OppenheimerFunds
A Brief
Primer on
Customer
Behavior
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank and are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
For Institutional Use Only. This material has been
prepared by OppenheimerFunds Distributor, Inc. for
institutional investors only. It has not been filed with
NASD and may not be reproduced, shown or quoted
to, or used with, members of the public.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street,
New York, NY 10281-1008
®
Kurt J. Wolfgruber
Chief Investment Officer
OppenheimerFunds, Inc.
Recent Past: Exaggerated Cycle
®
Average Annual Total Returns
Long-Term
1976–2003
Bull
1995–99
Bear
2000–02
Recovery
1
2003
S&P 500 Index
12.92%
28.54%
–14.54%
28.67%
Nasdaq
Composite Index
14.32
40.62
–30.45
50.77
Goldman Sachs
Commodities Index
8.81
4.63
10.41
20.72
Lehman Aggregate
Bond Index
9.13
7.73
10.10
4.10
1. Through 12/31/03.
Source of data: Standard & Poor’s Micropal, Inc.
The indices shown include reinvested income, are unmanaged and cannot be purchased directly by investors. For
illustrative purposes only, not intended to predict or depict the performance of any investment. Past performance
does not guarantee future results.
Impact on Client Portfolios
®
American Association of Individual Investors Allocation Survey
Bonds
14% Cash
9%
Bonds
24%
Stocks
62%
Stocks
77%
Cash
14%
January 1995
January 2000
Stocks
46%
Bonds
38%
Cash
16%
January 2003
Source of chart data: Ned Davis Research.
Timing: Impact on Performance
®
Annualized Returns, 1984–2002
14%
12.22%
12%
10%
8%
6%
4%
2.57%
3.14%
2%
0%
S&P 500
Source of chart data: Dalbar, 2003.
Hypothetical Equity
Fund Investor
Inflation
1
2003 : Poor Setup
®
Negatives
•
•
•
•
•
•
Post-bubble Hangover
Iraq
SARS
Jobless Recovery
Deflation Scare
Continued Corporate
Scandals
• Mutual Fund Scandal
1. Through 12/31/03.
Past performance does not guarantee future results. The indices shown include reinvested income,
are unmanaged and cannot be purchased directly by investors. For illustrative purposes only, not intended
to predict or depict the performance of any investment.
1
2003 : Poor Setup, Great Results
®
Negatives
Results
•
•
•
•
•
•
• Economic Expansion Gains
Momentum
• Profits Recovery
• S&P 500 Index +26.4%
• Nasdaq Index +50.0%
• Russell 2000 Index +45.4%
Post-bubble Hangover
Iraq
SARS
Jobless Recovery
Deflation Scare
Continued Corporate
Scandals
• Mutual Fund Scandal
1. Through 12/31/03.
Past performance does not guarantee future results. The indices shown include reinvested income,
are unmanaged and cannot be purchased directly by investors. For illustrative purposes only, not intended
to predict or depict the performance of any investment.
Diversification Counts
®
S&P
60/40
50/50
40/60
LB Agg
1990
-3.1
1.7
2.9
4.1
9.0
1991
30.4
24.6
23.2
21.8
16.0
1992
7.6
7.5
7.5
7.5
7.4
1993
10.1
9.9
9.9
9.9
9.8
1994
1.3
- 0.4
-0.8
-1.2
-2.9
1995
37.5
29.9
28.0
26.1
18.5
1996
23.0
15.2
13.3
11.4
3.6
1997
33.4
23.9
21.5
19.1
9.7
1998
28.6
20.6
18.6
16.6
8.7
1999
21.0
12.3
10.1
7.9
-0.8
2000
-9.1
-0.8
1.3
3.3
11.6
2001
-11.9
-3.8
-1.7
0.3
8.4
2002
-19.4
-8.9
-6.3
-3.7
6.8
2003
28.7
18.8
16.4
13.9
4.1
Total
327%
286%
273%
258%
196%
Source of data: Strategic Inisght. Includes mutual fund assets for all distribution channels, excluding money market products.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank and
are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the
principal amount invested.
Bonds
Stocks
Bonds
Stocks
“All Weather Portfolio”
®
Portfolio vs. Index Results as of 3/31/04
1/3
Dom Eq
1/3
Bond
1/3
Global
Portfolios Equally Weighted
Opp Strategic Income
Opp Main Street
Opp Global
Lehman Aggregate
S&P 500
MSCI World
Difference (OFI +/– Index)
Cumulative Total Returns
1 Yr 3 Yr
5 Yr
10 Yr
10 YR
Return/
Unit Risk
37.9%
18.9%
34.6% 152.6%
12.4
28.1
10.1
10.6
137.3
11.2
+9.8
+8.9
+ 24.0
+ 15.3
Past performance does not guarantee future results. This material must be preceded or accompanied by the current
prospectus of each fund. Fund performance shown without considering sales charges. The average annual total returns after
deducting the current maximum sales charge of 5.75% for Class A shares for the 1, 5 and 10 year periods ending 3/31/04 were
(Strategic Income) 12.29%, 6.40% and 6.85%, (Main Street) 26.23%, -1.56% and 8.43%, (Global) 52.71%, 8.87% and 11.49%
respectively. The S&P 500 index is a broad-based stock index. The Lehman Aggregate Bond Index includes a broad range of
investment-grade U.S. Government and corporate bonds. The MSCI World Index is a broad-based index, widely used as a measure
of global stock market performance. Indices are unmanaged, include reinvested income and cannot be purchased directly by
investors. Sample portfolio is not intended as investment advice, and each investor should consider his investment goals, risk
tolerance and tax strategy, among other factors.
+ 1.2
OppenheimerFunds
Our
Investment
Organization
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank and are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
For Institutional Use Only. This material has been
prepared by OppenheimerFunds Distributor, Inc. for
institutional investors only. It has not been filed with
NASD and may not be reproduced, shown or quoted
to, or used with, members of the public.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street,
New York, NY 10281-1008
®
Kurt J. Wolfgruber
Chief Investment Officer
OppenheimerFunds, Inc.
OppenheimerFunds, Inc.
®
Company Overview
• Founded in 1960
• Headquarters: New York City
• Owned by: MassMutual Financial Group
and OFI Management
• Over $155 billion in assets under management
• 65+ funds
• 7.4 million shareholder accounts through
200,000 financial advisors
• Approximately 2,200 employees
• Over 350 investment staff/professionals
OppenheimerFunds
Corporate Strategy
®
• Grow Assets and Profits Faster than the
Asset Management Industry
• Expand Beyond Mutual Funds
• Embrace Customer Centricity
• Drive Profitable Growth Through
Investment Excellence
Asset Growth
Assets Under Management vs. S&P 500 Index
$180
1600
$160
1400
$140
1200
$120
1000
$100
800
$80
$60
Assets Under Management (LHS)
$40
S&P 500 Index (RHS)
600
400
200
Source: Bloomberg.
2004Q1
2003Q3
2003Q1
2002Q3
2002Q1
2001Q3
2001Q1
2000Q3
2000Q1
$0
1999Q3
$20
1999Q1
®
0
Total Assets Under
Management
~ $155 Billion
®
Tremont
$8.9 B
OFI Institutional
$6.8 B
High Net Worth
$2.2 B
OppenheimerFunds
~ $137 B
OppenheimerFunds, Inc.
®
Key Strengths/Points of Differentiation
• Top investment talent
• Five portfolio managers in Barron’s annual
Top 100 ranking, more than any other company
Top Investment Talent
®
Investment Goals & Results
Long-Term Assets, 5 Years Through 3/31/04
90%
80%
70%
OFI Actual
75%
67%
GOAL
60%
Average Main Competitors
50%
50%
40%
30%
21%
20%
16%
10%
6%
0%
Top Half
Source: Lipper
Bottom Quartile
OppenheimerFunds, Inc.
®
Key Strengths/Points of Differentiation
• Top investment talent
• Five portfolio managers in Barron’s annual
Top 100 ranking, more than any other company
• Entrepreneurial Organizational Structure
Investment Department
Organizational Structure
OFI Institutional
Chuck McKenzie
John Murphy
Chairman
Chief Executive Officer
Tremont
Sandra Manzke
Robert Schulman
OppenheimerFunds
Kurt Wolfgruber
Chief Investment Officer
Bill
Wilby
Kurt
Wolfgruber
Jerry
Webman
Ken
Winston
Andy
Mika
Keith
Spencer
Global
Equities
Domestic
Equities
Fixed
Income
Risk Mgmt
Operations
Equity
Trading
Total1 Investment Staff: 114
1. Retail Assets Only; Excluding OFI Institutional and Tremont
Oppenheimer’s Team Approach
®
Entrepreneurial Organizational Structure
U.S.
Stock
Global
Stock
Core
(Main St)
Global
Growth
“Global
investing is a
strong point at
Oppenheimer”
“A
worthwhile
option”
“Solid pick”
(Global Fund)
(on Capital
Appreciation
Fund)
(Main Street)
Morningstar, 9/03
Morningstar, 6/03
Morningstar, 9/03
Bonds
Value
“An
experienced
manager
with a good
track
record”
Morningstar,
on Chris Leavy,
Value Fund, 6/03
Other
Equity
Taxable
Muni
“Good
option”
“Top-notch
management”
(Capital
Income)
(High Grade
Bond Team)
“Reputation
for thorough
research &
high-income
performance”
Morningstar, 12/03
Morningstar,
on Ron Fielding,
Rochester Team
leader, 4/03
Morningstar, 10/03
16%
13%
17%
12%
9%
18%
15%
of Assets
of Assets
of Assets
of Assets
of Assets
of Assets
of Assets
Source of data: Strategic Insight as of 2/28/04.
Past performance does not guarantee future results.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank
and are not insured by the FDIC or any other agency, and involve investment risks, including the possible
loss of the principal amount invested.
OppenheimerFunds, Inc.
®
Key Strengths/Points of Differentiation
• Top investment talent
• Five portfolio managers in Barron’s annual
Top 100 ranking, more than any other company
• Entrepreneurial Organizational Structure
• Broad Spectrum of Products
Broad Spectrum of Products
Global Stock
Independent
Teams
Mutual
Funds
U.S. Equity
Diversification
Bonds
Global
Growth
Core
Value
Hybrid &
Specialty
Taxable
Municipal
Global
Capital
Appreciation
Main Street
Value
Quest
Balanced
Limited- Term
Gov’t
Rochester
National
Municipals
International
Growth
Growth
Main Street
Opportunity
Quest Value
Oppenheimer
Balanced
Strategic
Income
Limited Term
Municipal
International
Value
MidCap
Main Street
Small Cap
Special Value
Real Asset
Bond Fund
AMT-Free
Municipals
Equity Fund
Quest Capital
Value
Real Estate
Total Return
Bond
Rochester
Fund
Municipals
Small Cap
Value
Convertible
Securities
U.S.
Government
Trust
Limited Term
NY
High Yield/
Champion
AMT-Free NY
Municipals
Senior
Floating Rate
CA, NJ, PA
Municipals
International
Bond
Limited Term
California
Global
Opportunities
Enterprise
Quest
International
Value
Discovery
Developing
Markets
Emerging
Growth
International
Small
Company
For more complete information about any of the Oppenheimer funds, including charges, expenses
and risk or to obtain a prospectus, contact your sales representative today at 1.800.255.2750.
Or log on to our website at www.oppenheimerfunds.com. Read the prospectus carefully before
you invest or send money.
10 Best Sellers–OppenheimerFunds
®
Lipper Quartile Rankings based on total return as of 3/31/04
1
2
3
4
5
6
7
8
9
10
Global
Main Street Fund
Capital Appreciation
Strategic Income
Quest Balanced
Developing Mkts
Rochester Fund Munis
Limited Term NY Muni
Main Street Opportunity
International Bond
% Top Half
Average % Rank
1 YR
1
2
1
1
1
1
1
1
1
1
3 YR
1
1
3
2
3
3
1
1
1
1
5 YR
1
1
1
1
1
1
2
1
1
1
10 YR
1
3
1
1
1
1
1
-
100%
10
70%
26
100%
15
86%
19
Past performance does not guarantee future results.
Best selling funds are determined by 12-month sales as of 2/28/04, the most current sales data available from Strategic Insight.
Lipper quartile rankings are based on category peer groups and are for the primary share class as identified by Strategic Insight.
Lipper rankings are based on total returns but do not consider sales charge and are subject to change monthly. If sales charges
were considered rankings may change substantially. Rankings are relative peer group ratings and do not necessarily mean that the
fund had high total returns. Funds are grouped by investment objective into Lipper categories and attempt to achieve the stated
objective, however may or may not.
OppenheimerFunds, Inc.
®
Key Strengths/Points of Differentiation
• Top investment talent
• Five portfolio managers in Barron’s annual
Top 100 ranking, more than any other company
• Entrepreneurial Organizational Structure
• Broad Spectrum of Products
• Powerful brand image
• 5th most recognized brand within the U.S.
mutual fund industry (Nationwide Surveys, 2003)
• Rated 9th in overall reputation in entire U.S.
financial services industry (American Banker, 2001)
Powerful Brand Image
®
OppenheimerFunds, Inc.
®
Key Strengths/Points of Differentiation
• Top investment talent
• Five portfolio managers in Barron’s annual
Top 100 ranking, more than any other company
• Entrepreneurial Organizational Structure
• Broad Spectrum of Products
• Powerful brand image
• 5th most recognized brand within the U.S.
mutual fund industry (Nationwide Surveys, 2003)
• Rated 9th in overall reputation in entire U.S.
financial services industry (American Banker, 2001)
• Strong intermediary partnerships
Near-term Challenges
®
• Business Environment
• Short-term… Short-term… Short-term
• Benchmark “Float”
• Product/fund Proliferation
• Regulatory Environment
• Market Timing
• Transaction Costs
• Shelf Space Cost
• Soft Dollars
• Wall Street Research
• Alignment of Interests