-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N2yMFYyTsBGvjJIbdh9X1V8GN1EpQBT2OiFn2q4uurmnDmXTqW7JFZPje8NnTNYn RH7y1z/oIZb/nKVtij8P+Q== 0000935069-06-002875.txt : 20061026 0000935069-06-002875.hdr.sgml : 20061026 20061026135440 ACCESSION NUMBER: 0000935069-06-002875 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20060831 FILED AS OF DATE: 20061026 DATE AS OF CHANGE: 20061026 EFFECTIVENESS DATE: 20061026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER ENTERPRISE FUND CENTRAL INDEX KEY: 0000939801 IRS NUMBER: 133819189 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07265 FILM NUMBER: 061165279 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER NEW ENTERPRISE FUND DATE OF NAME CHANGE: 19950901 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER SMALL CAP FUND DATE OF NAME CHANGE: 19950228 0000939801 S000007509 OPPENHEIMER ENTERPRISE FUND C000020499 A C000020500 B C000020501 C C000020502 N C000020503 Y N-CSR 1 ra885_35025ncsr.txt RA885_35025NCSR 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 OPPENHEIMER ENTERPRISE FUND (Exact name of registrant as specified in charter) 6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924 (Address of principal executive offices) (Zip code) ROBERT G. ZACK, ESQ. OPPENHEIMERFUNDS, INC. TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008 (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 Date of fiscal year end: AUGUST Date of reporting period: 08/31/2006 ITEM 1. REPORTS TO STOCKHOLDERS. TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOP TEN COMMON STOCK INDUSTRIES - -------------------------------------------------------------------------------- Software 10.2% - -------------------------------------------------------------------------------- Communications Equipment 6.9 - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 6.6 - -------------------------------------------------------------------------------- Internet Software & Services 5.6 - -------------------------------------------------------------------------------- Health Care Equipment & Supplies 5.4 - -------------------------------------------------------------------------------- Biotechnology 4.7 - -------------------------------------------------------------------------------- Pharmaceuticals 4.6 - -------------------------------------------------------------------------------- Health Care Providers & Services 4.3 - -------------------------------------------------------------------------------- Energy Equipment & Services 4.2 - -------------------------------------------------------------------------------- Capital Markets 4.2 Portfolio holdings and allocations are subject to change. Percentages are as of August 31, 2006, and are based on net assets. TOP TEN COMMON STOCK HOLDINGS - -------------------------------------------------------------------------------- Novartis AG, ADR 3.3% - -------------------------------------------------------------------------------- Monsanto Co. 3.2 - -------------------------------------------------------------------------------- Cisco Systems, Inc. 3.2 - -------------------------------------------------------------------------------- Halliburton Co. 3.1 - -------------------------------------------------------------------------------- Hess Corp. 2.8 - -------------------------------------------------------------------------------- American Tower Corp. 2.7 - -------------------------------------------------------------------------------- Cognizant Technology Solutions Corp. 2.6 - -------------------------------------------------------------------------------- QUALCOMM, Inc. 2.6 - -------------------------------------------------------------------------------- PepsiCo, Inc. 2.4 - -------------------------------------------------------------------------------- Electronic Arts, Inc. 2.4 Portfolio holdings and allocations are subject to change. Percentages are as of August 31, 2006, and are based on net assets. For more current Fund holdings, please visit www.oppenheimerfunds.com. - -------------------------------------------------------------------------------- 7 | OPPENHEIMER ENTERPRISE FUND TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECTOR ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] Information Technology 35.9% Software 10.3 Communications Equipment 6.9 Semiconductors & Semiconductor Equipment 6.7 Internet Software & Services 5.7 Computers & Peripherals 3.7 IT Services 2.6 Health Care 19.2 Consumer Discretionary 11.9 Industrials 8.8 Financials 8.7 Energy 7.1 Materials 3.2 Telecommunication Services 2.7 Consumer Staples 2.5 Portfolio holdings and allocations are subject to change. Percentages are as of August 31, 2006, and are based on the total market value of common stocks. - -------------------------------------------------------------------------------- 8 | OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED AUGUST 31, 2006, FOLLOWED BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED MARKET INDEX. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. For the 12-month period ended August 31, 2006, the Fund produced flat performance and trailed behind its benchmark, the S&P 500 Index. In a market environment, described below, where investors reduced their appetite for risk, our technology and biotechnology holdings underperformed. Shareholders should expect us to continue to adhere to our research-driven, bottom-up long-term stock selection investment strategy. We look for market leaders and emerging market leaders in high growth industries across all market capitalizations. Our focus is on well-managed businesses with strong financials and sustainable competitive advantages, which we have determined are attractively valued. We invest with a minimum one-year time frame and seek to identify a long-term investment thesis for each and every investment. In situations where we believe our longer-term thesis has been altered or compromised, we will exit or reduce our holding. If and when our long-term, internally generated, price targets are reached, we will exit our position. We believe that continuing to follow our investment process, regardless of the market environment, is the best approach to serving our shareholders over the long-term. Although we conduct intensive research on all of the companies that we select for the portfolio, unanticipated events arise, as occurred over the period with a number of the Fund's holdings. Underperformance was derived from holdings within the technology, healthcare and consumer discretionary sectors. Within technology, detractors included Maxim Integrated Products, Inc., and eBay, Inc. Maxim Integrated Products, Inc., a leading supplier of mixed-signal (analog and digital) semiconductors, declined as a result a cyclical downturn in its niche market. eBay, Inc., the leading electronic auction marketplace, also detracted from Fund performance as it underperformed due to negative market reaction to its expanded business model--an idea conceived by management to enhance its long-term business prospects. This company's proven management team is focused on the long-term, something we as long-term investors, are attracted to. Within biotechnology, Martek Biosciences Corp., a manufacturer and seller of nutritional additives found in infant formula, detracted from the Fund's results. Martek Biosciences Corp. came under pressure after a series of management missteps and new lower cost competitive products came to market. Due to the nature of these issues, we no longer had confidence in our long-term investment thesis and sold our holdings. Lastly, specialty retailer, Urban Outfitters, Inc., suffered as the company failed to correctly position its apparel line for 9 | OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- the latest fashion trends. However, fashion misses are a reality of this business, our confidence in management remains, and we have maintained our position. On the positive side of performance, the Fund received strong contributions from stocks in such diverse industries as telecommunication services, IT services, capital markets and medical equipment. Within the telecommunication services area, American Tower Corp. posted our strongest performance. American Tower Corp., which manages and operates communication towers for cellular phone transmission, benefited from the tremendous growth seen in the cellular phone industry. Cognizant Technology Solutions Corp., an offshore outsourcing IT services provider, posted strong results as this market continued to grow rapidly. Google, Inc., gained market share and participated fully in the rapidly expanding market for internet search. In the financials sector, Goldman Sachs Group, Inc. (The) benefited from a high level of mergers and acquisition activity over the period. Lastly in healthcare, Varian Medical Systems, Inc., a manufacturer and seller of x-ray and oncology products, performed well over the reporting period. The company continues to benefit from a successful product cycle as proven by its strong product sales. Lastly, as a result of our bottom-up stock selection investment process, we brought the Fund's average market capitalization down to levels that are now below both the Russell 3000 Growth Index and the Lipper Multi Cap Growth Fund peer group average. COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the performance of a hypothetical $10,000 investment in each class of shares of the Fund held until August 31, 2006. In the case of Class A, Class B 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 has changed its secondary benchmark index from the Russell 2000 Index to the Russell 3000 Growth Index. The Fund believes that the Russell 3000 Growth Index, a multi-cap index, is a more appropriate benchmark reflecting the types of multi-cap securities in which the Fund invests. The Fund will continue to compare its performance to the Standard & Poor's (S&P) 500 Index. The Fund's performance is compared to the performance of the S&P 500 Index, the Russell 3000 Growth Index, and its previous secondary benchmark, the Russell 2000 Index. The S&P 500 Index is a broad-based index of equity securities widely regarded as a general 10 | OPPENHEIMER ENTERPRISE FUND 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. The Russell 2000 Index is a capitalization-weighted index of 2,000 U.S. issuers whose common stocks are traded on the New York and American Stock Exchanges and NASDAQ, and is widely recognized as a measure of the performance of mid-capitalization stocks. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs, and none of the data in the graphs shows the effect of taxes. The Fund's performance reflects the effects of the Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the indices. 11 | OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- 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 Russell 2000 Index [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund Russell 3000 Russell 2000 (Class A) S&P 500 Index Growth Index Index 08/31/1996 9,425 10,000 10,000 10,000 11/30/1996 9,163 11,673 11,473 10,652 02/28/1997 9,317 12,252 11,891 10,879 05/31/1997 9,173 13,211 12,834 11,551 08/31/1997 11,110 14,062 13,745 12,896 11/30/1997 11,463 15,001 14,390 13,146 02/28/1998 12,269 16,539 16,049 14,138 05/31/1998 12,868 17,261 16,361 14,006 08/31/1998 10,482 15,204 14,384 10,394 11/30/1998 12,925 18,553 18,002 12,276 02/28/1999 15,395 19,807 19,740 12,139 05/31/1999 17,229 20,892 20,315 13,629 08/31/1999 19,113 21,257 21,283 13,342 11/30/1999 26,601 22,429 23,685 14,199 02/29/2000 38,034 22,129 26,672 18,121 05/31/2000 23,013 23,079 25,317 14,980 08/31/2000 29,603 24,723 28,491 16,965 11/30/2000 17,226 21,482 20,914 14,116 02/28/2001 14,837 20,316 18,150 15,069 05/31/2001 13,902 20,645 18,025 15,833 08/31/2001 12,564 18,697 15,780 14,992 11/30/2001 11,553 18,858 16,341 14,797 02/28/2002 10,046 18,384 15,376 15,120 05/31/2002 9,288 17,788 14,331 15,753 08/31/2002 7,503 15,334 12,243 12,678 11/30/2002 7,713 15,745 12,661 13,229 02/28/2003 7,141 14,216 11,429 11,779 05/31/2003 8,724 16,353 13,190 14,464 08/31/2003 9,684 17,183 14,127 16,364 11/30/2003 9,692 18,120 14,954 18,029 02/29/2004 10,096 19,689 15,880 19,366 05/31/2004 10,096 19,350 15,673 18,845 08/31/2004 9,507 19,149 14,858 18,222 11/30/2004 10,719 20,447 15,888 21,141 02/28/2005 10,677 21,061 16,113 21,212 05/31/2005 11,140 20,942 16,206 20,696 08/31/2005 11,806 21,553 16,795 22,432 11/30/2005 12,260 22,173 17,411 22,862 02/28/2006 12,875 22,829 17,749 24,730 05/31/2006 12,134 22,750 17,365 24,470 08/31/2006 11,806 23,465 17,449 24,531
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT 8/31/06 1-Year -5.75% 5-Year -2.40% 10-Year 1.67% 12 | 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 Russell 2000 Index [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund Russell 3000 Russell 2000 (Class B) S&P 500 Index Growth Index Index 08/31/1996 10,000 10,000 10,000 10,000 11/30/1996 9,708 11,673 11,473 10,652 02/28/1997 9,845 12,252 11,891 10,879 05/31/1997 9,677 13,211 12,834 11,551 08/31/1997 11,703 14,062 13,745 12,896 11/30/1997 12,046 15,001 14,390 13,146 02/28/1998 12,869 16,539 16,049 14,138 05/31/1998 13,479 17,261 16,361 14,006 08/31/1998 10,950 15,204 14,384 10,394 11/30/1998 13,486 18,553 18,002 12,276 02/28/1999 16,036 19,807 19,740 12,139 05/31/1999 17,913 20,892 20,315 13,629 08/31/1999 19,836 21,257 21,283 13,342 11/30/1999 27,559 22,429 23,685 14,199 02/29/2000 39,331 22,129 26,672 18,121 05/31/2000 23,748 23,079 25,317 14,980 08/31/2000 30,493 24,723 28,491 16,965 11/30/2000 17,710 21,482 20,914 14,116 02/28/2001 15,230 20,316 18,150 15,069 05/31/2001 14,242 20,645 18,025 15,833 08/31/2001 12,846 18,697 15,780 14,992 11/30/2001 11,785 18,858 16,341 14,797 02/28/2002 10,235 18,384 15,376 15,120 05/31/2002 9,437 17,788 14,331 15,753 08/31/2002 7,617 15,334 12,243 12,678 11/30/2002 7,830 15,745 12,661 13,229 02/28/2003 7,249 14,216 11,429 11,779 05/31/2003 8,856 16,353 13,190 14,464 08/31/2003 9,831 17,183 14,127 16,364 11/30/2003 9,839 18,120 14,954 18,029 02/29/2004 10,250 19,689 15,880 19,366 05/31/2004 10,250 19,350 15,673 18,845 08/31/2004 9,651 19,149 14,858 18,222 11/30/2004 10,882 20,447 15,888 21,141 02/28/2005 10,839 21,061 16,113 21,212 05/31/2005 11,310 20,942 16,206 20,696 08/31/2005 11,985 21,553 16,795 22,432 11/30/2005 12,447 22,173 17,411 22,862 02/28/2006 13,071 22,829 17,749 24,730 05/31/2006 12,318 22,750 17,365 24,470 08/31/2006 11,985 23,465 17,449 24,531
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT 8/31/06 1-Year -5.74% 5-Year -2.39% 10-Year 1.83% THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM, OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE, REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES, THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 13 | OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- 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 Russell 2000 Index [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund Russell 3000 Russell 2000 (Class C) S&P 500 Index Growth Index Index 08/31/1996 10,000 10,000 10,000 10,000 11/30/1996 9,708 11,673 11,473 10,652 02/28/1997 9,845 12,252 11,891 10,879 05/31/1997 9,670 13,211 12,834 11,551 08/31/1997 11,697 14,062 13,745 12,896 11/30/1997 12,039 15,001 14,390 13,146 02/28/1998 12,870 16,539 16,049 14,138 05/31/1998 13,472 17,261 16,361 14,006 08/31/1998 10,951 15,204 14,384 10,394 11/30/1998 13,479 18,553 18,002 12,276 02/28/1999 16,045 19,807 19,740 12,139 05/31/1999 17,922 20,892 20,315 13,629 08/31/1999 19,845 21,257 21,283 13,342 11/30/1999 27,584 22,429 23,685 14,199 02/29/2000 39,365 22,129 26,672 18,121 05/31/2000 23,773 23,079 25,317 14,980 08/31/2000 30,526 24,723 28,491 16,965 11/30/2000 17,734 21,482 20,914 14,116 02/28/2001 15,246 20,316 18,150 15,069 05/31/2001 14,258 20,645 18,025 15,833 08/31/2001 12,862 18,697 15,780 14,992 11/30/2001 11,802 18,858 16,341 14,797 02/28/2002 10,243 18,384 15,376 15,120 05/31/2002 9,454 17,788 14,331 15,753 08/31/2002 7,623 15,334 12,243 12,678 11/30/2002 7,822 15,745 12,661 13,229 02/28/2003 7,224 14,216 11,429 11,779 05/31/2003 8,810 16,353 13,190 14,464 08/31/2003 9,762 17,183 14,127 16,364 11/30/2003 9,753 18,120 14,954 18,029 02/29/2004 10,143 19,689 15,880 19,366 05/31/2004 10,125 19,350 15,673 18,845 08/31/2004 9,508 19,149 14,858 18,222 11/30/2004 10,696 20,447 15,888 21,141 02/28/2005 10,632 21,061 16,113 21,212 05/31/2005 11,076 20,942 16,206 20,696 08/31/2005 11,720 21,553 16,795 22,432 11/30/2005 12,146 22,173 17,411 22,862 02/28/2006 12,735 22,829 17,749 24,730 05/31/2006 11,983 22,750 17,365 24,470 08/31/2006 11,629 23,465 17,449 24,531
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT 8/31/06 1-Year -1.77% 5-Year -1.99% 10-Year 1.52% 14 | 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 Russell 2000 Index [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund Russell 3000 Russell 2000 (Class N) S&P 500 Index Growth Index Index 03/01/2001 10,000 10,000 10,000 10,000 05/31/2001 9,295 10,162 9,931 10,507 08/31/2001 8,399 9,203 8,694 9,949 11/30/2001 7,711 9,283 9,003 9,819 02/28/2002 6,708 9,049 8,472 10,034 05/31/2002 6,195 8,756 7,896 10,454 08/31/2002 5,000 7,548 6,745 8,413 11/30/2002 5,141 7,750 6,975 8,779 02/28/2003 4,752 6,998 6,297 7,817 05/31/2003 5,800 8,050 7,267 9,599 08/31/2003 6,432 8,458 7,783 10,860 11/30/2003 6,437 8,919 8,239 11,965 02/29/2004 6,702 9,692 8,749 12,852 05/31/2004 6,697 9,524 8,635 12,506 08/31/2004 6,302 9,426 8,186 12,093 11/30/2004 7,097 10,065 8,753 14,030 02/28/2005 7,063 10,367 8,877 14,077 05/31/2005 7,368 10,308 8,929 13,734 08/31/2005 7,802 10,609 9,253 14,887 11/30/2005 8,100 10,914 9,593 15,172 02/28/2006 8,501 11,237 9,779 16,412 05/31/2006 8,010 11,198 9,567 16,239 08/31/2006 7,790 11,550 9,614 16,280
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT 8/31/06 1-Year -1.14% 5-Year -1.49% Since Inception (3/1/01) -4.44% THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM, OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE, REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES, THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 15 | OPPENHEIMER ENTERPRISE FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- 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 Russell 2000 [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Enterprise Fund Russell 3000 Russell 2000 (Class Y) S&P 500 Index Growth Index Index 04/01/1999 10,000 10,000 10,000 10,000 05/31/1999 10,115 10,142 9,787 11,055 08/31/1999 11,234 10,319 10,254 10,822 11/30/1999 15,649 10,889 11,411 11,517 02/29/2000 22,407 10,743 12,850 14,698 05/31/2000 13,570 11,204 12,197 12,151 08/31/2000 17,477 12,002 13,727 13,761 11/30/2000 10,165 10,429 10,076 11,450 02/28/2001 8,760 9,863 8,745 12,223 05/31/2001 8,222 10,022 8,684 12,842 08/31/2001 7,432 9,077 7,603 12,161 11/30/2001 6,839 9,155 7,873 12,002 02/28/2002 5,955 8,925 7,408 12,265 05/31/2002 5,511 8,636 6,905 12,778 08/31/2002 4,454 7,444 5,899 10,283 11/30/2002 4,578 7,644 6,100 10,730 02/28/2003 4,247 6,902 5,506 9,555 05/31/2003 5,190 7,939 6,355 11,732 08/31/2003 5,763 8,342 6,806 13,274 11/30/2003 5,777 8,797 7,205 14,624 02/29/2004 6,024 9,558 7,651 15,709 05/31/2004 6,034 9,394 7,551 15,286 08/31/2004 5,689 9,296 7,158 14,781 11/30/2004 6,415 9,927 7,655 17,148 02/28/2005 6,395 10,225 7,763 17,206 05/31/2005 6,681 10,167 7,808 16,787 08/31/2005 7,086 10,463 8,092 18,195 11/30/2005 7,368 10,764 8,389 18,544 02/28/2006 7,738 11,083 8,551 20,060 05/31/2006 7,303 11,044 8,366 19,848 08/31/2006 7,116 11,392 8,407 19,898
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 8/31/06 1-Year 0.42% 5-Year -0.87% Since Inception (4/1/99) -4.48% THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM, OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE, REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES, THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 16 | OPPENHEIMER 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. 17 | 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. 18 | 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, 2006. ACTUAL EXPENSES. The "actual" lines of the table provide information about actual account values and actual expenses. You may use the information on this line for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the "actual" line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in 19 | OPPENHEIMER ENTERPRISE FUND FUND EXPENSES - -------------------------------------------------------------------------------- the Statement of Additional Information). Therefore, the "hypothetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (3/1/06) (8/31/06) AUGUST 31, 2006 - ------------------------------------------------------------------------------------------ Class A Actual $1,000.00 $ 916.90 $ 6.89 - ------------------------------------------------------------------------------------------ Class A Hypothetical 1,000.00 1,018.05 7.25 - ------------------------------------------------------------------------------------------ Class B Actual 1,000.00 913.00 10.62 - ------------------------------------------------------------------------------------------ Class B Hypothetical 1,000.00 1,014.17 11.18 - ------------------------------------------------------------------------------------------ Class C Actual 1,000.00 913.20 10.52 - ------------------------------------------------------------------------------------------ Class C Hypothetical 1,000.00 1,014.27 11.08 - ------------------------------------------------------------------------------------------ Class N Actual 1,000.00 916.40 7.66 - ------------------------------------------------------------------------------------------ Class N Hypothetical 1,000.00 1,017.24 8.07 - ------------------------------------------------------------------------------------------ Class Y Actual 1,000.00 919.60 4.51 - ------------------------------------------------------------------------------------------ Class Y Hypothetical 1,000.00 1,020.52 4.75
Hypothetical assumes 5% annual return before expenses. Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended August 31, 2006 are as follows: CLASS EXPENSE RATIOS - ----------------------------------- Class A 1.42% - ----------------------------------- Class B 2.19 - ----------------------------------- Class C 2.17 - ----------------------------------- Class N 1.58 - ----------------------------------- Class Y 0.93 The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund's Transfer Agent that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements. - -------------------------------------------------------------------------------- 20 | OPPENHEIMER ENTERPRISE FUND STATEMENT OF INVESTMENTS August 31, 2006 - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMON STOCKS--99.1% - -------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--11.8% - -------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--3.1% Las Vegas Sands Corp. 1 21,500 $ 1,500,915 - -------------------------------------------------------------------------------- Life Time Fitness, Inc. 1 69,200 3,109,156 - -------------------------------------------------------------------------------- Scientific Games Corp., Cl. A 1 89,800 2,610,486 ------------- 7,220,557 - -------------------------------------------------------------------------------- HOUSEHOLD DURABLES--1.5% Harman International Industries, Inc. 42,500 3,447,600 - -------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL--0.9% VistaPrint Ltd. 1 81,180 1,991,345 - -------------------------------------------------------------------------------- SPECIALTY RETAIL--4.0% Best Buy Co., Inc. 79,000 3,713,000 - -------------------------------------------------------------------------------- Staples, Inc. 157,900 3,562,224 - -------------------------------------------------------------------------------- Urban Outfitters, Inc. 1 121,300 1,903,197 ------------- 9,178,421 - -------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--2.3% Polo Ralph Lauren Corp. 91,100 5,373,989 - -------------------------------------------------------------------------------- CONSUMER STAPLES--2.4% - -------------------------------------------------------------------------------- BEVERAGES--2.4% PepsiCo, Inc. 86,200 5,627,136 - -------------------------------------------------------------------------------- ENERGY--7.1% - -------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--4.2% Halliburton Co. 221,100 7,212,282 - -------------------------------------------------------------------------------- Schlumberger Ltd. 41,500 2,543,950 ------------- 9,756,232 - -------------------------------------------------------------------------------- OIL & GAS--2.9% Hess Corp. 143,100 6,551,118 - -------------------------------------------------------------------------------- FINANCIALS--8.6% - -------------------------------------------------------------------------------- CAPITAL MARKETS--4.2% Goldman Sachs Group, Inc. (The) 37,600 5,589,240 - -------------------------------------------------------------------------------- Legg Mason, Inc. 43,700 3,988,062 ------------- 9,577,302 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMERCIAL BANKS--1.0% East West Bancorp, Inc. 57,000 $ 2,308,500 - -------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--1.9% Chicago Mercantile Exchange (The) 10,000 4,400,000 - -------------------------------------------------------------------------------- INSURANCE--1.5% Brown & Brown, Inc. 119,100 3,565,854 - -------------------------------------------------------------------------------- HEALTH CARE--19.0% - -------------------------------------------------------------------------------- BIOTECHNOLOGY--4.7% Celgene Corp. 1 100,000 4,069,000 - -------------------------------------------------------------------------------- Genentech, Inc. 1 23,800 1,963,976 - -------------------------------------------------------------------------------- Genzyme Corp. (General Division) 1 38,500 2,549,855 - -------------------------------------------------------------------------------- Gilead Sciences, Inc. 1 35,100 2,225,340 ------------- 10,808,171 - -------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--5.4% Bard (C.R.), Inc. 38,900 2,924,502 - -------------------------------------------------------------------------------- Gen-Probe, Inc. 1 34,800 1,691,628 - -------------------------------------------------------------------------------- Medtronic, Inc. 76,600 3,592,540 - -------------------------------------------------------------------------------- Varian Medical Systems, Inc. 1 83,100 4,429,230 ------------- 12,637,900 - -------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--4.3% Coventry Health Care, Inc. 1 78,400 4,252,416 - -------------------------------------------------------------------------------- Healthways, Inc. 1 47,600 2,457,112 - -------------------------------------------------------------------------------- UnitedHealth Group, Inc. 62,000 3,220,900 ------------- 9,930,428 - -------------------------------------------------------------------------------- PHARMACEUTICALS--4.6% Novartis AG, ADR 132,400 7,562,688 - -------------------------------------------------------------------------------- Teva Pharmaceutical Industries Ltd., Sponsored ADR 86,200 2,996,312 ------------- 10,559,000 - -------------------------------------------------------------------------------- INDUSTRIALS--8.7% - -------------------------------------------------------------------------------- AEROSPACE & DEFENSE--2.0% Rockwell Collins, Inc. 89,800 4,708,214 21 | OPPENHEIMER ENTERPRISE FUND STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--2.3% Corporate Executive Board Co. 29,800 $ 2,611,672 - -------------------------------------------------------------------------------- Stericycle, Inc. 1 38,600 2,574,234 ------------- 5,185,906 - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--1.9% Rockwell Automation, Inc. 79,500 4,482,210 - -------------------------------------------------------------------------------- MACHINERY--1.3% Oshkosh Truck Corp. 58,300 3,014,110 - -------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--1.2% Fastenal Co. 75,300 2,762,004 - -------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--35.6% - -------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--6.9% Cisco Systems, Inc. 1 334,500 7,355,655 - -------------------------------------------------------------------------------- Comverse Technology, Inc. 1 118,400 2,474,560 - -------------------------------------------------------------------------------- QUALCOMM, Inc. 158,700 5,978,229 ------------- 15,808,444 - -------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--3.7% Apple Computer, Inc. 1 59,000 4,003,150 - -------------------------------------------------------------------------------- EMC Corp. 1 388,100 4,521,365 ------------- 8,524,515 - -------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--5.6% eBay, Inc. 1 133,300 3,713,738 - -------------------------------------------------------------------------------- Google, Inc., Cl. A 1 13,300 5,034,449 - -------------------------------------------------------------------------------- Yahoo!, Inc. 1 147,000 4,236,540 ------------- 12,984,727 - -------------------------------------------------------------------------------- IT SERVICES--2.6% Cognizant Technology Solutions Corp. 1 86,200 6,026,242 - -------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--6.6% Broadcom Corp., Cl. A 1 186,600 5,493,504 - -------------------------------------------------------------------------------- FormFactor, Inc. 1 30,400 1,467,104 - -------------------------------------------------------------------------------- Linear Technology Corp. 134,000 4,557,340 - -------------------------------------------------------------------------------- Maxim Integrated Products, Inc. 129,300 3,762,630 ------------- 15,280,578 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- SOFTWARE--10.2% Amdocs Ltd. 1 131,200 $ 4,979,040 - -------------------------------------------------------------------------------- Autodesk, Inc. 1 96,700 3,361,292 - -------------------------------------------------------------------------------- Electronic Arts, Inc. 1 110,000 5,606,700 - -------------------------------------------------------------------------------- Red Hat, Inc. 1 107,800 2,505,272 - -------------------------------------------------------------------------------- SAP AG, Sponsored ADR 100,200 4,783,548 - -------------------------------------------------------------------------------- Ultimate Software Group, Inc. (The) 1 105,300 2,379,780 ------------- 23,615,632 - -------------------------------------------------------------------------------- MATERIALS--3.2% - -------------------------------------------------------------------------------- CHEMICALS--3.2% Monsanto Co. 156,800 7,438,592 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--2.7% - -------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--2.7% American Tower Corp. 1 172,400 6,182,264 ------------- Total Common Stocks (Cost $209,139,456) 228,946,991 PRINCIPAL AMOUNT - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--1.0% - -------------------------------------------------------------------------------- Undivided interest of 0.19% in joint repurchase agreement (Principal Amount/Value $1,235,729,000, with a maturity value of $1,235,908,181) with UBS Warburg LLC, 5.22%, dated 8/31/06, to be repurchased at $2,316,336 on 9/1/06, collateralized by Federal National Mortgage Assn., 6%-7%, 3/1/36-8/1/36, with a value of $1,262,388,232 (Cost $2,316,000) $2,316,000 2,316,000 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $211,455,456) 100.1% 231,262,991 - -------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (163,095) ----------------------------- NET ASSETS 100.0% $231,099,896 ============================= 22 | OPPENHEIMER ENTERPRISE FUND FOOTNOTE TO STATEMENT OF INVESTMENTS 1. Non-income producing security. Represents ownership of at least 5% of the voting securities of the issuer, and was an affiliate, as defined in the Investment Company Act of 1940, during the period ended August 31, 2006. There were no affiliate securities held by the Fund as of August 31, 2006. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES AUGUST 31, 2005 ADDITIONS REDUCTIONS AUGUST 31, 2006 - ---------------------------------------------------------------------------------------------------------- Multiplex, Inc., Cv., Series C 543,478 -- 543,478 -- DIVIDEND REALIZED INCOME LOSS - ---------------------------------------------------------------------------------------------------------- Multiplex, Inc., Cv., Series C $-- $3,979,166
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 | OPPENHEIMER ENTERPRISE FUND STATEMENT OF ASSETS AND LIABILITIES August 31, 2006 - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------ ASSETS - ------------------------------------------------------------------------------------------------------ Investments, at value (cost $211,455,456)--see accompanying statement of investments $ 231,262,991 - ------------------------------------------------------------------------------------------------------ Cash 316,244 - ------------------------------------------------------------------------------------------------------ Receivables and other assets: Interest and dividends 112,577 Shares of beneficial interest sold 69,515 Other 14,388 -------------- Total assets 231,775,715 - ------------------------------------------------------------------------------------------------------ LIABILITIES - ------------------------------------------------------------------------------------------------------ Payables and other liabilities: Shares of beneficial interest redeemed 385,123 Distribution and service plan fees 87,838 Transfer and shareholder servicing agent fees 64,588 Shareholder communications 62,333 Trustees' compensation 55,853 Other 20,084 -------------- Total liabilities 675,819 - ------------------------------------------------------------------------------------------------------ NET ASSETS $ 231,099,896 ============== - ------------------------------------------------------------------------------------------------------ COMPOSITION OF NET ASSETS - ------------------------------------------------------------------------------------------------------ Paid-in capital $ 556,035,450 - ------------------------------------------------------------------------------------------------------ Accumulated net investment loss (55,045) - ------------------------------------------------------------------------------------------------------ Accumulated net realized loss on investments (344,688,044) - ------------------------------------------------------------------------------------------------------ Net unrealized appreciation on investments 19,807,535 -------------- NET ASSETS $ 231,099,896 ==============
24 | OPPENHEIMER ENTERPRISE FUND - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ----------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $117,760,109 and 8,400,998 shares of beneficial interest outstanding) $14.02 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $14.88 - ----------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $37,548,391 and 2,931,349 shares of beneficial interest outstanding) $12.81 - ----------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $13,508,268 and 1,052,743 shares of beneficial interest outstanding) $12.83 - ----------------------------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $50,676,296 and 3,667,783 shares of beneficial interest outstanding) $13.82 - ----------------------------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $11,606,832 and 805,677 shares of beneficial interest outstanding) $14.41
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 25 | OPPENHEIMER ENTERPRISE FUND STATEMENT OF OPERATIONS For the Year Ended August 31, 2006 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INVESTMENT INCOME - -------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $22,649) $ 1,101,779 - -------------------------------------------------------------------------------- Interest 270,934 - -------------------------------------------------------------------------------- Other income 27,114 ------------- Total investment income 1,399,827 - -------------------------------------------------------------------------------- EXPENSES - -------------------------------------------------------------------------------- Management fees 1,548,025 - -------------------------------------------------------------------------------- Distribution and service plan fees: Class A 301,713 Class B 375,710 Class C 140,546 Class N 81,170 - -------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 618,149 Class B 131,742 Class C 68,819 Class N 140,962 Class Y 33,605 - -------------------------------------------------------------------------------- Shareholder communications: Class A 97,388 Class B 38,954 Class C 9,521 Class N 812 - -------------------------------------------------------------------------------- Custodian fees and expenses 954 - -------------------------------------------------------------------------------- Other 24,077 ------------- Total expenses 3,612,147 Less waivers and reimbursements of expenses (295,879) ------------- Net expenses 3,316,268 - -------------------------------------------------------------------------------- NET INVESTMENT LOSS (1,916,441) - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - -------------------------------------------------------------------------------- Net realized gain (loss) on: Investments: Unaffiliated companies 10,531,281 Affiliated companies (3,979,166) ------------- Net realized gain 6,552,115 - -------------------------------------------------------------------------------- Net change in unrealized appreciation on investments (8,348,287) - -------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (3,712,613) ============= SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 26 | OPPENHEIMER ENTERPRISE FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2006 2005 - ------------------------------------------------------------------------------------------------- OPERATIONS - ------------------------------------------------------------------------------------------------- Net investment loss $ (1,916,441) $ (864,954) - ------------------------------------------------------------------------------------------------- Net realized gain 6,552,115 15,884,237 - ------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (8,348,287) 23,895,338 ------------------------------ Net increase (decrease) in net assets resulting from operations (3,712,613) 38,914,621 - ------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A (2,792,580) (5,010,689) Class B 2,738,515 (19,223,491) Class C 68,566 (1,976,711) Class N 52,081,123 150,576 Class Y (2,775,589) (3,205,423) - ------------------------------------------------------------------------------------------------- NET ASSETS - ------------------------------------------------------------------------------------------------- Total increase 45,607,422 9,648,883 - ------------------------------------------------------------------------------------------------- Beginning of period 185,492,474 175,843,591 ------------------------------ End of period (including accumulated net investment loss of $55,045 and $71,013, respectively) $231,099,896 $185,492,474 ==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 27 | OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 14.02 $ 11.29 $ 11.50 $ 8.91 $ 14.92 - ------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment loss (.11) 1 (.04) 1,2 (.12) 1 (.06) (.09) Net realized and unrealized gain (loss) .11 2.77 (.09) 1 2.65 (5.92) ---------------------------------------------------------------------- Total from investment operations .00 2.73 (.21) 2.59 (6.01) - ------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 14.02 $ 14.02 $ 11.29 $ 11.50 $ 8.91 ====================================================================== - ------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 0.00% 24.18% (1.83)% 29.07% (40.28)% - ------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $117,760 $121,097 $101,934 $120,101 $103,105 - ------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $125,511 $113,233 $111,924 $100,922 $166,632 - ------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment loss (0.75)% (0.29)% 2 (1.07)% (0.93)% (1.09)% Total expenses 1.57% 1.61% 1.66% 1.83% 1.95% Expenses after payments and waivers and reduction to custodian expenses 1.42% 1.42% 1.44% 1.29% 1.60% - ------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 43% 59% 123% 103% 150%
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 of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 28 | OPPENHEIMER ENTERPRISE FUND
CLASS B YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.91 $ 10.48 $ 10.76 $ 8.40 $ 14.17 - ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.20) 1 (.11) 1,2 (.20) 1 (.20) (.41) Net realized and unrealized gain (loss) .10 2.54 (.08) 1 2.56 (5.36) ----------------------------------------------------------------- Total from investment operations (.10) 2.43 (.28) 2.36 (5.77) - ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 12.81 $ 12.91 $ 10.48 $ 10.76 $ 8.40 ================================================================= - ------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (0.78)% 23.19% (2.60)% 28.10% (40.72)% - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $37,549 $35,359 $45,904 $62,170 $52,633 - ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $37,728 $41,821 $54,878 $52,441 $86,628 - ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (1.52)% (0.96)% 2 (1.86)% (1.69)% (1.85)% Total expenses 2.21% 2.27% 2.53% 2.79% 2.71% Expenses after payments and waivers and reduction to custodian expenses 2.20% 2.18% 2.23% 2.05% 2.36% - ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 43% 59% 123% 103% 150%
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 of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 29 | OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
CLASS C YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.93 $ 10.49 $ 10.77 $ 8.41 $ 14.19 - ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.20) 1 (.12) 1,2 (.20) 1 (.17) (.37) Net realized and unrealized gain (loss) .10 2.56 (.08) 1 2.53 (5.41) ----------------------------------------------------------------- Total from investment operations (.10) 2.44 (.28) 2.36 (5.78) - ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 12.83 $ 12.93 $ 10.49 $ 10.77 $ 8.41 ================================================================= - ------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (0.77)% 23.26% (2.60)% 28.06% (40.73)% - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $13,508 $13,600 $12,790 $14,594 $11,578 - ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $14,091 $13,458 $13,979 $12,521 $18,550 - ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (1.49)% (1.03)% 2 (1.83)% (1.70)% (1.85)% Total expenses 2.31% 2.41% 2.59% 2.80% 2.71% Expenses after payments and waivers and reduction to custodian expenses 2.17% 2.18% 2.20% 2.06% 2.36% - ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 43% 59% 123% 103% 150%
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 of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 30 | OPPENHEIMER ENTERPRISE FUND
CLASS N YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.84 $ 11.18 $ 11.41 $ 8.87 $ 14.90 - ------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment loss (.13) 1 (.08) 1,2 (.15) 1 (.13) (.28) Net realized and unrealized gain (loss) .11 2.74 (.08) 1 2.67 (5.75) ----------------------------------------------------------------- Total from investment operations (.02) 2.66 (.23) 2.54 (6.03) - ------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 13.82 $ 13.84 $ 11.18 $ 11.41 $ 8.87 ================================================================= - ------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 (0.15)% 23.79% (2.02)% 28.64% (40.47)% - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $50,676 $ 1,196 $ 839 $ 685 $ 456 - ------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $16,452 $ 1,058 $ 781 $ 537 $ 249 - ------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (0.92)% (0.66)% 2 (1.32)% (1.24)% (1.44)% Total expenses 2.11% 2.00% 2.10% 2.09% 2.25% Expenses after payments and waivers and reduction to custodian expenses 1.58% 1.68% 1.70% 1.60% 1.90% - ------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 43% 59% 123% 103% 150%
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 of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 31 | OPPENHEIMER ENTERPRISE FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
CLASS Y YEAR ENDED AUGUST 31, 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 14.35 $ 11.52 $ 11.67 $ 9.02 $ 15.05 - ------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) (.05) 1 .01 1,2 (.07) 1 (.10) (.10) Net realized and unrealized gain (loss) .11 2.82 (.08) 1 2.75 (5.93) ---------------------------------------------------------------- Total from investment operations .06 2.83 (.15) 2.65 (6.03) - ------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 14.41 $ 14.35 $ 11.52 $ 11.67 $ 9.02 ================================================================ - ------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 0.42% 24.57% (1.29)% 29.38% (40.07)% - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $11,607 $14,240 $14,376 $22,461 $16,020 - ------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $13,236 $14,157 $19,642 $16,675 $19,590 - ------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income (loss) (0.35)% 0.10% 2 (0.62)% (0.67)% (0.70)% Total expenses 1.01% 1.05% 0.98% 1.72% 2.16% Expenses after payments and waivers and reduction to custodian expenses 1.01% 1.05% 0.98% 1.03% 1.19% - ------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 43% 59% 123% 103% 150%
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 of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 32 | OPPENHEIMER 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 33 | OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign and domestic securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Foreign exchange rates may be valued primarily using dealer supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. These balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. 34 | OPPENHEIMER ENTERPRISE FUND 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 ---------------------------------------------------------------------------- $-- $-- $344,610,823 $19,730,316 1. As of August 31, 2006, the Fund had $344,610,823 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of August 31, 2006, details of the capital loss carryforwards were as follows: EXPIRING -------------------------------- 2009 $ 7,968,404 2010 257,289,240 2011 79,353,179 ------------ Total $344,610,823 ============ 2. 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. 3. During the fiscal year ended August 31, 2005, the Fund utilized $15,837,193 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, 2006. Net assets of the Fund were unaffected by the reclassifications. REDUCTION TO REDUCTION TO ACCUMULATED NET REDUCTION TO ACCUMULATED NET REALIZED LOSS PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS ------------------------------------------------------------- $1,933,723 $1,932,409 $1,314 No distributions were paid during the years ended August 31, 2006 and August 31, 2005. 35 | OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of August 31, 2006 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $211,532,675 ============= Gross unrealized appreciation $ 31,014,330 Gross unrealized depreciation (11,284,014) ------------- Net unrealized appreciation $ 19,730,316 ============= Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized. - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during the years of service. During the year ended August 31, 2006, the Fund's projected benefit obligations were decreased by $13,550 and payments of $4,846 were made to retired trustees, resulting in an accumulated liability of $42,833 as of August 31, 2006. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the Plan. - -------------------------------------------------------------------------------- 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 36 | OPPENHEIMER ENTERPRISE FUND the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of no par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
YEAR ENDED AUGUST 31, 2006 YEAR ENDED AUGUST 31, 2005 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------- CLASS A Sold 2,537,637 $ 37,289,319 2,612,694 $ 33,590,367 Redeemed (2,773,873) (40,081,899) (3,001,115) (38,601,056) ------------------------------------------------------------- Net decrease (236,236) $ (2,792,580) (388,421) $ (5,010,689) ============================================================= - ----------------------------------------------------------------------------------------- CLASS B Sold 1,077,578 $ 14,568,412 461,518 $ 5,482,893 Redeemed (884,788) (11,829,897) (2,102,913) (24,706,384) ------------------------------------------------------------- Net increase (decrease) 192,790 $ 2,738,515 (1,641,395) $(19,223,491) =============================================================
37 | OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED AUGUST 31, 2006 YEAR ENDED AUGUST 31, 2005 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------- CLASS C Sold 352,895 $ 4,780,311 206,244 $ 2,454,142 Redeemed (352,054) (4,711,745) (373,116) (4,430,853) ------------------------------------------------------------- Net increase (decrease) 841 $ 68,566 (166,872) $ (1,976,711) ============================================================= - ----------------------------------------------------------------------------------------- CLASS N Sold 3,787,502 $ 54,986,681 35,566 $ 453,829 Redeemed (206,135) (2,905,558) (24,213) (303,253) ------------------------------------------------------------- Net increase 3,581,367 $ 52,081,123 11,353 $ 150,576 ============================================================= - ----------------------------------------------------------------------------------------- CLASS Y Sold 338,211 $ 5,025,402 384,526 $ 5,169,594 Redeemed (524,763) (7,800,991) (640,386) (8,375,017) ------------------------------------------------------------- Net decrease (186,552) $ (2,775,589) (255,860) $ (3,205,423) =============================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended August 31, 2006, were as follows: PURCHASES SALES -------------------------------------------------------------- Investment securities $132,352,327 $87,069,222 - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee at an average annual rate as shown in the following table: FEE SCHEDULE ---------------------------------------------- Up to $200 million of net assets 0.75% Next $200 million of net assets 0.72 Next $200 million of net assets 0.69 Next $200 million of net assets 0.66 Next $700 million of net assets 0.60 Over $1.5 billion of net assets 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, 2006, the Fund paid $688,050 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. 38 | OPPENHEIMER ENTERPRISE FUND - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. - -------------------------------------------------------------------------------- SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal services and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares and 0.25% on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. The Distributor's aggregate uncompensated expenses under the plan at August 31, 2006 for Class B, Class C and Class N shares were $907,276, $408,988 and $46,897, 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, 2006 $83,794 $764 $76,491 $8,378 $16,250
39 | OPPENHEIMER ENTERPRISE FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued 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, 2006, OFS waived $184,577, $3,253, $20,151, $87,159 and $739 for Class A, Class B, Class C, Class N and Class Y shares, respectively. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- 5. RECENT ACCOUNTING PRONOUNCEMENT In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB Statement No. 109, ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether it is "more-likely-than-not" that tax positions taken in the Fund's tax return will be ultimately sustained. A tax liability and expense must be recorded in respect of any tax position that, in Management's judgment, will not be fully realized. FIN 48 is effective for fiscal years beginning after December 15, 2006. As of August 31, 2006, the Manager is evaluating the implications of FIN 48. Its impact in the Fund's financial statements has not yet been determined. - -------------------------------------------------------------------------------- 6. LITIGATION A consolidated amended complaint was filed as a putative class action against the Manager and the Transfer Agent and other defendants (including 51 of the Oppenheimer funds including the Fund) in the U.S. District Court for the Southern District of New York on January 10, 2005 and was amended on March 4, 2005. The complaint alleged, among other things, that the Manager charged excessive fees for distribution and other costs, and that by permitting and/or participating in those actions, the Directors/Trustees and the Officers of the funds breached their fiduciary duties to fund shareholders under the Investment Company Act of 1940 and at common law. The plaintiffs sought unspecified damages, an accounting of all fees paid, and an award of attorneys' fees and litigation expenses. In response to the defendants' motions to dismiss the suit, seven of the eight counts in the complaint, including the claims against certain of the Oppenheimer funds, as nominal defendants, and against certain present and former Directors, Trustees and Officers of the funds, and the Distributor, as defendants, were dismissed with prejudice, by court order dated March 10, 2006, and the remaining count against the Manager and the Transfer Agent was dismissed with prejudice by court order dated April 5, 2006. The plaintiffs filed an appeal of those dismissals on May 11, 2006. The Manager believes that the allegations contained in the complaint are without merit and that there are substantial grounds to sustain the district court's rulings. The Manager also believes that it is premature to render any opinion as to the likelihood of an outcome unfavorable to it, the funds, the Directors/Trustees or the Officers on the appeal of the decisions of the district court, and that no estimate can yet be made with any degree of certainty as to the amount or range of any potential loss. 40 | 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, 2006, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2006, by correspondence with the custodian. 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, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles. KPMG LLP Denver, Colorado October 16, 2006 41 | OPPENHEIMER ENTERPRISE FUND FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- In early 2007, if applicable, shareholders of record will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2006. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 42 | 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 website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30, no later than August 31 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. 43 | 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. CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January 2005); Chairman of the Board Attorney at Hogan & Hartson (law firm) (since June 1993); Director of Covanta of Trustees (since 2003), Holding Corp. (waste-to-energy company) (since 2002); Director of Trustee (since 1995) Weyerhaeuser Corp. (1999-April 2004); Director of Caterpillar, Inc. (1993- Age: 75 December 2002); Director of ConAgra Foods (1993-2001); Director of Texas Instruments (1993-2001); Director of FMC Corporation (1993-2001). Oversees 43 portfolios in the OppenheimerFunds complex. MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research founda- Trustee (since 2005) tion) (since 2005); Director of ICI Education Foundation (education foundation) Age: 65 (October 1991-August 2006); President of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI Mutual Insurance Company (insurance company) (October 1991-June 2004). Oversees 43 portfo- lios in the OppenheimerFunds complex. ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 53 portfolios in the Trustee (since 1995) OppenheimerFunds complex. Age: 73 PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and Trustee (since 1999) Member (since 1979) of the National Academy of Sciences; Council on Foreign Age: 68 Relations (since 2002); Director of GSI Lumonics Inc. (precision medical equip- ment supplier) (since 2001); Senior Advisor of The Andrew W. Mellon Foundation (since 2001); Chair of Science Initiative Group (since 1999); Member of the American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Foreign Associate of Third World Academy of Sciences; Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983- 1991). Oversees 43 portfolios in the OppenheimerFunds complex. MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October Trustee (since 2004) 1998); and Senior Vice President and General Auditor of American Express Age: 63 Company (financial services company) (July 1998-February 2003). Oversees 43 portfolios in the OppenheimerFunds complex. JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser) Trustee (since 2002) (since 2002); Managing Director of Carmona Motley, Inc. (privately-held finan- Age: 54 cial adviser) (since January 2002); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial adviser) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, the Investment Committee of the Episcopal Church of America, the Investment Committee and Board of Human Rights Watch and the Investment Committee of Historic Hudson Valley. Oversees 43 portfolios in the OppenheimerFunds complex.
44 | OPPENHEIMER ENTERPRISE FUND KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) Trustee (since 1995) (February 1972-October 2005); Former Director of Prime Retail, Inc. (real estate Age: 79 investment trust), Dominion Energy Inc. (electric power and oil & gas producer), Lumberman's Mutual Casualty Company, American Motorists Insurance Company and American Manufacturers Mutual Insurance Company; Former President and Chief Executive Officer of The Conference Board, Inc. (interna- tional economic and business research). Oversees 43 portfolios in the OppenheimerFunds complex. RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consult- Trustee (since 1995) ing and executive recruiting) (since 1993); Life Trustee of International House Age: 74 (non-profit educational organization); Founder, Chairman and Chief Executive Officer of Russell Reynolds Associates, Inc. (1969-1993); Banker at J.P. Morgan & Co. (1958-1966); 1st Lt. Strategic Air Command, U.S. Air Force (1954-1958). Oversees 43 portfolios in the OppenheimerFunds complex. JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and Trustee (since 2005) Cathco (since 1996); Director of Lakes Environmental Association (since 1996); Age: 65 Member of the Investment Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of Fortis/Hartford mutual funds (1994- December 2001). Oversees 43 portfolios in the OppenheimerFunds complex. PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production Trustee (since 2005) company) (since 1994); Vice President, Secretary and Treasurer of Wold Trona Age: 58 Company, Inc. (soda ash processing and production) (since 1996); Vice President of Wold Talc Company, Inc. (talc mining) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 43 portfolios in the OppenheimerFunds complex. BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995); Trustee (since 2005) Director of Special Value Opportunities Fund, LLC (registered investment com- Age: 63 pany) (since September 2004); Member of Zurich Financial Investment Advisory Board (insurance) (since October 2004); Board of Governing Trustees of The Jackson Laboratory (non-profit) (since August 1990); Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004); Trustee of Research Foundation of AIMR (2000- 2002) (investment research, non-profit); Governor, Jerome Levy Economics Institute of Bard College (August 1990-September 2001) (economics research); Director of Ray & Berendtson, Inc. (May 2000-April 2002) (executive search firm). Oversees 53 portfolios in the OppenheimerFunds complex. - ----------------------------------------------------------------------------------------------------------------------------- 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 INDEF- INITE 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.
45 | OPPENHEIMER ENTERPRISE FUND TRUSTEES AND OFFICERS Unaudited / Continued - -------------------------------------------------------------------------------- JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President Trustee, President and (since September 2000) of the Manager; President and a director or trustee of Principal Executive Officer other Oppenheimer funds; President and Director of Oppenheimer Acquisition (since 2001) Corp. ("OAC") (the Manager's parent holding company) and of Oppenheimer Age: 57 Partnership Holdings, Inc. (holding company subsidiary of the Manager) (since July 2001); Director of OppenheimerFunds Distributor, Inc. (subsidiary of the Manager) (since November 2001); Chairman and Director of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent sub- sidiaries of the Manager) (since July 2001); President and Director of OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since July 2001); Director of the following investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management Corporation, Trinity Investment Management Corporation and Tremont Capital Management, Inc. (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and Director (since July 2001) of Oppenheimer Real Asset Management, Inc.; Executive Vice President of Massachusetts Mutual Life Insurance Company (OAC's parent company) (since February 1997); Director of DLB Acquisition Corporation (holding company par- ent of Babson Capital Management LLC) (since June 1995); Member of the Investment Company Institute's Board of Governors (since October 3, 2003); Chief Operating Officer of the Manager (September 2000-June 2001); President and Trustee of MML Series Investment Fund and MassMutual Select Funds (open-end investment companies) (November 1999-November 2001); Director of C.M. Life Insurance Company (September 1999-August 2000); President, Chief Executive Officer and Director of MML Bay State Life Insurance Company (September 1999-August 2000); Director of Emerald Isle Bancorp and Hibernia Savings Bank (wholly-owned subsidiary of Emerald Isle Bancorp) (June 1989-June 1998). Oversees 91 portfolios in the OppenheimerFunds complex. - ----------------------------------------------------------------------------------------------------------------------------- OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS. OF THE FUND GILSTON, ZACK, GILLESPIE AND MS. BLOOMBERG , TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW YORK 10281-1008, FOR MESSRS. VANDEHEY, WIXTED, PETERSEN, SZILAGYI AND MS. IVES, 6803 S. TUCSON WAY, CENTENNIAL, COLORADO 80112- 3924. EACH OFFICER SERVES FOR AN INDEFINITE TERM OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL. ALAN GILSTON, Vice President and Portfolio Vice President of the Manager since September 1997. An officer of 1 portfolio in Manager (since 2004) the OppenheimerFunds complex. Age: 48 MARK S. VANDEHEY, Vice President and Chief Senior Vice President and Chief Compliance Officer of the Manager (since Compliance Officer March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial (since 2004) Asset Management Corporation and Shareholder Services, Inc. (since June 1983). Age: 56 Former Vice President and Director of Internal Audit of the Manager (1997- February 2004). An officer of 91 portfolios in the OppenheimerFunds complex.
46 | OPPENHEIMER ENTERPRISE FUND BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer and Principal Treasurer of the following: HarbourView Asset Management Corporation, Financial and Accounting Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Officer (since 1999) Real Asset Management Corporation, and Oppenheimer Partnership Holdings, Age: 47 Inc. (since March 1999), OFI Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of the following: OAC (since March 1999),Centennial Asset Management Corporation (March 1999- October 2003) and OppenheimerFunds Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer of Bankers Trust Company- Mutual Fund Services Division (March 1995-March 1999). An officer of 91 portfolios in the OppenheimerFunds complex. BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002); Manager/Financial Assistant Treasurer Product Accounting of the Manager (November 1998-July 2002). An officer of (since 2004) 91 portfolios in the OppenheimerFunds complex. Age: 36 BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial Assistant Treasurer Reporting and Compliance of First Data Corporation (April 2003-July 2004); (since 2005) Manager of Compliance of Berger Financial Group LLC (May 2001-March 2003); Age: 36 Director of Mutual Fund Operations at American Data Services, Inc. (September 2000-May 2001). An officer of 91 portfolios in the OppenheimerFunds complex. ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since Secretary (since 2001) March 2002) of the Manager; General Counsel and Director of the Distributor Age: 58 (since December 2001); General Counsel of Centennial Asset Management Corporation (since December 2001); Senior Vice President and General Counsel of HarbourView Asset Management Corporation (since December 2001); Secretary and General Counsel of OAC (since November 2001); Assistant Secretary (since September 1997) and Director (since November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President, General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since December 2001); Senior Vice President, General Counsel and Director of OFI Private Investments, Inc. and OFI Trust Company (since November 2001); Vice President of OppenheimerFunds Legacy Program (since June 2003); Senior Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since November 2001); Director of OppenheimerFunds (Asia) Limited (since December 2003); Senior Vice President (May 1985-December 2003), Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of the following: Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001), and OppenheimerFunds International Ltd. (September 1997-November 2001). An officer of 91 portfolios in the OppenheimerFunds complex.
47 | OPPENHEIMER ENTERPRISE FUND TRUSTEES AND OFFICERS Unaudited / Continued - -------------------------------------------------------------------------------- LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Assistant Secretary Vice President (April 2001-April 2004), Associate General Counsel (December (since 2004) 2000-April 2004), Corporate Vice President (May 1999-April 2001) and Assistant Age: 38 General Counsel (May 1999-December 2000) of UBS Financial Services Inc. (for- merly, PaineWebber Incorporated). An officer of 91 portfolios in the OppenheimerFunds complex. KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since Assistant Secretary October 2003) of the Manager; Vice President (since 1999) and Assistant Secretary (since 2001) (since October 2003) of the Distributor; Assistant Secretary of Centennial Asset Age: 40 Management Corporation (since October 2003); Vice President and Assistant Secretary of Shareholder Services, Inc. (since 1999); Assistant Secretary of OppenheimerFunds Legacy Program and Shareholder Financial Services, Inc. (since December 2001); Assistant Counsel of the Manager (August 1994-October 2003). An officer of 91 portfolios in the OppenheimerFunds complex. PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since Assistant Secretary September 2004); First Vice President (2000-September 2004), Director (2000- (since 2004) September 2004) and Vice President (1998-2000) of Merrill Lynch Investment Age: 42 Management. An officer of 91 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. 48 | 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 the registrant does not have an audit committee financial expert serving on its Audit Committee. In this regard, no member of the Audit Committee was identified as having all of the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR to qualify as an "audit committee financial expert," whether through the type of specialized education or experience described in that Instruction. The Board has concluded that while the members of the Audit Committee collectively have the necessary attributes and experience required to serve effectively as an Audit Committee, no single member possesses all of the required technical attributes through the particular methods of education or experience set forth in the Instructions to be designated as an audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees The principal accountant for the audit of the registrant's annual financial statements billed $13,000 in fiscal 2006 and $13,000 in fiscal 2005. (b) Audit-Related Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed $75,000 in fiscal 2006 and $132,059 in fiscal 2005 to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such services include: internal control reviews. (c) Tax Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees to the registrant during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed no such fees in fiscal 2006 and $5,000 in fiscal 2005 to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such services include: filing form 5500. (d) All Other Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed $8,000 in fiscal 2006 and no such fees in 2005 to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrant's retirement plan with respect to its trustees. (e) (1) During its regularly scheduled periodic meetings, the registrant's audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant. The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting. Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit. (2) 100% (f) Not applicable as less than 50%. (g) The principal accountant for the audit of the registrant's annual financial statements billed $83,000 in fiscal 2006 and $137,059 in fiscal 2005 to the registrant and the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934. (h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS 1. The Fund's Governance Committee (the "Committee") will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds' investment manager and its affiliates in making the selection. 2. The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual's background, skills, and experience; whether the individual is an "interested person" as defined in the Investment Company Act of 1940; and whether the individual would be deemed an "audit committee financial expert" within the meaning of applicable SEC rules. The Committee also considers whether the individual's background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. 3. The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: o the name, address, and business, educational, and/or other pertinent background of the person being recommended; o a statement concerning whether the person is an "interested person" as defined in the Investment Company Act of 1940; o any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and o the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares. The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation. 4. Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds' investment adviser) would be deemed an "interested person" under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds' outside legal counsel may cause a person to be deemed an "interested person." 5. Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company. ITEM 11. CONTROLS AND PROCEDURES. Based on their evaluation of the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 08/31/2006, the registrant's principal executive officer and principal financial officer found the registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. There have been no changes in the registrant's internal controls over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a) (1) Exhibit attached hereto. (2) Exhibits attached hereto. (3) Not applicable. (b) Exhibit attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Oppenheimer Enterprise Fund By: /S/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 10/16/2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 10/16/2006 By: /S/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer Date: 10/16/2006 EX-99.CERT 2 ra885_35025cert302.txt RA885_35025CERT302 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Enterprise Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 10/16/2006 /S/ John V. Murphy - --------------------------- John V. Murphy Principal Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Enterprise Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 10/16/2006 /S/ Brian W. Wixted - --------------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 3 ra885_35025cert906.txt RA885_35025CERT906 EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 John V. Murphy, Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer Enterprise Fund (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended 08/31/2006 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Principal Executive Officer Principal Financial Officer Oppenheimer Enterprise Fund Oppenheimer Enterprise Fund /S/ John V. Murphy /S/ Brian W. Wixted - --------------------------------- ------------------------------ John V. Murphy Brian W. Wixted Date: 10/16/2006 Date: 10/16/2006 EX-99.CODE ETH 4 ra885_35025ex99codeeth.txt RA885_35025EX99CODEETH EX-99.CODE ETH CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE OPPENHEIMER FUNDS AND OF OPPENHEIMERFUNDS, INC. This Code of Ethics for Principal Executive and Senior Financial Officers (referred to in this document as the "Code") has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as "OFI") acts as investment adviser (individually, a "Fund" and collectively, the "Funds"), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406. This Code applies to OFI's and each Fund's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Covered Officers"). A listing of positions currently within the ambit of Covered Officers is attached as EXHIBIT A. 1 1. PURPOSE OF THE CODE This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; o compliance with applicable governmental laws, rules and regulations; o the prompt internal reporting of violations of this Code to the Code Administrator identified below; and o accountability for adherence to this Code. In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, - ---------- 1 The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by OFI and the Funds under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Fund's financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds' business and affairs in an honest and ethical manner. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI's fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds. 1. PROHIBITIONS The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders. No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders. No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations. No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund: (i) employ any device, scheme or artifice to defraud a Fund or its shareholders; (ii) intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; (iv) engage in any manipulative practice with respect to any Fund; (v) use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; (vi) intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; (vii) intentionally mislead or omit to provide material information to the Fund's independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; (viii) fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; (ix) retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or (x) fails to acknowledge or certify compliance with this Code if requested to do so. 3. REPORTS OF CONFLICTS OF INTERESTS If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer's reasonable belief, the appearance of one, he or she must immediately report the matter to the Code's Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI's Chief Executive Officer. Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund's Board of Trustees/Directors. 4. WAIVERS Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund. In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver: (i) is prohibited by this Code; (ii) is consistent with honest and ethical conduct; and (iii) will result in a conflict of interest between the Covered Officer's personal and professional obligations to a Fund. In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund's Board of Trustees/Directors. 5. REPORTING REQUIREMENTS (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code. (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto. (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser. (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments. (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code. (f) Any changes to or waivers of this Code, including "implicit" waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules. 2 6. ANNUAL RENEWAL At least annually, the Board of Trustees/Directors of each Fund shall review the Code and determine whether any amendments (including any amendments that may be recommended by OFI or the Fund's legal counsel) are necessary or desirable, and shall consider whether to renew and/or amend the Code. 7. SANCTIONS Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI. 8. ADMINISTRATION AND CONSTRUCTION (a) The administration of this Code of Ethics shall be the responsibility of OFI's General Counsel or his designee as the "Code Administrator" of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. (b) The duties of such Code Administrator will include: (i) Continuous maintenance of a current list of the names of all Covered Officers; (ii) Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; (iii) Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; - ---------- 2 An "implicit waiver" is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, an executive officer of the Fund or OFI. (iv) Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; (v) Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the affected Fund(s) or any committee appointed by them to deal with such information; and (vi) Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. 9. REQUIRED RECORDS The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred): (a) A copy of any Code which has been in effect during the period; (b) A record of any violation of any such Code and of any action taken as a result of such violation, during the period; (c) A copy of each annual report pursuant to the Code made by a Covered Officer during the period; (d) A copy of each report made by the Code Administrator pursuant to this Code during the period; (e) A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; (f) A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and (g) A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. 10. AMENDMENTS AND MODIFICATIONS Other than non-substantive or administrative changes, this Code may not be amended or modified unless approved or ratified by the Board of Trustees/Directors of each Fund. 11. CONFIDENTIALITY. This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process. Dated as of: June 25, 2003, as revised July 31, 2006 Adopted by Board I of the Oppenheimer Funds June 13, 2003, revisions approved August 10, 2006 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003, revisions approved August 30, 2006 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003, revisions approved July 31, 2006 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Robert G. Zack, Secretary Adopted by the Boards of Directors of OppenheimerFunds, Inc. and its subsidiaries and affiliates that act as investment adviser to the Oppenheimer or Centennial funds June 1, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Senior Vice President and General Counsel Exhibit A Positions Covered by this Code of Ethics for Senior Officers EACH OPPENHEIMER OR CENTENNIAL FUND Principal Executive Officer Principal Financial Officer Treasurer Assistant Treasurer PERSONNEL OF OFI WHO BY VIRTUE OF THEIR JOBS PERFORM CRITICAL FINANCIAL AND ACCOUNTING FUNCTIONS FOR OFI ON BEHALF OF A FUND, INCLUDING: Chief Financial Officer Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting -----END PRIVACY-ENHANCED MESSAGE-----