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 811-07265
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Oppenheimer Enterprise Fund
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(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: August 31
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Date of reporting period: 08/31/2007
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Communications Equipment 10.4%
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Capital Markets 6.4
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Aerospace & Defense 6.0
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Software 5.4
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Internet Software & Services 5.3
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Computers & Peripherals 4.7
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Pharmaceuticals 4.1
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Energy Equipment & Services 4.1
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Wireless Telecommunication Services 4.0
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Chemicals 3.7
Portfolio holdings and allocations are subject to change. Percentages are as of
August 31, 2007, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Cisco Systems, Inc. 3.6%
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Google, Inc., Cl. A 3.5
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Schlumberger Ltd. 2.5
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Apple, Inc. 2.3
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Monsanto Co. 2.2
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Research in Motion Ltd. 2.1
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Boeing Co. 2.0
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Las Vegas Sands Corp. 1.9
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eBay, Inc. 1.8
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Costco Wholesale Corp. 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
August 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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10 | OPPENHEIMER ENTERPRISE FUND
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 31.7%
Communications Equipment 10.5
Software 5.5
Internet Software & Services 5.4
Computers & Peripherals 4.7
Semiconductors & Semiconductor Equipment 2.8
IT Services 2.8
Health Care 13.2
Financials 11.5
Consumer Discretionary 11.3
Industrials 9.5
Energy 7.4
Consumer Staples 7.1
Materials 4.3
Telecommunication Services 4.0
Portfolio holdings and allocations are subject to change. Percentages are as of
August 31, 2007, and are based on the total market value of common stocks.
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11 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED AUGUST 31, 2007, FOLLOWED BY
A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. We are pleased that the Fund's
Class A shares returned 16.91% (without sales charge) for the reporting period,
outperforming the 15.13% return of the Fund's primary benchmark, the S&P 500
Index ("the Index"). The Fund's Class A shares produced a lesser return than
that of the Fund's secondary benchmark, the Russell 3000 Growth Index, which
returned 17.58% for the same period.
The Fund's best relative performance stemmed from its holdings in the
financials, consumer discretionary, materials and information technology areas.
Within the financials area, the Fund benefited most by avoiding many of the
commercial banks and diversified financial services companies, such as Wachovia
Corp., Bank of America Corp. and Citigroup, Inc. Instead, we benefited by
holding positions in (The) Goldman Sachs Group, Inc. and CME Group, Inc. In the
case of Goldman Sachs, the firm was helped by rising merger-and-acquisition
activity as well as its profitable lending business to hedge funds. On a related
note, our decision to overweight our holdings in CME Group (The Chicago
Mercantile Exchange), the largest financial derivatives exchange in the United
States and the most diversified in the world, proved beneficial as the stock
continued to gain value from the enormous growth in the sophisticated strategies
used to hedge risk in a volatile market environment. Another positive
contributor was Investors Financial Services Corp., which provides
securities-processing services for mutual funds and other financial services
firms. The stock was acquired by State Street Corp. during the reporting period.
A number of stocks within the consumer discretionary sector aided
performance, most notably two clothing retailers, Polo Ralph Lauren Corp. and
Urban Outfitters, Inc. as well as Harman International Industries, Inc., an
audio and electronics products manufacturer, and Las Vegas Sands Corp. Polo
Ralph Lauren gained value due to its efforts to buy back many of their licenses,
which has enabled them to better control their brand name and re-position it
within the luxury retail market. Urban Outfitters, which primarily focuses its
clothing line on young adults, fared well largely due to its rebound from its
previous lows. We have since sold the position. Other positive contributors to
performance here included Harman International Industries, a manufacturer of
high-quality, high-fidelity audio and electronics products for automotive,
consumer and professional use. The company's stock price rose on speculation of
a takeover bid. We sold our position in Harman and took profits. Significant
gains for the Fund were also realized by its holdings in Las Vegas Sands which
recently opened Asia's first fully integrated resort, The Venetian Macao Resort
Hotel.
12 | OPPENHEIMER ENTERPRISE FUND
Materials stocks posted solid gains for the Fund, most notably our
holdings in Monsanto Co., an agricultural company that helps farmers grow more
crops by applying biotechnology and genomics to seeds and herbicides. Monsanto
is the leading producer of the herbicide glyphosate, marketed as "Roundup" and,
through one of its subsidiaries, exclusively produces ROUNDUP READY soybean seed
for the commercial market. In addition, the company plans to launch a new line
of drought-tolerant corn seeds, which should yield the same amount of crops,
using less water. We remain confident in the stock.
The Fund's heavy emphasis in information technology stocks also aided
performance, an area where we held almost double the weight of that of the
Index. A number of the Fund's stock choices fared especially well, including
Research in Motion Ltd. (RIM), whose primary product line includes the popular
Blackberry(R) used by thousands of organizations around the world as well as
countless individual users. We believe that RIM offers a differentiated product
over its competitors because of its extensive network operating system. In our
view, the company is in the early stages of a product cycle that has the
potential for strong growth over the coming three-to five-year period.
Other positive contributors to performance within the information
technology area included Cisco Systems, Inc., a longtime holding for the Fund
that remains one of our larger holdings. For some time now we have believed that
Cisco Systems held a leading edge over its competitors by being the only company
to offer a complete suite of products aimed at the IP (Internet Protocol)
market. The company continued to dominate the market for equipment used to link
networks and power the Internet, and our overweight position there helped boost
the Fund's overall performance. Apple, Inc. also performed well as the company
continues to gain market share from Windows with its Mac product line. Apple
also continued to post robust sales from its iPod portable music and video
players and iTunes online store, and is poised to benefit from strong sales of
its latest product, the iPhone. Finally, the Fund's investment in EMC Corp., a
developer and provider of information infrastructure technology and solutions,
gained value from its virtual infrastructure software division.
On the other hand, in such a strong stock market environment, only three
areas hindered the Fund's relative performance: health care, energy and
telecommunications services. In all three of these cases, declines were limited
to a few individual stocks, each for company-specific reasons. For example,
within health care, the Fund's underperformance primarily stemmed from one
holding, Varian Medical Systems, Inc., a manufacturer of medical devices and
software used in X-ray machines for the treatment of cancer and other medical
conditions. In the energy sector, the bulk of the Fund's negative relative
13 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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performance can be traced to its holdings in Halliburton Co., the oilfield
services company that recently divested itself of its KBR engineering and
military contracts division. We have since sold the Fund's holdings in both
stocks.
To a lesser degree, being underweight integrated oil firms Exxon Mobil
Corp. and Chevron Corp. during a time in which these stocks performed well also
detracted from the Fund's overall return. Within the telecom services area, the
Fund was most hurt by its lack of participation in AT&T Inc. during a time in
which it completed its acquisition of BellSouth Corp. Neither of these stocks
was held in the Fund. The completed acquisition also encompasses ownership and
management of Cingular Wireless and YELLOWPAGES.COM.
In closing, we'd like to take this opportunity to remind shareholders that
regardless of what is happening in the stock market, we continue to adhere to
our time-proven bottom-up strategy of selecting stocks based on their individual
merits across a wide variety of industry groups that will enable us to create a
well-diversified large-cap growth portfolio. We strive to own companies that we
believe have the potential to meaningfully grow earnings faster than the broader
market over a three- to five-year time horizon. In particular, we look for
businesses with sustainable earnings, strong earnings growth and sound capital
management. We also pay close attention to company valuations to avoid paying
too much for growth opportunities.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until August 31, 2007. In the case of Class A, Class B and Class C
shares, performance is measured over a ten-fiscal-year period; in the case of
Class N shares, from the inception of the Class on March 1, 2001, and in the
case of Class Y shares, from the inception of the Class on April 1, 1999. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on Class B,
Class C and Class N shares, and reinvestments of all dividends and capital gains
distributions. Past performance cannot guarantee future results.
The Fund's performance is compared to the performance of the S&P 500 Index
and the Russell 3000 Growth Index. The S&P 500 Index is a broad-based index of
equity securities widely regarded as a general measure of the performance of the
U.S. equity securities market. The Russell 3000 Growth index is a multi-cap
index of U.S. equity securities with greater-than-average growth orientation.
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
14 | OPPENHEIMER ENTERPRISE FUND
effects of the Fund's business and operating expenses. While index comparisons
may be useful to provide a benchmark for the Fund's performance, it must be
noted that the Fund's investments are not limited to the investments in the
indices.
15 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class A)
S&P 500 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Russell 3000 Growth
Fund (Class A) S&P 500 Index Index
08/31/1997 $ 9,425 $ 10,000 $ 10,000
11/30/1997 $ 9,725 $ 10,667 $ 10,469
02/28/1998 $ 10,408 $ 11,761 $ 11,676
05/31/1998 $ 10,916 $ 12,275 $ 11,904
08/31/1998 $ 8,892 $ 10,812 $ 10,465
11/30/1998 $ 10,964 $ 13,193 $ 13,097
02/28/1999 $ 13,060 $ 14,085 $ 14,362
05/31/1999 $ 14,616 $ 14,856 $ 14,780
08/31/1999 $ 16,214 $ 15,116 $ 15,484
11/30/1999 $ 22,566 $ 15,950 $ 17,231
02/29/2000 $ 32,265 $ 15,736 $ 19,405
05/31/2000 $ 19,523 $ 16,412 $ 18,419
08/31/2000 $ 25,113 $ 17,581 $ 20,728
11/30/2000 $ 14,613 $ 15,276 $ 15,216
02/28/2001 $ 12,587 $ 14,447 $ 13,205
05/31/2001 $ 11,794 $ 14,681 $ 13,114
08/31/2001 $ 10,658 $ 13,295 $ 11,480
11/30/2001 $ 9,801 $ 13,410 $ 11,889
02/28/2002 $ 8,522 $ 13,073 $ 11,187
05/31/2002 $ 7,879 $ 12,649 $ 10,427
08/31/2002 $ 6,365 $ 10,904 $ 8,907
11/30/2002 $ 6,543 $ 11,197 $ 9,211
02/28/2003 $ 6,058 $ 10,109 $ 8,315
05/31/2003 $ 7,401 $ 11,629 $ 9,596
08/31/2003 $ 8,215 $ 12,219 $ 10,278
11/30/2003 $ 8,222 $ 12,885 $ 10,880
02/29/2004 $ 8,565 $ 14,001 $ 11,553
05/31/2004 $ 8,565 $ 13,760 $ 11,403
08/31/2004 $ 8,065 $ 13,617 $ 10,809
11/30/2004 $ 9,094 $ 14,540 $ 11,559
02/28/2005 $ 9,058 $ 14,977 $ 11,722
05/31/2005 $ 9,451 $ 14,892 $ 11,791
08/31/2005 $ 10,015 $ 15,327 $ 12,219
11/30/2005 $ 10,401 $ 15,767 $ 12,668
02/28/2006 $ 10,922 $ 16,234 $ 12,913
05/31/2006 $ 10,294 $ 16,178 $ 12,633
08/31/2006 $ 10,015 $ 16,687 $ 12,695
11/30/2006 $ 10,851 $ 18,009 $ 13,784
02/28/2007 $ 11,087 $ 18,176 $ 13,923
05/31/2007 $ 11,772 $ 19,862 $ 15,176
08/31/2007 $ 11,708 $ 19,211 $ 14,927
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
8/31/07
1-Year 10.18% 5-Year 11.63% 10-Year 1.59%
16 | OPPENHEIMER ENTERPRISE FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class B)
S&P 500 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Russell 3000 Growth
Fund (Class B) S&P 500 Index Index
08/31/1997 $ 10,000 $ 10,000 $ 10,000
11/30/1997 $ 10,293 $ 10,667 $ 10,469
02/28/1998 $ 10,996 $ 11,761 $ 11,676
05/31/1998 $ 11,517 $ 12,275 $ 11,904
08/31/1998 $ 9,357 $ 10,812 $ 10,465
11/30/1998 $ 11,524 $ 13,193 $ 13,097
02/28/1999 $ 13,702 $ 14,085 $ 14,362
05/31/1999 $ 15,306 $ 14,856 $ 14,780
08/31/1999 $ 16,949 $ 15,116 $ 15,484
11/30/1999 $ 23,548 $ 15,950 $ 17,231
02/29/2000 $ 33,607 $ 15,736 $ 19,405
05/31/2000 $ 20,292 $ 16,412 $ 18,419
08/31/2000 $ 26,055 $ 17,581 $ 20,728
11/30/2000 $ 15,132 $ 15,276 $ 15,216
02/28/2001 $ 13,013 $ 14,447 $ 13,205
05/31/2001 $ 12,169 $ 14,681 $ 13,114
08/31/2001 $ 10,976 $ 13,295 $ 11,480
11/30/2001 $ 10,070 $ 13,410 $ 11,889
02/28/2002 $ 8,745 $ 13,073 $ 11,187
05/31/2002 $ 8,064 $ 12,649 $ 10,427
08/31/2002 $ 6,507 $ 10,904 $ 8,907
11/30/2002 $ 6,677 $ 11,197 $ 9,211
02/28/2003 $ 6,166 $ 10,109 $ 8,315
05/31/2003 $ 7,521 $ 11,629 $ 9,596
08/31/2003 $ 8,336 $ 12,219 $ 10,278
11/30/2003 $ 8,344 $ 12,885 $ 10,880
02/29/2004 $ 8,692 $ 14,001 $ 11,553
05/31/2004 $ 8,692 $ 13,760 $ 11,403
08/31/2004 $ 8,184 $ 13,617 $ 10,809
11/30/2004 $ 9,228 $ 14,540 $ 11,559
02/28/2005 $ 9,192 $ 14,977 $ 11,722
05/31/2005 $ 9,590 $ 14,892 $ 11,791
08/31/2005 $ 10,163 $ 15,327 $ 12,219
11/30/2005 $ 10,554 $ 15,767 $ 12,668
02/28/2006 $ 11,084 $ 16,234 $ 12,913
05/31/2006 $ 10,446 $ 16,178 $ 12,633
08/31/2006 $ 10,163 $ 16,687 $ 12,695
11/30/2006 $ 11,011 $ 18,009 $ 13,784
02/28/2007 $ 11,250 $ 18,176 $ 13,923
05/31/2007 $ 11,946 $ 19,862 $ 15,176
08/31/2007 $ 11,881 $ 19,211 $ 14,927
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
8/31/07
1-Year 11.16% 5-Year 11.86% 10-Year 1.74%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 21 FOR FURTHER
INFORMATION.
17 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class C)
S&P 500 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Russell 3000 Growth
Fund (Class C) S&P 500 Index Index
08/31/1997 $ 10,000 $ 10,000 $ 10,000
11/30/1997 $ 10,293 $ 10,667 $ 10,469
02/28/1998 $ 11,003 $ 11,761 $ 11,676
05/31/1998 $ 11,517 $ 12,275 $ 11,904
08/31/1998 $ 9,362 $ 10,812 $ 10,465
11/30/1998 $ 11,524 $ 13,193 $ 13,097
02/28/1999 $ 13,717 $ 14,085 $ 14,362
05/31/1999 $ 15,322 $ 14,856 $ 14,780
08/31/1999 $ 16,966 $ 15,116 $ 15,484
11/30/1999 $ 23,583 $ 15,950 $ 17,231
02/29/2000 $ 33,654 $ 15,736 $ 19,405
05/31/2000 $ 20,324 $ 16,412 $ 18,419
08/31/2000 $ 26,098 $ 17,581 $ 20,728
11/30/2000 $ 15,162 $ 15,276 $ 15,216
02/28/2001 $ 13,034 $ 14,447 $ 13,205
05/31/2001 $ 12,190 $ 14,681 $ 13,114
08/31/2001 $ 10,996 $ 13,295 $ 11,480
11/30/2001 $ 10,090 $ 13,410 $ 11,889
02/28/2002 $ 8,757 $ 13,073 $ 11,187
05/31/2002 $ 8,083 $ 12,649 $ 10,427
08/31/2002 $ 6,517 $ 10,904 $ 8,907
11/30/2002 $ 6,688 $ 11,197 $ 9,211
02/28/2003 $ 6,176 $ 10,109 $ 8,315
05/31/2003 $ 7,532 $ 11,629 $ 9,596
08/31/2003 $ 8,346 $ 12,219 $ 10,278
11/30/2003 $ 8,338 $ 12,885 $ 10,880
02/29/2004 $ 8,672 $ 14,001 $ 11,553
05/31/2004 $ 8,656 $ 13,760 $ 11,403
08/31/2004 $ 8,129 $ 13,617 $ 10,809
11/30/2004 $ 9,144 $ 14,540 $ 11,559
02/28/2005 $ 9,090 $ 14,977 $ 11,722
05/31/2005 $ 9,470 $ 14,892 $ 11,791
08/31/2005 $ 10,020 $ 15,327 $ 12,219
11/30/2005 $ 10,384 $ 15,767 $ 12,668
02/28/2006 $ 10,888 $ 16,234 $ 12,913
05/31/2006 $ 10,245 $ 16,178 $ 12,633
08/31/2006 $ 9,942 $ 16,687 $ 12,695
11/30/2006 $ 10,756 $ 18,009 $ 13,784
02/28/2007 $ 10,965 $ 18,176 $ 13,923
05/31/2007 $ 11,632 $ 19,862 $ 15,176
08/31/2007 $ 11,547 $ 19,211 $ 14,927
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
8/31/07
1-Year 15.13% 5-Year 12.12% 10-Year 1.45%
18 | OPPENHEIMER ENTERPRISE FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class N)
S&P 500 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Russell 3000 Growth
Fund (Class N) S&P 500 Index Index
03/01/2001 $ 10,000 $ 10,000 $ 10,000
05/31/2001 $ 9,295 $ 10,162 $ 9,931
08/31/2001 $ 8,399 $ 9,203 $ 8,694
11/30/2001 $ 7,711 $ 9,283 $ 9,003
02/28/2002 $ 6,708 $ 9,049 $ 8,472
05/31/2002 $ 6,195 $ 8,756 $ 7,896
08/31/2002 $ 5,000 $ 7,548 $ 6,745
11/30/2002 $ 5,141 $ 7,750 $ 6,975
02/28/2003 $ 4,752 $ 6,998 $ 6,297
05/31/2003 $ 5,800 $ 8,050 $ 7,267
08/31/2003 $ 6,432 $ 8,458 $ 7,783
11/30/2003 $ 6,437 $ 8,919 $ 8,239
02/29/2004 $ 6,702 $ 9,692 $ 8,749
05/31/2004 $ 6,697 $ 9,524 $ 8,635
08/31/2004 $ 6,302 $ 9,426 $ 8,186
11/30/2004 $ 7,097 $ 10,065 $ 8,753
02/28/2005 $ 7,063 $ 10,367 $ 8,877
05/31/2005 $ 7,368 $ 10,308 $ 8,929
08/31/2005 $ 7,802 $ 10,609 $ 9,253
11/30/2005 $ 8,100 $ 10,914 $ 9,593
02/28/2006 $ 8,501 $ 11,237 $ 9,779
05/31/2006 $ 8,010 $ 11,198 $ 9,567
08/31/2006 $ 7,790 $ 11,550 $ 9,614
11/30/2006 $ 8,433 $ 12,466 $ 10,439
02/28/2007 $ 8,613 $ 12,582 $ 10,544
05/31/2007 $ 9,143 $ 13,749 $ 11,492
08/31/2007 $ 9,087 $ 13,298 $ 11,304
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
8/31/07
1-Year 15.64% 5-Year 12.69% Since Inception (3/1/01) -1.46%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 21 FOR FURTHER
INFORMATION.
19 | OPPENHEIMER ENTERPRISE FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Enterprise Fund (Class Y)
S&P 500 Index
Russell 3000 Growth Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Russell 3000 Growth
Fund (Class Y) S&P 500 Index Index
04/01/1999 $ 10,000 $ 10,000 $ 10,000
05/31/1999 $ 10,115 $ 10,142 $ 9,787
08/31/1999 $ 11,234 $ 10,319 $ 10,254
11/30/1999 $ 15,649 $ 10,889 $ 11,411
02/29/2000 $ 22,407 $ 10,743 $ 12,850
05/31/2000 $ 13,570 $ 11,204 $ 12,197
08/31/2000 $ 17,477 $ 12,002 $ 13,727
11/30/2000 $ 10,165 $ 10,429 $ 10,076
02/28/2001 $ 8,760 $ 9,863 $ 8,745
05/31/2001 $ 8,222 $ 10,022 $ 8,684
08/31/2001 $ 7,432 $ 9,077 $ 7,603
11/30/2001 $ 6,839 $ 9,155 $ 7,873
02/28/2002 $ 5,955 $ 8,925 $ 7,408
05/31/2002 $ 5,511 $ 8,636 $ 6,905
08/31/2002 $ 4,454 $ 7,444 $ 5,899
11/30/2002 $ 4,578 $ 7,644 $ 6,100
02/28/2003 $ 4,247 $ 6,902 $ 5,506
05/31/2003 $ 5,190 $ 7,939 $ 6,355
08/31/2003 $ 5,763 $ 8,342 $ 6,806
11/30/2003 $ 5,777 $ 8,797 $ 7,205
02/29/2004 $ 6,024 $ 9,558 $ 7,651
05/31/2004 $ 6,034 $ 9,394 $ 7,551
08/31/2004 $ 5,689 $ 9,296 $ 7,158
11/30/2004 $ 6,415 $ 9,927 $ 7,655
02/28/2005 $ 6,395 $ 10,225 $ 7,763
05/31/2005 $ 6,681 $ 10,167 $ 7,808
08/31/2005 $ 7,086 $ 10,463 $ 8,092
11/30/2005 $ 7,368 $ 10,764 $ 8,389
02/28/2006 $ 7,738 $ 11,083 $ 8,551
05/31/2006 $ 7,303 $ 11,044 $ 8,366
08/31/2006 $ 7,116 $ 11,392 $ 8,407
11/30/2006 $ 7,723 $ 12,295 $ 9,128
02/28/2007 $ 7,901 $ 12,409 $ 9,220
05/31/2007 $ 8,405 $ 13,560 $ 10,050
08/31/2007 $ 8,370 $ 13,115 $ 9,885
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 8/31/07
1-Year 17.63% 5-Year 13.45% Since Inception (4/1/99) -2.09%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES
CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 21 FOR FURTHER
INFORMATION.
20 | OPPENHEIMER ENTERPRISE FUND
NOTES
- --------------------------------------------------------------------------------
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 11/7/95. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 11/7/95. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the 10-year return for Class B uses Class A performance for the
period after conversion. Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/7/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
21 | OPPENHEIMER ENTERPRISE FUND
NOTES
- --------------------------------------------------------------------------------
CLASS Y shares of the Fund were first publicly offered on 4/1/99. Class Y shares
are offered only to certain institutional investors under special agreements
with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
22 | OPPENHEIMER ENTERPRISE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended August 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 "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.
23 | OPPENHEIMER ENTERPRISE FUND
FUND EXPENSES Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(3/1/07) (8/31/07) AUGUST 31, 2007
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,056.10 $ 7.49
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.95 7.35
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,053.10 10.87
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.67 10.67
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,053.00 11.03
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.52 10.82
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,055.00 8.53
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,016.94 8.37
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,059.40 4.89
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.47 4.80
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended August 31, 2007 are as follows:
CLASS EXPENSE RATIOS
- ------------------------------
Class A 1.44%
- ------------------------------
Class B 2.09
- ------------------------------
Class C 2.12
- ------------------------------
Class N 1.64
- ------------------------------
Class Y 0.94
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements by the Fund's Manager and Transfer Agent that can be
terminated at any time, without advance notice. The "Financial Highlights"
tables in the Fund's financial statements, included in this report, also show
the gross expense ratios, without such waivers or reimbursements and reduction
to custodian expenses, if applicable.
- --------------------------------------------------------------------------------
24 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS August 31, 2007
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.3%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--11.2%
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.9%
Las Vegas Sands Corp. 1 44,473 $ 4,433,958
- --------------------------------------------------------------------------------
MEDIA--3.0%
Comcast Corp., Cl. A
Special, Non-Vtg. 1 127,762 3,303,925
- --------------------------------------------------------------------------------
Liberty Global, Inc.,
Series A 1 45,300 1,856,394
- --------------------------------------------------------------------------------
XM Satellite Radio
Holdings, Inc., Cl. A 1 140,939 1,757,509
-----------------
6,917,828
- --------------------------------------------------------------------------------
MULTILINE RETAIL--2.8%
J.C. Penney Co., Inc.
(Holding Co.) 49,300 3,389,868
- --------------------------------------------------------------------------------
Target Corp. 48,700 3,210,791
-----------------
6,600,659
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--2.4%
Abercrombie & Fitch
Co., Cl. A 12,400 975,880
- --------------------------------------------------------------------------------
Staples, Inc. 133,371 3,167,561
- --------------------------------------------------------------------------------
Tiffany & Co. 26,100 1,339,713
-----------------
5,483,154
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.1%
Polo Ralph Lauren
Corp., Cl. A 32,981 2,491,385
- --------------------------------------------------------------------------------
CONSUMER STAPLES--7.1%
- --------------------------------------------------------------------------------
BEVERAGES--0.5%
Fomento Economico
Mexicano SA de CV, UBD 323,900 1,124,388
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--2.5%
Costco Wholesale Corp. 68,222 4,212,709
- --------------------------------------------------------------------------------
Sysco Corp. 47,400 1,582,212
-----------------
5,794,921
- --------------------------------------------------------------------------------
FOOD PRODUCTS--2.9%
Cadbury Schweppes plc 272,060 3,234,369
- --------------------------------------------------------------------------------
Nestle SA 8,131 3,551,643
-----------------
6,786,012
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.2%
Reckitt Benckiser plc 49,040 $ 2,668,689
- --------------------------------------------------------------------------------
ENERGY--7.3%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--4.1%
Schlumberger Ltd. 59,446 5,736,539
- --------------------------------------------------------------------------------
Smith International, Inc. 55,000 3,685,550
-----------------
9,422,089
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS--3.2%
Occidental Petroleum
Corp. 53,000 3,004,570
- --------------------------------------------------------------------------------
Range Resources Corp. 71,882 2,610,035
- --------------------------------------------------------------------------------
XTO Energy, Inc. 35,493 1,929,399
-----------------
7,544,004
- --------------------------------------------------------------------------------
FINANCIALS--11.5%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--6.4%
Fortress Investment
Group LLC, Cl. A 96,700 1,695,151
- --------------------------------------------------------------------------------
Franklin Resources, Inc. 13,139 1,731,326
- --------------------------------------------------------------------------------
Goldman Sachs Group,
Inc. (The) 22,650 3,986,627
- --------------------------------------------------------------------------------
Legg Mason, Inc. 17,800 1,545,396
- --------------------------------------------------------------------------------
Northern Trust Corp. 28,100 1,727,026
- --------------------------------------------------------------------------------
Schwab (Charles) Corp. 43,600 863,280
- --------------------------------------------------------------------------------
UBS AG 63,387 3,303,318
-----------------
14,852,124
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.8%
CME Group, Inc. 7,100 3,939,080
- --------------------------------------------------------------------------------
Moody's Corp. 4,900 224,665
-----------------
4,163,745
- --------------------------------------------------------------------------------
INSURANCE--1.8%
AMBAC Financial Group,
Inc. 14,500 910,890
- --------------------------------------------------------------------------------
Prudential Financial, Inc. 34,646 3,110,518
-----------------
4,021,408
25 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT--0.9%
CB Richard Ellis Group,
Inc., Cl. A 1 69,700 $ 2,057,544
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.6%
Freddie Mac 23,400 1,441,674
- --------------------------------------------------------------------------------
HEALTH CARE--13.1%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--2.9%
Celgene Corp. 1 34,318 2,203,559
- --------------------------------------------------------------------------------
Genentech, Inc. 1 30,373 2,272,204
- --------------------------------------------------------------------------------
Gilead Sciences, Inc. 1 58,966 2,144,593
-----------------
6,620,356
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.2%
Bard (C.R.), Inc. 12,202 1,017,525
- --------------------------------------------------------------------------------
St. Jude Medical, Inc. 1 42,563 1,854,470
-----------------
2,871,995
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--3.0%
Medco Health
Solutions, Inc. 1 30,773 2,629,553
- --------------------------------------------------------------------------------
Schein (Henry), Inc. 1 23,500 1,367,465
- --------------------------------------------------------------------------------
WellPoint, Inc. 1 36,850 2,969,742
-----------------
6,966,760
- --------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES--1.9%
Covance, Inc. 1 23,800 1,745,016
- --------------------------------------------------------------------------------
Thermo Fisher
Scientific, Inc. 1 50,272 2,726,251
-----------------
4,471,267
- --------------------------------------------------------------------------------
PHARMACEUTICALS--4.1%
Abbott Laboratories 29,300 1,520,963
- --------------------------------------------------------------------------------
Allergan, Inc. 23,478 1,408,915
- --------------------------------------------------------------------------------
Merck & Co., Inc. 25,900 1,299,403
- --------------------------------------------------------------------------------
Roche Holding AG 18,537 3,220,093
- --------------------------------------------------------------------------------
Shire Pharmaceuticals
Group plc 80,050 2,086,914
-----------------
9,536,288
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--9.4%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--6.0%
Boeing Co. 47,339 $ 4,577,681
- --------------------------------------------------------------------------------
Empresa Brasileira de
Aeronautica SA, ADR 25,900 1,169,644
- --------------------------------------------------------------------------------
General Dynamics Corp. 34,526 2,712,363
- --------------------------------------------------------------------------------
Precision Castparts Corp. 9,800 1,277,038
- --------------------------------------------------------------------------------
United Technologies Corp. 56,100 4,186,743
-----------------
13,923,469
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.0%
Corporate Executive
Board Co. (The) 29,200 1,986,476
- --------------------------------------------------------------------------------
Robert Half International,
Inc. 12,500 399,250
-----------------
2,385,726
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.0%
ABB Ltd. 92,240 2,273,638
- --------------------------------------------------------------------------------
MACHINERY--0.5%
Joy Global, Inc. 25,479 1,105,534
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.9%
Fastenal Co. 46,400 2,116,304
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--31.4%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--10.4%
Cisco Systems, Inc. 1 259,420 8,280,686
- --------------------------------------------------------------------------------
Corning, Inc. 176,200 4,117,794
- --------------------------------------------------------------------------------
F5 Networks, Inc. 1 31,600 1,105,052
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 74,000 2,951,860
- --------------------------------------------------------------------------------
Research in Motion Ltd. 1 57,999 4,953,695
- --------------------------------------------------------------------------------
Telefonaktiebolaget LM
Ericsson, Sponsored ADR 74,800 2,783,308
-----------------
24,192,395
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--4.7%
Apple, Inc. 1 38,900 5,386,872
- --------------------------------------------------------------------------------
EMC Corp. 1 175,100 3,442,466
- --------------------------------------------------------------------------------
Network Appliance, Inc. 1 70,000 1,950,200
-----------------
10,779,538
26 | OPPENHEIMER ENTERPRISE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--5.3%
eBay, Inc. 1 124,800 $ 4,255,680
- --------------------------------------------------------------------------------
Google, Inc., Cl. A 1 15,666 8,071,907
-----------------
12,327,587
- --------------------------------------------------------------------------------
IT SERVICES--2.8%
Affiliated Computer
Services, Inc., Cl. A 1 58,279 2,915,698
- --------------------------------------------------------------------------------
Automatic Data
Processing, Inc. 32,952 1,507,224
- --------------------------------------------------------------------------------
Cognizant Technology
Solutions Corp. 1 27,800 2,043,578
-----------------
6,466,500
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--2.8%
ASML Holding NV 1 65,700 1,949,319
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 75,035 2,588,708
- --------------------------------------------------------------------------------
Microchip
Technology, Inc. 52,000 2,003,040
-----------------
6,541,067
- --------------------------------------------------------------------------------
SOFTWARE--5.4%
Adobe Systems, Inc. 1 69,192 2,957,958
- --------------------------------------------------------------------------------
Amdocs Ltd. 1 69,200 2,442,760
- --------------------------------------------------------------------------------
Autodesk, Inc. 1 58,696 2,718,799
- --------------------------------------------------------------------------------
Microsoft Corp. 76,453 2,196,495
- --------------------------------------------------------------------------------
Red Hat, Inc. 1 62,945 1,224,280
- --------------------------------------------------------------------------------
Salesforce.com, Inc. 1 24,309 982,813
-----------------
12,523,105
- --------------------------------------------------------------------------------
MATERIALS--4.3%
- --------------------------------------------------------------------------------
CHEMICALS--3.7%
Monsanto Co. 72,600 5,063,124
- --------------------------------------------------------------------------------
Praxair, Inc. 46,300 3,503,058
-----------------
8,566,182
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
METALS & MINING--0.6%
Allegheny
Technologies, Inc. 13,519 $ 1,343,653
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.0%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--4.0%
America Movil SAB
de CV, ADR, Series L 38,719 2,340,947
- --------------------------------------------------------------------------------
American Tower Corp. 1 61,800 2,448,516
- --------------------------------------------------------------------------------
Crown Castle
International Corp. 1 56,439 2,074,698
- --------------------------------------------------------------------------------
NII Holdings, Inc. 1 30,133 2,385,931
-----------------
9,250,092
-----------------
Total Common Stocks
(Cost $215,330,965) 230,065,038
- --------------------------------------------------------------------------------
INVESTMENTS IN AFFILIATED COMPANIES--0.7%
- --------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E,
5.44% 2,3
(Cost $1,759,416) 1,759,416 1,759,416
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $217,090,381) 100.0% 231,824,454
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.0) (48,438)
------------------------------
NET ASSETS 100.0% $ 231,776,016
==============================
27 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended August 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
AUGUST 31, 2006 ADDITIONS REDUCTIONS AUGUST 31, 2007
- -----------------------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E -- 84,125,618 82,366,202 1,759,416
VALUE DIVIDEND
SEE NOTE 1 INCOME
- -----------------------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E $ 1,759,416 $ 196,308
3. Rate shown is the 7-day yield as of August 31, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES August 31, 2007
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $215,330,965) $ 230,065,038
Affiliated companies (cost $1,759,416) 1,759,416
---------------
231,824,454
- ------------------------------------------------------------------------------------
Cash 510,300
- ------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 704,658
Dividends 157,352
Shares of beneficial interest sold 117,176
Other 53,866
---------------
Total assets 233,367,806
- ------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 955,180
Shares of beneficial interest redeemed 295,786
Trustees' compensation 94,005
Distribution and service plan fees 91,745
Shareholder communications 70,535
Transfer and shareholder servicing agent fees 62,781
Other 21,758
---------------
Total liabilities 1,591,790
- ------------------------------------------------------------------------------------
NET ASSETS $ 231,776,016
===============
- ------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------
Paid-in capital $ 518,961,926
- ------------------------------------------------------------------------------------
Accumulated net investment loss (93,194)
- ------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (301,826,460)
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 14,733,744
---------------
NET ASSETS $ 231,776,016
===============
29 | OPPENHEIMER ENTERPRISE 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
$117,153,775 and 7,146,512 shares of beneficial interest outstanding) $16.39
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $17.39
- ------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $31,071,939 and 2,088,733 shares of beneficial interest
outstanding) $14.88
- ------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $18,434,745 and 1,237,243 shares of beneficial interest
outstanding) $14.90
- ------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $53,671,377 and 3,328,495 shares of beneficial interest
outstanding) $16.12
- ------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based
on net assets of $11,444,180 and 675,260 shares of beneficial interest
outstanding) $16.95
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF OPERATIONS For the Year Ended August 31, 2007
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $26,602) $ 1,387,186
Affiliated companies 196,308
- --------------------------------------------------------------------------------------------
Interest 40,630
- --------------------------------------------------------------------------------------------
Other income 28,058
----------------
Total investment income 1,652,182
- --------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------
Management fees 1,753,839
- --------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 288,256
Class B 346,851
Class C 163,974
Class N 262,406
- --------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 578,772
Class B 97,111
Class C 62,603
Class N 386,374
Class Y 12,102
- --------------------------------------------------------------------------------------------
Shareholder communications:
Class A 81,507
Class B 28,662
Class C 7,422
Class N 824
- --------------------------------------------------------------------------------------------
Trustees' compensation 14,198
- --------------------------------------------------------------------------------------------
Custodian fees and expenses 1,347
- --------------------------------------------------------------------------------------------
Other 36,708
----------------
Total expenses 4,122,956
Less reduction to custodian expenses (149)
Less waivers and reimbursements of expenses (364,011)
----------------
Net expenses 3,758,796
- --------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,106,614)
31 | OPPENHEIMER ENTERPRISE FUND
STATEMENT OF OPERATIONS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------------------
Net realized gain on:
Investments from unaffiliated companies $ 42,804,902
Foreign currency transactions 91,434
----------------
Net realized gain 42,896,336
- --------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (5,519,251)
Translation of assets and liabilities denominated in foreign currencies 445,460
----------------
Net change in unrealized appreciation (5,073,791)
- --------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 35,715,931
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER ENTERPRISE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2007 2006
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Net investment loss $ (2,106,614) $ (1,916,441)
- --------------------------------------------------------------------------------------------------------------------
Net realized gain 42,896,336 6,552,115
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (5,073,791) (8,348,287)
--------------------------------------
Net increase (decrease) in net assets resulting from operations 35,715,931 (3,712,613)
- --------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (19,510,589) (2,792,580)
Class B (11,788,258) 2,738,515
Class C 2,645,792 68,566
Class N (4,412,298) 52,081,123
Class Y (1,974,458) (2,775,589)
--------------------------------------
(35,039,811) 49,320,035
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Total increase 676,120 45,607,422
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 231,099,896 185,492,474
--------------------------------------
End of period (including accumulated net investment loss of $93,194
and $55,045, respectively) $ 231,776,016 $ 231,099,896
======================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2007 2006 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.02 $ 14.02 $ 11.29 $ 11.50 $ 8.91
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.11) 1 (.11) 1 (.04) 1,2 (.12) 1 (.06)
Net realized and unrealized gain (loss) 2.48 .11 2.77 (.09) 1 2.65
----------------------------------------------------------------------------
Total from investment operations 2.37 .00 2.73 (.21) 2.59
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.39 $ 14.02 $ 14.02 $ 11.29 $ 11.50
============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 16.91% 0.00% 24.18% (1.83)% 29.07%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 117,154 $ 117,760 $ 121,097 $ 101,934 $ 120,101
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 120,249 $ 125,511 $ 113,233 $ 111,924 $ 100,922
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.73)% (0.75)% (0.29)% 2 (1.07)% (0.93)%
Total expenses 1.56% 5 1.57% 1.61% 1.66% 1.83%
Expenses after payments, waivers
and/or reimbursements and reduction
to custodian expenses 1.43% 1.42% 1.42% 1.44% 1.29%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 100% 43% 59% 123% 103%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.08
and 0.64%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 August 31, 2007 1.56%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER ENTERPRISE FUND
CLASS B YEAR ENDED AUGUST 31, 2007 2006 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.81 $ 12.91 $ 10.48 $ 10.76 $ 8.40
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.20) 1 (.20) 1 (.11) 1,2 (.20) 1 (.20)
Net realized and unrealized gain (loss) 2.27 .10 2.54 (.08) 1 2.56
----------------------------------------------------------------------------
Total from investment operations 2.07 (.10) 2.43 (.28) 2.36
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.88 $ 12.81 $ 12.91 $ 10.48 $ 10.76
============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 16.16% (0.78)% 23.19% (2.60)% 28.10%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 31,072 $ 37,549 $ 35,359 $ 45,904 $ 62,170
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 34,747 $ 37,728 $ 41,821 $ 54,878 $ 52,441
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.44)% (1.52)% (0.96)% 2 (1.86)% (1.69)%
Total expenses 2.13% 5 2.21% 2.27% 2.53% 2.79%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 2.13% 2.20% 2.18% 2.23% 2.05%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 100% 43% 59% 123% 103%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.08
and 0.64%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 August 31, 2007 2.13%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED AUGUST 31, 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.83 $ 12.93 $ 10.49 $ 10.77 $ 8.41
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.20) 1 (.20) 1 (.12) 1,2 (.20) 1 (.17)
Net realized and unrealized gain (loss) 2.27 .10 2.56 (.08) 1 2.53
---------------------------------------------------------------------------
Total from investment operations 2.07 (.10) 2.44 (.28) 2.36
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.90 $ 12.83 $ 12.93 $ 10.49 $ 10.77
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 16.13% (0.77)% 23.26% (2.60)% 28.06%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 18,435 $ 13,508 $ 13,600 $ 12,790 $ 14,594
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 16,461 $ 14,091 $ 13,458 $ 13,979 $ 12,521
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.42)% (1.49)% (1.03)% 2 (1.83)% (1.70)%
Total expenses 2.19% 5 2.31% 2.41% 2.59% 2.80%
Expenses after payments, waivers
and/or reimbursements and reduction
to custodian expenses 2.14% 2.17% 2.18% 2.20% 2.06%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 100% 43% 59% 123% 103%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.08
and 0.64%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 August 31, 2007 2.19%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER ENTERPRISE FUND
CLASS N YEAR ENDED AUGUST 31, 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.82 $ 13.84 $ 11.18 $ 11.41 $ 8.87
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.14) 1 (.13) 1 (.08) 1,2 (.15) 1 (.13)
Net realized and unrealized gain (loss) 2.44 .11 2.74 (.08) 1 2.67
---------------------------------------------------------------------------
Total from investment operations 2.30 (.02) 2.66 (.23) 2.54
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.12 $ 13.82 $ 13.84 $ 11.18 $ 11.41
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 16.64% (0.15)% 23.79% (2.02)% 28.64%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 53,671 $ 50,676 $ 1,196 $ 839 $ 685
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 52,442 $ 16,452 $ 1,058 $ 781 $ 537
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.91)% (0.92)% (0.66)% 2 (1.32)% (1.24)%
Total expenses 2.01% 5 2.11% 2.00% 2.10% 2.09%
Expenses after payments, waivers
and/or reimbursements and reduction
to custodian expenses 1.63% 1.58% 1.68% 1.70% 1.60%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 100% 43% 59% 123% 103%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.08
and 0.64%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 August 31, 2007 2.01%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER ENTERPRISE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y YEAR ENDED AUGUST 31, 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.41 $ 14.35 $ 11.52 $ 11.67 $ 9.02
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) 1 (.05) 1 .01 1,2 (.07) 1 (.10)
Net realized and unrealized gain (loss) 2.56 .11 2.82 (.08) 1 2.75
---------------------------------------------------------------------------
Total from investment operations 2.54 .06 2.83 (.15) 2.65
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.95 $ 14.41 $ 14.35 $ 11.52 $ 11.67
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 17.63% 0.42% 24.57% (1.29)% 29.38%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 11,444 $ 11,607 $ 14,240 $ 14,376 $ 22,461
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 11,359 $ 13,236 $ 14,157 $ 19,642 $ 16,675
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.14)% (0.35)% 0.10% 2 (0.62)% (0.67)%
Total expenses 0.83% 5 1.01% 1.05% 0.98% 1.72%
Expenses after payments, waivers
and/or reimbursements and reduction
to custodian expenses 0.82% 1.01% 1.05% 0.98% 1.03%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 100% 43% 59% 123% 103%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.08
and 0.64%, respectively, resulting from a special dividend from Microsoft Corp.
in November 2004.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 August 31, 2007 0.83%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Enterprise Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may
be valued primarily using dealer-supplied valuations or a portfolio pricing
service authorized by the Board of Trustees. Securities listed or traded on
National Stock Exchanges or other domestic exchanges are valued based on the
last sale price of the security traded on that exchange prior to the time when
the Fund's assets are valued. Securities traded on NASDAQ(R) are valued based on
the closing price provided by NASDAQ prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing "bid"
and "asked" prices, and if not, at the closing bid price. Securities traded on
foreign exchanges are valued based on the last sale price on the principal
exchange on which the security is traded, as identified by the portfolio pricing
service, prior to the time when the Fund's assets are valued. In the absence of
a sale, the security is valued at the official closing price on the principal
exchange. Corporate, government and municipal debt instruments having a
remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when
39 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
the Fund's assets are valued. Options are 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, if applicable.
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
40 | OPPENHEIMER ENTERPRISE FUND
Fund expenses in an amount equal to the indirect management fees incurred
through the Fund's investment in IMMF.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent
distribution requirements the Fund must satisfy under the income tax
regulations, losses the Fund may be able to offset against income and gains
realized in future years and unrealized appreciation or depreciation of
securities and other investments for federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED SECURITIES AND OTHER
NET INVESTMENT LONG-TERM LOSS INVESTMENTS FOR FEDERAL
INCOME GAIN CARRYFORWARD 1,2,3 INCOME TAX PURPOSES
--------------------------------------------------------------------------
$-- $-- $301,813,138 $14,720,424
1. As of August 31, 2007, the Fund had $301,813,138 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of August 31, 2007, details
of the capital loss carryforwards were as follows:
EXPIRING
------------------------------
2010 $ 222,459,959
2011 79,353,179
-------------
Total $ 301,813,138
=============
2. During the fiscal year ended August 31, 2007, the Fund utilized $42,797,685
of capital loss carryforward to offset capital gains realized in that fiscal
year.
3. During the fiscal year ended August 31, 2006, the Fund utilized $6,552,115 of
capital loss carryforward to offset capital gains realized in that fiscal year.
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 August 31, 2007. Net assets of the
Fund were unaffected by the reclassifications.
41 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
INCREASE TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO ACCUMULATED NET REALIZED LOSS
PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS
---------------------------------------------------------
$2,033,713 $2,068,465 $34,752
No distributions were paid during the years ended August 31, 2007 and August 31,
2006.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of August 31, 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 $217,103,701
============
Gross unrealized appreciation $ 23,279,049
Gross unrealized depreciation (8,558,625)
------------
Net unrealized appreciation $ 14,720,424
============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the Plan. Active independent trustees
as of the Freeze Date have each elected a distribution method with respect to
their benefits under the Plan. During the year ended August 31, 2007, the Fund's
projected benefit obligations were increased by $8,887 and payments of $9,963
were made to retired trustees, resulting in an accumulated liability of $41,757
as of August 31, 2007.
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.
42 | OPPENHEIMER ENTERPRISE 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.
43 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
YEAR ENDED AUGUST 31, 2007 YEAR ENDED AUGUST 31, 2006
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS A
Sold 1,507,310 $ 23,268,492 2,537,637 $ 37,289,319
Redeemed (2,761,796) (42,779,081) (2,773,873) (40,081,899)
---------------------------------------------------------
Net decrease (1,254,486) $ (19,510,589) (236,236) $ (2,792,580)
=========================================================
- ------------------------------------------------------------------------------------------
CLASS B
Sold 396,291 $ 5,547,494 1,077,578 $ 14,568,412
Redeemed (1,238,907) (17,335,752) (884,788) (11,829,897)
---------------------------------------------------------
Net increase (decrease) (842,616) $ (11,788,258) 192,790 $ 2,738,515
=========================================================
- ------------------------------------------------------------------------------------------
CLASS C
Sold 547,412 $ 7,764,385 352,895 $ 4,780,311
Redeemed (362,912) (5,118,593) (352,054) (4,711,745)
---------------------------------------------------------
Net increase 184,500 $ 2,645,792 841 $ 68,566
=========================================================
- ------------------------------------------------------------------------------------------
CLASS N
Sold 2,490,224 $ 38,439,155 3,787,502 $ 54,986,681
Redeemed (2,829,512) (42,851,453) (206,135) (2,905,558)
---------------------------------------------------------
Net increase (decrease) (339,288) $ (4,412,298) 3,581,367 $ 52,081,123
=========================================================
- ------------------------------------------------------------------------------------------
CLASS Y
Sold 181,458 $ 2,914,643 338,211 $ 5,025,402
Redeemed (311,875) (4,889,101) (524,763) (7,800,991)
---------------------------------------------------------
Net decrease (130,417) $ (1,974,458) (186,552) $ (2,775,589)
=========================================================
- --------------------------------------------------------------------------------
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 August
31, 2007, were as follows:
PURCHASES SALES
--------------------------------------------------------------
Investment securities $ 229,434,288 $ 265,767,134
44 | OPPENHEIMER ENTERPRISE 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 $700 million 0.60
Over $1. 5 billion 0.58
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended August 31, 2007, the Fund paid
$778,495 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
periodically at an annual rate of up to 0.25% of the average annual net assets
of Class A shares of the Fund. The Distributor currently uses all of those fees
to pay dealers, brokers, banks and other financial institutions periodically for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
periods. Fees incurred by the Fund under the plan are detailed in the Statement
of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans for Class B, Class C and Class N
shares to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of 0.25% per year under each plan. If either the Class B, Class C or
Class N plan is terminated by the Fund or by the shareholders of a class, the
Board of Trustees and its independent trustees must determine whether the
Distributor shall be entitled to payment from the Fund of all or a portion of
the service
45 | OPPENHEIMER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 $804,772, $465,716 and $405,777, 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
- -----------------------------------------------------------------------------------------------
August 31, 2007 $ 70,914 $ 163 $ 74,485 $ 2,195 $ 176
- --------------------------------------------------------------------------------
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. During the year ended August 31, 2007, OFS
waived $151,890, $66, $8,112 and $200,206 for Class A, Class B, Class C and
Class N shares, respectively. 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 August 31, 2007, the Manager waived $3,737 for IMMF
management fees.
- --------------------------------------------------------------------------------
5. 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
August 31, 2007, the Manager has evaluated the implications of FIN 48 and does
not currently anticipate a material impact to the Fund's financial
46 | OPPENHEIMER ENTERPRISE FUND
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 August 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.
- --------------------------------------------------------------------------------
6. FUND REORGANIZATION
On May 17, 2007, the Board of Trustees of Oppenheimer Enterprise Fund ("the
Fund") approved a proposal to reorganize the Fund with and into Oppenheimer
Capital Appreciation Fund. In a shareholder meeting to be held on or about
November 30, 2007, shareholders of the Fund will be asked to approve a Plan of
Reorganization between the Fund and Oppenheimer Capital Appreciation Fund, and
the transactions contemplated thereby, including (a) the transfer of
substantially all the assets of the Fund to Oppenheimer Capital Appreciation
Fund in exchange for Class A, Class B, Class C, Class N and Class Y shares of
Oppenheimer Capital Appreciation Fund, (b) the distribution of Class A, Class B,
Class C, Class N and Class Y shares of Oppenheimer Capital Appreciation Fund to
the Class A, Class B, Class C, Class N and Class Y shareholders of the Fund in
complete liquidation of the Fund and (c) the cancellation of the outstanding
shares of the Fund.
47 | OPPENHEIMER ENTERPRISE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER ENTERPRISE FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Enterprise Fund, including the statement of investments, as of
August 31, 2007, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of August 31, 2007, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Enterprise Fund as of August 31, 2007, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with U.S. generally
accepted accounting principles.
KPMG LLP
Denver, Colorado
October 12, 2007
48 | OPPENHEIMER ENTERPRISE 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.
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.
49 | OPPENHEIMER ENTERPRISE 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 web-site 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.
50 | OPPENHEIMER ENTERPRISE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate the
terms of the Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information, that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services by the Manager and its affiliates,
(v) the extent to which economies of scale are realized as the Fund grows and
whether fee levels reflect these economies of scale for Fund investors and (vi)
other benefits to the Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
NATURE AND EXTENT OF SERVICES. The Board considered information about the
nature and extent of the services provided to the Fund and information regarding
the Manager's key personnel who provide such services. The Manager's duties
include providing the Fund with the services of the portfolio manager and the
Manager's investment team, who provide research, analysis and other advisory
services in regard to the Fund's investments; securities trading services;
oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board took
51 | OPPENHEIMER ENTERPRISE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
account of the fact that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services, and information the
Board has received regarding the experience and professional qualifications of
the Manager's personnel and the size and functions of its staff. In its
evaluation of the quality of the portfolio management services provided, the
Board considered the experience of Marc Baylin, the portfolio manager for the
Fund, and the Manager's Growth investment team and analysts. The Board members
also considered their experiences with the Manager and its officers and other
personnel through their service on the Boards of the Fund and other funds
advised by the Manager. The Board considered information regarding the quality
of services provided by affiliates of the Manager, which its members have become
knowledgeable about in connection with the renewal of the Fund's service
agreements. In light of the foregoing, the Board concluded that the Fund
benefits from the services provided under the Agreement and from the Manager's
experience, reputation, personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the investment performance of the Fund and the
Manager at each Board meeting, including comparative performance information.
The Board also reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other retail front-end load and no-load
multi-cap growth funds advised by the Manager and by other investment advisers.
The Board noted that the Fund's one-year, three-year, five-year and ten-year
performance were below its peer group median. The Board also noted the recent
changes to the Manager's Growth investment team and analysts and to the Fund's
portfolio management and considered that the Board had approved and recommended
that shareholders approve a reorganization of the Fund.
MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the
Manager and its affiliates and the other expenses borne by the Fund. The Board
also considered the comparability of the fees charged and the services provided
to the Fund to the fees and services for other clients or accounts advised by
the Manager. The independent consultant provided comparative data in regard to
the fees and expenses of the Fund, other multi-cap growth funds and other funds
with comparable asset levels and distribution features. The Board noted that the
Fund's contractual and actual management fees and total expenses are lower than
its peer group median.
52 | OPPENHEIMER ENTERPRISE FUND
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund, the extent to
which those economies of scale benefit the Fund's shareholders and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board also noted the Fund's breakpoints, which are intended
to share economies of scale that may exist as the Fund grows with its
shareholders.
BENEFITS TO THE MANAGER. The Board considered information regarding the
Manager's costs in serving as the Fund's investment adviser, including the costs
associated with the personnel and systems necessary to manage the Fund, and
information regarding the Manager's profitability from its relationship with the
Fund. The Board considered that the Manager must be able to pay and retain
experienced professional personnel at competitive rates to provide services to
the Fund and that maintaining the financial viability of the Manager is
important in order for the Manager to continue to provide significant services
to the Fund and its shareholders. In addition to considering the profits
realized by the Manager, the Board considered information regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates for services
provided and research provided to the Manager in connection with permissible
brokerage arrangements (soft dollar arrangements).
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and the independent Trustees. Fund counsel is independent of the
Manager within the meaning and intent of the Securities and Exchange Commission
Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable sin relation to the
services provided. Accordingly, the Board elected to continue the Agreement for
another year or the earlier reorganization of the Fund and its termination. In
arriving at this decision, the Board did not single out any factor or factors as
being more important than others, but considered all of the factors together.
The Board judged the terms and conditions of the Agreement, including the
management fee, in light of all of the surrounding circumstances.
53 | OPPENHEIMER ENTERPRISE FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS
FUND, LENGTH OF SERVICE, AGE HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES COLORADO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995); Director of
Chairman of the Board of Special Value Opportunities Fund, LLC (registered investment company) (since September
Trustees (since 2007), Trustee 2004); Member of Zurich Financial Services Investment Advisory Board (insurance) (since
(since 2005) October 2004); Board of Governing Trustees of The Jackson Laboratory (non-profit) (since
Age: 64 August 1990); Trustee of the Institute for Advanced Study (non-profit educational
institute) (since May 1992); Special Limited Partner of Odyssey Investment Partners, LLC
(private equity investment) (January 1999-September 2004); Trustee of Research Foundation
of AIMR (2000-2002) (investment research, non-profit); Governor, Jerome Levy Economics
Institute of Bard College (August 1990-September 2001) (economics research); Director of
Ray & Berendtson, Inc. (May 2000-April 2002) (executive search firm). Oversees 65
portfolios in the OppenheimerFunds complex.
DAVID K. DOWNES, President, Chief Executive Officer and Board Member of CRAFund Advisors, Inc. (investment
Trustee (since 2007) management company) (since January 2004); President of The Community Reinvestment Act
Age: 67 Qualified Investment Fund (investment management company) (since January 2004);
Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered
investment company) (since January 2004); Director of Internet Capital Group (information
technology company) (since October 2003); Chief Operating Officer and Chief Financial
Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National
Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment
management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief
Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003);
President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the
Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of
Retirement Financial Services, Inc. (registered transfer agent and investment adviser and
subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive
Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief
Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation
(investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate
Controller of Merrill Lynch & Company (financial services holding company) (1977-1985);
held the following positions at the Colonial Penn Group, Inc. (insurance company):
Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of
Corporate Taxes (1969-1972); held the following positions at Price Waterhouse & Company
(financial services firm): Tax Manager (1967-1969), Tax Senior (1965-1967) and Staff
Accountant (1963-1965); United States Marine Corps (1957-1959). Oversees 65 portfolios in
the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation) (since
Trustee (since 2005) 2005); Director of ICI Education Foundation (education foundation) (October 1991-August
Age: 66 2006); President of the Investment Company Institute (trade association) (October
1991-June 2004); Director of ICI Mutual Insurance Company (insurance company) (October
1991-June 2004). Oversees 55 portfolios in the OppenheimerFunds complex.
54 | OPPENHEIMER ENTERPRISE FUND
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 65 portfolios in the
Trustee (since 1995) OppenheimerFunds complex.
Age: 74
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and Member (since
Trustee (since 1999) 1979) of the National Academy of Sciences; Council on Foreign Relations (since 2002);
Age: 69 Director of GSI Lumonics Inc. (precision medical equipment supplier) (since 2001); Senior
Advisor of The Andrew W. Mellon Foundation (since 2001); Chair of Science Initiative Group
(since 1999); Member of the American Philosophical Society (since 1996); Trustee of
Woodward Academy (since 1983); Foreign Associate of Third World Academy of Sciences;
Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New
York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 55
portfolios in the OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and
Trustee (since 2004) Senior Vice President and General Auditor of American Express Company (financial services
Age: 64 company) (July 1998-February 2003). Oversees 55 portfolios in the OppenheimerFunds
complex.
JOEL W. MOTLEY, Managing Director of Public Capital Advisors, LLC (privately-held financial adviser)
Trustee (since 2002) (since January 2006); Director of Columbia Equity Financial Corp. (privately-held
Age: 55 financial adviser) (since 2002); Managing Director of Carmona Motley, Inc. (privately-held
financial adviser) (since January 2002); Managing Director of Carmona Motley Hoffman Inc.
(privately-held financial adviser) (January 1998-December 2001); Member of the Finance and
Budget Committee of the Council on Foreign Relations, Member of the Investment Committee
of the Episcopal Church of America, Member of the Investment Committee and Board of Human
Rights Watch and the Investment Committee of Historic Hudson Valley. Oversees 55
portfolios in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of RSR Partners (formerly "The Directorship Search Group, Inc.") (corporate
Trustee (since 1995) governance consulting and executive recruiting) (since 1993); Life Trustee of
Age: 75 International House (non-profit educational organization); Former Trustee of The
Historical Society of the Town of Greenwich; Former Director of Greenwich Hospital
Association. Oversees 55 portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and Cathco
Trustee (since 2005) (since 1996); Director of Lakes Environmental Association (environmental protection
Age: 66 organization) (since 1996); Member of the Investment Committee of the Associated Jewish
Charities of Baltimore (since 1994); Director of Fortis/Hartford mutual funds
(1994-December 2001); Director of C-TASC (a privately held bio-statistics company)
(since May 2007). Oversees 55 portfolios in the OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production company)
Trustee (since 2005) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling)
Age: 59 (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979);
Vice President, Secretary and Treasurer of Wold Trona Company, Inc. (soda ash processing
and production) (1996-2006); Director and Chairman of the Denver Branch of the Federal
Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility)
(1995-1999). Oversees 55 portfolios in the OppenheimerFunds complex.
55 | OPPENHEIMER ENTERPRISE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
AND OFFICER FLOOR, NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN
INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR REMOVAL AND AS AN OFFICER
FOR AN 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
Trustee, President and of the Manager (September 2000-March 2007); President and director or trustee of other
Principal Executive Officer Oppenheimer funds; President and Director of Oppenheimer Acquisition Corp. ("OAC") (the
(since 2001) Manager's parent holding company) and of Oppenheimer Partnership Holdings, Inc. (holding
Age: 58 company subsidiary of the Manager) (since July 2001); Director of OppenheimerFunds
Distributor, Inc. (subsidiary of the Manager) (since November 2001); Chairman and Director
of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent
subsidiaries of the Manager) (since July 2001); President and Director of OppenheimerFunds
Legacy Program (charitable trust program established by the Manager) (since July 2001);
Director of the following investment advisory subsidiaries of the Manager: OFI
Institutional Asset Management, Inc., Centennial Asset Management Corporation, Trinity
Investment Management Corporation and Tremont Capital Management, Inc. (since November
2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since
July 2001); President (since November 1, 2001) and Director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; Executive Vice President of Massachusetts Mutual
Life Insurance Company (OAC's parent company) (since February 1997); Director of DLB
Acquisition Corporation (holding company parent of Babson Capital Management LLC) (since
June 1995); Member of the Investment Company Institute's Board of Governors (since October
3, 2003); Chief Operating Officer of the Manager (September 2000-June 2001). Oversees 102
portfolios in the OppenheimerFunds complex.
- -----------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS. BAYLIN, ZACK,
OF THE FUND GILLESPIE AND MS. BLOOMBERG, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK,
NEW YORK 10281-1008, FOR MESSRS. VANDEHEY, WIXTED, PETERSEN, SZILAGYI AND MS. IVES,
6803 S. TUCSON WAY, CENTENNIAL, COLORADO 80112-3924. EACH OFFICER SERVES FOR AN
INDEFINITE TERM OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
MARC L. BAYLIN, Vice President of the Manager and a member of the Growth Equity Investment Team; Managing
Vice President and Portfolio Director and Lead Portfolio Manager at JP Morgan Fleming Investment Management (June
Manager (since 2007) 2002-August 2005); Vice President of T. Rowe Price, where he was an analyst from June 1993
Age: 39 and a portfolio manager (March 1999-June 2002). A portfolio manager of other Oppenheimer
funds.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager, OppenheimerFunds
Vice President and Chief Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March
Compliance Officer 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management
(since 2004) Corporation and Shareholder Services, Inc. (since June 1983). Former Vice President and
Age: 57 Director of 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
Treasurer and Principal the following: HarbourView Asset Management Corporation, Shareholder Financial
Financial & Accounting Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc.
Officer (since 1999) and Oppenheimer Partnership Holdings, Inc. (since March 1999), OFI Private
Age: 48 Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. (since
56 | OPPENHEIMER ENTERPRISE FUND
BRIAN W. WIXTED, May 2000), OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc.
Continued (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program
established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of
OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant
Treasurer of the following: OAC (since March 1999), Centennial Asset Management
Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program (April 2000-June
2003); Principal and Chief Operating Officer of Bankers Trust Company-Mutual Fund Services
Division (March 1995-March 1999). An officer of 102 portfolios in the OppenheimerFunds
complex.
BRIAN S. PETERSEN, Vice President of the Manager (since February 2007); Assistant Vice President of the
Assistant Treasurer Manager (August 2002-February 2007); Manager/Financial Product Accounting of the Manager
(since 2004) (November 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
Assistant Treasurer and Compliance of First Data Corporation (April 2003-July 2004); Manager of Compliance of
(since 2005) Berger Financial Group LLC (May 2001-March 2003); Director of Mutual Fund Operations at
Age: 37 American Data 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
Vice President and Secretary the Manager; General Counsel and Director of the Distributor (since December 2001);
(since 2001) General Counsel of Centennial Asset Management Corporation (since December 2001); Senior
Age: 59 Vice President and General Counsel of HarbourView Asset Management Corporation (since
December 2001); Secretary and General Counsel of OAC (since November 2001); Assistant
Secretary (since September 1997) and Director (since November 2001) of OppenheimerFunds
International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer
Partnership Holdings, Inc. (since December 2002); Director of Oppenheimer Real Asset
Management, Inc. (since November 2001); Senior Vice President, General Counsel and
Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since
December 2001); Senior Vice President, General Counsel and Director of OFI Private
Investments, Inc. and OFI Trust Company (since November 2001); Vice President of
OppenheimerFunds Legacy Program (since June 2003); Senior Vice President and General
Counsel of OFI Institutional Asset Management, Inc. (since November 2001); Director of
OppenheimerFunds (Asia) Limited (since December 2003); Senior Vice President (May
1985-December 2003), Acting General Counsel (November 2001-February 2002) and Associate
General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of the
following: Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial
Services, Inc. (November 1989-November 2001), and OppenheimerFunds International Ltd.
(September 1997-November 2001). An officer of 102 portfolios in the OppenheimerFunds
complex.
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice President
Assistant Secretary (April 2001-April 2004), Associate General Counsel (December 2000-April 2004), Corporate
(since 2004) Vice President (May 1999-April 2001) and Assistant General Counsel (May 1999-December
Age: 39 2000) of UBS Financial 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);
Assistant Secretary First Vice President (2001-September 2004); Director (2000-September 2004) and Vice
(since 2004) President (1998-2000) of Merrill Lynch Investment Management. An officer of 102 portfolios
Age: 43 in the OppenheimerFunds complex.
57 | OPPENHEIMER ENTERPRISE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since October
Assistant Secretary 2003) of the Manager; Vice President (since 1999) and Assistant Secretary (since October
(since 2001) 2003) of the Distributor; Assistant Secretary of Centennial Asset Management Corporation
Age: 42 (since October 2003); Vice President and Assistant Secretary of Shareholder Services, Inc.
(since 1999); Assistant Secretary of OppenheimerFunds Legacy Program and Shareholder
Financial Services, Inc. (since December 2001); Assistant Counsel of the Manager (August
1994-October 2003). An officer of 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.
58 | OPPENHEIMER ENTERPRISE 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 David Downes, a
member of the Board's Audit Committee, is an audit committee financial expert
and that Mr. Downes is "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 $18,000 in fiscal 2007 and $13,000 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 $243,390 in fiscal 2007 and $183,800 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 services include: internal control reviews and professional services
relating to FAS 123R.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2007 and $1,536 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 services include: Preparation of form 5500.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and
other services to be provided by the principal accountants of the
registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next regularly
scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid
by the registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee
of the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $243,390 in fiscal 2007 and $185,336 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 08/31/2007, 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 Enterprise Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 10/09/2007
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: 10/09/2007
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 10/09/2007