® OppenheimerFunds A Brief Primer on Customer Behavior Kurt J. Wolfgruber Chief Investment Officer OppenheimerFunds, Inc. Kurt J. Wolfgruber Chief Investment

®

OppenheimerFundsOppenheimerFunds

A Brief Primer on Customer Behavior

A Brief Primer on Customer Behavior

Kurt J. WolfgruberChief Investment Officer OppenheimerFunds, Inc.


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

®

Recent Past: Exaggerated CycleAverage Annual Total ReturnsRecent Past: Exaggerated CycleAverage Annual Total Returns

Long-TermLong-Term

1976–20031976–2003

BullBull

1995–991995–99

BearBear

2000–022000–02

RecoveryRecovery

2003200311

S&P 500 IndexS&P 500 Index 12.92% 28.54% –14.54% 28.67%

Nasdaq Nasdaq Composite IndexComposite Index

14.32 40.62 –30.45 50.77

Goldman Sachs Goldman Sachs Commodities IndexCommodities Index

8.81 4.63 10.41 20.72

Lehman Aggregate Lehman Aggregate Bond IndexBond 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.

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Impact on Client PortfoliosAmerican Association of Individual Investors Allocation Survey Impact on Client PortfoliosAmerican Association of Individual Investors Allocation Survey

Stocks62%

Cash14%

Bonds24% Cash

9%

Bonds14%

Stocks77%

January 1995 January 2000

January 2003

Bonds38%

Cash16%

Stocks46%

Source of chart data: Ned Davis Research.

®

12.22%

2.57%3.14%

0%

2%

4%

6%

8%

10%

12%

14%

S&P 500 Hypothetical EquityFund Investor

Inflation

Timing: Impact on PerformanceAnnualized Returns, 1984–2002Timing: Impact on PerformanceAnnualized Returns, 1984–2002

Source of chart data: Dalbar, 2003.

®

NegativesNegatives

• Post-bubble Hangover

• Iraq

• SARS

• Jobless Recovery

• Deflation Scare

• Continued Corporate Scandals

• Mutual Fund Scandal


• Iraq

• SARS


• Deflation Scare



20031: Poor Setup20031: Poor Setup

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.

®

NegativesNegatives


• Iraq

• SARS


• Deflation Scare




• Iraq

• SARS


• Deflation Scare



ResultsResults

• Economic Expansion Gains Momentum

• Profits Recovery

• S&P 500 Index +26.4%

• Nasdaq Index +50.0%

• Russell 2000 Index +45.4%

• Economic Expansion Gains Momentum

• Profits Recovery

• S&P 500 Index +26.4%

• Nasdaq Index +50.0%

• Russell 2000 Index +45.4%

20031: Poor Setup, Great Results20031: Poor Setup, Great Results

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 CountsDiversification Counts

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.

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Total

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Total

Bonds

Stocks

Bonds

Stocks

60/40

1.7

24.6

7.5

9.9

- 0.4

29.9

15.2

23.9

20.6

12.3

-0.8

-3.8

-8.9

18.8

286%

60/40

1.7

24.6

7.5

9.9

- 0.4

29.9

15.2

23.9

20.6

12.3

-0.8

-3.8

-8.9

18.8

286%

50/50

2.9

23.2

7.5

9.9

-0.8

28.0

13.3

21.5

18.6

10.1

1.3

-1.7

-6.3

16.4

273%

50/50

2.9

23.2

7.5

9.9

-0.8

28.0

13.3

21.5

18.6

10.1

1.3

-1.7

-6.3

16.4

273%

40/60

4.1

21.8

7.5

9.9

-1.2

26.1

11.4

19.1

16.6

7.9

3.3

0.3

-3.7

13.9

258%

40/60

4.1

21.8

7.5

9.9

-1.2

26.1

11.4

19.1

16.6

7.9

3.3

0.3

-3.7

13.9

258%

LB Agg

9.0

16.0

7.4

9.8

-2.9

18.5

3.6

9.7

8.7

-0.8

11.6

8.4

6.8

4.1

196%

LB Agg

9.0

16.0

7.4

9.8

-2.9

18.5

3.6

9.7

8.7

-0.8

11.6

8.4

6.8

4.1

196%

S&P

-3.1

30.4

7.6

10.1

1.3

37.5

23.0

33.4

28.6

21.0

-9.1

-11.9

-19.4

28.7

327%

S&P

-3.1

30.4

7.6

10.1

1.3

37.5

23.0

33.4

28.6

21.0

-9.1

-11.9

-19.4

28.7

327%

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“All Weather Portfolio”“All Weather Portfolio”Portfolio vs. Index Results as of 3/31/04Portfolio vs. Index Results as of 3/31/04

1/3Bond

Opp Strategic IncomeOpp Main Street Opp Global Lehman AggregateS&P 500MSCI World

37.9%

28.1

18.9%

10.1

34.6%

10.6

152.6%

137.3

Portfolios Equally Weighted 1 Yr 5 Yr 10 YrCumulative Total Returns

Difference (OFI +/– Index) +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.

1/3Global

1/3Dom Eq

3 Yr

+9.8

10 YR Return/

Unit Risk

12.4

11.2

+ 1.2

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OppenheimerFundsOppenheimerFunds

Our Investment Organization

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

®

• 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

• 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, Inc.Company OverviewOppenheimerFunds, Inc.Company Overview

OppenheimerFundsCorporate StrategyOppenheimerFundsCorporate Strategy

® • Grow Assets and Profits Faster than the Asset Management Industry

• Expand Beyond Mutual Funds

• Embrace Customer Centricity

• Drive Profitable Growth Through Investment Excellence

• 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 IndexAsset Growth Assets Under Management vs. S&P 500 Index

$0

$20

$40

$60

$80

$100

$120

$140

$160

$18019

99Q

1

1999

Q3

2000

Q1

2000

Q3

2001

Q1

2001

Q3

2002

Q1

2002

Q3

2003

Q1

2003

Q3

2004

Q1 0

200

400

600

800

1000

1200

1400

1600

Assets Under Management (LHS)

S&P 500 Index (RHS)

Source: Bloomberg.

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Total Assets Under ManagementTotal Assets Under Management~ $155 Billion~ $155 Billion

OppenheimerFunds~ $137 B

OppenheimerFunds~ $137 B

Tremont $8.9 B

Tremont $8.9 B

OFI Institutional$6.8 B

OFI Institutional$6.8 B

High Net Worth$2.2 B

High Net Worth$2.2 B

®

• Top investment talent• Five portfolio managers in Barron’s annual

Top 100 ranking, more than any other company



OppenheimerFunds, Inc.Key Strengths/Points of DifferentiationOppenheimerFunds, Inc.Key Strengths/Points of Differentiation

® Investment Goals & ResultsLong-Term Assets, 5 Years Through 3/31/04Investment Goals & ResultsLong-Term Assets, 5 Years Through 3/31/04

Top Investment TalentTop Investment Talent

75%

6%

67%

16%

50%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Top Half Bottom Quartile

OFI Actual

GOAL

Average Main Competitors

Source: Lipper

®



• Entrepreneurial Organizational Structure





Investment Department Organizational StructureInvestment Department Organizational Structure

1. Retail Assets Only; Excluding OFI Institutional and Tremont

TotalTotal11 Investment Staff: Investment Staff: 114114TotalTotal11 Investment Staff: Investment Staff: 114114

Ken Ken WinstonWinston

Risk MgmtRisk Mgmt

Ken Ken WinstonWinston

Risk MgmtRisk Mgmt

Andy Andy MikaMika

OperationsOperations

Andy Andy MikaMika

OperationsOperations

Jerry Jerry WebmanWebman

Fixed Fixed IncomeIncome

Jerry Jerry WebmanWebman

Fixed Fixed IncomeIncome

Kurt Kurt WolfgruberWolfgruber

Domestic Domestic EquitiesEquities

Kurt Kurt WolfgruberWolfgruber

Domestic Domestic EquitiesEquities

Bill Bill WilbyWilbyGlobal Global

EquitiesEquities

Bill Bill WilbyWilbyGlobal Global

EquitiesEquities

Keith Keith Spencer Spencer

Equity Equity TradingTrading

Keith Keith Spencer Spencer

Equity Equity TradingTrading

John MurphyJohn MurphyChairmanChairman

Chief Executive OfficerChief Executive Officer

John MurphyJohn MurphyChairmanChairman

Chief Executive OfficerChief Executive Officer

TremontTremontSandra ManzkeSandra Manzke

Robert SchulmanRobert Schulman

OppenheimerFundsKurt Wolfgruber

Chief Investment Officer

OppenheimerFundsKurt Wolfgruber

Chief Investment Officer

OFI InstitutionalOFI InstitutionalChuck McKenzieChuck McKenzie

®

Oppenheimer’s Team ApproachOppenheimer’s Team Approach

Global Global Growth Growth Core Core (Main St) (Main St) Value Value Other Other

EquityEquity Taxable Taxable MuniMuni

Global Global StockStock

U.S. U.S. StockStock BondsBonds

““Global Global investing is a investing is a

strong point at strong point at Oppenheimer”Oppenheimer”

(Global Fund)(Global Fund)

Morningstar, 9/03Morningstar, 9/03

““A A worthwhile worthwhile

option”option”

(on Capital (on Capital Appreciation Appreciation

Fund)Fund)


““Solid pick”Solid pick”

(Main Street)(Main Street)


““An An experienced experienced

manager manager with a good with a good

track track record”record”

Morningstar, Morningstar, on Chris Leavy, on Chris Leavy, Value Fund, 6/03Value Fund, 6/03

““Good Good option”option”

(Capital (Capital Income)Income)


““Top-notch Top-notch management”management”

(High Grade (High Grade Bond Team)Bond Team)


““Reputation Reputation for thorough for thorough research & research &

high-incomehigh-incomeperformance”performance”

Morningstar, Morningstar, on Ron Fielding, on Ron Fielding, Rochester Team Rochester Team

leader, 4/03leader, 4/03

16% of Assets

13%of Assets

17% of Assets

12%of Assets

9%of Assets

18%of Assets

15%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.

Entrepreneurial Organizational StructureEntrepreneurial Organizational Structure

®




• Broad Spectrum of Products






Global Global Growth Growth Core Core Value Value Taxable Taxable MunicipalMunicipalHybrid & Hybrid & SpecialtySpecialty

Independent Teams

Independent Teams

Global StockGlobal Stock U.S. EquityU.S. Equity BondsBondsDiversificationDiversification

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.

Broad Spectrum of ProductsBroad Spectrum of Products

Main StreetMain Street Quest Quest BalancedBalanced

Limited- Term Limited- Term Gov’tGov’t

Rochester Rochester National National

MunicipalsMunicipalsValueValue

Strategic Strategic IncomeIncome

Capital Capital AppreciationAppreciationGlobalGlobal

Main Street Main Street OpportunityOpportunity Quest ValueQuest ValueGrowthGrowth

Main Street Main Street Small CapSmall Cap Special ValueSpecial ValueMidCapMidCap

Equity FundEquity Fund Quest Capital Quest Capital ValueValueEnterpriseEnterprise

Small Cap Small Cap ValueValueDiscoveryDiscovery

Emerging Emerging GrowthGrowth

International International GrowthGrowth

International International ValueValue

Global Global OpportunitiesOpportunities

Quest Quest International International

ValueValue

Developing Developing MarketsMarkets

International International Small Small

CompanyCompany

Oppenheimer Oppenheimer BalancedBalanced

Real AssetReal Asset

Real EstateReal Estate

Convertible Convertible SecuritiesSecurities

Bond FundBond Fund

Total Return Total Return BondBond

U.S. U.S. Government Government

TrustTrust

High Yield/ High Yield/ ChampionChampion

Senior Senior Floating RateFloating Rate

International International BondBond

Limited Term Limited Term MunicipalMunicipal

AMT-Free AMT-Free MunicipalsMunicipals

Rochester Rochester Fund Fund

MunicipalsMunicipals

Limited Term Limited Term NYNY

AMT-Free NY AMT-Free NY MunicipalsMunicipals

CA, NJ, PA CA, NJ, PA MunicipalsMunicipals

Limited Term Limited Term CaliforniaCalifornia

Mutual Funds

Mutual Funds

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10 Best Sellers–OppenheimerFunds10 Best Sellers–OppenheimerFundsLipper Quartile Rankings based on total return as of 3/31/04Lipper Quartile Rankings based on total return as of 3/31/04

% Top Half 100% 70% 100% 86%

GlobalMain Street FundCapital AppreciationStrategic IncomeQuest Balanced Developing MktsRochester Fund MunisLimited Term NY MuniMain Street OpportunityInternational Bond

1211111111

1132331111

1111112111

13111-11--

1 YR 3 YR 5 YR 10 YR123456789

10

Average % Rank 10 26 15 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.

®





• 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 ImagePowerful Brand Image

®








• Strong intermediary partnerships








• Strong intermediary partnerships


®

• 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

• 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

Near-term Challenges Near-term Challenges

Documents

® OppenheimerFunds A Brief Primer on Customer Behavior Kurt J. Wolfgruber Chief Investment Officer OppenheimerFunds, Inc. Kurt J. Wolfgruber Chief Investment