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 811-10001
Oppenheimer Main Street Opportunity Fund
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(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY 31
Date of reporting period: 07/31/2007
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Oil, Gas & Consumable Fuels 12.4%
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Pharmaceuticals 7.2
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Computers & Peripherals 6.0
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Health Care Providers & Services 5.5
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Insurance 5.2
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Diversified Financial Services 4.6
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Aerospace & Defense 4.3
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Software 4.3
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Communications Equipment 3.9
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Media 3.4
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Exxon Mobil Corp. 5.0%
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Microsoft Corp. 3.1
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Chevron Corp. 2.6
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International Business Machines Corp. 2.4
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Cisco Systems, Inc. 2.4
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Pfizer, Inc. 2.2
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Johnson & Johnson 2.2
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Altria Group, Inc. 2.1
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General Electric Co. 1.9
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Bank of America Corp. 1.7
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are based on net assets. For up-to-date Top 10 Fund holdings,
please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 20.8%
Financials 17.4
Health Care 14.7
Energy 13.5
Industrials 9.3
Consumer Staples 8.1
Consumer Discretionary 8.0
Telecommunication Services 3.3
Materials 2.6
Utilities 2.3
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are based on the total market value of common stocks.
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9 | OPPENHEIMER MAIN STREET OPPORTUNITY 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 JULY 31, 2007, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. For the 12-month period ended July
31, 2007, Oppenheimer Main Street Opportunity Fund produced total returns that
were lower than its benchmark, the Russell 3000 Index, and its peer group, the
Lipper Multi-Cap Core category. The Fund's results were limited by its emphasis
on stocks with market capitalizations toward the larger end of the range,
including holdings in the mega-cap category. This positioning exposed the Fund
to the full brunt of relative weakness among very large companies. In addition,
a generally underweighted position in mid-cap stocks prevented the Fund from
participating more fully in relative strength among mid-cap companies.
The Fund achieved better relative performance from its sector allocation
strategies. Most significantly, the Fund's relatively light exposure to the
financials sector helped it dampen the effects of weakness among commercial
banks and other financial services firms. Conversely, relatively heavy exposure
to information technology companies proved to be rewarding. These favorable
sector allocations were offset to a degree by a slightly underweighted position
among industrial stocks and poor timing in making weighting changes within the
energy sector.
The Fund's security selection strategies had relatively little impact on
the Fund's relative performance during the reporting period. Strong results from
individual stock picks in the consumer staples, energy and materials sectors
were balanced by more disappointing results in the health care and consumer
discretionary areas.
As of the end of the reporting period, the Fund's weighted average market
capitalization has climbed to its highest level since the Fund's inception,
which we believe reflects the potential of mega-cap stocks compared to other
capitalization ranges. Our models have found a larger number of opportunities
among information technology, health care and energy stocks, and relatively few
in the industrials, financials and consumer discretionary sectors. As always,
the Fund has remained fully invested and committed to our quantitative approach
to investing.
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 July 31, 2007. In the case of Class A, Class B, Class C and
Class Y, performance is measured from inception of the classes on September 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,
10 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
and reinvestments of all dividends and capital gains distributions. Past
performance cannot guarantee future results.
The Fund's performance is compared to the performance of the Russell 3000
Index. The Russell 3000 Index is an unmanaged index of large-capitalization U.S.
companies. Index performance reflects the reinvestment of income but does not
consider the effect of transaction costs, and none of the data in the graphs
shows the effect of taxes. The Fund's performance reflects the effects of the
Fund's business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
11 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Opportunity Fund(R) (Class A)
Russell 3000 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Main
Street Opportunity Russell 3000
Fund(R) (Class A) Index
09/25/2000 $ 9,425 $ 10,000
10/31/2000 $ 9,218 $ 9,858
01/31/2001 $ 9,714 $ 9,411
04/30/2001 $ 9,638 $ 8,635
07/31/2001 $ 9,874 $ 8,403
10/31/2001 $ 9,214 $ 7,377
01/31/2002 $ 10,015 $ 7,956
04/30/2002 $ 10,459 $ 7,708
07/31/2002 $ 8,752 $ 6,508
10/31/2002 $ 8,544 $ 6,318
01/31/2003 $ 8,346 $ 6,167
04/30/2003 $ 8,931 $ 6,629
07/31/2003 $ 10,091 $ 7,288
10/31/2003 $ 11,270 $ 7,815
01/31/2004 $ 12,345 $ 8,457
04/30/2004 $ 11,986 $ 8,294
07/31/2004 $ 11,968 $ 8,258
10/31/2004 $ 12,383 $ 8,557
01/31/2005 $ 13,062 $ 9,027
04/30/2005 $ 12,816 $ 8,873
07/31/2005 $ 13,901 $ 9,654
10/31/2005 $ 13,758 $ 9,465
01/31/2006 $ 14,902 $ 10,171
04/30/2006 $ 15,360 $ 10,477
07/31/2006 $ 14,945 $ 10,150
10/31/2006 $ 16,009 $ 11,014
01/31/2007 $ 16,764 $ 11,605
04/30/2007 $ 17,346 $ 11,994
07/31/2007 $ 17,167 $ 11,783
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/07
1-Year 8.26% 5-Year 13.08% Since Inception (9/25/00) 8.21%
12 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Opportunity Fund(R) (Class B)
Russell 3000 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Main
Street Opportunity Russell 3000
Fund(R) (Class B) Index
09/25/2000 $ 10,000 $ 10,000
10/31/2000 $ 9,780 $ 9,858
01/31/2001 $ 10,280 $ 9,411
04/30/2001 $ 10,180 $ 8,635
07/31/2001 $ 10,400 $ 8,403
10/31/2001 $ 9,700 $ 7,377
01/31/2002 $ 10,520 $ 7,956
04/30/2002 $ 10,960 $ 7,708
07/31/2002 $ 9,150 $ 6,508
10/31/2002 $ 8,920 $ 6,318
01/31/2003 $ 8,700 $ 6,167
04/30/2003 $ 9,290 $ 6,629
07/31/2003 $ 10,470 $ 7,288
10/31/2003 $ 11,670 $ 7,815
01/31/2004 $ 12,760 $ 8,457
04/30/2004 $ 12,360 $ 8,294
07/31/2004 $ 12,310 $ 8,258
10/31/2004 $ 12,720 $ 8,557
01/31/2005 $ 13,378 $ 9,027
04/30/2005 $ 13,107 $ 8,873
07/31/2005 $ 14,178 $ 9,654
10/31/2005 $ 14,016 $ 9,465
01/31/2006 $ 15,142 $ 10,171
04/30/2006 $ 15,578 $ 10,477
07/31/2006 $ 15,119 $ 10,150
10/31/2006 $ 16,184 $ 11,014
01/31/2007 $ 16,947 $ 11,605
04/30/2007 $ 17,535 $ 11,994
07/31/2007 $ 17,354 $ 11,783
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/07
1-Year 9.03% 5-Year 13.27% Since Inception (9/25/00) 8.38%
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. SEE PAGE 17 FOR FURTHER
INFORMATION.
13 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Opportunity Fund(R) (Class C)
Russell 3000 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Main
Street Opportunity Russell 3000
Fund(R) (Class C) Index
09/25/2000 $ 10,000 $ 10,000
10/31/2000 $ 9,780 $ 9,858
01/31/2001 $ 10,280 $ 9,411
04/30/2001 $ 10,180 $ 8,635
07/31/2001 $ 10,400 $ 8,403
10/31/2001 $ 9,690 $ 7,377
01/31/2002 $ 10,510 $ 7,956
04/30/2002 $ 10,960 $ 7,708
07/31/2002 $ 9,150 $ 6,508
10/31/2002 $ 8,920 $ 6,318
01/31/2003 $ 8,700 $ 6,167
04/30/2003 $ 9,290 $ 6,629
07/31/2003 $ 10,480 $ 7,288
10/31/2003 $ 11,680 $ 7,815
01/31/2004 $ 12,780 $ 8,457
04/30/2004 $ 12,380 $ 8,294
07/31/2004 $ 12,340 $ 8,258
10/31/2004 $ 12,750 $ 8,557
01/31/2005 $ 13,418 $ 9,027
04/30/2005 $ 13,147 $ 8,873
07/31/2005 $ 14,228 $ 9,654
10/31/2005 $ 14,055 $ 9,465
01/31/2006 $ 15,192 $ 10,171
04/30/2006 $ 15,640 $ 10,477
07/31/2006 $ 15,181 $ 10,150
10/31/2006 $ 16,233 $ 11,014
01/31/2007 $ 16,973 $ 11,605
04/30/2007 $ 17,523 $ 11,994
07/31/2007 $ 17,313 $ 11,783
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/07
1-Year 13.04% 5-Year 13.60% Since Inception (9/25/00) 8.34%
14 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Opportunity Fund(R) (Class N)
Russell 3000 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Main
Street Opportunity Russell 3000
Fund(R) (Class N) Index
03/01/2001 $ 10,000 $ 10,000
04/30/2001 $ 10,376 $ 10,098
07/31/2001 $ 10,620 $ 9,827
10/31/2001 $ 9,909 $ 8,627
01/31/2002 $ 10,762 $ 9,304
04/30/2002 $ 11,220 $ 9,014
07/31/2002 $ 9,380 $ 7,611
10/31/2002 $ 9,157 $ 7,389
01/31/2003 $ 8,943 $ 7,212
04/30/2003 $ 9,563 $ 7,753
07/31/2003 $ 10,793 $ 8,523
10/31/2003 $ 12,053 $ 9,139
01/31/2004 $ 13,191 $ 9,891
04/30/2004 $ 12,795 $ 9,700
07/31/2004 $ 12,764 $ 9,657
10/31/2004 $ 13,191 $ 10,008
01/31/2005 $ 13,899 $ 10,557
04/30/2005 $ 13,624 $ 10,377
07/31/2005 $ 14,758 $ 11,290
10/31/2005 $ 14,593 $ 11,069
01/31/2006 $ 15,794 $ 11,894
04/30/2006 $ 16,274 $ 12,253
07/31/2006 $ 15,805 $ 11,871
10/31/2006 $ 16,924 $ 12,881
01/31/2007 $ 17,701 $ 13,572
04/30/2007 $ 18,300 $ 14,027
07/31/2007 $ 18,109 $ 13,780
AVERAGE ANNUAL TOTAL R$ETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND
AT 7/31/07
1-Year 13.57% 5-Year 14.06% Since Inception (3/1/01) 9.70%
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. SEE PAGE 17 FOR FURTHER
INFORMATION.
15 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Opportunity Fund(R) (Class Y)
Russell 3000 Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Main
Street Opportunity Russell 3000
Fund(R) (Class Y) Index
09/25/2000 $ 10,000 $ 10,000
10/31/2000 $ 9,780 $ 9,858
01/31/2001 $ 10,314 $ 9,411
04/30/2001 $ 10,233 $ 8,635
07/31/2001 $ 10,494 $ 8,403
10/31/2001 $ 9,803 $ 7,377
01/31/2002 $ 10,654 $ 7,956
04/30/2002 $ 11,135 $ 7,708
07/31/2002 $ 9,322 $ 6,508
10/31/2002 $ 9,112 $ 6,318
01/31/2003 $ 8,912 $ 6,167
04/30/2003 $ 9,553 $ 6,629
07/31/2003 $ 10,804 $ 7,288
10/31/2003 $ 12,086 $ 7,815
01/31/2004 $ 13,247 $ 8,457
04/30/2004 $ 12,877 $ 8,294
07/31/2004 $ 12,877 $ 8,258
10/31/2004 $ 13,338 $ 8,557
01/31/2005 $ 14,077 $ 9,027
04/30/2005 $ 13,826 $ 8,873
07/31/2005 $ 14,992 $ 9,654
10/31/2005 $ 14,862 $ 9,465
01/31/2006 $ 16,103 $ 10,171
04/30/2006 $ 16,626 $ 10,477
07/31/2006 $ 16,183 $ 10,150
10/31/2006 $ 17,353 $ 11,014
01/31/2007 $ 18,194 $ 11,605
04/30/2007 $ 18,828 $ 11,994
07/31/2007 $ 18,661 $ 11,783
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 7/31/07
1-Year 15.31% 5-Year 14.89% Since Inception (9/25/00) 9.53%
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, MAY BE WORTH
WHEN REDEEMED, MORE OR LESS THAN THEIR CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN ORIGINAL COST. 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 AND
THE APPLICABLE SALES CHARGE: FOR DISTRIBUTIONS, 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. SEE PAGE 17 FOR FURTHER INFORMATION.
16 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 9/25/00. 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 9/25/00. 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.
CLASS C shares of the Fund were first publicly offered on 9/25/00. 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.
CLASS Y shares of the Fund were first publicly offered on 9/25/00. 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.
17 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended July 31, 2007.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in the
Statement of Additional Information). Therefore, the
18 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/07) (7/31/07) JULY 31, 2007
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,024.00 $ 5.28
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.59 5.27
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,020.10 9.31
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,015.62 9.29
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,020.00 9.00
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.92 8.99
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,023.00 6.95
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.95 6.93
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,025.60 3.42
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.42 3.41
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended July 31, 2007 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------------
Class A 1.05%
- ---------------------------------
Class B 1.85
- ---------------------------------
Class C 1.79
- ---------------------------------
Class N 1.38
- ---------------------------------
Class Y 0.68
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements by the Fund's Manager 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 and reduction to custodian
expenses, if applicable.
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19 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS July 31, 2007
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--7.9%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--0.1%
American Axle &
Manufacturing
Holdings, Inc. 17,500 $ 423,500
- --------------------------------------------------------------------------------
Gentex Corp. 67,600 1,334,424
- --------------------------------------------------------------------------------
Lear Corp. 1 32,200 1,081,276
- --------------------------------------------------------------------------------
Tenneco, Inc. 1 18,500 653,050
- --------------------------------------------------------------------------------
TRW Automotive
Holdings Corp. 1 29,300 963,091
-----------------
4,455,341
- --------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES--0.1%
DeVry, Inc. 35,400 1,146,960
- --------------------------------------------------------------------------------
ITT Educational
Services, Inc. 1 10,900 1,151,694
- --------------------------------------------------------------------------------
Matthews
International Corp.,
Cl. A 11,300 432,338
- --------------------------------------------------------------------------------
Pre-Paid Legal
Services, Inc. 1 6,400 337,280
- --------------------------------------------------------------------------------
Regis Corp. 11,900 414,834
- --------------------------------------------------------------------------------
Service Corp.
International 96,200 1,165,944
- --------------------------------------------------------------------------------
Strayer Education, Inc. 3,600 545,508
-----------------
5,194,558
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.2%
Applebee's
International, Inc. 16,000 393,600
- --------------------------------------------------------------------------------
Bob Evans Farms, Inc. 12,900 418,605
- --------------------------------------------------------------------------------
Burger King
Holdings, Inc. 41,700 1,012,893
- --------------------------------------------------------------------------------
CEC Entertainment,
Inc. 1 12,200 360,022
- --------------------------------------------------------------------------------
Chipotle Mexican
Grill, Inc., Cl. B 1 15,505 1,259,471
- --------------------------------------------------------------------------------
Darden
Restaurants, Inc. 32,100 1,366,497
- --------------------------------------------------------------------------------
Jack in the Box, Inc. 1 15,900 1,017,441
- --------------------------------------------------------------------------------
Marriott
International, Inc.,
Cl. A 101,600 4,221,480
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE Continued
McDonald's Corp. 409,400 $ 19,597,978
- --------------------------------------------------------------------------------
Starwood Hotels &
Resorts Worldwide,
Inc. 64,700 4,073,512
- --------------------------------------------------------------------------------
Wendy's
International, Inc. 60,400 2,115,812
- --------------------------------------------------------------------------------
Wyndham
Worldwide Corp. 1 43,800 1,473,870
- --------------------------------------------------------------------------------
Yum! Brands, Inc. 375,800 12,040,632
-----------------
49,351,813
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.1%
American Greetings
Corp., Cl. A 19,100 472,343
- --------------------------------------------------------------------------------
NVR, Inc. 1,2 1,600 925,568
- --------------------------------------------------------------------------------
Tempur-Pedic
International, Inc. 2 39,700 1,236,655
- --------------------------------------------------------------------------------
Tupperware Brands
Corp. 18,100 470,781
-----------------
3,105,347
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.1%
Blue Nile, Inc. 1 6,300 476,343
- --------------------------------------------------------------------------------
Expedia, Inc. 1 56,288 1,497,824
- --------------------------------------------------------------------------------
Liberty Media
Holding
Corp.-Interactive,
Series A 1 117,500 2,461,625
- --------------------------------------------------------------------------------
Priceline.com, Inc. 1,2 16,700 1,065,460
-----------------
5,501,252
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--0.1%
Brunswick Corp. 38,000 1,062,480
- --------------------------------------------------------------------------------
Callaway Golf Co. 25,900 420,357
- --------------------------------------------------------------------------------
Hasbro, Inc. 40,900 1,146,018
- --------------------------------------------------------------------------------
Polaris Industries, Inc. 2 8,500 419,560
- --------------------------------------------------------------------------------
RC2 Corp. 1 10,200 361,182
-----------------
3,409,597
- --------------------------------------------------------------------------------
MEDIA--3.4%
Belo Corp., Cl. A 23,100 413,490
- --------------------------------------------------------------------------------
CBS Corp., Cl. B 602,000 19,095,440
20 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA Continued
Clear Channel
Communications, Inc. 633,600 $ 23,379,840
- --------------------------------------------------------------------------------
Cox Radio, Inc., Cl. A 1 3,600 46,620
- --------------------------------------------------------------------------------
DreamWorks
Animation SKG, Inc. 1 33,200 1,029,200
- --------------------------------------------------------------------------------
EchoStar
Communications
Corp., Cl. A 1 225,600 9,540,624
- --------------------------------------------------------------------------------
Entravision
Communications
Corp. 1 45,400 424,944
- --------------------------------------------------------------------------------
Gannett Co., Inc. 239,942 11,973,106
- --------------------------------------------------------------------------------
Getty Images, Inc. 1 22,300 1,001,939
- --------------------------------------------------------------------------------
Global Sources Ltd. 1 11,900 226,338
- --------------------------------------------------------------------------------
Idearc, Inc. 39,845 1,383,020
- --------------------------------------------------------------------------------
Journal
Communications, Inc. 33,400 353,706
- --------------------------------------------------------------------------------
Liberty Media
Holding
Corp.-Capital,
Series A 1 33,718 3,859,025
- --------------------------------------------------------------------------------
Lin TV Corp. 1 24,400 369,416
- --------------------------------------------------------------------------------
Marvel
Entertainment, Inc. 1,2 16,700 404,641
- --------------------------------------------------------------------------------
Omnicom Group, Inc. 210,200 10,903,074
- --------------------------------------------------------------------------------
Regal Entertainment
Group 46,200 988,218
- --------------------------------------------------------------------------------
Sinclair Broadcast
Group, Inc., Cl. A 30,500 397,720
- --------------------------------------------------------------------------------
Tribune Co. 36,372 1,016,961
- --------------------------------------------------------------------------------
Viacom, Inc., Cl. B 1 461,164 17,662,581
- --------------------------------------------------------------------------------
Walt Disney Co. (The) 1,210,000 39,930,000
-----------------
144,399,903
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.5%
Big Lots, Inc. 1 65,900 1,704,174
- --------------------------------------------------------------------------------
Dollar Tree Stores, Inc. 1 58,500 2,238,210
- --------------------------------------------------------------------------------
Family Dollar Stores, Inc. 72,200 2,138,564
- --------------------------------------------------------------------------------
J.C. Penney Co., Inc.
(Holding Co.) 166,900 11,355,876
- --------------------------------------------------------------------------------
Kohl's Corp. 1 118,600 7,210,880
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MULTILINE RETAIL Continued
Macy's, Inc. 431,500 $ 15,564,205
- --------------------------------------------------------------------------------
Nordstrom, Inc. 220,600 10,496,148
- --------------------------------------------------------------------------------
Sears Holdings Corp. 1 74,200 10,149,818
- --------------------------------------------------------------------------------
Target Corp. 68,500 4,149,045
-----------------
65,006,920
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--1.0%
Aeropostale, Inc. 1 24,800 944,384
- --------------------------------------------------------------------------------
AutoZone, Inc. 1 15,400 1,952,874
- --------------------------------------------------------------------------------
Barnes & Noble, Inc. 29,200 979,660
- --------------------------------------------------------------------------------
Buckle, Inc. (The) 13,300 464,835
- --------------------------------------------------------------------------------
Gymboree Corp. 1 11,100 477,855
- --------------------------------------------------------------------------------
Home Depot, Inc. 496,000 18,436,320
- --------------------------------------------------------------------------------
J. Crew Group, Inc. 1 20,600 1,036,180
- --------------------------------------------------------------------------------
Office Depot, Inc. 1 74,300 1,854,528
- --------------------------------------------------------------------------------
Pep Boys-Manny,
Moe & Jack 25,100 424,943
- --------------------------------------------------------------------------------
RadioShack Corp. 48,400 1,216,292
- --------------------------------------------------------------------------------
Rent-A-Center, Inc. 1 33,000 640,530
- --------------------------------------------------------------------------------
Sherwin-Williams Co. 21,600 1,505,304
- --------------------------------------------------------------------------------
Sonic
Automotive, Inc. 2 16,400 449,360
- --------------------------------------------------------------------------------
Stage Stores, Inc. 21,200 378,208
- --------------------------------------------------------------------------------
Tiffany & Co. 29,100 1,404,075
- --------------------------------------------------------------------------------
TJX Cos., Inc. (The) 379,400 10,528,350
-----------------
42,693,698
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.3%
Columbia
Sportswear Co. 15,500 971,850
- --------------------------------------------------------------------------------
Deckers Outdoor
Corp. 1 6,100 628,910
- --------------------------------------------------------------------------------
Movado Group, Inc. 13,600 384,064
- --------------------------------------------------------------------------------
Nike, Inc., Cl. B 190,100 10,731,145
- --------------------------------------------------------------------------------
UniFirst Corp. 9,500 356,820
- --------------------------------------------------------------------------------
Warnaco Group, Inc.
(The) 1 12,000 433,320
- --------------------------------------------------------------------------------
Wolverine World
Wide, Inc. 16,000 432,960
-----------------
13,939,069
21 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CONSUMER STAPLES--8.1%
- --------------------------------------------------------------------------------
BEVERAGES--1.7%
Coca-Cola Co. (The) 699,800 $ 36,466,578
- --------------------------------------------------------------------------------
Pepsi Bottling
Group, Inc. (The) 40,400 1,351,784
- --------------------------------------------------------------------------------
PepsiCo, Inc. 564,000 37,009,680
-----------------
74,828,042
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.1%
BJ's Wholesale
Club, Inc. 1 17,900 607,884
- --------------------------------------------------------------------------------
Costco Wholesale
Corp. 223,100 13,341,380
- --------------------------------------------------------------------------------
Ingles Markets, Inc.,
Cl. A 13,300 389,557
- --------------------------------------------------------------------------------
Kroger Co. (The) 618,100 16,045,876
- --------------------------------------------------------------------------------
Performance Food
Group Co. 1 14,900 427,034
- --------------------------------------------------------------------------------
Safeway, Inc. 427,500 13,624,425
- --------------------------------------------------------------------------------
SUPERVALU, Inc. 36,700 1,529,289
-----------------
45,965,445
- --------------------------------------------------------------------------------
FOOD PRODUCTS--1.7%
Campbell Soup Co. 166,900 6,146,927
- --------------------------------------------------------------------------------
ConAgra Foods, Inc. 467,500 11,851,125
- --------------------------------------------------------------------------------
Dean Foods Co. 39,000 1,122,030
- --------------------------------------------------------------------------------
Flowers Foods, Inc. 21,150 433,575
- --------------------------------------------------------------------------------
Fresh Del Monte
Produce, Inc. 18,900 484,785
- --------------------------------------------------------------------------------
General Mills, Inc. 226,600 12,603,492
- --------------------------------------------------------------------------------
Heinz (H.J.) Co. 253,800 11,106,288
- --------------------------------------------------------------------------------
J.M. Smucker Co.
(The) 20,400 1,138,524
- --------------------------------------------------------------------------------
Kellogg Co. 208,400 10,797,204
- --------------------------------------------------------------------------------
Sara Lee Corp. 906,000 14,360,100
- --------------------------------------------------------------------------------
Seaboard Corp. 300 600,000
- --------------------------------------------------------------------------------
Tyson Foods, Inc.,
Cl. A 66,700 1,420,710
-----------------
72,064,760
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.3%
Clorox Co. (The) 26,400 1,596,144
- --------------------------------------------------------------------------------
Colgate-Palmolive Co. 44,000 2,904,000
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS Continued
Energizer
Holdings, Inc. 1 16,600 $ 1,674,940
- --------------------------------------------------------------------------------
Procter &
Gamble Co. (The) 799,967 49,485,959
-----------------
55,661,043
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.1%
Alberto-Culver Co. 45,700 1,074,864
- --------------------------------------------------------------------------------
Estee Lauder Cos.,
Inc. (The), Cl. A 27,700 1,247,054
- --------------------------------------------------------------------------------
NBTY, Inc. 1 31,600 1,375,864
- --------------------------------------------------------------------------------
Playtex Products, Inc. 1 31,800 569,538
-----------------
4,267,320
- --------------------------------------------------------------------------------
TOBACCO--2.2%
Altria Group, Inc. 1,330,200 88,418,394
- --------------------------------------------------------------------------------
Loews Corp./Carolina
Group 20,400 1,546,116
- --------------------------------------------------------------------------------
Universal Corp. 8,200 452,722
- --------------------------------------------------------------------------------
UST, Inc. 29,100 1,558,305
-----------------
91,975,537
- --------------------------------------------------------------------------------
ENERGY--13.4%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.0%
Atwood
Oceanics, Inc. 1 11,100 761,460
- --------------------------------------------------------------------------------
Dresser-Rand
Group, Inc. 1 31,000 1,150,100
- --------------------------------------------------------------------------------
Global Industries Ltd. 1 50,900 1,318,310
- --------------------------------------------------------------------------------
Grey Wolf, Inc. 1 58,600 434,226
- --------------------------------------------------------------------------------
Gulfmark
Offshore, Inc. 1 10,000 469,800
- --------------------------------------------------------------------------------
Hercules
Offshore, Inc. 1,2 14,100 423,282
- --------------------------------------------------------------------------------
Oil States
International, Inc. 1 11,200 489,888
- --------------------------------------------------------------------------------
Parker Drilling Co. 1 7,000 65,940
- --------------------------------------------------------------------------------
Schlumberger Ltd. 389,500 36,893,440
- --------------------------------------------------------------------------------
Superior Energy
Services, Inc. 1 28,900 1,165,248
- --------------------------------------------------------------------------------
Tidewater, Inc. 28,000 1,915,760
-----------------
45,087,454
22 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS--12.4%
Alon USA Energy, Inc. 12,200 $ 435,174
- --------------------------------------------------------------------------------
Alpha Natural
Resources, Inc. 1 24,000 428,400
- --------------------------------------------------------------------------------
Anadarko Petroleum
Corp. 414,000 20,836,620
- --------------------------------------------------------------------------------
Apache Corp. 236,500 19,118,660
- --------------------------------------------------------------------------------
Berry Petroleum
Co., Cl. A 12,500 465,125
- --------------------------------------------------------------------------------
Chesapeake Energy
Corp. 62,600 2,130,904
- --------------------------------------------------------------------------------
Chevron Corp. 1,278,371 108,993,911
- --------------------------------------------------------------------------------
ConocoPhillips 657,443 53,147,692
- --------------------------------------------------------------------------------
Continental
Resources, Inc. 1 26,600 418,418
- --------------------------------------------------------------------------------
Delek US
Holdings, Inc. 16,400 434,272
- --------------------------------------------------------------------------------
Devon Energy Corp. 56,300 4,200,543
- --------------------------------------------------------------------------------
Enbridge Energy
Management LLC 1 1 13
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 2,493,800 212,297,194
- --------------------------------------------------------------------------------
Frontier Oil Corp. 36,100 1,398,153
- --------------------------------------------------------------------------------
Frontline Ltd. 24,400 1,123,376
- --------------------------------------------------------------------------------
Hess Corp. 60,600 3,708,720
- --------------------------------------------------------------------------------
Holly Corp. 25,000 1,684,750
- --------------------------------------------------------------------------------
Marathon Oil Corp. 490,200 27,059,040
- --------------------------------------------------------------------------------
Massey Energy Co. 19,600 418,460
- --------------------------------------------------------------------------------
Noble Energy, Inc. 33,000 2,017,620
- --------------------------------------------------------------------------------
Occidental
Petroleum Corp. 540,200 30,640,144
- --------------------------------------------------------------------------------
Overseas Shipholding
Group, Inc. 32,300 2,506,157
- --------------------------------------------------------------------------------
Paramount
Resources Ltd., Cl. A 1 41,100 688,082
- --------------------------------------------------------------------------------
Pioneer Natural
Resources Co. 28,800 1,310,400
- --------------------------------------------------------------------------------
Rosetta Resources,
Inc. 1 18,200 327,782
- --------------------------------------------------------------------------------
Stone Energy Corp. 1 13,200 429,000
- --------------------------------------------------------------------------------
Sunoco, Inc. 24,000 1,601,280
- --------------------------------------------------------------------------------
Tesoro Corp. 32,800 1,633,440
- --------------------------------------------------------------------------------
Tusk Energy Corp. 1 226,900 329,673
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS Continued
Tusk Energy Corp. 1,3 258,700 $ 375,876
- --------------------------------------------------------------------------------
USEC, Inc. 1 14,800 248,492
- --------------------------------------------------------------------------------
Valero Energy Corp. 366,800 24,579,268
-----------------
524,986,639
- --------------------------------------------------------------------------------
FINANCIALS--17.4%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--2.9%
Ameriprise
Financial, Inc. 362,440 21,844,259
- --------------------------------------------------------------------------------
Ares Capital Corp. 2 24,400 380,396
- --------------------------------------------------------------------------------
Bank of New York
Mellon Corp. 385,378 16,397,834
- --------------------------------------------------------------------------------
Bear Stearns Cos.,
Inc. (The) 91,000 11,031,020
- --------------------------------------------------------------------------------
GAMCO Investors,
Inc., Cl. A 8,900 462,266
- --------------------------------------------------------------------------------
Goldman Sachs
Group, Inc. (The) 123,900 23,335,326
- --------------------------------------------------------------------------------
Janus Capital
Group, Inc. 61,700 1,854,702
- --------------------------------------------------------------------------------
Merrill Lynch & Co.,
Inc. 298,400 22,141,280
- --------------------------------------------------------------------------------
Morgan Stanley 362,500 23,152,875
- --------------------------------------------------------------------------------
W.P. Carey & Co. LLC 13,500 419,310
-----------------
121,019,268
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--3.0%
Citizens Republic
Bancorp, Inc. 25,800 415,380
- --------------------------------------------------------------------------------
Comerica, Inc. 29,400 1,548,204
- --------------------------------------------------------------------------------
Fifth Third Bancorp 337,100 12,435,619
- --------------------------------------------------------------------------------
Huntington
Bancshares, Inc. 74,000 1,420,800
- --------------------------------------------------------------------------------
International
Bancshares Corp. 9,000 198,270
- --------------------------------------------------------------------------------
KeyCorp 75,100 2,605,219
- --------------------------------------------------------------------------------
M&T Bank Corp. 13,800 1,466,802
- --------------------------------------------------------------------------------
Park National Corp. 2 5,400 429,030
- --------------------------------------------------------------------------------
SunTrust Banks, Inc. 188,600 14,767,380
- --------------------------------------------------------------------------------
SVB Financial Group 1 8,100 426,708
- --------------------------------------------------------------------------------
TCF Financial Corp. 42,700 1,049,993
23 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
U.S. Bancorp 594,700 $ 17,811,265
- --------------------------------------------------------------------------------
Wachovia Corp. 647,962 30,590,286
- --------------------------------------------------------------------------------
Webster Financial
Corp. 25,700 1,116,922
- --------------------------------------------------------------------------------
Wells Fargo & Co. 1,163,100 39,277,887
-----------------
125,559,765
- --------------------------------------------------------------------------------
CONSUMER FINANCE--0.1%
Advanta Corp., Cl. B 16,100 413,126
- --------------------------------------------------------------------------------
AmeriCredit Corp. 1,2 88,500 1,800,090
- --------------------------------------------------------------------------------
Discover Financial
Services 1 183,900 4,238,895
-----------------
6,452,111
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--4.6%
Bank of America
Corp. 1,545,241 73,275,329
- --------------------------------------------------------------------------------
CIT Group, Inc. 31,700 1,305,406
- --------------------------------------------------------------------------------
Citigroup, Inc. 1,463,600 68,159,852
- --------------------------------------------------------------------------------
JPMorgan
Chase & Co. 1,186,752 52,228,956
- --------------------------------------------------------------------------------
Portfolio Recovery
Associates, Inc. 7,000 365,750
-----------------
195,335,293
- --------------------------------------------------------------------------------
INSURANCE--5.2%
ACE Ltd. 83,800 4,836,936
- --------------------------------------------------------------------------------
Allstate Corp. 440,800 23,428,520
- --------------------------------------------------------------------------------
AMBAC Financial
Group, Inc. 19,100 1,282,565
- --------------------------------------------------------------------------------
American Financial
Group, Inc. 32,500 912,925
- --------------------------------------------------------------------------------
American
International Group,
Inc. 756,400 48,545,752
- --------------------------------------------------------------------------------
Aon Corp. 59,400 2,378,376
- --------------------------------------------------------------------------------
Arch Capital Group
Ltd. 1 16,500 1,149,390
- --------------------------------------------------------------------------------
Aspen Insurance
Holdings Ltd. 41,300 1,009,785
- --------------------------------------------------------------------------------
Assurant, Inc. 38,700 1,962,864
- --------------------------------------------------------------------------------
Assured Guaranty
Ltd. 15,600 379,704
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INSURANCE Continued
Chubb Corp. 388,100 $ 19,564,121
- --------------------------------------------------------------------------------
Cincinnati Financial
Corp. 33,400 1,309,280
- --------------------------------------------------------------------------------
CNA Financial Corp. 129,800 5,389,296
- --------------------------------------------------------------------------------
Commerce Group,
Inc. (The) 31,000 890,630
- --------------------------------------------------------------------------------
Everest Re Group Ltd. 13,800 1,355,850
- --------------------------------------------------------------------------------
FBL Financial Group,
Inc., Cl. A 11,400 401,166
- --------------------------------------------------------------------------------
Fidelity National Title
Group, Inc., Cl. A 58,000 1,211,620
- --------------------------------------------------------------------------------
Genworth Financial,
Inc., Cl. A 567,900 17,332,308
- --------------------------------------------------------------------------------
Horace Mann
Educators Corp. 20,700 369,081
- --------------------------------------------------------------------------------
Infinity Property &
Casualty Corp. 9,400 413,976
- --------------------------------------------------------------------------------
IPC Holdings Ltd. 16,700 414,327
- --------------------------------------------------------------------------------
LandAmerica
Financial Group, Inc. 2 5,800 444,222
- --------------------------------------------------------------------------------
Lincoln National Corp. 35,000 2,111,200
- --------------------------------------------------------------------------------
Loews Corp. 42,200 2,000,280
- --------------------------------------------------------------------------------
Max Capital Group
Ltd. 17,100 446,481
- --------------------------------------------------------------------------------
MBIA, Inc. 2 26,400 1,481,040
- --------------------------------------------------------------------------------
MetLife, Inc. 158,900 9,568,958
- --------------------------------------------------------------------------------
Midland Co. (The) 9,600 456,192
- --------------------------------------------------------------------------------
Nationwide Financial
Services, Inc., Cl. A 21,900 1,246,329
- --------------------------------------------------------------------------------
Odyssey Re Holdings
Corp. 26,100 918,720
- --------------------------------------------------------------------------------
Ohio Casualty Corp. 14,800 642,468
- --------------------------------------------------------------------------------
Partnerre Holdings Ltd. 16,500 1,171,995
- --------------------------------------------------------------------------------
Phoenix Cos., Inc. (The) 31,500 434,385
- --------------------------------------------------------------------------------
Platinum
Underwriters
Holdings Ltd. 13,100 434,920
- --------------------------------------------------------------------------------
Principal Financial
Group, Inc. (The) 312,300 17,610,597
- --------------------------------------------------------------------------------
ProAssurance Corp. 1 8,200 404,916
- --------------------------------------------------------------------------------
Reinsurance Group
of America, Inc. 6,700 357,177
24 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INSURANCE Continued
RenaissanceRe
Holdings Ltd. 21,100 $ 1,213,250
- --------------------------------------------------------------------------------
RLI Corp. 7,900 458,200
- --------------------------------------------------------------------------------
Safeco Corp. 24,000 1,403,280
- --------------------------------------------------------------------------------
StanCorp Financial
Group, Inc. 22,700 1,065,992
- --------------------------------------------------------------------------------
Transatlantic
Holdings, Inc. 10,900 797,335
- --------------------------------------------------------------------------------
Travelers Cos., Inc.
(The) 416,400 21,144,792
- --------------------------------------------------------------------------------
United America
Indemnity Ltd., Cl. A 1 18,600 399,528
- --------------------------------------------------------------------------------
United Fire &
Casualty Co. 11,900 409,598
- --------------------------------------------------------------------------------
Universal American
Financial Corp. 1 15,700 312,587
- --------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 230,400 17,938,944
- --------------------------------------------------------------------------------
Zenith National
Insurance Corp. 10,400 419,744
-----------------
219,831,602
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS--0.1%
General Growth
Properties, Inc. 58,100 2,787,638
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT--0.0%
Jones Lang LaSalle, Inc. 11,800 1,295,404
- --------------------------------------------------------------------------------
Stratus Properties, Inc. 1 2,100 63,693
-----------------
1,359,097
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--1.5%
Astoria Financial Corp. 43,600 1,026,780
- --------------------------------------------------------------------------------
Fannie Mae 538,700 32,235,808
- --------------------------------------------------------------------------------
Freddie Mac 133,700 7,656,999
- --------------------------------------------------------------------------------
Hudson City
Bancorp, Inc. 119,600 1,461,512
- --------------------------------------------------------------------------------
MAF Bancorp, Inc. 10,700 561,964
- --------------------------------------------------------------------------------
PMI Group, Inc. (The) 44,600 1,519,522
- --------------------------------------------------------------------------------
Radian Group, Inc. 54,800 1,847,308
- --------------------------------------------------------------------------------
Washington
Mutual, Inc. 490,100 18,393,453
-----------------
64,703,346
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE--14.7%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--0.7%
Amgen, Inc. 1 366,500 $ 19,695,710
- --------------------------------------------------------------------------------
Biogen Idec, Inc. 1 60,600 3,426,324
- --------------------------------------------------------------------------------
Genentech, Inc. 1 116,300 8,650,394
-----------------
31,772,428
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.2%
Analogic Corp. 6,400 424,896
- --------------------------------------------------------------------------------
Baxter
International, Inc. 163,500 8,600,100
- --------------------------------------------------------------------------------
ConMed Corp. 1 14,100 393,390
- --------------------------------------------------------------------------------
Covidien Ltd. 1 178,800 7,321,860
- --------------------------------------------------------------------------------
Dade Behring
Holdings, Inc. 28,100 2,103,285
- --------------------------------------------------------------------------------
Edwards Lifesciences
Corp. 1 22,500 1,034,100
- --------------------------------------------------------------------------------
Kinetic Concepts, Inc. 1 18,300 1,125,084
- --------------------------------------------------------------------------------
Medtronic, Inc. 338,200 17,136,594
- --------------------------------------------------------------------------------
Meridian
Bioscience, Inc. 11,300 252,329
- --------------------------------------------------------------------------------
Steris Corp. 16,300 445,805
- --------------------------------------------------------------------------------
Zimmer
Holdings, Inc. 1 164,100 12,760,416
-----------------
51,597,859
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--5.5%
Aetna, Inc. 521,300 25,058,891
- --------------------------------------------------------------------------------
AmerisourceBergen
Corp. 48,600 2,289,546
- --------------------------------------------------------------------------------
Apria Healthcare
Group, Inc. 1 16,200 424,764
- --------------------------------------------------------------------------------
Cardinal Health, Inc. 115,600 7,598,388
- --------------------------------------------------------------------------------
Chemed Corp. 9,700 613,816
- --------------------------------------------------------------------------------
CIGNA Corp. 303,100 15,652,084
- --------------------------------------------------------------------------------
Community Health
Systems, Inc. 1 29,500 1,147,550
- --------------------------------------------------------------------------------
Coventry Health
Care, Inc. 1 31,100 1,735,691
- --------------------------------------------------------------------------------
Emergency Medical
Services LP, Cl. A 1 16,400 639,764
- --------------------------------------------------------------------------------
Express Scripts, Inc. 1 206,900 10,371,897
25 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Health Net, Inc. 1 26,500 $ 1,312,810
- --------------------------------------------------------------------------------
Healthspring, Inc. 1 24,300 415,530
- --------------------------------------------------------------------------------
Humana, Inc. 1 42,400 2,717,416
- --------------------------------------------------------------------------------
Laboratory Corp. of
America Holdings 1 23,600 1,742,860
- --------------------------------------------------------------------------------
LCA-Vision, Inc. 2 9,000 319,590
- --------------------------------------------------------------------------------
McKesson Corp. 339,300 19,597,968
- --------------------------------------------------------------------------------
Medco Health
Solutions, Inc. 1 270,000 21,942,900
- --------------------------------------------------------------------------------
PSS World
Medical, Inc. 1 23,800 410,074
- --------------------------------------------------------------------------------
Sunrise Senior
Living, Inc. 1 11,600 461,216
- --------------------------------------------------------------------------------
UnitedHealth
Group, Inc. 1,270,750 61,542,423
- --------------------------------------------------------------------------------
WellCare Health
Plans, Inc. 1 13,700 1,387,262
- --------------------------------------------------------------------------------
WellPoint, Inc. 1 723,390 54,341,057
-----------------
231,723,497
- --------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY--0.0%
Eclipsys Corp. 1 20,300 441,119
- --------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES--0.1%
Dionex Corp. 1 6,100 414,861
- --------------------------------------------------------------------------------
Invitrogen Corp. 1 18,500 1,328,300
- --------------------------------------------------------------------------------
Parexel International
Corp. 1 10,500 424,515
- --------------------------------------------------------------------------------
Varian, Inc. 1 7,800 469,092
-----------------
2,636,768
- --------------------------------------------------------------------------------
PHARMACEUTICALS--7.2%
Abbott Laboratories 442,000 22,404,980
- --------------------------------------------------------------------------------
Alpharma, Inc., Cl. A 16,700 413,993
- --------------------------------------------------------------------------------
Bristol-Myers
Squibb Co. 674,200 19,154,022
- --------------------------------------------------------------------------------
Eli Lilly & Co. 337,600 18,260,784
- --------------------------------------------------------------------------------
Forest Laboratories,
Inc. 1 271,700 10,922,340
- --------------------------------------------------------------------------------
Johnson & Johnson 1,509,200 91,306,600
- --------------------------------------------------------------------------------
K-V Pharmaceutical
Co., Cl. A 1 16,000 437,440
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
PHARMACEUTICALS Continued
King Pharmaceuticals,
Inc. 1 71,200 $ 1,211,112
- --------------------------------------------------------------------------------
Merck & Co., Inc. 497,700 24,710,805
- --------------------------------------------------------------------------------
Par Pharmaceutical
Cos., Inc. 1 16,900 400,361
- --------------------------------------------------------------------------------
Perrigo Co. 25,800 481,170
- --------------------------------------------------------------------------------
Pfizer, Inc. 3,912,900 91,992,279
- --------------------------------------------------------------------------------
Schering-Plough Corp. 123,800 3,533,252
- --------------------------------------------------------------------------------
Wyeth 389,700 18,908,244
-----------------
304,137,382
- --------------------------------------------------------------------------------
INDUSTRIALS--9.3%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--4.3%
Boeing Co. 271,700 28,101,931
- --------------------------------------------------------------------------------
Ceradyne, Inc. 1 6,600 492,558
- --------------------------------------------------------------------------------
Curtiss-Wright Corp. 10,300 448,771
- --------------------------------------------------------------------------------
DynCorp
International, Inc.,
Cl. A 1 19,800 421,938
- --------------------------------------------------------------------------------
General Dynamics
Corp. 100,800 7,918,848
- --------------------------------------------------------------------------------
Honeywell
International, Inc. 492,700 28,335,177
- --------------------------------------------------------------------------------
L-3 Communications
Holdings, Inc. 48,100 4,692,636
- --------------------------------------------------------------------------------
Lockheed Martin
Corp. 285,800 28,145,584
- --------------------------------------------------------------------------------
Northrop Grumman
Corp. 335,200 25,508,720
- --------------------------------------------------------------------------------
Orbital Sciences Corp. 1 19,600 415,324
- --------------------------------------------------------------------------------
Precision Castparts
Corp. 78,400 10,745,504
- --------------------------------------------------------------------------------
Raytheon Co. 416,400 23,051,904
- --------------------------------------------------------------------------------
United Technologies
Corp. 342,500 24,992,225
-----------------
183,271,120
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.4%
Hub Group, Inc., Cl. A 1 14,400 489,888
- --------------------------------------------------------------------------------
United Parcel
Service, Inc., Cl. B 221,200 16,749,264
-----------------
17,239,152
26 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BUILDING PRODUCTS--0.0%
Lennox
International, Inc. 27,800 $ 1,064,740
- --------------------------------------------------------------------------------
NCI Building
Systems, Inc. 1,2 8,700 420,732
-----------------
1,485,472
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.4%
ABM Industries, Inc. 18,400 462,944
- --------------------------------------------------------------------------------
Administaff, Inc. 12,800 418,560
- --------------------------------------------------------------------------------
Allied Waste
Industries, Inc. 1 91,000 1,171,170
- --------------------------------------------------------------------------------
Consolidated
Graphics, Inc. 1 6,200 408,642
- --------------------------------------------------------------------------------
Deluxe Corp. 25,300 955,328
- --------------------------------------------------------------------------------
Donnelley (R.R.) &
Sons Co. 44,400 1,876,344
- --------------------------------------------------------------------------------
G&K Services, Inc.,
Cl. A 5,200 193,752
- --------------------------------------------------------------------------------
Heidrick & Struggles
International, Inc. 1 9,100 489,034
- --------------------------------------------------------------------------------
IHS, Inc., Cl. A 1 25,100 1,190,242
- --------------------------------------------------------------------------------
Ikon Office
Solutions, Inc. 50,400 698,544
- --------------------------------------------------------------------------------
Knoll, Inc. 21,500 425,915
- --------------------------------------------------------------------------------
Korn-Ferry
International 1 19,500 460,785
- --------------------------------------------------------------------------------
Labor Ready, Inc. 1 23,200 546,592
- --------------------------------------------------------------------------------
M&F Worldwide
Corp. 1 7,400 431,716
- --------------------------------------------------------------------------------
Manpower, Inc. 18,600 1,470,330
- --------------------------------------------------------------------------------
Republic Services, Inc. 47,800 1,527,210
- --------------------------------------------------------------------------------
Steelcase, Inc., Cl. A 54,600 950,586
- --------------------------------------------------------------------------------
TeleTech
Holdings, Inc. 1,2 32,800 962,024
- --------------------------------------------------------------------------------
United Stationers, Inc. 1 6,900 439,806
- --------------------------------------------------------------------------------
Viad Corp. 12,200 438,590
- --------------------------------------------------------------------------------
Watson Wyatt & Co.
Holdings 9,500 423,225
-----------------
15,941,339
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.1%
Chicago Bridge &
Iron Co. NV 57,200 $ 2,322,320
- --------------------------------------------------------------------------------
EMCOR Group, Inc. 1 30,000 1,077,000
- --------------------------------------------------------------------------------
Infrasource
Services, Inc. 1 18,600 643,932
- --------------------------------------------------------------------------------
Perini Corp. 1 10,000 614,100
-----------------
4,657,352
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.1%
Acuity Brands, Inc. 35,800 2,115,780
- --------------------------------------------------------------------------------
EnerSys, Inc. 1 20,400 369,240
- --------------------------------------------------------------------------------
GrafTech
International Ltd. 1 48,700 754,363
- --------------------------------------------------------------------------------
Thomas & Betts
Corp. 1 21,300 1,316,340
- --------------------------------------------------------------------------------
Woodward
Governor Co. 7,900 456,225
-----------------
5,011,948
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.8%
3M Co. 247,500 22,007,700
- --------------------------------------------------------------------------------
General Electric Co. 2,079,800 80,613,048
- --------------------------------------------------------------------------------
Teleflex, Inc. 14,300 1,092,949
- --------------------------------------------------------------------------------
Tredegar Corp. 16,300 299,268
- --------------------------------------------------------------------------------
Tyco
International Ltd. 267,900 12,668,991
-----------------
116,681,956
- --------------------------------------------------------------------------------
MACHINERY--1.0%
Actuant Corp., Cl. A 7,000 426,860
- --------------------------------------------------------------------------------
AGCO Corp. 1 27,200 1,045,296
- --------------------------------------------------------------------------------
Cascade Corp. 5,400 366,066
- --------------------------------------------------------------------------------
Caterpillar, Inc. 134,700 10,614,360
- --------------------------------------------------------------------------------
Cummins, Inc. 24,300 2,884,410
- --------------------------------------------------------------------------------
Eaton Corp. 187,800 18,250,404
- --------------------------------------------------------------------------------
EnPro Industries, Inc. 1 10,700 421,366
- --------------------------------------------------------------------------------
ITT Corp. 32,300 2,031,024
- --------------------------------------------------------------------------------
Kaydon Corp. 10,300 548,063
- --------------------------------------------------------------------------------
Manitowoc Co., Inc.
(The) 11,200 869,904
- --------------------------------------------------------------------------------
Middleby Corp. (The) 1 7,200 446,472
27 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MACHINERY Continued
NACCO Industries,
Inc., Cl. A 2,800 $ 368,256
- --------------------------------------------------------------------------------
Navistar
International Corp. 1 12,000 756,000
- --------------------------------------------------------------------------------
Pall Corp. 34,500 1,432,440
- --------------------------------------------------------------------------------
Robbins & Myers, Inc. 8,100 427,113
- --------------------------------------------------------------------------------
Toro Co. (The) 18,700 1,051,314
- --------------------------------------------------------------------------------
Wabtec Corp. 14,000 571,760
-----------------
42,511,108
- --------------------------------------------------------------------------------
MARINE--0.0%
Horizon Lines, Inc.,
Cl. A 14,900 430,014
- --------------------------------------------------------------------------------
ROAD & RAIL--0.1%
Avis Budget Group,
Inc. 1 41,300 1,060,171
- --------------------------------------------------------------------------------
Con-way, Inc. 21,800 1,076,702
- --------------------------------------------------------------------------------
Kansas City
Southern, Inc. 1,2 32,100 1,107,771
- --------------------------------------------------------------------------------
Laidlaw
International, Inc. 33,200 1,128,800
-----------------
4,373,444
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.1%
Applied Industrial
Technologies, Inc. 15,400 437,206
- --------------------------------------------------------------------------------
TAL International
Group, Inc. 7,100 186,588
- --------------------------------------------------------------------------------
UAP Holding Corp. 18,800 510,796
- --------------------------------------------------------------------------------
W.W. Grainger, Inc. 18,200 1,589,952
-----------------
2,724,542
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--20.7%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.9%
ADTRAN, Inc. 17,200 448,748
- --------------------------------------------------------------------------------
Arris Group, Inc. 1 46,000 681,720
- --------------------------------------------------------------------------------
Avaya, Inc. 1 116,000 1,918,640
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1 3,528,000 101,994,480
- --------------------------------------------------------------------------------
CommScope, Inc. 1 24,200 1,317,206
- --------------------------------------------------------------------------------
Comtech
Telecommunications
Corp. 1 10,900 473,823
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT Continued
Dycom Industries, Inc. 1 15,300 $ 427,635
- --------------------------------------------------------------------------------
InterDigital, Inc. 1 14,500 405,275
- --------------------------------------------------------------------------------
Juniper Networks, Inc. 1 686,400 20,564,544
- --------------------------------------------------------------------------------
Motorola, Inc. 940,600 15,980,794
- --------------------------------------------------------------------------------
Plantronics, Inc. 16,800 470,736
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 467,000 19,450,550
-----------------
164,134,151
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--6.0%
Apple, Inc. 1 357,400 47,091,024
- --------------------------------------------------------------------------------
Dell, Inc. 1 780,500 21,830,585
- --------------------------------------------------------------------------------
Electronics for
Imaging, Inc. 1 15,600 409,656
- --------------------------------------------------------------------------------
EMC Corp. 1 1,108,300 20,514,633
- --------------------------------------------------------------------------------
Emulex Corp. 1 20,800 411,840
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 1,349,700 62,126,691
- --------------------------------------------------------------------------------
International
Business Machines
Corp. 924,800 102,329,120
- --------------------------------------------------------------------------------
Western Digital
Corp. 1 60,700 1,295,945
-----------------
256,009,494
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.7%
Agilent
Technologies, Inc. 1 488,700 18,643,905
- --------------------------------------------------------------------------------
Avnet, Inc. 1 37,400 1,416,712
- --------------------------------------------------------------------------------
Checkpoint
Systems, Inc. 1 14,200 327,594
- --------------------------------------------------------------------------------
Dolby Laboratories,
Inc., Cl. A 1 29,300 974,518
- --------------------------------------------------------------------------------
Insight Enterprises,
Inc. 1 20,400 460,224
- --------------------------------------------------------------------------------
Mettler-Toledo
International, Inc. 1 13,400 1,275,144
- --------------------------------------------------------------------------------
Rofin-Sinar
Technologies, Inc. 1 6,500 422,955
- --------------------------------------------------------------------------------
Technitrol, Inc. 16,500 429,000
- --------------------------------------------------------------------------------
Tektronix, Inc. 32,600 1,070,910
- --------------------------------------------------------------------------------
Tyco Electronics Ltd. 1 178,800 6,404,616
-----------------
31,425,578
28 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--1.0%
CMGI, Inc. 1 201,000 $ 317,580
- --------------------------------------------------------------------------------
Google, Inc., Cl. A 1 76,200 38,862,000
- --------------------------------------------------------------------------------
j2 Global
Communications, Inc. 1 13,200 430,848
- --------------------------------------------------------------------------------
United Online, Inc. 67,100 947,452
-----------------
40,557,880
- --------------------------------------------------------------------------------
IT SERVICES--2.7%
Accenture Ltd., Cl. A 513,900 21,650,607
- --------------------------------------------------------------------------------
Alliance Data
Systems Corp. 1 21,000 1,612,800
- --------------------------------------------------------------------------------
Automatic Data
Processing, Inc. 465,800 21,622,436
- --------------------------------------------------------------------------------
Broadridge Financial
Solutions, Inc. 59,000 1,037,810
- --------------------------------------------------------------------------------
Computer Sciences
Corp. 1 32,400 1,804,032
- --------------------------------------------------------------------------------
Convergys Corp. 1 83,700 1,594,485
- --------------------------------------------------------------------------------
CSG Systems
International, Inc. 1 17,500 437,850
- --------------------------------------------------------------------------------
Electronic Data
Systems Corp. 757,500 20,444,925
- --------------------------------------------------------------------------------
First Data Corp. 906,200 28,808,098
- --------------------------------------------------------------------------------
Fiserv, Inc. 1 38,100 1,882,902
- --------------------------------------------------------------------------------
Heartland Payment
Systems, Inc. 2 14,400 446,832
- --------------------------------------------------------------------------------
ManTech
International Corp. 1 13,900 453,974
- --------------------------------------------------------------------------------
MasterCard, Inc.,
Cl. A 2 46,500 7,477,200
- --------------------------------------------------------------------------------
Maximus, Inc. 10,500 438,795
- --------------------------------------------------------------------------------
Perot Systems Corp.,
Cl. A 1 25,900 394,198
- --------------------------------------------------------------------------------
Sapient Corp. 1 58,800 419,244
- --------------------------------------------------------------------------------
Syntel, Inc. 13,900 500,539
- --------------------------------------------------------------------------------
Total System
Services, Inc. 2 33,300 936,729
- --------------------------------------------------------------------------------
Western Union Co. 62,600 1,248,870
-----------------
113,212,326
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--0.4%
Xerox Corp. 1 1,030,700 17,996,022
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.7%
Advanced Energy
Industries, Inc. 1 23,300 $ 412,643
- --------------------------------------------------------------------------------
AMIS Holdings, Inc. 1 41,600 428,896
- --------------------------------------------------------------------------------
Amkor
Technology, Inc. 1 74,400 919,584
- --------------------------------------------------------------------------------
Analog Devices, Inc. 292,900 10,383,305
- --------------------------------------------------------------------------------
Applied
Materials, Inc. 779,600 17,182,384
- --------------------------------------------------------------------------------
Atheros
Communications,
Inc. 1,2 15,000 418,200
- --------------------------------------------------------------------------------
ATMI, Inc. 1 14,400 417,312
- --------------------------------------------------------------------------------
Brooks Automation,
Inc. 1 26,200 460,334
- --------------------------------------------------------------------------------
Cabot
Microelectronics
Corp. 1 11,700 498,771
- --------------------------------------------------------------------------------
Cymer, Inc. 1 14,300 611,325
- --------------------------------------------------------------------------------
Entegris, Inc. 1 40,700 438,746
- --------------------------------------------------------------------------------
FEI Co. 1 15,000 430,200
- --------------------------------------------------------------------------------
Intel Corp. 205,300 4,849,186
- --------------------------------------------------------------------------------
KLA-Tencor Corp. 31,900 1,811,601
- --------------------------------------------------------------------------------
Lam Research Corp. 1 29,100 1,683,144
- --------------------------------------------------------------------------------
Micrel, Inc. 66,900 692,415
- --------------------------------------------------------------------------------
MKS Instruments, Inc. 1 19,300 438,110
- --------------------------------------------------------------------------------
National
Semiconductor Corp. 61,900 1,608,781
- --------------------------------------------------------------------------------
Novellus Systems, Inc. 1 40,300 1,149,356
- --------------------------------------------------------------------------------
NVIDIA Corp. 1 30,100 1,377,376
- --------------------------------------------------------------------------------
ON Semiconductor
Corp. 1 105,900 1,251,738
- --------------------------------------------------------------------------------
Semtech Corp. 1 26,100 424,125
- --------------------------------------------------------------------------------
Teradyne, Inc. 1 71,000 1,113,990
- --------------------------------------------------------------------------------
Texas Instruments,
Inc. 490,000 17,243,100
- --------------------------------------------------------------------------------
Varian Semiconductor
Equipment
Associates, Inc. 1 38,100 1,790,700
- --------------------------------------------------------------------------------
Verigy Ltd. 1 37,373 914,144
- --------------------------------------------------------------------------------
Xilinx, Inc. 62,000 1,550,000
-----------------
70,499,466
29 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE--4.3%
Adobe Systems, Inc. 1 345,300 $ 13,912,137
- --------------------------------------------------------------------------------
Aspen Technology,
Inc. 1 34,600 429,040
- --------------------------------------------------------------------------------
Autodesk, Inc. 1 39,000 1,652,430
- --------------------------------------------------------------------------------
BMC Software, Inc. 1 58,000 1,665,760
- --------------------------------------------------------------------------------
Cognos, Inc. 1 21,400 858,568
- --------------------------------------------------------------------------------
Compuware Corp. 1 201,000 1,875,330
- --------------------------------------------------------------------------------
Henry (Jack) &
Associates, Inc. 42,800 1,028,056
- --------------------------------------------------------------------------------
Informatica Corp. 1 30,000 418,200
- --------------------------------------------------------------------------------
McAfee, Inc. 1 38,200 1,369,852
- --------------------------------------------------------------------------------
MICROS Systems, Inc. 1 19,000 1,012,320
- --------------------------------------------------------------------------------
Microsoft Corp. 4,470,646 129,604,028
- --------------------------------------------------------------------------------
MicroStrategy, Inc.,
Cl. A 1 5,800 424,038
- --------------------------------------------------------------------------------
Oracle Corp. 1 1,327,300 25,377,976
- --------------------------------------------------------------------------------
Sybase, Inc. 1 38,200 906,104
- --------------------------------------------------------------------------------
Synopsys, Inc. 1 59,400 1,452,924
- --------------------------------------------------------------------------------
The9 Ltd., ADR 1 13,600 666,400
- --------------------------------------------------------------------------------
TIBCO Software, Inc. 1 50,100 407,313
- --------------------------------------------------------------------------------
Vasco Data Security
International, Inc. 1 18,700 494,989
-----------------
183,555,465
- --------------------------------------------------------------------------------
MATERIALS--2.6%
- --------------------------------------------------------------------------------
CHEMICALS--0.9%
Air Products &
Chemicals, Inc. 31,400 2,712,018
- --------------------------------------------------------------------------------
Cabot Corp. 24,600 993,348
- --------------------------------------------------------------------------------
Celanese Corp.,
Series A 34,700 1,301,250
- --------------------------------------------------------------------------------
CF Industries
Holdings, Inc. 26,700 1,534,716
- --------------------------------------------------------------------------------
Dow Chemical Co.
(The) 400,200 17,400,696
- --------------------------------------------------------------------------------
Ferro Corp. 20,300 453,705
- --------------------------------------------------------------------------------
Hercules, Inc. 1 92,800 1,926,528
- --------------------------------------------------------------------------------
Lubrizol Corp. (The) 24,400 1,528,904
- --------------------------------------------------------------------------------
Lyondell Chemical Co. 49,100 2,204,590
- --------------------------------------------------------------------------------
Nalco Holding Co. 48,900 1,126,656
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CHEMICALS Continued
Olin Corp. 20,500 $ 427,835
- --------------------------------------------------------------------------------
PPG Industries, Inc. 86,300 6,582,101
- --------------------------------------------------------------------------------
Rockwood
Holdings, Inc. 1 26,600 920,094
- --------------------------------------------------------------------------------
Valhi, Inc. 2 11,200 183,792
-----------------
39,296,233
- --------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.1%
Owens-Illinois, Inc. 1 35,500 1,419,290
- --------------------------------------------------------------------------------
Packaging Corp. of
America 15,700 400,664
- --------------------------------------------------------------------------------
Pactiv Corp. 1 47,400 1,498,314
- --------------------------------------------------------------------------------
Rock-Tenn Co., Cl. A 14,500 445,440
- --------------------------------------------------------------------------------
Sonoco Products Co. 31,100 1,140,437
-----------------
4,904,145
- --------------------------------------------------------------------------------
METALS & MINING--1.2%
Century
Aluminum Co. 1 18,100 932,874
- --------------------------------------------------------------------------------
Chaparral Steel Co. 35,000 2,941,400
- --------------------------------------------------------------------------------
Cleveland-Cliffs, Inc. 2 18,000 1,246,860
- --------------------------------------------------------------------------------
Hecla Mining Co. 1 54,300 426,255
- --------------------------------------------------------------------------------
Metal Management,
Inc. 10,100 424,301
- --------------------------------------------------------------------------------
Nucor Corp. 261,500 13,127,300
- --------------------------------------------------------------------------------
Quanex Corp. 8,800 396,528
- --------------------------------------------------------------------------------
Schnitzer Steel
Industries, Inc. 8,800 476,872
- --------------------------------------------------------------------------------
Southern Copper
Corp. 2 89,500 10,087,545
- --------------------------------------------------------------------------------
Steel Dynamics, Inc. 36,200 1,517,866
- --------------------------------------------------------------------------------
United States Steel
Corp. 174,835 17,184,532
- --------------------------------------------------------------------------------
Worthington
Industries, Inc. 20,700 428,490
-----------------
49,190,823
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.4%
International
Paper Co. 430,300 15,951,221
30 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.2%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.0%
AT&T, Inc. 483,205 $ 18,922,308
- --------------------------------------------------------------------------------
CenturyTel, Inc. 49,900 2,288,913
- --------------------------------------------------------------------------------
Cincinnati Bell, Inc. 1 102,800 530,448
- --------------------------------------------------------------------------------
Citizens
Communications Co. 95,900 1,383,837
- --------------------------------------------------------------------------------
Embarq Corp. 33,561 2,073,734
- --------------------------------------------------------------------------------
NTELOS Holdings Corp. 17,500 469,000
- --------------------------------------------------------------------------------
Premiere Global
Services, Inc. 1 36,500 424,860
- --------------------------------------------------------------------------------
Qwest
Communications
International, Inc. 1 2,009,000 17,136,770
- --------------------------------------------------------------------------------
Verizon
Communications, Inc. 1,001,800 42,696,716
-----------------
85,926,586
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.2%
Alltel Corp. 176,100 11,613,795
- --------------------------------------------------------------------------------
Sprint Nextel Corp. 1,827,026 37,508,844
- --------------------------------------------------------------------------------
Syniverse Holdings,
Inc. 1 33,800 454,610
- --------------------------------------------------------------------------------
Telephone & Data
Systems, Inc. 31,100 2,065,040
-----------------
51,642,289
- --------------------------------------------------------------------------------
UTILITIES--2.3%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.3%
American Electric
Power Co., Inc. 85,600 3,722,744
- --------------------------------------------------------------------------------
Duke Energy Corp. 798,800 13,603,564
- --------------------------------------------------------------------------------
Edison
International, Inc. 227,100 12,011,319
- --------------------------------------------------------------------------------
El Paso Electric Co. 1 17,900 416,533
- --------------------------------------------------------------------------------
Entergy Corp. 35,400 3,538,584
- --------------------------------------------------------------------------------
Exelon Corp. 57,700 4,047,655
- --------------------------------------------------------------------------------
FirstEnergy Corp. 105,700 6,421,275
- --------------------------------------------------------------------------------
Northeast Utilities Co. 44,500 1,216,630
- --------------------------------------------------------------------------------
Otter Tail Corp. 2 13,100 385,926
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
Portland General
Electric Co. 16,000 $ 430,560
- --------------------------------------------------------------------------------
Progress Energy, Inc. 183,800 8,024,708
-----------------
53,819,498
- --------------------------------------------------------------------------------
ENERGY TRADERS--0.2%
Canadian Hydro
Developers, Inc. 1 215,000 1,227,362
- --------------------------------------------------------------------------------
Constellation Energy
Group, Inc. 54,200 4,541,960
- --------------------------------------------------------------------------------
NRG Energy, Inc. 1 48,000 1,850,400
-----------------
7,619,722
- --------------------------------------------------------------------------------
GAS UTILITIES--0.1%
Atmos Energy Corp. 36,400 1,021,748
- --------------------------------------------------------------------------------
New Jersey
Resources Corp. 9,200 432,400
- --------------------------------------------------------------------------------
Northwest
Natural Gas Co. 10,200 425,034
- --------------------------------------------------------------------------------
ONEOK, Inc. 31,400 1,593,550
- --------------------------------------------------------------------------------
UGI Corp. 42,300 1,091,763
- --------------------------------------------------------------------------------
WGL Holdings, Inc. 14,200 425,148
-----------------
4,989,643
- --------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.7%
Ameren Corp. 34,800 1,669,704
- --------------------------------------------------------------------------------
CenterPoint
Energy, Inc. 77,100 1,270,608
- --------------------------------------------------------------------------------
DTE Energy Co. 33,100 1,535,178
- --------------------------------------------------------------------------------
PG&E Corp. 321,900 13,780,539
- --------------------------------------------------------------------------------
Sempra Energy 207,500 10,939,400
- --------------------------------------------------------------------------------
Vectren Corp. 16,200 404,513
-----------------
29,599,942
Total Common Stocks
(Cost $3,702,706,954) 4,225,908,842
- --------------------------------------------------------------------------------
INVESTMENTS IN AFFILIATED COMPANIES--1.0%
- --------------------------------------------------------------------------------
Oppenheimer
Institutional Money
Market Fund, Cl. E,
5.28% 4,5
(Cost $43,273,511) 43,273,511 43,273,511
31 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SEE NOTE 1
- --------------------------------------------------------------------------------
Total Investments, at Value (excluding
Investments Purchased with Cash
Collateral from Securities Loaned)
(Cost $3,745,980,465) $ 4,269,182,353
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL
FROM SECURITIES LOANED--0.8% 6
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.8%
Undivided interest of 0.16% in joint repurchase
agreement (Principal Amount/Value $3,150,000,000
with a maturity value of $3,150,473,813) with
Barclays Capital, 5.415%, dated 7/31/07, to
be repurchased at $5,000,752 on 8/1/07,
collateralized by Private Label CMOs,
0%, 11/12/16-2/25/48,
with a value of
$3,307,500,000 $ 5,000,000 5,000,000
- --------------------------------------------------------------------------------
Undivided interest of 0.47% in joint repurchase
agreement (Principal Amount/Value $3,500,000,000,
with a maturity value of $3,500,524,514) with
Bank of America NA, 5.395%, dated 7/31/07,
to be repurchased at $16,455,493 on
8/1/07, collateralized by U.S. Agency
Mortgages, 5%, 5/1/35-7/1/35,
with a value of
$3,570,000,000 16,453,027 16,453,027
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS Continued
Undivided interest of 0.98% in joint repurchase
agreement (Principal Amount/Value $1,020,000,000,
with a maturity value of $1,020,153,708) with
Nomura Securities, 5.425%, dated 7/31/07,
to be repurchased at $10,001,507 on
8/1/07, collateralized by Private Label
CMOs, 0%, 11/25/21-6/12/47,
with a value of
$1,071,000,000 $10,000,000 $ 10,000,000
-----------------
Total Investments Purchased with
Cash Collateral from Securities
Loaned (Cost $31,453,027) 31,453,027
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $3,777,433,492) 101.4% 4,300,635,380
- --------------------------------------------------------------------------------
LIABILITIES
IN EXCESS OF
OTHER ASSETS (1.4) (59,030,837)
--------------------------------
NET ASSETS 100.0% $ 4,241,604,543
================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Partial or fully-loaned security. See Note 7 of accompanying Notes.
3. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of July 31, 2007 was $375,876, which represents 0.01%
of the Fund's net assets, all of which is considered restricted. See Note 6 of
accompanying Notes.
4. Rate shown is the 7-day yield as of July 31, 2007.
5. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended July 31, 2007, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment advisor. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JULY 31, 2006 ADDITIONS REDUCTIONS JULY 31, 2007
- ---------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional Money Market Fund, Cl. E -- 886,148,341 842,874,830 43,273,511
VALUE DIVIDEND
SEE NOTE 1 INCOME
- ---------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional Money Market Fund, Cl. E $43,273,511 $1,386,983
6. The security/securities have been segregated to satisfy the forward
commitment to return the cash collateral received in securities lending
transactions upon the borrower's return of the securities loaned. See Note 7 of
accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2007
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $3,734,159,981) $ 4,257,361,869
Affiliated companies (cost $43,273,511) 43,273,511
-----------------
4,300,635,380
- ------------------------------------------------------------------------------------------------------------
Cash 1,580,312
- ------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 99,602,596
Shares of beneficial interest sold 8,123,232
Interest and dividends 3,130,521
Other 29,051
-----------------
Total assets 4,413,101,092
- ------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 31,453,027
- ------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 132,393,085
Shares of beneficial interest redeemed 5,846,835
Distribution and service plan fees 858,578
Transfer and shareholder servicing agent fees 606,784
Shareholder communications 266,058
Trustees' compensation 6,419
Other 65,763
-----------------
Total liabilities 171,496,549
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,241,604,543
=================
- ------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 279,207
- ------------------------------------------------------------------------------------------------------------
Additional paid-in capital 3,476,133,670
- ------------------------------------------------------------------------------------------------------------
Accumulated net investment income 15,774,642
- ------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 226,215,136
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 523,201,888
-----------------
NET ASSETS $ 4,241,604,543
=================
33 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $2,566,677,352
and 167,159,721 shares of beneficial interest outstanding) $15.35
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $16.29
- ------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $510,880,729 and 34,738,746 shares of
beneficial interest outstanding) $14.71
- ------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $680,871,288 and 46,052,322 shares of
beneficial interest outstanding) $14.78
- ------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $141,252,932 and 9,343,355 shares of
beneficial interest outstanding) $15.12
- ------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$341,922,242 and 21,912,817 shares of beneficial interest outstanding) $15.60
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2007
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $27,454) $ 75,855,247
Affiliated companies 1,386,983
- ------------------------------------------------------------------------------------------------------------
Interest 718,478
- ------------------------------------------------------------------------------------------------------------
Portfolio lending fees 495,729
- ------------------------------------------------------------------------------------------------------------
Other income 44,136
-----------------
Total investment income 78,500,573
- ------------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------------
Management fees 26,294,125
- ------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 6,677,523
Class B 5,249,021
Class C 6,411,781
Class N 617,989
- ------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 4,545,615
Class B 1,137,818
Class C 1,012,436
Class N 314,384
Class Y 133,230
- ------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 345,236
Class B 133,521
Class C 84,641
Class N 10,135
Class Y 2,342
- ------------------------------------------------------------------------------------------------------------
Trustees' compensation 65,870
- ------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 24,943
- ------------------------------------------------------------------------------------------------------------
Administration service fees 1,500
- ------------------------------------------------------------------------------------------------------------
Other 210,790
-----------------
Total expenses 53,272,900
Less reduction to custodian expenses (450)
Less waivers and reimbursements of expenses (26,498)
-----------------
Net expenses 53,245,952
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 25,254,621
35 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF OPERATIONS Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------------
Net realized gain on:
Investments $ 348,471,271
Foreign currency transactions 1,305,373
-----------------
Net realized gain 349,776,644
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 188,514,787
Translation of assets and liabilities denominated in foreign currencies (1,355,389)
-----------------
Net change in unrealized appreciation 187,159,398
- ------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 562,190,663
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2007 2006
- -------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income $ 25,254,621 $ 14,060,866
- -------------------------------------------------------------------------------------------------
Net realized gain 349,776,644 187,010,599
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 187,159,398 11,812,644
----------------------------------
Net increase in net assets resulting from operations 562,190,663 212,884,109
- -------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (15,611,867) (10,637,707)
Class B -- --
Class C -- --
Class N (371,142) (132,814)
Class Y (2,046,080) (560,500)
----------------------------------
(18,029,089) (11,331,021)
- -------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (119,664,284) (67,064,022)
Class B (23,602,300) (15,360,581)
Class C (28,105,581) (16,219,982)
Class N (5,070,143) (2,237,212)
Class Y (9,896,262) (2,290,379)
----------------------------------
(186,338,570) (103,172,176)
- -------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 50,288,663 373,976,885
Class B (12,981,168) 31,524,508
Class C 89,231,682 77,090,387
Class N 41,153,724 29,774,958
Class Y 173,040,825 102,803,865
----------------------------------
340,733,726 615,170,603
- -------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------
Total increase 698,556,730 713,551,515
- -------------------------------------------------------------------------------------------------
Beginning of period 3,543,047,813 2,829,496,298
----------------------------------
End of period (including accumulated net investment income
of $15,774,642 and $8,606,259, respectively) $ 4,241,604,543 $ 3,543,047,813
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.04 $ 13.58 $ 12.69 $ 10.70 $ 9.28
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .12 1 .09 1 .12 1 (.02) (.01)
Net realized and unrealized gain 1.94 .91 1.86 2.01 1.43
----------------------------------------------------------------------------------
Total from investment operations 2.06 1.00 1.98 1.99 1.42
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.09) (.07) (.08) -- --
Distributions from net realized gain (.66) (.47) (1.01) -- --
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.75) (.54) (1.09) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.35 $ 14.04 $ 13.58 $ 12.69 $ 10.70
==================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 14.87% 7.51% 16.16% 18.60% 15.30%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 2,566,678 $ 2,284,257 $ 1,844,002 $ 1,213,822 $ 501,277
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,691,156 $ 2,044,335 $ 1,490,786 $ 892,462 $ 362,221
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.80% 0.68% 0.90% 0.11% (0.02)%
Total expenses 1.06% 4,5,6 1.08% 4 1.11% 4 1.17% 4,7 1.23% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Reduction to custodian expenses less than 0.005%.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.06%
6. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
7. Voluntary waiver of transfer agent fees less than 0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
CLASS B YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.50 $ 13.11 $ 12.31 $ 10.47 $ 9.15
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 1,2 (.02) 1 .01 1 (.07) (.07)
Net realized and unrealized gain 1.87 .88 1.80 1.91 1.39
------------------------------------------------------------------
Total from investment operations 1.87 .86 1.81 1.84 1.32
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain (.66) (.47) (1.01) -- --
----------------------------------------------------- ------------
Total dividends and/or distributions
to shareholders (.66) (.47) (1.01) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.71 $ 13.50 $ 13.11 $ 12.31 $ 10.47
==================================================================
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 14.03% 6.64% 15.17% 17.57% 14.43%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 510,881 $ 479,198 $ 434,456 $ 366,608 $ 237,002
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 525,389 $ 455,267 $ 403,468 $ 321,870 $ 187,066
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.01)% (0.15)% 0.06% (0.76)% (0.85)%
Total expenses 1.87% 5 1.91% 1.95% 2.01% 2.12%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.87% 1.91% 1.95% 2.01% 2.07%
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.87%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.56 $ 13.16 $ 12.34 $ 10.48 $ 9.15
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 1 (.01) 1 .02 1 (.05) (.06)
Net realized and unrealized gain 1.87 .88 1.81 1.91 1.39
-------------------------------------------------------------------------------
Total from investment operations 1.88 .87 1.83 1.86 1.33
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain (.66) (.47) (1.01) -- --
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.66) (.47) (1.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.78 $ 13.56 $ 13.16 $ 12.34 $ 10.48
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 14.04% 6.69% 15.30% 17.75% 14.54%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 680,871 $ 539,720 $ 448,492 $ 348,928 $ 198,180
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 641,709 $ 489,988 $ 404,242 $ 289,046 $ 159,105
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.05% (0.07)% 0.16% (0.63)% (0.73)%
Total expenses 1.80% 4,5,6 1.83% 4 1.85% 4 1.89% 4,7 1.95% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Reduction to custodian expenses less than 0.005%.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.80%
6. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
7. Voluntary waiver of transfer agent fees less than 0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
CLASS N YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.84 $ 13.40 $ 12.56 $ 10.62 $ 9.23
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .07 1 .04 1 .06 1 (.04) (.03)
Net realized and unrealized gain 1.92 .90 1.84 1.98 1.42
-----------------------------------------------------------------
Total from investment operations 1.99 .94 1.90 1.94 1.39
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) (.03) (.05) -- --
Distributions from net realized gain (.66) (.47) (1.01) -- --
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.50) (1.06) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.12 $ 13.84 $ 13.40 $ 12.56 $ 10.62
=================================================================
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 14.57% 7.09% 15.62% 18.27% 15.06%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 141,253 $ 90,293 $ 58,243 $ 33,665 $ 13,369
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 123,744 $ 73,232 $ 46,600 $ 22,846 $ 8,524
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.45% 0.30% 0.46% (0.28)% (0.30)%
Total expenses 1.39% 4 1.45% 1.54% 1.62% 1.49%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.39% 1.45% 1.53% 1.54% 1.49%
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.39%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.25 $ 13.76 $ 12.86 $ 10.79 $ 9.31
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .18 1 .14 1 .15 1 .05 .02
Net realized and unrealized gain 1.97 .93 1.89 2.02 1.46
----------------------------------------------------------------------
Total from investment operations 2.15 1.07 2.04 2.07 1.48
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.14) (.11) (.13) -- --
Distributions from net realized gain (.66) (.47) (1.01) -- --
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.80) (.58) (1.14) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.60 $ 14.25 $ 13.76 $ 12.86 $ 10.79
======================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 15.31% 7.94% 16.43% 19.18% 15.90%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 341,922 $ 149,580 $ 44,303 $ 6,589 $ 4,428
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 262,277 $ 90,378 $ 27,864 $ 5,921 $ 3,102
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.14% 1.01% 1.14% 0.57% 0.44%
Total expenses 0.68% 4,5 0.72% 5 0.82% 5 0.67% 5 0.77% 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 0.68%
5. Reduction to custodian expenses less than 0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
42 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Opportunity 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 following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ(R) are valued based on the
closing price provided by NASDAQ prior to the time when the Fund's assets are
valued. In the absence of a sale, the security is valued at the last sale price
on the prior trading day, if it is within the spread of the closing "bid" and
"asked" prices, and if not, at the closing bid price. Securities traded on
foreign exchanges are valued based on the last sale price on the principal
exchange on which the security is traded, as identified by the portfolio pricing
service, prior to the time when the Fund's assets are valued. In the absence of
a sale, the security is valued at the official closing price on the principal
exchange. Corporate, government and municipal debt instruments having a
remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are valued. Options are
43 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
valued daily based upon the last sale price on the principal exchange on which
the option is traded. 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 (including affiliated funds) 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).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of the New
York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each
day the Exchange is open for business. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") which seeks current income and
stability of principal. IMMF is a registered open-end management investment
company, regulated as a money market fund under the Investment Company Act of
1940, as amended. The Manager is also the investment advisor of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee. The Manager will waive fees and/or
reimburse Fund expenses in an amount equal to the indirect management fees
incurred through the Fund's investment in IMMF.
44 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
- --------------------------------------------------------------------------------
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 following table represent
distribution requirements the Fund must satisfy under the income tax
regulations, losses the Fund may be able to offset against income and gains
realized in future years and unrealized appreciation or depreciation of
securities and other investments for federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
- --------------------------------------------------------------------------------
$ 132,515,502 $ 122,006,299 $ 4,374 $ 510,635,004
1. The Fund had $4,374 of post-October foreign currency losses which were
deferred.
2. During the fiscal year ended July 31, 2007, the Fund did not utilize any
capital loss carryforward.
3. During the fiscal year ended July 31, 2006, 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 July 31, 2007. Net assets of the
Fund were unaffected by the reclassifications.
45 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
REDUCTION TO REDUCTION TO
ACCUMULATED ACCUMULATED NET
INCREASE TO NET INVESTMENT REALIZED GAIN
PAID-IN CAPITAL INCOME ON INVESTMENTS 4
- --------------------------------------------------------------------------------
$42,224,911 $ 57,149 $ 42,167,762
4. $42,224,910, including $24,696,501 of long-term capital gain, was distributed
in connection with Fund share redemptions.
The tax character of distributions paid during the years ended July 31, 2007 and
July 31, 2006 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 113,941,721 $ 52,090,254
Long-term capital gain 90,425,938 62,412,943
-----------------------------------
Total $ 204,367,659 $ 114,503,197
===================================
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 July 31, 2007 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 3,790,000,376
===============
Gross unrealized appreciation $ 591,006,710
Gross unrealized depreciation (80,371,706)
---------------
Net unrealized appreciation $ 510,635,004
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation
deferral 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 compensation deferral plan.
46 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts, to the extent they are not
offset by positive cash balances maintained by the Fund, at a rate equal to the
Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
47 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 JULY 31, 2007 YEAR ENDED JULY 31, 2006
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------
CLASS A
Sold 67,834,856 $ 1,016,927,358 62,869,272 $ 873,080,913
Dividends and/or
distributions reinvested 8,352,096 122,608,749 5,159,682 70,068,382
Redeemed (71,775,981) (1,089,247,444) (41,110,606) (569,172,410)
----------------------------------------------------------------
Net increase 4,410,971 $ 50,288,663 26,918,348 $ 373,976,885
================================================================
- --------------------------------------------------------------------------------------------------------
CLASS B
Sold 6,960,228 $ 99,743,192 8,780,545 $ 117,691,080
Dividends and/or
distributions reinvested 1,567,120 22,143,398 1,095,487 14,383,831
Redeemed (9,286,714) (134,867,758) (7,511,524) (100,550,403)
----------------------------------------------------------------
Net increase (decrease) (759,366) $ (12,981,168) 2,364,508 $ 31,524,508
================================================================
- --------------------------------------------------------------------------------------------------------
CLASS C
Sold 11,601,424 $ 168,357,535 11,513,308 $ 154,857,515
Dividends and/or
distributions reinvested 1,782,890 25,317,039 1,109,776 14,626,844
Redeemed (7,136,888) (104,442,892) (6,904,619) (92,393,972)
----------------------------------------------------------------
Net increase 6,247,426 $ 89,231,682 5,718,465 $ 77,090,387
================================================================
- --------------------------------------------------------------------------------------------------------
CLASS N
Sold 4,764,730 $ 70,547,026 3,562,111 $ 48,776,400
Dividends and/or
distributions reinvested 350,116 5,069,683 168,140 2,256,437
Redeemed (2,295,339) (34,462,985) (1,553,253) (21,257,879)
----------------------------------------------------------------
Net increase 2,819,507 $ 41,153,724 2,176,998 $ 29,774,958
================================================================
- --------------------------------------------------------------------------------------------------------
CLASS Y
Sold 12,174,806 $ 185,199,803 7,545,296 $ 106,647,019
Dividends and/or
distributions reinvested 801,871 11,931,845 207,332 2,850,821
Redeemed (1,563,298) (24,090,823) (471,958) (6,693,975)
----------------------------------------------------------------
Net increase 11,413,379 $ 173,040,825 7,280,670 $ 102,803,865
================================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the year ended July 31,
2007, were as follows:
PURCHASES SALES
-------------------------------------------------------------
Investment securities $ 5,319,299,728 $ 5,119,064,704
48 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
- --------------------------------------------------------------------------------
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 0.75%
Next $200 million 0.72
Next $200 million 0.69
Next $200 million 0.66
Next $4.2 billion 0.60
Over $5 billion 0.58
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year
for preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended July 31, 2007, the Fund paid
$7,121,898 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
periodically at an annual rate of up to 0.25% of the average annual net assets
of Class A shares of the Fund. The Distributor currently uses all of those fees
to pay dealers, brokers, banks and other financial institutions periodically for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
periods. Fees incurred by the Fund under the plan are detailed in the Statement
of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans for Class B, Class C and Class N
shares to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of 0.25% per year under each plan. If either the
49 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
Class B, Class C or Class N plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The Distributor
determines its uncompensated expenses under the plan at calendar quarter ends.
The Distributor's aggregate uncompensated expenses under the plan at June 30,
2007 for Class B, Class C and Class N shares were $4,316,589, $6,351,116 and
$1,624,207, 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.
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
- --------------------------------------------------------------------------------------------------------
July 31, 2007 $ 1,696,428 $ 30,270 $ 685,121 $ 47,908 $ 7,470
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. This undertaking may be amended or
withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the year ended July 31, 2007, the Manager waived $26,498 for IMMF
management fees.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation or
depreciation.
50 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of July 31, 2007, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of July 31, 2007, investments in securities included issues that are illiquid
or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund will not invest more than 10% of
its net assets (determined at the time of purchase and reviewed periodically) in
illiquid or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
Securities that are illiquid or restricted are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities is as follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST JULY 31, 2007 DEPRECIATION
- --------------------------------------------------------------------------------
Tusk Energy Corp. 11/14/04 $ 463,330 $ 375,876 $ 87,454
- --------------------------------------------------------------------------------
7. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of
securities, letters of credit or cash, against the loaned securities and
maintains collateral in an amount not less than 100% of the market value of the
loaned securities during the period of the loan. The market value of the loaned
securities is determined at the close of business each day. If the Fund is
undercollateralized at the close of business due to an increase in market value
of securities on loan, additional collateral is requested from the borrowing
counterparty and is delivered to the Fund on the next business day. Cash
collateral may be invested in approved investments and the Fund bears the risk
of any loss in value of these investments. The Fund retains a portion of the
interest earned from the collateral. If the borrower defaults on its obligation
to return the securities loaned because of insolvency or other reasons, the Fund
could experience delays and cost in recovering the securities loaned or in
gaining access to the collateral. The Fund continues to receive the economic
benefit of interest or dividends paid on the securities loaned in the form of a
substitute payment received from the borrower. As of July 31, 2007, the Fund had
on loan securities valued at $30,299,459, which are included in the Statement of
Assets and Liabilities as "Investments, at value" and, when applicable, as
"Receivable for Investments sold." Collateral of $31,453,027 was received for
the loans, all of which was received in cash and subsequently invested in
approved investments.
51 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. 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
July 31, 2007, the Manager has evaluated the implications of FIN 48 and does not
currently anticipate a material impact to the Fund's financial statements. The
Manager will continue to monitor the Fund's tax positions prospectively for
potential future impacts.
In September 2006, ("FASB") 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 July 31, 2007, 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.
52 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER MAIN STREET OPPORTUNITY FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Opportunity Fund (the "Fund"), including the statement
of investments, as of July 31, 2007, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the 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.
The Fund is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of July 31, 2007, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. 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 the
Fund as of July 31, 2007, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
September 13, 2007
53 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2008, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2007. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Capital gain distributions of $0.3191 per share were paid to Class A,
Class B, Class C, Class N and Class Y shareholders, respectively, on December
12, 2006. Whether received in stock or in cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of the capital assets
held for more than one year (long-term capital gains).
Dividends, if any, paid by the Fund during the fiscal year ended July 31,
2007 which are not designated as capital gain distributions should be multiplied
by 37.79% to arrive at the amount eligible for the corporate dividend-received
deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal
year ended July 31, 2007 which are not designated as capital gain distributions
are eligible for lower individual income tax rates to the extent that the Fund
has received qualified dividend income as stipulated by recent tax legislation.
$73,570,199 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2007, shareholders of record
received information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
Recent tax legislation allows a regulated investment company to designate
distributions not designated as capital gain distributions, as either interest
related dividends or short-term capital gain dividends, both of which are exempt
from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal
year ended July 31, 2007, $230,612 or 1.279% of the ordinary distributions paid
by the Fund qualifies as an interest related dividend and $169,610,023 or 100%
of the short-term capital gain distribution paid by the Fund qualifies as a
short-term capital gain dividend.
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.
54 | OPPENHEIMER MAIN STREET OPPORTUNITY 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.
55 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD; NUMBER OF
FUND, LENGTH OF SERVICE, AGE PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEENEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, COLORADO
TRUSTEES 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, President, Colorado Christian University (since 2006); Chairman, Cherry Creek Mortgage Company
Chairman of the Board (since 1991), Chairman, Centennial State Mortgage Company (since 1994), Chairman, The El Paso
of Trustees (since 2003), Mortgage Company (since 1993); Chairman, Ambassador Media Corporation (since 1984); Chairman,
Trustee (since 2000) Broadway Ventures (since 1984); Director of Helmerich & Payne, Inc. (oil and gas
Age: 70 drilling/production company) (since 1992), Campus Crusade for Christ (non-profit) (since 1991);
Former Director, The Lynde and Harry Bradley Foundation, Inc. (nonprofit organization)
(2002-2006); former Chairman of: Transland Financial Services, Inc. (private mortgage banking
company) (1997-2003), Great Frontier Insurance (1995-2000), Frontier Real Estate, Inc.
(residential real estate brokerage) (1994-2000) and Frontier Title (title insurance agency)
(1995-2000); former Director of the following: UNUMProvident (insurance company) (1991-2004),
Storage Technology Corporation (computer equipment company) (1991-2003) and International Family
Entertainment (television channel) (1992-1997); U.S. Senator (January 1979-January 1991).
Oversees 37 portfolios in the OppenheimerFunds complex.
GEORGE C. BOWEN, Assistant Secretary and Director of the Manager (December 1991-April 1999); President, Treasurer
Trustee (since 1999) and Director of Centennial Capital Corporation (June 1989-April 1999); Chief Executive Officer and
Age: 70 Director of MultiSource Services, Inc. (March 1996-April 1999); Mr. Bowen held several positions
with OppenheimerFunds, Inc. and with subsidiary or affiliated companies of OppenheimerFunds, Inc.
(September 1987-April 1999). Oversees 37 portfolios in the OppenheimerFunds complex.
EDWARD L. CAMERON, Member of The Life Guard of Mount Vernon (George Washington historical site) (June 2000-May 2006);
Trustee (since 1999) Partner at PricewaterhouseCoopers LLP (accounting firm) (July 1974-June 1999); Chairman of Price
Age: 69 Waterhouse LLP Global Investment Management Industry Services Group (accounting firm) (July 1994-
June 1998). Oversees 37 portfolios in the OppenheimerFunds complex.
JON S. FOSSEL, Director of UNUMProvident (insurance company) (since June 2002); Director of Northwestern Energy
Trustee (since 1999) Corp. (public utility corporation) (since November 2004); Director of P.R. Pharmaceuticals
Age: 65 (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization)
(February 1998-February 2003 and since February 2005); Chairman and Director (until October 1996)
and President and Chief Executive Officer (until October 1995) of the Manager; President, Chief
Executive Officer and Director of the following: Oppenheimer Acquisition Corp. ("OAC") (parent
holding company of the Manager), Shareholders Services, Inc. and Shareholder Financial Services,
Inc. (until October 1995). Oversees 37 portfolios in the OppenheimerFunds complex.
SAM FREEDMAN, Director of Colorado UpLIFT (charitable organization) (since September 1984). Mr. Freedman held
Trustee (since 1999) several positions with the Manager and with subsidiary or affiliated companies of the Manager
Age: 66 (until October 1994). Oversees 37 portfolios in the OppenheimerFunds complex.
56 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
BEVERLY L. HAMILTON, Trustee of Monterey Institute for International Studies (educational organization) (since February
Trustee (since 2002) 2000); Board Member of Middlebury College (educational organization) (since December 2005);
Age: 60 Director of The California Endowment (philanthropic organization) (since April 2002); Director
(February 2002-2005) and Chairman of Trustees (since 2006) of the Community Hospital of Monterey
Peninsula; Director (October 1991-2005) and Vice Chairman (since 2006) of American Funds' Emerging
Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February
1991-April 2000); Member of the investment committees of The Rockefeller Foundation (since 2001)
and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston's Sprout
venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual
Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund
(investment company) (April 1989-June 2004); Member of the investment committee of Hartford
Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 37
portfolios in the OppenheimerFunds complex.
ROBERT J. MALONE, Director of Jones Knowledge, Inc. (since 2006); Director of Jones International University
Trustee (since 2002) (educational organization) (since August 2005); Chairman, Chief Executive Officer and Director of
Age: 63 Steele Street State Bank (commercial banking) (since August 2003); Director of Colorado UpLift
(charitable organization) (since 1986); Trustee of the Gallagher Family Foundation (non-profit
organization) (since 2000); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and
formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real
estate investment trust) (1993-2000); Director of Jones Knowledge, Inc. (2001-July 2004); and
Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004). Oversees 37
portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company)
Trustee (since 2000) (since 1996) and MML Series Investment Fund (investment company) (since 1996); Trustee of
Age: 65 Worcester Polytech Institute (since 1985); Chairman (since 1994) of the Investment Committee of
the Worcester Polytech Institute (private university); President and Treasurer of the SIS Funds
(private charitable fund) (since January 1999); Chairman of SIS & Family Bank, F.S.B. (formerly
SIS Bank) (commercial bank) (January 1999-July 1999); and Executive Vice President of Peoples
Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999). Oversees 39 portfolios
in the OppenheimerFunds complex.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK,
AND OFFICER NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN INDEFINITE TERM, OR UNTIL HIS
RESIGNATION, RETIREMENT, DEATH OR REMOVAL AND AS AN OFFICER FOR AN INDEFINITE TERM, OR UNTIL HIS
RESIGNATION, RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS
POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director of the Manager (since June 2001); President of the
Trustee, President and Manager (September 2000-March 2007); President and a director or trustee of other Oppenheimer
Principal Executive Officer funds; President and Director of Oppenheimer Acquisition Corp. ("OAC") (the Manager's parent
(since 2001) holding company) and of Oppenheimer Partnership Holdings, Inc. (holding company subsidiary of the
Age: 58 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
57 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
JOHN V. MURPHY, agent subsidiaries of the Manager) (since July 2001); President and Director of OppenheimerFunds
Continued 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 102
portfolios in the OppenheimerFunds complex.
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OTHER OFFICERS OF THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS. MONOYIOS, ZAVANELLI,
THE FUND ZACK, GILLESPIE AND MS. BLOOMBERG, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW
YORK 10281-1008, FOR MESSRS. VANDEHEY, PETERSEN, SZILAGYI, WIXTED 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.
NIKOLAOS D. MONOYIOS, Senior Vice President of the Manager (since October 2003); a Charted Financial Analyst. Formerly
Vice President and Portfolio Vice President of the Manager (April 1998-September 2003). An officer of 6 portfolios in the
Manager (since 2003) OppenheimerFunds complex.
Age: 58
MARK ZAVANELLI, Vice President of the Manager (since November 2000); a Chartered Financial Analyst; prior to
Vice President and Portfolio joining the Manager in May 1998, President of Waterside Capital Management, a registered
Manager (since 1999) investment advisor (August 1995-April 1998). An officer of 3 portfolios in the OppenheimerFunds
Age: 36 complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager, OppenheimerFunds Distributor,
Vice President and Chief Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice
Compliance Officer President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and
(since 2004) Shareholder Services, Inc. (June 1983-February 2004). Former Vice President and Director of
Age: 57 Internal Audit of the Manager (1997-February 2004). An officer of 102 portfolios in the
OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of the following:
Treasurer and Principal HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder
Financial & Accounting Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc.
Officer (since 1999) (since March 1999), OFI Private Investments, Inc. (since March 2000), OppenheimerFunds
Age: 47 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
58 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
BRIAN W. WIXTED, the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust
Continued 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 102
portfolios in the OppenheimerFunds complex.
BRIAN S. PETERSEN, Vice President of the Manager (since February 2007); Assistant Vice President of the Manager
Assistant Treasurer (August 2002-February 2007); Manager/Financial Product Accounting of the Manager (November
(since 2004) 1998-July 2002). An officer of 102 portfolios in the OppenheimerFunds complex.
Age: 37
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial Reporting and
Assistant Treasurer Compliance of First Data Corporation (April 2003-July 2004); Manager of Compliance of Berger
(since 2005) Financial Group LLC (May 2001-March 2003); Director of Mutual Fund Operations at American Data
Age: 37 Services, Inc. (September 2000-May 2001). An officer of 102 portfolios in the OppenheimerFunds
complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March 2002) of the
Vice President and Secretary Manager; General Counsel and Director of the Distributor (since December 2001); General Counsel of
(since 2001) Centennial Asset Management Corporation (since December 2001); Senior Vice President and General
Age: 59 Counsel of HarbourView Asset Management Corporation (since December 2001); Secretary and General
Counsel of OAC (since November 2001); Assistant Secretary (since September 1997) and Director
(since November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice
President and Director of Oppenheimer Partnership Holdings, Inc. (since December 2002); Director
of Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President, General
Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since
December 2001); Senior Vice President, General Counsel and Director of OFI Private Investments,
Inc. and OFI Trust Company (since November 2001); Vice President of OppenheimerFunds Legacy
Program (since June 2003); Senior Vice President and General Counsel of OFI Institutional Asset
Management, Inc. (since November 2001); Director of OppenheimerFunds (Asia) Limited (since
December 2003); Senior Vice President (May 1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager;
Assistant Secretary of the following: Shareholder Services, Inc. (May 1985-November 2001),
Shareholder Financial Services, Inc. (November 1989-November 2001), and OppenheimerFunds
International Ltd. (September 1997-November 2001). An officer of 102 portfolios in the
OppenheimerFunds complex.
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice President (April
Assistant Secretary 2001-April 2004), Associate General Counsel (December 2000-April 2004), Corporate Vice President
(since 2004) (May 1999-April 2001) and Assistant General Counsel (May 1999-December 2000) of UBS Financial
Age: 39 Services Inc. (formerly, PaineWebber Incorporated). An officer of 102 portfolios in the
OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since September 2004); First Vice
Assistant Secretary President (2000-September 2004), Director (2000-September 2004) and Vice President (1998-2000) of
(since 2004) Merrill Lynch Investment Management. An officer of 102 portfolios in the OppenheimerFunds complex.
Age: 43
59 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
TRUSTEES AND OFFICERS Unaudited / Continued
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KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since October 2003)
Assistant Secretary of the Manager; Vice President (since 1999) and Assistant Secretary (since October 2003) of the
(since 2001) Distributor; Assistant Secretary of Centennial Asset Management Corporation (since October 2003);
Age: 41 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 102
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.
60 | OPPENHEIMER MAIN STREET OPPORTUNITY 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 Edward L. Cameron,
the Chairman of the Board's Audit Committee, and George C. Bowen, a member of
the Board's Audit Committee, are audit committee financial experts and that
Messrs. Cameron and Bowen are "independent" for purposes of this Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $26,100 in fiscal 2007 and $33,000 in fiscal 2006.
(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 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.
(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 to the registrant 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.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fee in fiscal 2007 and $8,085 in fiscal 2006.
The principal accountant for the audit of the registrant's annual financial
statements billed $32,732 in fiscal 2007 and $2,625 in fiscal 2006 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such fees would include Compliance review, professional services for 22c-2
program and evaluation of amended director's retirement plan.
(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 $32,732 in fiscal 2007 and $10,710 in fiscal
2006 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 07/31/2007, 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 Main Street Opportunity Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 09/13/2007
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: 09/13/2007
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 09/13/2007