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 811-09845
OPPENHEIMER EMERGING TECHNOLOGIES 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: OCTOBER 31
Date of reporting period: OCTOBER 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Semiconductors & Semiconductor Equipment 23.4%
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Internet Software & Services 17.7
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Software 17.7
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Communications Equipment 12.7
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Computers & Peripherals 8.3
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Wireless Telecommunication Services 4.0
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IT Services 3.7
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Diversified Telecommunication Services 2.9
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Health Care Equipment & Supplies 1.9
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Commercial Services & Supplies 1.7
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2006, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Google, Inc., Cl. A 3.5%
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Cisco Systems, Inc. 3.4
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Broadcom Corp., Cl. A 2.6
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EMC Corp. 2.6
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Apple Computer, Inc. 2.5
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Cognizant Technology Solutions Corp. 2.4
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American Tower Corp. 2.2
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Adobe Systems, Inc. 2.2
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Corning, Inc. 2.1
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Marvell Technology Group Ltd. 2.0
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2006, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 86.2%
Semiconductors & Semiconductor Equipment 23.8
Internet Software & Services 18.0
Software 18.0
Communications Equipment 12.9
Computers & Peripherals 8.4
IT Services 3.8
Electronic Equipment & Instruments 1.3
Telecommunications Services 7.0
Health Care 2.7
Consumer Discretionary 2.3
Industrials 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2006, and are based on the total market value of common stocks.
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9 | OPPENHEIMER EMERGING TECHNOLOGIES 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 OCTOBER 31, 2006, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO APPROPRIATE BROAD-BASED
MARKET INDICES.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. For the 12-month period ending
October 31, 2006, Oppenheimer Emerging Technologies Fund produced positive
absolute results but lagged behind its primary benchmark, the S&P 500 Index. We
attribute the Fund's relative underperformance to a difficult market environment
for small-cap technology stocks during the second half of the period. The Fund
tends to invest a significant amount within micro- to small-cap technology
stocks and while these stocks generally outperformed their mid- to large-cap
counterparts during the first half of the period, they underperformed during the
second half. And since the Fund's benchmark emphasizes larger-cap stocks, the
Fund underperformed its peers over the period. Additionally, weak performance
from Dell, Inc., which we sold, and Yahoo!, Inc., also hampered performance.
However, we attribute the Fund's positive absolute performance to our
disciplined research-driven stock selection process which led us to a number of
high performing securities, with the two most notable being Akamai Technologies,
Inc. and Cisco Systems, Inc. We sold our position in Akamai Technologies and
took profits.
The Fund's investment strategy focuses predominantly on micro-, small- and
mid-cap technology companies that we believe offer high growth potential and
display leadership qualities within their markets. We continued to employ our
bottom-up stock selection process, combining in-depth fundamental, quantitative
and technical analysis to yield what we believed to be favorable prospects. Due
to the Fund's focus on the technology sector, and emphasis on small-cap
technology stocks, the Fund tends to deliver strong returns during favorable
market environments and weak performance in unfavorable environments.
In terms of individual performance detractors, the two largest were Dell,
Inc. and Yahoo!, Inc. Although the Fund tends to focus on small-cap stocks, we
built positions in both of these large-cap technology companies as a means for
the Fund to better withstand the intense volatility that overcame the technology
sector during the second quarter of this year. Unfortunately, both of these
securities experienced company-specific difficulties and underperformed. In the
case of Dell, Inc., the company's product pricing did not remain competitive,
which caused a significant pullback in its stock price. Yahoo!, Inc. suffered
from slowing growth in its online advertising business in addition to the
delayed launch of its greatly anticipated new internet search platform.
10 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
On the positive side, our investment strategy succeeded in identifying
many high performing technology stocks. The greatest contributor to the Fund's
performance came from Akamai Technologies, Inc., an internet content delivery
service company. Over the period, Akamai successfully purchased its largest
competitor and rationalized the pricing in its operating space. The Fund also
received strong contributions from its position within Cisco Systems, Inc.
Strong quarterly earnings results combined with a bullish outlook for 2007
pushed Cisco's stock price up. Network Appliance, Inc., a leading vendor of
network-attached storage systems, benefited from a successful product cycle,
which drove up the company's revenues and earnings. Also contributing was
offshore outsourcing IT services provider, Cognizant Technology Solutions Corp.,
which continued to benefit from the strong outsourcing trend. Lastly, Apple
Computer, Inc., continued to enjoy the success of its iPod music players along
with strong sales from its Macintosh computers.
TECHNOLOGY STOCKS, PARTICULARLY THOSE THAT ARE SMALL- OR MID-CAP, ARE ESPECIALLY
VOLATILE. FOREIGN INVESTMENTS MAY BE MORE VOLATILE AND INVOLVE ADDITIONAL
EXPENSES AND SPECIAL RISKS, INCLUDING CURRENCY EXCHANGES, AND POLITICAL AND
ECONOMIC UNCERTAINTIES.
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 October 31, 2006. Performance is measured from the inception of
Classes A, B, C and Y on April 25, 2000. 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 that of the S&P 500 Index and the
Lipper Science & Technology Fund Index. The S&P 500 Index is a broad-based index
of equity securities widely regarded as a general measure of the performance of
the U.S. equity securities market. The Lipper Science & Technology Fund Index
includes the top 30 market weighted funds within the Lipper Science & Technology
Classification. The index includes funds that invest 65% of their equity
portfolio in science and technology stocks, without considering sales charges.
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 indices.
11 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Emerging Technologies Fund (Class A)
S&P 500 Index
Lipper Science & Technology Fund Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lipper
Science &
Oppenheimer Emerging Technology
Technologies Fund (Class A) S&P 500 Index Fund Index
--------------------------- ------------- ----------
04/25/2000 $ 9,425 $10,000 $10,000
04/30/2000 $10,056 $10,000 $10,000
07/31/2000 $11,263 $ 9,879 $ 9,591
10/31/2000 $10,594 $ 9,897 $ 8,826
01/31/2001 $ 8,615 $ 9,487 $ 7,139
04/30/2001 $ 5,709 $ 8,703 $ 5,385
07/31/2001 $ 4,388 $ 8,464 $ 4,645
10/31/2001 $ 3,312 $ 7,434 $ 3,676
01/31/2002 $ 3,416 $ 7,956 $ 4,157
04/30/2002 $ 2,538 $ 7,605 $ 3,462
07/31/2002 $ 1,821 $ 6,466 $ 2,545
10/31/2002 $ 1,717 $ 6,311 $ 2,463
01/31/2003 $ 1,746 $ 6,126 $ 2,466
04/30/2003 $ 1,982 $ 6,594 $ 2,705
07/31/2003 $ 2,538 $ 7,153 $ 3,201
10/31/2003 $ 2,963 $ 7,623 $ 3,680
01/31/2004 $ 3,057 $ 8,242 $ 3,938
04/30/2004 $ 2,557 $ 8,101 $ 3,532
07/31/2004 $ 2,378 $ 8,095 $ 3,361
10/31/2004 $ 2,538 $ 8,341 $ 3,566
01/31/2005 $ 2,537 $ 8,755 $ 3,673
04/30/2005 $ 2,299 $ 8,614 $ 3,441
07/31/2005 $ 2,641 $ 9,232 $ 3,926
10/31/2005 $ 2,622 $ 9,068 $ 3,891
01/31/2006 $ 2,974 $ 9,663 $ 4,371
04/30/2006 $ 3,078 $ 9,941 $ 4,406
07/31/2006 $ 2,527 $ 9,728 $ 3,805
10/31/2006 $ 2,878 $10,548 $ 4,258
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
10/31/06
1-Year 3.47% 5-Year -3.91% Since Inception (4/25/00) -17.39%
12 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Emerging Technologies Fund (Class B)
S&P 500 Index
Lipper Science & Technology Fund Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lipper
Science &
Oppenheimer Emerging Technology
Technologies Fund (Class B) S&P 500 Index Fund Index
--------------------------- ------------- ----------
04/25/2000 $10,000 $10,000 $10,000
04/30/2000 $10,670 $10,000 $10,000
07/31/2000 $11,930 $ 9,879 $ 9,591
10/31/2000 $11,200 $ 9,897 $ 8,826
01/31/2001 $ 9,090 $ 9,487 $ 7,139
04/30/2001 $ 6,020 $ 8,703 $ 5,385
07/31/2001 $ 4,610 $ 8,464 $ 4,645
10/31/2001 $ 3,480 $ 7,434 $ 3,676
01/31/2002 $ 3,580 $ 7,956 $ 4,157
04/30/2002 $ 2,650 $ 7,605 $ 3,462
07/31/2002 $ 1,900 $ 6,466 $ 2,545
10/31/2002 $ 1,790 $ 6,311 $ 2,463
01/31/2003 $ 1,810 $ 6,126 $ 2,466
04/30/2003 $ 2,050 $ 6,594 $ 2,705
07/31/2003 $ 2,630 $ 7,153 $ 3,201
10/31/2003 $ 3,060 $ 7,623 $ 3,680
01/31/2004 $ 3,150 $ 8,242 $ 3,938
04/30/2004 $ 2,630 $ 8,101 $ 3,532
07/31/2004 $ 2,450 $ 8,095 $ 3,361
10/31/2004 $ 2,600 $ 8,341 $ 3,566
01/31/2005 $ 2,590 $ 8,755 $ 3,673
04/30/2005 $ 2,350 $ 8,614 $ 3,441
07/31/2005 $ 2,700 $ 9,232 $ 3,926
10/31/2005 $ 2,660 $ 9,068 $ 3,891
01/31/2006 $ 3,020 $ 9,663 $ 4,371
04/30/2006 $ 3,120 $ 9,941 $ 4,406
07/31/2006 $ 2,561 $ 9,728 $ 3,805
10/31/2006 $ 2,900 $10,548 $ 4,258
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
10/31/06
1-Year 4.02% 5-Year -3.97% Since Inception (4/25/00) -17.30%
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, THE "SINCE INCEPTION" RETURN FOR CLASS
B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
13 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Emerging Technologies Fund (Class C)
S&P 500 Index
Lipper Science & Technology Fund Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lipper
Science &
Oppenheimer Emerging Technology
Technologies Fund (Class C) S&P 500 Index Fund Index
--------------------------- ------------- ----------
04/25/2000 $10,000 $10,000 $10,000
04/30/2000 $10,670 $10,000 $10,000
07/31/2000 $11,930 $ 9,879 $ 9,591
10/31/2000 $11,200 $ 9,897 $ 8,826
01/31/2001 $ 9,090 $ 9,487 $ 7,139
04/30/2001 $ 6,010 $ 8,703 $ 5,385
07/31/2001 $ 4,610 $ 8,464 $ 4,645
10/31/2001 $ 3,480 $ 7,434 $ 3,676
01/31/2002 $ 3,580 $ 7,956 $ 4,157
04/30/2002 $ 2,650 $ 7,605 $ 3,462
07/31/2002 $ 1,900 $ 6,466 $ 2,545
10/31/2002 $ 1,790 $ 6,311 $ 2,463
01/31/2003 $ 1,810 $ 6,126 $ 2,466
04/30/2003 $ 2,060 $ 6,594 $ 2,705
07/31/2003 $ 2,630 $ 7,153 $ 3,201
10/31/2003 $ 3,060 $ 7,623 $ 3,680
01/31/2004 $ 3,150 $ 8,242 $ 3,938
04/30/2004 $ 2,630 $ 8,101 $ 3,532
07/31/2004 $ 2,450 $ 8,095 $ 3,361
10/31/2004 $ 2,600 $ 8,341 $ 3,566
01/31/2005 $ 2,600 $ 8,755 $ 3,673
04/30/2005 $ 2,350 $ 8,614 $ 3,441
07/31/2005 $ 2,700 $ 9,232 $ 3,926
10/31/2005 $ 2,670 $ 9,068 $ 3,891
01/31/2006 $ 3,030 $ 9,663 $ 4,371
04/30/2006 $ 3,120 $ 9,941 $ 4,406
07/31/2006 $ 2,560 $ 9,728 $ 3,805
10/31/2006 $ 2,910 $10,548 $ 4,258
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
10/31/06
1-Year 7.99% 5-Year -3.51% Since Inception (4/25/00) -17.26%
14 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Emerging Technologies Fund (Class N)
S&P 500 Index
Lipper Science & Technology Fund Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lipper
Science &
Oppenheimer Emerging Technology
Technologies Fund (Class N) S&P 500 Index Fund Index
--------------------------- ------------- ----------
03/01/2001 $10,000 $10,000 $10,000
04/30/2001 $ 9,165 $10,094 $10,201
07/31/2001 $ 7,041 $ 9,817 $ 8,799
10/31/2001 $ 5,311 $ 8,621 $ 6,963
01/31/2002 $ 5,478 $ 9,227 $ 7,875
04/30/2002 $ 4,067 $ 8,821 $ 6,559
07/31/2002 $ 2,914 $ 7,499 $ 4,821
10/31/2002 $ 2,747 $ 7,320 $ 4,665
01/31/2003 $ 2,792 $ 7,104 $ 4,671
04/30/2003 $ 3,171 $ 7,647 $ 5,124
07/31/2003 $ 4,052 $ 8,296 $ 6,064
10/31/2003 $ 4,734 $ 8,841 $ 6,971
01/31/2004 $ 4,871 $ 9,559 $ 7,459
04/30/2004 $ 4,067 $ 9,396 $ 6,691
07/31/2004 $ 3,794 $ 9,388 $ 6,367
10/31/2004 $ 4,036 $ 9,674 $ 6,756
01/31/2005 $ 4,031 $10,154 $ 6,958
04/30/2005 $ 3,664 $ 9,991 $ 6,518
07/31/2005 $ 4,199 $10,707 $ 7,438
10/31/2005 $ 4,168 $10,517 $ 7,371
01/31/2006 $ 4,733 $11,207 $ 8,280
04/30/2006 $ 4,886 $11,530 $ 8,345
07/31/2006 $ 4,016 $11,282 $ 7,208
10/31/2006 $ 4,565 $12,234 $ 8,066
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
10/31/06
1-Year 8.52% 5-Year -2.98% Since Inception (3/1/01) -12.92%
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, THE "SINCE INCEPTION" RETURN FOR CLASS
B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
15 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Emerging Technologies Fund (Class Y)
S&P 500 Index
Lipper Science & Technology Fund Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Lipper
Science &
Oppenheimer Emerging Technology
Technologies Fund (Class Y) S&P 500 Index Fund Index
--------------------------- ------------- ----------
04/25/2000 $10,000 $10,000 $10,000
04/30/2000 $10,670 $10,000 $10,000
07/31/2000 $11,960 $ 9,879 $ 9,591
10/31/2000 $11,260 $ 9,897 $ 8,826
01/31/2001 $ 9,172 $ 9,487 $ 7,139
04/30/2001 $ 6,084 $ 8,703 $ 5,385
07/31/2001 $ 4,691 $ 8,464 $ 4,645
10/31/2001 $ 3,558 $ 7,434 $ 3,676
01/31/2002 $ 3,669 $ 7,956 $ 4,157
04/30/2002 $ 2,726 $ 7,605 $ 3,462
07/31/2002 $ 1,955 $ 6,466 $ 2,545
10/31/2002 $ 1,854 $ 6,311 $ 2,463
01/31/2003 $ 1,895 $ 6,126 $ 2,466
04/30/2003 $ 2,145 $ 6,594 $ 2,705
07/31/2003 $ 2,757 $ 7,153 $ 3,201
10/31/2003 $ 3,218 $ 7,623 $ 3,680
01/31/2004 $ 3,328 $ 8,242 $ 3,938
04/30/2004 $ 2,787 $ 8,101 $ 3,532
07/31/2004 $ 2,596 $ 8,095 $ 3,361
10/31/2004 $ 2,777 $ 8,341 $ 3,566
01/31/2005 $ 2,774 $ 8,755 $ 3,673
04/30/2005 $ 2,520 $ 8,614 $ 3,441
07/31/2005 $ 2,906 $ 9,232 $ 3,926
10/31/2005 $ 2,886 $ 9,068 $ 3,891
01/31/2006 $ 3,282 $ 9,663 $ 4,371
04/30/2006 $ 3,394 $ 9,941 $ 4,406
07/31/2006 $ 2,795 $ 9,728 $ 3,805
10/31/2006 $ 3,181 $10,548 $ 4,258
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 10/31/06
1-Year 10.21% 5-Year -2.22% Since Inception (4/25/00) -16.12%
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, THE "SINCE INCEPTION" RETURN FOR CLASS
B USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
16 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES
- --------------------------------------------------------------------------------
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 4/25/00. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 4/25/00. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Class B shares are subject to an
annual 0.75% asset-based sales charge. Because Class B shares convert to Class A
shares 72 months after purchase, the "since inception" return for Class B uses
Class A performance for the period after conversion.
CLASS C shares of the Fund were first publicly offered on 4/25/00. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
17 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES
- --------------------------------------------------------------------------------
CLASS Y shares of the Fund were first publicly offered on 4/25/00. 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 EMERGING TECHNOLOGIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended October 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), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to exceptions
19 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(5/1/06) (10/31/06) OCTOBER 31, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 935.20 $ 7.79
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.19 8.12
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 929.50 11.50
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.36 12.00
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 932.70 11.42
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,013.46 11.89
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 934.40 8.77
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,016.18 9.14
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 937.10 3.96
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.12 4.13
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 October 31, 2006 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 1.59%
- ----------------------------
Class B 2.35
- ----------------------------
Class C 2.33
- ----------------------------
Class N 1.79
- ----------------------------
Class Y 0.81
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 EMERGING TECHNOLOGIES FUND
STATEMENT OF INVESTMENTS October 31, 2006
- -------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
COMMON STOCKS--98.3%
- -------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--2.3%
- -------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.6%
VistaPrint Ltd. 1 70,030 $ 2,190,538
- -------------------------------------------------------------------------------
MEDIA--0.7%
XM Satellite Radio
Holdings, Inc., Cl. A 1 82,330 959,968
- -------------------------------------------------------------------------------
HEALTH CARE--2.6%
- -------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.9%
Intuitive Surgical, Inc. 1 12,300 1,219,914
- -------------------------------------------------------------------------------
Varian Medical Systems, Inc. 1 26,980 1,480,123
---------------
2,700,037
- -------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY--0.7%
WebMD Health
Corp., Cl. A 1 26,290 958,533
- -------------------------------------------------------------------------------
INDUSTRIALS--1.7%
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.7%
Kenexa Corp. 1 46,920 1,507,540
- -------------------------------------------------------------------------------
PeopleSupport, Inc. 1 46,720 915,245
---------------
2,422,785
- -------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--84.8%
- -------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--12.7%
Ciena Corp. 1 55,421 1,302,948
- -------------------------------------------------------------------------------
Cisco Systems, Inc. 1 198,390 4,787,151
- -------------------------------------------------------------------------------
Comverse Technology, Inc. 1 115,560 2,515,741
- -------------------------------------------------------------------------------
Corning, Inc. 1 140,930 2,879,200
- -------------------------------------------------------------------------------
F5 Networks, Inc. 1 31,750 2,101,533
- -------------------------------------------------------------------------------
Oplink Communications, Inc. 1 69,520 1,376,496
- -------------------------------------------------------------------------------
Optium Corp. 1 800 16,200
- -------------------------------------------------------------------------------
QUALCOMM, Inc. 72,880 2,652,103
---------------
17,631,372
- -------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--8.3%
Apple Computer, Inc. 1 43,550 3,531,034
- -------------------------------------------------------------------------------
EMC Corp. 1 292,330 3,581,043
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS Continued
Network Appliance, Inc. 1 74,150 $ 2,706,475
- -------------------------------------------------------------------------------
Rackable Systems,
Inc. 1 53,860 1,670,199
---------------
11,488,751
- -------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.3%
Daktronics, Inc. 75,450 1,788,920
- -------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--17.7%
Aquantive, Inc. 1 65,710 1,785,998
- -------------------------------------------------------------------------------
Bankrate, Inc. 1 37,250 1,190,138
- -------------------------------------------------------------------------------
Digital River, Inc. 1 33,130 1,916,571
- -------------------------------------------------------------------------------
eBay, Inc. 1 75,980 2,441,237
- -------------------------------------------------------------------------------
Equinix, Inc. 1 26,680 1,824,912
- -------------------------------------------------------------------------------
Google, Inc., Cl. A 1 10,080 4,802,011
- -------------------------------------------------------------------------------
j2 Global Communications, Inc. 1 51,380 1,409,867
- -------------------------------------------------------------------------------
Knot, Inc. (The) 1 57,930 1,388,582
- -------------------------------------------------------------------------------
VeriSign, Inc. 1 127,070 2,627,808
- -------------------------------------------------------------------------------
WebEx Communications, Inc. 1 42,200 1,622,590
- -------------------------------------------------------------------------------
WebSideStory, Inc. 1 74,300 969,615
- -------------------------------------------------------------------------------
Yahoo!, Inc. 1 101,400 2,670,876
---------------
24,650,205
- -------------------------------------------------------------------------------
IT SERVICES--3.7%
Alliance Data Systems Corp. 1 24,800 1,505,856
- -------------------------------------------------------------------------------
Cognizant Technology Solutions Corp. 1 45,000 3,387,600
- -------------------------------------------------------------------------------
Exlservice Holdings, Inc. 1 14,900 309,920
---------------
5,203,376
- -------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--23.4%
ASML Holding NV 1 59,320 1,354,869
- -------------------------------------------------------------------------------
ATMI, Inc. 1 34,950 1,107,566
- -------------------------------------------------------------------------------
Broadcom Corp.,
Cl. A 1 118,420 3,584,573
21 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
STATEMENT OF INVESTMENTS Continued
- -------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued
Cymer, Inc. 1 41,970 $ 1,944,470
- -------------------------------------------------------------------------------
Diodes, Inc. 1 55,200 2,431,008
- -------------------------------------------------------------------------------
FormFactor, Inc. 1 34,520 1,317,974
- -------------------------------------------------------------------------------
Hittite Microwave
Corp. 1 33,090 1,134,656
- -------------------------------------------------------------------------------
International Rectifier Corp. 1 67,060 2,412,148
- -------------------------------------------------------------------------------
KLA-Tencor Corp. 28,470 1,399,870
- -------------------------------------------------------------------------------
Lam Research Corp. 1 14,880 735,816
- -------------------------------------------------------------------------------
Marvell Technology Group Ltd. 1 151,870 2,776,184
- -------------------------------------------------------------------------------
MEMC Electronic Materials, Inc. 1 34,720 1,232,560
- -------------------------------------------------------------------------------
Microchip Technology, Inc. 54,260 1,786,782
- -------------------------------------------------------------------------------
Microsemi Corp. 1 91,090 1,785,364
- -------------------------------------------------------------------------------
Monolithic Power
Systems, Inc. 1 135,010 1,355,500
- -------------------------------------------------------------------------------
Netlogic Microsystems, Inc. 1 42,460 841,982
- -------------------------------------------------------------------------------
PMC-Sierra, Inc. 1 142,150 942,455
- -------------------------------------------------------------------------------
Power Integrations, Inc. 1 48,100 1,055,314
- -------------------------------------------------------------------------------
Texas Instruments, Inc. 28,470 859,225
- -------------------------------------------------------------------------------
Varian Semiconductor Equipment Associates, Inc. 1 38,140 1,391,729
- -------------------------------------------------------------------------------
Volterra Semiconductor Corp. 1 60,510 1,044,403
---------------
32,494,448
- -------------------------------------------------------------------------------
SOFTWARE--17.7%
Adobe Systems, Inc. 1 78,340 2,996,505
- -------------------------------------------------------------------------------
Amdocs Ltd. 1 20,930 811,247
- -------------------------------------------------------------------------------
Ansoft Corp. 1 40,600 1,082,396
- -------------------------------------------------------------------------------
Ansys, Inc. 1 30,210 1,389,660
- -------------------------------------------------------------------------------
Autodesk, Inc. 1 67,660 2,486,505
- -------------------------------------------------------------------------------
Citrix Systems, Inc. 1 19,240 568,157
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
SOFTWARE Continued
Concur Technologies, Inc. 1 98,010 $ 1,562,279
- -------------------------------------------------------------------------------
Electronic Arts, Inc. 1 46,310 2,449,336
- -------------------------------------------------------------------------------
Informatica Corp. 1 93,380 1,156,978
- -------------------------------------------------------------------------------
McAfee, Inc. 1 38,970 1,127,402
- -------------------------------------------------------------------------------
NAVTEQ Corp. 1 45,430 1,508,276
- -------------------------------------------------------------------------------
Nuance Communications, Inc. 1 191,250 2,207,025
- -------------------------------------------------------------------------------
Opsware, Inc. 1 154,150 1,401,224
- -------------------------------------------------------------------------------
Red Hat, Inc. 1 145,900 2,389,842
- -------------------------------------------------------------------------------
Ultimate Software
Group, Inc. (The) 1 60,430 1,495,038
---------------
24,631,870
- -------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--6.9%
- -------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.9%
Cbeyond, Inc. 1 24,600 746,364
- -------------------------------------------------------------------------------
NeuStar, Inc., Cl. A 1 65,420 1,911,572
- -------------------------------------------------------------------------------
Time Warner
Telecom, Inc., Cl. A 1 70,530 1,406,368
---------------
4,064,304
- -------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--4.0%
American Tower Corp. 1 85,642 3,084,825
- -------------------------------------------------------------------------------
NII Holdings, Inc. 1 38,090 2,476,988
---------------
5,561,813
---------------
Total Common Stocks
(Cost $120,546,859) 136,746,920
- -------------------------------------------------------------------------------
PREFERRED STOCKS--0.0%
- -------------------------------------------------------------------------------
Blaze Network Products, Inc., 8%
Cv., Series D 1,2,3 (Cost $1,067,750) 166,836 376
22 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--2.6%
- -------------------------------------------------------------------------------
Undivided interest of 3.36% in joint
repurchase agreement (Principal
Amount/Value $106,853,000, with a
maturity value of $106,868,612) with UBS
Warburg LLC, 5.26%, dated 10/31/06, to be
repurchased at $3,590,525 on 11/1/06,
collateralized by Federal National
Mortgage Assn., 6.50%, 10/1/36, with a
value of $109,133,594 (Cost $3,590,000) $ 3,590,000 $ 3,590,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $125,204,609) 100.9% 140,337,296
- -------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.9) (1,239,019)
--------------------------------
NET ASSETS 100.0% $ 139,098,277
================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of October 31, 2006 was $376, which represents less
than 0.005% of the Fund's net assets, all of which is considered restricted. See
Note 5 of accompanying Notes.
3. Represents ownership of at least 5% of the voting securities of the issuer,
and is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended October 31, 2006. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
OCT. 31, 2005 ADDITIONS REDUCTIONS OCT. 31, 2006
- ---------------------------------------------------------------------------------------------------------------
Blaze Network Products, Inc., 8% Cv., Series D 166,836 -- -- 166,836
MicroPhotonix Integration Corp., Cv., Series C 316,691 -- 316,691 --
VALUE DIVIDEND REALIZED
SEE NOTE 1 INCOME LOSS
- ---------------------------------------------------------------------------------------------------------------
Blaze Network Products, Inc., 8% Cv., Series D $ 376 $ -- $ --
MicroPhotonix Integration Corp., Cv., Series C -- -- 1,999,999
----------------------------------------
$ 376 $ -- $ 1,999,999
========================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
STATEMENT OF ASSETS AND LIABILITIES October 31, 2006
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value--see accompanying
statement of investments:
Unaffiliated companies (cost $124,136,859) $ 140,336,920
Affiliated companies (cost $1,067,750) 376
--------------
140,337,296
- --------------------------------------------------------------------------------
Cash 131,596
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 222,540
Shares of beneficial interest sold 165,049
Interest and dividends 1,663
Other 7,986
--------------
Total assets 140,866,130
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,342,082
Shares of beneficial interest redeemed 251,950
Shareholder communications 58,977
Trustees' compensation 35,571
Distribution and service plan fees 28,325
Transfer and shareholder servicing agent fees 25,298
Other 25,650
--------------
Total liabilities 1,767,853
- --------------------------------------------------------------------------------
NET ASSETS $ 139,098,277
==============
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 46,702
- --------------------------------------------------------------------------------
Additional paid-in capital 589,819,451
- --------------------------------------------------------------------------------
Accumulated net investment loss (35,155)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (465,865,408)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 15,132,687
--------------
NET ASSETS $ 139,098,277
==============
24 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $79,180,615 and 26,161,371 shares of beneficial interest outstanding) $ 3.03
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $ 3.21
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $36,913,067 and 12,713,829 shares of beneficial interest outstanding) $ 2.90
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $17,024,060 and 5,856,575 shares of beneficial interest outstanding) $ 2.91
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $3,962,623 and 1,326,164 shares of beneficial interest outstanding) $ 2.99
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $2,017,912 and 643,851 shares of beneficial interest
outstanding) $ 3.13
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
STATEMENT OF OPERATIONS For the Year Ended October 31, 2006
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends $ 224,599
- --------------------------------------------------------------------------------
Interest 178,269
- --------------------------------------------------------------------------------
Other income 64,740
--------------
Total investment income 467,608
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 1,301,942
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 177,770
Class B 465,607
Class C 176,515
Class N 20,247
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 585,780
Class B 367,720
Class C 121,221
Class N 24,458
Class Y 2,467
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 81,019
Class B 58,181
Class C 15,956
Class N 1,489
- --------------------------------------------------------------------------------
Custodian fees and expenses 427
- --------------------------------------------------------------------------------
Other 25,465
--------------
Total expenses 3,426,264
Less reduction to custodian expenses (427)
Less waivers and reimbursements of expenses (642,092)
--------------
Net expenses 2,783,745
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,316,137)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments:
Unaffiliated companies 10,499,454
Affiliated companies (1,999,999)
--------------
Net realized gain 8,499,455
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 6,651,157
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 12,834,475
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2006 2005
- ---------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------
Net investment loss $ (2,316,137) $ (2,491,316)
- ---------------------------------------------------------------------------------------------------
Net realized gain (loss) 8,499,455 (4,357,066)
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 6,651,157 11,049,349
-------------------------------
Net increase in net assets resulting from operations 12,834,475 4,200,967
- ---------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (218,101)
Class B -- --
Class C -- --
Class N -- (8,925)
Class Y -- (12,465)
- ---------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A -- (343,030)
Class B -- --
Class C -- --
Class N -- (14,038)
Class Y -- (19,605)
- ---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 3,537,689 (12,102,611)
Class B (15,873,605) (8,787,393)
Class C (2,183,001) (5,594,723)
Class N (59,545) 39,946
Class Y (1,296) (448,094)
- ---------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------
Total decrease (1,745,283) (23,308,072)
- ---------------------------------------------------------------------------------------------------
Beginning of period 140,843,560 164,151,632
-------------------------------
End of period (including accumulated net investment loss
of $35,155 and $44,888, respectively) $139,098,277 $ 140,843,560
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED OCTOBER 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 2.76 $ 2.69 $ 3.14 $ 1.82 $ 3.51
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) 1 (.03) 1,2 (.04) 1 (.04) (.04)
Net realized and unrealized gain (loss) .31 .12 (.41) 1.36 (1.65)
--------------------------------------------------------------
Total from investment operations .27 .09 (.45) 1.32 (1.69)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.01) -- -- --
Dividends in excess of net investment income -- (.01) -- -- --
--------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.02) -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 3.03 $ 2.76 $ 2.69 $ 3.14 $ 1.82
==============================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 9.78% 3.30% (14.33)% 72.53% (48.15)%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $79,180 $68,724 $79,083 $93,886 $44,150
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $74,186 $74,268 $89,415 $62,832 $68,695
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.26)% (1.25)% 2 (1.55)% (1.51)% (1.61)%
Total expenses 2.06% 2.14% 2.11% 2.70% 3.11%
Expenses after payments and waivers
and reduction to custodian expenses 1.59% 1.66% 1.69% 1.71% 2.10%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 147% 157% 219% 159%
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 $.01
and 0.25%, respectively, resulting from Microsoft Corp. dividends including a
special dividend 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 EMERGING TECHNOLOGIES FUND
CLASS B YEAR ENDED OCTOBER 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 2.66 $ 2.60 $ 3.06 $ 1.79 $ 3.48
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) 1 (.05) 1,2 (.07) 1 (.04) (.07)
Net realized and unrealized gain (loss) .30 .11 (.39) 1.31 (1.62)
--------------------------------------------------------------
Total from investment operations .24 .06 (.46) 1.27 (1.69)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Dividends in excess of net investment income -- -- -- -- --
--------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.90 $ 2.66 $ 2.60 $ 3.06 $ 1.79
==============================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 9.02% 2.31% (15.03)% 70.95% (48.56)%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $36,913 $48,955 $56,513 $69,789 $36,813
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $46,606 $52,959 $63,321 $48,920 $58,029
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (2.04)% (2.06)% 2 (2.34)% (2.23)% (2.40)%
Total expenses 2.83% 3.12% 3.14% 3.82% 3.95%
Expenses after payments and waivers
and reduction to custodian expenses 2.36% 2.46% 2.48% 2.42% 2.94%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 147% 157% 219% 159%
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 $.01
and 0.25%, respectively, resulting from Microsoft Corp. dividends including a
special dividend 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 EMERGING TECHNOLOGIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED OCTOBER 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 2.67 $ 2.60 $ 3.06 $ 1.79 $ 3.48
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) 1 (.05) 1,2 (.06) 1 (.04) (.05)
Net realized and unrealized gain (loss) .30 .12 (.40) 1.31 (1.64)
--------------------------------------------------------------
Total from investment operations .24 .07 (.46) 1.27 (1.69)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Dividends in excess of net investment income -- -- -- -- --
--------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.91 $ 2.67 $ 2.60 $3.06 $ 1.79
==============================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.99% 2.69% (15.03)% 70.95% (48.56)%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $17,024 $17,646 $22,777 $26,112 $14,143
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $17,668 $20,550 $25,126 $17,266 $17,800
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (2.01)% (1.98)% 2 (2.28)% (2.29)% (2.36)%
Total expenses 2.69% 2.77% 2.77% 3.40% 3.84%
Expenses after payments and waivers
and reduction to custodian expenses 2.33% 2.40% 2.43% 2.48% 2.83%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 147% 157% 219% 159%
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 $.01
and 0.25%, respectively, resulting from Microsoft Corp. dividends including a
special dividend 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 EMERGING TECHNOLOGIES FUND
CLASS N YEAR ENDED OCTOBER 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 2.73 $ 2.66 $ 3.12 $ 1.81 $ 3.50
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) 1 (.04) 1,2 (.05) 1 (.05) (.04)
Net realized and unrealized gain (loss) .30 .13 (.41) 1.36 (1.65)
--------------------------------------------------------------
Total from investment operations .26 .09 (.46) 1.31 (1.69)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.01) -- -- --
Dividends in excess of net investment income -- (.01) -- -- --
--------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.02) -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 2.99 $ 2.73 $ 2.66 $ 3.12 $ 1.81
==============================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 9.52% 3.27% (14.74)% 72.38% (48.29)%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 3,963 $ 3,659 $ 3,528 $ 4,445 $ 1,582
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 4,063 $ 3,588 $ 3,548 $ 2,698 $ 1,547
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.49)% (1.44)% 2 (1.74)% (1.89)% (1.80)%
Total expenses 2.06% 2.19% 2.18% 2.30% 3.05%
Expenses after payments and waivers
and reduction to custodian expenses 1.78% 1.82% 1.88% 2.10% 2.04%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 147% 157% 219% 159%
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 $.01
and 0.25%, respectively, resulting from Microsoft Corp. dividends including a
special dividend 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 EMERGING TECHNOLOGIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y YEAR ENDED OCTOBER 31, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 2.84 $ 2.77 $ 3.21 $ 1.85 $ 3.55
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.02) 1 (.02) 1,2 (.03) 1 (.04) (.03)
Net realized and unrealized gain (loss) .31 .13 (.41) 1.40 (1.67)
--------------------------------------------------------------
Total from investment operations .29 .11 (.44) 1.36 (1.70)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.01) -- -- --
Dividends in excess of net investment income -- (.03) -- -- --
--------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.04) -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 3.13 $ 2.84 $ 2.77 $ 3.21 $ 1.85
==============================================================
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 10.21% 3.94% (13.71)% 73.51% (47.89)%
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 2,018 $ 1,860 $ 2,251 $ 2,480 $ 887
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,132 $ 2,106 $ 2,593 $ 1,492 $ 1,057
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.67)% (0.56)% 2 (0.86)% (1.05)% (1.03)%
Total expenses 0.98% 0.97% 1.00% 1.26% 1.57%
Expenses after payments and waivers
and reduction to custodian expenses 0.95% 0.97% 1.00% 1.26% 1.53%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 101% 147% 157% 219% 159%
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 $.01
and 0.25%, respectively, resulting from Microsoft Corp. dividends including a
special dividend 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 EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Emerging Technologies 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 long-term 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 Fund assesses a 2% fee on the proceeds of
fund shares that are redeemed (either by selling or exchanging to another
Oppenheimer fund) within 30 days of their purchase. The fee, which is retained
by the Fund, is accounted for as an addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities 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
33 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are valued. Securities
(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. Investments in open-end registered
investment companies are valued at that fund's net asset value. Short-term
"money market type" debt securities with remaining maturities of sixty days or
less are valued at amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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.
34 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
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 TAX PURPOSES
----------------------------------------------------------------------------
$-- $-- $465,803,504 $15,070,781
1. As of October 31, 2006, the Fund had $465,803,504 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of October 31, 2006,
details of the capital loss carryforwards were as follows:
EXPIRING
-------------------------------
2009 $ 260,704,561
2010 197,770,478
2012 556,912
2013 6,771,553
--------------
Total $ 465,803,504
==============
2. During the fiscal year ended October 31, 2006, the Fund utilized $7,582,832
of capital loss carryforward to offset capital gains realized in that fiscal
year.
3. During the fiscal year ended October 31, 2005, the Fund did not utilize
any capital loss carryforward.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for October 31, 2006. Net assets of the
Fund were unaffected by the reclassifications.
REDUCTION TO
REDUCTION TO ACCUMULATED NET
PAID-IN CAPITAL INVESTMENT LOSS
-----------------------------------------
$2,325,870 $2,325,870
The tax character of distributions paid during the years ended October 31, 2006
and October 31, 2005 was as follows:
YEAR ENDED YEAR ENDED
OCTOBER 31, 2006 OCTOBER 31, 2005
--------------------------------------------------------------------
Distributions paid from:
Ordinary income $ -- $ 239,491
In excess of ordinary income -- 376,673
------------------------
Total $ -- $ 616,164
========================
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 October 31, 2006 are noted below. The primary
difference between
35 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 $125,266,515
============
Gross unrealized appreciation $ 20,522,552
Gross unrealized depreciation (5,451,771)
------------
Net unrealized appreciation $ 15,070,781
============
- --------------------------------------------------------------------------------
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 October
31, 2006, the Fund's projected benefit obligations were decreased by $6,468 and
payments of $3,156 were made to retired trustees, resulting in an accumulated
liability of $28,258 as of October 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.
- --------------------------------------------------------------------------------
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
36 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
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:
YEAR ENDED OCTOBER 31, 2006 YEAR ENDED OCTOBER 31, 2005
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------
CLASS A
Sold 8,922,724 $ 26,332,717 5,282,514 $ 14,315,161
Dividends and/or
distributions reinvested -- -- 191,595 544,130
Redeemed (7,697,412) (22,795,028) 1 (9,938,737) (26,961,902) 2
-------------------------------------------------------------------
Net increase (decrease) 1,225,312 $ 3,537,689 (4,464,628) $ (12,102,611)
===================================================================
- -------------------------------------------------------------------------------------------------
CLASS B
Sold 2,031,891 $ 5,858,755 2,908,410 $ 7,653,535
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (7,696,243) (21,732,360) 1 (6,238,335) (16,440,928) 2
-------------------------------------------------------------------
Net decrease (5,664,352) $ (15,873,605) (3,329,925) $ (8,787,393)
===================================================================
37 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED OCTOBER 31, 2006 YEAR ENDED OCTOBER 31, 2005
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------
CLASS C
Sold 1,634,731 $ 4,728,533 1,232,366 $ 3,247,538
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (2,395,596) (6,911,534) 1 (3,361,027) (8,842,261) 2
-------------------------------------------------------------------
Net decrease (760,865) $ (2,183,001) (2,128,661) $ (5,594,723)
===================================================================
- -------------------------------------------------------------------------------------------------
CLASS N
Sold 482,201 $ 1,424,671 484,495 $ 1,295,239
Dividends and/or
distributions reinvested -- -- 7,933 22,290
Redeemed (497,749) (1,484,216) 1 (474,961) (1,277,583) 2
-------------------------------------------------------------------
Net increase (decrease) (15,548) $ (59,545) 17,467 $ 39,946
===================================================================
- -------------------------------------------------------------------------------------------------
CLASS Y
Sold 254,144 $ 797,228 263,642 $ 726,917
Dividends and/or
distributions reinvested -- -- 11,057 32,066
Redeemed (265,688) (798,524) 1 (432,120) (1,207,077) 2
-------------------------------------------------------------------
Net decrease (11,544) $ (1,296) (157,421) $ (448,094)
===================================================================
1. Net of redemption fees of $1,550, $974, $369, $85 and $45 for Class A, Class
B, Class C, Class N and Class Y, respectively.
2. Net of redemption fees of $2,136, $1,523, $591, $103 and $61 for Class A,
Class B, Class C, Class N and Class Y, respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended October 31, 2006, were as
follows:
PURCHASES SALES
---------------------------------------------------------
Investment securities $142,719,027 $157,928,970
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of average net assets as shown in the following table:
FEE SCHEDULE
---------------------------------------
Up to $200 million 0.90%
Next $200 million 0.85
Next $200 million 0.80
Over $600 million 0.75
38 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
- --------------------------------------------------------------------------------
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 October 31, 2006, the Fund paid
$510,925 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 up to 0.25% per year under each plan. If either the Class B,
Class C or Class N plan is terminated by the Fund or by the shareholders of a
class, the Board of Trustees and its independent trustees must determine whether
the Distributor shall be entitled to payment from the Fund of all or a portion
of the service fee and/or asset-based sales charge in respect to shares sold
prior to the effective date of such termination. The Distrib-utor determines its
uncompensated expenses under the plan at calendar quarter ends. The
Distributor's aggregate uncompensated expenses under the plan at September 30,
2006 for Class B, Class C and Class N shares were $10,342,476, $1,116,437 and
$92,605, respectively. Fees incurred by the Fund under the plans are detailed in
the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table for the period
indicated.
39 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------
October 31, 2006 $78,793 $7,810 $135,378 $3,807 $485
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective January 1, 2006, the Manager
voluntarily agreed to reduce its advisory fee rate during the year ending
December 31, 2006. For any calendar quarter that the Fund's trailing 12-month
total return performance is in the fifth quintile of the Fund's Lipper peer
group, measured at the end of the prior calendar quarter, the advisory fee will
be reduced by 0.10% of the Fund's average daily net assets. For any calendar
quarter that the Fund's trailing 12-month total return performance is in the
fourth quintile of the Fund's Lipper peer group, measured at the end of the
prior calendar quarter, the advisory fee will be reduced by 0.05% of the Fund's
average daily net assets. However, if at the end of the prior calendar quarter
the Fund's trailing total return performance has improved to the third or higher
quintile of the Fund's Lipper peer group, the advisory fee reduction will be
terminated. During the year ended October 31, 2006, the Manager voluntarily
waived management fees in the amount of $38,248. The advisory fee reduction is a
voluntary undertaking and may be terminated by the Manager at any time.
Effective April 1, 2006, the advisory fee reduction was terminated by the
Manager.
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 October 31, 2006, OFS waived $329,721, $203,647, $60,171,
$10,253 and $52 for Class A, Class B, Class C, Class N and Class Y shares,
respectively. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID OR RESTRICTED SECURITIES
As of October 31, 2006, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund will not invest more than 15% of
its net assets (determined at the time of purchase and reviewed periodically) in
illiquid or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
Securities that are illiquid or restricted are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities is as follows:
40 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST OCTOBER 31,2006 DEPRECIATION
- ----------------------------------------------------------------------------------------------
Blaze Network Products, Inc.,
8% Cv., Series D 10/17/00 $1,067,750 $ 376 $1,067,374
- --------------------------------------------------------------------------------
6. RECENT ACCOUNTING PRONOUNCEMENTS
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
October 31, 2006, the Manager is evaluating the implications of FIN 48. Its
impact in the Fund's financial statements has not yet been determined.
In September 2006, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE
MEASUREMENTS. This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 applies to fair value
measurements already required or permitted by existing standards. SFAS No. 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. As of October
31, 2006, the Manager does not believe the adoption of SFAS No. 157 will
materially impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period.
- --------------------------------------------------------------------------------
7. 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
41 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION Continued
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.
42 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS
OF OPPENHEIMER EMERGING TECHNOLOGIES FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Emerging Technologies Fund, including the statement of investments,
as of October 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 October 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 Emerging Technologies Fund as of October 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
December 12, 2006
43 | OPPENHEIMER EMERGING TECHNOLOGIES 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.
44 | OPPENHEIMER EMERGING TECHNOLOGIES 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.
45 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS
FUND, LENGTH OF SERVICE, AGE HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES 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);
Chairman of the Board Attorney at Hogan & Hartson (law firm) (since June 1993); Director of Covanta
of Trustees (since 2003), Holding Corp. (waste-to-energy company) (since 2002); Director of Weyerhaeuser
Trustee (since 2000) Corp. (1999-April 2004); Director of Caterpillar, Inc. (1993-December 2002);
Age: 76 Director of ConAgra Foods (1993-2001); Director of Texas Instruments (1993-2001);
Director of FMC Corporation (1993-2001). Oversees 45 portfolios in the
OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation)
Trustee (since 2005) (since 2005); Director of ICI Education Foundation (education foundation) (October
Age: 65 1991-August 2006); President of the Investment Company Institute (trade
association) (October 1991-June 2004); Director of ICI Mutual Insurance Company
(insurance company) (October 1991-June 2004). Oversees 45 portfolios in the
OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 55 portfolios in the
Trustee (since 2000) OppenheimerFunds complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and Member
Trustee (since 2000) (since 1979) of the National Academy of Sciences; Council on Foreign Relations
Age: 68 (since 2002); Director of GSI 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 45 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998);
Trustee (since 2004) and Senior Vice President and General Auditor of American Express Company
Age: 64 (financial services company) (July 1998-February 2003). Oversees 45 portfolios in
the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser)
Trustee (since 2002) (since 2002); Managing Director of Carmona Motley, Inc. (privately-held financial
Age: 54 adviser) (since January 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
45 portfolios in the OppenheimerFunds complex.
46 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) (February
Trustee (since 2000) 1972-October 2005); Former Director of Prime Retail, Inc. (real estate investment
Age: 79 trust), Dominion Energy Inc. (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 45 portfolios in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting
Trustee (since 2000) and executive recruiting) (since 1993); Life Trustee of International House
Age: 75 (non-profit educational 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 45 portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and
Trustee (since 2005) Cathco (since 1996); Director of Lakes Environmental Association (since 1996);
Age: 65 Member of the Investment Committee of the Associated Jewish Charities of Baltimore
(since 1994); Director of Fortis/Hartford mutual funds (1994-December 2001).
Oversees 45 portfolios in the OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production
Trustee (since 2005) company) (since 1994); Vice President, Secretary and Treasurer of Wold Trona
Age: 58 Company, Inc. (soda ash processing 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 45 portfolios in the
OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995);
Trustee (since 2005) Director of Special Value Opportunities Fund, LLC (registered investment company)
Age: 63 (since September 2004); 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 55
portfolios in the OppenheimerFunds complex.
47 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
AND OFFICER FLOOR, NEW 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 ANNUAL 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.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President
Trustee, President and (since September 2000) of the Manager; President and a director or trustee of other
Principal Executive Officer Oppenheimer funds; President and Director of Oppenheimer Acquisition Corp. ("OAC")
(since 2001) (the Manager's parent holding company) and of Oppenheimer Partnership Holdings,
Age: 57 Inc. (holding company subsidiary of the Manager) (since July 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 sub sidiaries 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 92 portfolios in the OppenheimerFunds complex.
- ---------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS.
OF THE FUND GILSTON, POIESZ, ZACK, 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
Vice President and Portfolio Merrill Lynch. (October 2002-May 2004); founding partner of RiverRock Capital LLC,
Manager (since 2004) a hedge fund product; (April 1999-July 2001); portfolio manager at Jennison
Age: 48 Associates (November 1992-March 1999). An officer of 3 portfolios in the
OppenheimerFunds complex.
ALAN GILSTON, Vice President of the Manager (since September 1997). An officer of 1 portfolio in
Vice President and Portfolio the OppenheimerFunds complex.
Manager (since 1997)
Age: 48
48 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March
Vice President and Chief 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset
Compliance Officer Management Corporation and Shareholder Services, Inc. (since June 1983). Former
(since 2004) Vice President and Director of Internal Audit of the Manager (1997-February 2004).
Age: 56 An officer of 92 portfolios in the OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of
Treasurer and Principal the following: HarbourView Asset Management Corporation, Shareholder Financial
Financial and Accounting Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Officer (since 2000) Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999), OFI
Age: 47 Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd.
(since May 2000), OppenheimerFunds 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 92 portfolios in the OppenheimerFunds complex.
BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002); Manager/Financial
Assistant Treasurer Product Accounting of the Manager (November 1998-July 2002). An officer of 92
(since 2004) portfolios in the OppenheimerFunds complex.
Age: 36
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial
Assistant Treasurer Reporting and Compliance of First Data Corporation (April 2003-July 2004); Manager
(since 2005) of Compliance of Berger Financial Group LLC (May 2001-March 2003); Director of
Age: 36 Mutual Fund Operations at American Data Services, Inc. (September 2000-May 2001).
An officer of 92 portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March
Secretary (since 2001) 2002) of the Manager; General Counsel and Director of the Distributor (since
Age: 58 December 2001); General Counsel 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
49 | OPPENHEIMER EMERGING TECHNOLOGIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
ROBERT G. ZACK, following: Shareholder Services, Inc. (May 1985-November 2001), Shareholder
Continued Financial Services, Inc. (November 1989-November 2001), and OppenheimerFunds
International Ltd. (September 1997-November 2001). An officer of 92 portfolios in
the OppenheimerFunds complex.
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice
Assistant Secretary President (April 2001-April 2004), Associate General Counsel (December 2000-April
(since 2004) 2004), Corporate Vice President (May 1999-April 2001) and Assistant General Counsel
Age: 38 (May 1999-December 2000) of UBS Financial Services Inc. (formerly, PaineWebber
Incorporated). An officer of 92 portfolios in the OppenheimerFunds complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since
Assistant Secretary October 2003) of the Manager; Vice President (since 1999) and Assistant Secretary
(since 2001) (since October 2003) of the Distributor; Assistant Secretary of Centennial Asset
Age: 41 Management Corporation (since October 2003); 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 92
portfolios in the OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since September
Assistant Secretary 2004); First Vice President (2001-September 2004); Director (2000-September 2004)
(since 2004) and Vice President (1998-2000) of Merrill Lynch Investment Management. An officer
Age: 42 of 92 portfolios in the OppenheimerFunds complex.
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.
50 | OPPENHEIMER EMERGING TECHNOLOGIES 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 $18,000 in fiscal 2006 and $18,000 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 $195,954 in fiscal 2006 and $156,805 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 $6,536 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: Preparation of 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 no such fees during the last two fiscal years 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.
(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 $195,954 in fiscal 2006 and $163,341 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) No such services were rendered.
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 October 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 Emerging Technologies Fund
By: /s/ John V. Murphy
_______________________________
John V. Murphy
Principal Executive Officer
Date: December 12, 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: December 12, 2006
By: /s/ Brian W. Wixted
_______________________________
Brian W. Wixted
Principal Financial Officer
Date: December 12, 2006