerFunds Distributor, Inc. (subsidiary of the Manager) (since November
2001); Chairman and Director of Shareholder Services, Inc. and of Shareholder Financial Services,
Inc. (transfer agent subsidiaries of the Manager) (since July 2001); President and Director of
OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since July
2001); Director of the following investment advisory subsidiaries of the Manager: OFI
Institutional Asset Management, Inc., Centennial Asset Management Corporation, Trinity Investment
Management Corporation and Tremont Capital Management, Inc. (since November 2001), HarbourView
Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and Director (since July 2001) of Oppenheimer Real Asset Management,
Inc.; Executive Vice President of Massachusetts Mutual Life Insurance Company (OAC's parent
company) (since February 1997); Director of DLB Acquisition Corporation (holding company parent of
Babson Capital Management LLC) (since June 1995); Member of the Investment Company Institute's
Board of Governors (since October 3, 2003); Chief Operating Officer of the Manager (September
2000-June 2001); President and Trustee of MML Series Investment Fund and MassMutual Select Funds
(open-end investment companies) (November 1999-November 2001); Director of C.M. Life Insurance
Company (September 1999-August 2000); President, Chief Executive Officer and Director of MML Bay
State Life Insurance Company (September 1999-August 2000); Director of Emerald Isle Bancorp and
Hibernia Savings Bank (wholly-owned subsidiary of Emerald Isle Bancorp) (June 1989-June 1998).
Oversees 91 portfolios in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS. POIESZ, ZACK,
OF THE FUND GILLESPIE AND MS. BLOOMBERG, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW YORK
10281-1008, FOR MESSRS. VANDEHEY, WIXTED, PETERSEN, SZILAGYI AND MS. IVES, 6803 S. TUCSON WAY,
CENTENNIAL, COLORADO 80112-3924. EACH OFFICER SERVES FOR AN INDEFINITE TERM OR UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
DAVID POIESZ, Senior Vice President of the Manager since June 2004; senior portfolio manager at Merrill Lynch.
Vice President and Portfolio (October 2002-May 2004); founding partner of RiverRock Capital LLC, a hedge fund product; (April
Manager (since 2004) 1999-July 2001); portfolio manager at Jennison Associates (November 1992-March 1999). An officer
Age: 48 of 5 portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Vice
Vice President and Chief President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and
Compliance Officer Shareholder Services, Inc. (since June 1983). Former Vice President and Director of Internal
(since 2004) Audit of the Manager (1997-February 2004). An officer of 91 portfolios in the OppenheimerFunds
Age: 56 complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of the
Treasurer and Principal following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc.,
Financial and Accounting Shareholder Services, Inc., Oppenheimer Real Asset Management Corporation, and Oppenheimer
Officer (since 1999) Partnership Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since March 2000),
Age: 47 OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds
47 | OPPENHEIMER GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Continued plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and
OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June
2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of
the Manager) (since May 2000); Assistant Treasurer of the following: OAC (since March
1999),Centennial Asset Management Corporation (March 1999-October 2003) and OppenheimerFunds
Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer of Bankers Trust
Company-Mutual Fund Services Division (March 1995-March 1999). An officer of 91 portfolios in
the OppenheimerFunds complex.
BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002); Manager/Financial Product Accounting
Assistant Treasurer of the Manager (November 1998-July 2002). An officer of 91 portfolios in the OppenheimerFunds
(since 2004) complex.
Age: 36
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial Reporting and
Assistant Treasurer Compliance of First Data Corporation (April 2003-July 2004); Manager of Compliance of Berger
(since 2005) Financial Group LLC (May 2001-March 2003); Director of Mutual Fund Operations at American Data
Age: 36 Services, Inc. (September 2000-May 2001). An officer of 91 portfolios in the OppenheimerFunds
complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March 2002) of the
Secretary (since 2001) Manager; General Counsel and Director of the Distributor (since December 2001); General Counsel
Age: 58 of Centennial Asset Management Corporation (since December 2001); Senior Vice President and
General Counsel of HarbourView Asset Management Corporation (since December 2001); Secretary and
General Counsel of OAC (since November 2001); Assistant Secretary (since September 1997) and
Director (since November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds plc;
Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since December 2002);
Director of Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President,
General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services,
Inc. (since December 2001); Senior Vice President, General Counsel and Director of OFI Private
Investments, Inc. and OFI Trust Company (since November 2001); Vice President of OppenheimerFunds
Legacy Program (since June 2003); Senior Vice President and General Counsel of OFI Institutional
Asset Management, Inc. (since November 2001); Director of OppenheimerFunds (Asia) Limited (since
December 2003); Senior Vice President (May 1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager;
Assistant Secretary of the following: Shareholder Services, Inc. (May 1985-November 2001),
Shareholder Financial Services, Inc. (November 1989-November 2001), and OppenheimerFunds
International Ltd. (September 1997-November 2001). An officer of 91 portfolios in the
OppenheimerFunds complex.
48 | OPPENHEIMER GROWTH FUND
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice President (April
Assistant Secretary 2001-April 2004), Associate General Counsel (December 2000-April 2004), Corporate Vice President
(since 2004) (May 1999-April 2001) and Assistant General Counsel (May 1999-December 2000) of UBS Financial
Age: 38 Services Inc. (formerly, PaineWebber Incorporated). An officer of 91 portfolios in the
OppenheimerFunds complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since October 2003)
Assistant Secretary of the Manager; Vice President (since 1999) and Assistant Secretary (since October 2003) of the
(since 2001) Distributor; Assistant Secretary of Centennial Asset Management Corporation (since October 2003);
Age: 40 Vice President and Assistant Secretary of Shareholder Services, Inc. (since 1999); Assistant
Secretary of OppenheimerFunds Legacy Program and Shareholder Financial Services, Inc. (since
December 2001); Assistant Counsel of the Manager (August 1994-October 2003). An officer of 91
portfolios in the OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since September 2004); First Vice
Assistant Secretary President (2000-September 2004), Director (2000-September 2004) and Vice President (1998-2000) of
(since 2004) Merrill Lynch Investment Management. An officer of 91 portfolios in the OppenheimerFunds complex.
Age: 42
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
49 | OPPENHEIMER GROWTH FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee
financial expert," whether through the type of specialized education or
experience described in that Instruction. The Board has concluded that while the
members of the Audit Committee collectively have the necessary attributes and
experience required to serve effectively as an Audit Committee, no single member
possesses all of the required technical attributes through the particular
methods of education or experience set forth in the Instructions to be
designated as an audit committee financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $45,000 in fiscal 2006 and $45,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $75,000 in fiscal 2006 and $132,059 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: internal control reviews.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2006 and $5,000 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: filing form 5500.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $8,000 in fiscal 2006 and no such fees in 2005 to the
registrant's investment
adviser or any entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant.
Such fees would include the cost to the principal accountant of attending audit
committee meetings and consultations regarding the registrant's retirement plan
with respect to its trustees.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and other
services to be provided by the principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its Chairman
for any subsequent new engagements that arise between regularly scheduled
meeting dates provided that any fees such pre-approved are presented to
the audit committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal year in which
services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee of
the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $83,000 in fiscal 2006 and $137,059 in fiscal
2005 to the registrant and the registrant's investment adviser or any
entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has considered
whether the provision of non-audit services that were rendered to the
registrant's investment adviser, and any entity controlling, controlled
by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
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 08/31/2006, 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) Exhibit attached hereto.
(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 Growth Fund
By: /S/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 10/16/2006
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: 10/16/2006
By: /S/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 10/16/2006