-----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, EmpBzPJJ6aoFIh7ZwlU8+SJsY2efEMLG0ILmxHlhBopXEcyC2antPULdPT8mGoKi CyM4aouunmiArnK8JZnDxQ== 0000935069-05-002980.txt : 20051028 0000935069-05-002980.hdr.sgml : 20051028 20051028142500 ACCESSION NUMBER: 0000935069-05-002980 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050831 FILED AS OF DATE: 20051028 DATE AS OF CHANGE: 20051028 EFFECTIVENESS DATE: 20051028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER REAL ASSET FUND CENTRAL INDEX KEY: 0001018862 IRS NUMBER: 846297469 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07857 FILM NUMBER: 051162734 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 1-303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 N-CSR 1 ra735_18564ncsr.txt RA735_18564NCSR 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 811-07857 OPPENHEIMER REAL ASSET 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 31 Date of reporting period: August 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECTOR ALLOCATION ON COMMODITY-LINKED INVESTMENTS - -------------------------------------------------------------------------------- Energy 81.0% - -------------------------------------------------------------------------------- Agriculture 6.0 - -------------------------------------------------------------------------------- Industrial Metals 6.0 - -------------------------------------------------------------------------------- Livestock 5.0 - -------------------------------------------------------------------------------- Precious Metals 2.0 Portfolio holdings and allocations are subject to change. Percentages are as of August 31, 2005, and are dollar-weighed based on percentages of commodity-linked investments. Commodity-linked investments are investments whose return is based upon the price movements (whether up or down) of a particular commodity or basket of commodities. The Fund's allocation of its investments within each sector of the GSCI(R) may differ (at times, significantly) from the sector weightings of the GSCI(R). The Fund is not an index fund. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PORTFOLIO ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] U.S. Government Obligations 26.9% Mortgage-Backed Obligations 25.4 Corporate Bonds and Notes 23.5 Commodity-Linked Notes 12.8 Cash Equivalents 9.6 Asset-Backed Securities 1.6 Foreign Government Obligations 0.2 Portfolio holdings and allocations are subject to change. Percentages are as of August 31, 2005, and are based on total market value of investments. - -------------------------------------------------------------------------------- 9 | OPPENHEIMER REAL ASSET 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, 2005, FOLLOWED BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED MARKET INDEX. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. Benefiting from a strengthening global economy that helped propel commodity prices, the Fund performed very well during this 12-month period. In addition, the Fund produced a greater return than the 12-month total return generated by the Goldman Sachs Commodities Index(R) (the GSCI(R)), due to the success of its commodities and fixed-income strategies, which added value to the portfolio. At the core of our day-to-day investment strategy are two major ways in which we attempt to add value for shareholders. The first is through our modest tilts in the Fund's sectors or commodities weights. While the Fund's allocations generally remain close to the weightings of the benchmark, we do adjust those when we believe one area or another offers better value. The second way we attempt to add value is through what we call "relative value decisions," where we closely monitor all aspects of the commodities markets and are looking for unique opportunities that we believe can help boost the Fund's return. These opportunities can come in many different forms--whether we see strength within a particular commodity sector and we choose to place a greater emphasis there, or by favoring one type of closely related commodity over another, (e.g. crude oil versus gasoline) to capture pricing inefficiencies between those market segments, or making a decision to invest on a short- or long-term basis in a particular agricultural product (corn, for instance). These are a few of the ways in which we keep a watchful eye for opportunities that could potentially benefit shareholders. As always, we maintain a conservative approach to the Fund's management of its fixed-income securities. In our view, the Fund's fixed-income component is designed primarily as a tool to provide liquidity while making a small contribution to total return. Accordingly, we invested the bulk of the fixed-income assets in high-quality, short maturity securities. We increased the Fund's exposure to what we consider "high-coupon" mortgage-backed securities, believing that the majority of homeowners may have already refinanced and therefore any significant prepayment risk may be behind us. Corporate securities performed well during the reporting period and we have maintained our exposure to short-maturity, high-quality bonds there. Otherwise, we attempted to add value by modestly adjusting the Fund's duration as interest rates rose throughout the reporting period, bearing in mind that we always strive to minimize interest rate risk in the portfolio. 10 | OPPENHEIMER REAL ASSET FUND 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, 2005. In the case of Class A, Class B, Class C and Class Y shares, performance is measured from inception of the classes on March 31, 1997. In the case of Class N shares, performance is measured from the inception of the class on March 1, 2001. The Fund's performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class B, Class C, and Class N shares, and reinvestments of all dividends and capital gains distributions. Past performance cannot guarantee future results. The Fund's performance is compared to the performance of the Goldman Sachs Commodities Index(R) (GSCI(R)). The GSCI(R) is a composite index of commodity sector returns representing an unleveraged long-term investment in commodity futures that is broadly based across the spectrum of commodities and includes reinvestment of income (to represent real assets). While correlation to the GSCI(R) is a current portfolio strategy, it is not a stated objective or investment policy of Oppenheimer Real Asset Fund. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs, and none of the data in the graphs shows the effect of taxes. The Fund's performance reflects the effects of the Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the index. 11 | OPPENHEIMER REAL ASSET FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- CLASS A SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Real Asset Fund(R) (Class A) Goldman Sachs Commodity Index(R) [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Real Asset Fund(R) Goldman Sachs (Class A) Commodity Index(R) ---------------- ------------------ 03/31/1997 9,425 10,000 05/31/1997 9,679 10,305 08/31/1997 9,717 10,403 11/30/1997 9,161 9,879 02/28/1998 7,750 8,451 05/31/1998 7,057 7,805 08/31/1998 5,594 6,527 11/30/1998 4,872 6,025 02/28/1999 4,464 5,672 05/31/1999 5,028 6,526 08/31/1999 5,958 7,702 11/30/1999 6,160 8,003 02/29/2000 7,294 9,503 05/31/2000 7,803 10,349 08/31/2000 8,850 11,812 11/30/2000 9,566 12,753 02/28/2001 8,572 11,662 05/31/2001 8,489 11,470 08/31/2001 7,980 10,767 11/30/2001 6,435 8,616 02/28/2002 6,434 8,596 05/31/2002 6,990 9,418 08/31/2002 7,538 10,406 11/30/2002 7,463 10,361 02/28/2003 9,934 13,721 05/31/2003 8,826 12,079 08/31/2003 9,277 12,690 11/30/2003 9,340 12,722 02/29/2004 10,719 14,616 05/31/2004 11,765 16,030 08/31/2004 11,637 15,822 11/30/2004 13,138 17,659 02/28/2005 13,464 18,026 05/31/2005 13,083 17,502 08/31/2005 16,834 22,497 AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT 8/31/05 1-Year 36.34% 5-Year 12.38% Since Inception (3/31/97) 6.38% 12 | OPPENHEIMER REAL ASSET FUND CLASS B SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Real Asset Fund(R) (Class B) Goldman Sachs Commodity Index(R) [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Real Asset Fund(R) Goldman Sachs (Class B) Commodity Index(R) ---------------- ------------------ 03/31/1997 10,000 10,000 05/31/1997 10,250 10,305 08/31/1997 10,270 10,403 11/30/1997 9,670 9,879 02/28/1998 8,156 8,451 05/31/1998 7,413 7,805 08/31/1998 5,865 6,527 11/30/1998 5,101 6,025 02/28/1999 4,662 5,672 05/31/1999 5,246 6,526 08/31/1999 6,202 7,702 11/30/1999 6,402 8,003 02/29/2000 7,570 9,503 05/31/2000 8,081 10,349 08/31/2000 9,144 11,812 11/30/2000 9,855 12,753 02/28/2001 8,822 11,662 05/31/2001 8,722 11,470 08/31/2001 8,185 10,767 11/30/2001 6,591 8,616 02/28/2002 6,576 8,596 05/31/2002 7,132 9,418 08/31/2002 7,663 10,406 11/30/2002 7,573 10,361 02/28/2003 10,068 13,721 05/31/2003 8,934 12,079 08/31/2003 9,392 12,690 11/30/2003 9,455 12,722 02/29/2004 10,852 14,616 05/31/2004 11,910 16,030 08/31/2004 11,781 15,822 11/30/2004 13,300 17,659 02/28/2005 13,630 18,026 05/31/2005 13,244 17,502 08/31/2005 17,041 22,497 AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT 8/31/05 1-Year 38.33% 5-Year 12.52% Since Inception (3/31/97) 6.54% 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, SINCE-INCEPTION RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 13 | OPPENHEIMER REAL ASSET FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- CLASS C SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Real Asset Fund(R) (Class C) Goldman Sachs Commodity Index(R) [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Real Asset Fund(R) Goldman Sachs (Class C) Commodity Index(R) ---------------- ------------------ 03/31/1997 10,000 10,000 05/31/1997 10,240 10,305 08/31/1997 10,260 10,403 11/30/1997 9,650 9,879 02/28/1998 8,141 8,451 05/31/1998 7,408 7,805 08/31/1998 5,862 6,527 11/30/1998 5,088 6,025 02/28/1999 4,660 5,672 05/31/1999 5,237 6,526 08/31/1999 6,195 7,702 11/30/1999 6,397 8,003 02/29/2000 7,556 9,503 05/31/2000 8,069 10,349 08/31/2000 9,133 11,812 11/30/2000 9,845 12,753 02/28/2001 8,808 11,662 05/31/2001 8,719 11,470 08/31/2001 8,180 10,767 11/30/2001 6,584 8,616 02/28/2002 6,568 8,596 05/31/2002 7,114 9,418 08/31/2002 7,658 10,406 11/30/2002 7,570 10,361 02/28/2003 10,058 13,721 05/31/2003 8,921 12,079 08/31/2003 9,346 12,690 11/30/2003 9,396 12,722 02/29/2004 10,752 14,616 05/31/2004 11,783 16,030 08/31/2004 11,628 15,822 11/30/2004 13,098 17,659 02/28/2005 13,400 18,026 05/31/2005 12,997 17,502 08/31/2005 16,687 22,497 AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT 8/31/05 1-Year 42.50% 5-Year 12.81% Since Inception (3/31/97) 6.27% 14 | OPPENHEIMER REAL ASSET FUND CLASS N SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Real Asset Fund(R) (Class N) Goldman Sachs Commodity Index(R) [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Real Asset Fund(R) Goldman Sachs (Class N) Commodity Index(R) ---------------- ------------------ 03/01/2001 10,000 10,000 05/31/2001 9,932 9,836 08/31/2001 9,325 9,233 11/30/2001 7,470 7,388 02/28/2002 7,463 7,371 05/31/2002 8,092 8,076 08/31/2002 8,722 8,923 11/30/2002 8,703 8,885 02/28/2003 11,558 11,766 05/31/2003 10,264 10,358 08/31/2003 10,782 10,882 11/30/2003 10,840 10,909 02/29/2004 12,429 12,534 05/31/2004 13,630 13,746 08/31/2004 13,467 13,568 11/30/2004 15,188 15,143 02/28/2005 15,564 15,458 05/31/2005 15,091 15,008 08/31/2005 19,396 19,292 AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT 8/31/05 1-Year 43.03% Since Inception (3/1/01) 15.86% 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, SINCE-INCEPTION RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 15 | OPPENHEIMER REAL ASSET FUND FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- CLASS Y SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Real Asset Fund(R) (Class Y) Goldman Sachs Commodity Index(R) [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Real Asset Fund(R) Goldman Sachs (Class Y) Commodity Index(R) ---------------- ------------------ 03/31/1997 10,000 10,000 05/31/1997 10,270 10,305 08/31/1997 10,310 10,403 11/30/1997 9,730 9,879 02/28/1998 8,221 8,451 05/31/1998 7,495 7,805 08/31/1998 5,941 6,527 11/30/1998 5,174 6,025 02/28/1999 4,743 5,672 05/31/1999 5,359 6,526 08/31/1999 6,343 7,702 11/30/1999 6,563 8,003 02/29/2000 7,772 9,503 05/31/2000 8,323 10,349 08/31/2000 9,464 11,812 11/30/2000 10,242 12,753 02/28/2001 9,195 11,662 05/31/2001 9,121 11,470 08/31/2001 8,592 10,767 11/30/2001 6,923 8,616 02/28/2002 6,927 8,596 05/31/2002 7,543 9,418 08/31/2002 8,132 10,406 11/30/2002 8,059 10,361 02/28/2003 10,738 13,721 05/31/2003 9,559 12,079 08/31/2003 10,058 12,690 11/30/2003 10,136 12,722 02/29/2004 11,647 14,616 05/31/2004 12,796 16,030 08/31/2004 12,657 15,822 11/30/2004 14,314 17,659 02/28/2005 14,694 18,026 05/31/2005 14,289 17,502 08/31/2005 18,407 22,497 AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 8/31/05 1-Year 45.42% 5-Year 14.23% Since Inception (3/31/97) 7.52% THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. THE 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, SINCE-INCEPTION RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION. 16 | OPPENHEIMER REAL ASSET 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. Please note that Oppenheimer Real Asset Fund(R) invests a substantial portion of its assets in derivative instruments that entail potentially higher volatility and risk of loss than traditional equity or debt securities. The Fund is not intended as a complete investment program and is intended for investors with long-term investment goals who are willing to accept this risk. CLASS A shares of the Fund were first publicly offered on 3/31/97. Class A returns include the current maximum initial sales charge of 5.75%. CLASS B shares of the Fund were first publicly offered on 3/31/97. 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 "since inception" 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 3/31/97. 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. 17 | OPPENHEIMER REAL ASSET FUND NOTES - -------------------------------------------------------------------------------- CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge. CLASS Y shares of the Fund were first publicly offered on 3/31/97. Class Y shares are offered principally to certain institutional investors under special agreement with the Distributor and are not subject to a sales charge. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 18 | OPPENHEIMER REAL ASSET 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, 2005. 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), redemption fees, or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to 19 | OPPENHEIMER REAL ASSET FUND FUND EXPENSES - -------------------------------------------------------------------------------- exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. - -------------------------------------------------------------------------------- BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (3/1/05) (8/31/05) AUGUST 31, 2005 - -------------------------------------------------------------------------------- Class A Actual $ 1,000.00 $ 1,250.30 $ 7.40 - -------------------------------------------------------------------------------- Class A Hypothetical 1,000.00 1,018.65 6.64 - -------------------------------------------------------------------------------- Class B Actual 1,000.00 1,243.40 12.33 - -------------------------------------------------------------------------------- Class B Hypothetical 1,000.00 1,014.27 11.08 - -------------------------------------------------------------------------------- Class C Actual 1,000.00 1,245.30 11.88 - -------------------------------------------------------------------------------- Class C Hypothetical 1,000.00 1,014.67 10.67 - -------------------------------------------------------------------------------- Class N Actual 1,000.00 1,246.20 9.49 - -------------------------------------------------------------------------------- Class N Hypothetical 1,000.00 1,016.79 8.52 - -------------------------------------------------------------------------------- Class Y Actual 1,000.00 1,252.70 4.89 - -------------------------------------------------------------------------------- Class Y Hypothetical 1,000.00 1,020.87 4.39 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, 2005 are as follows: CLASS EXPENSE RATIOS - ------------------------------ Class A 1.30% - ------------------------------ Class B 2.17 - ------------------------------ Class C 2.09 - ------------------------------ Class N 1.67 - ------------------------------ Class Y 0.86 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 REAL ASSET FUND STATEMENT OF INVESTMENTS August 31, 2005 - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--1.9% - ---------------------------------------------------------------------------------------------------------------- Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through Certificates, Series 2002-A, Cl. A4, 4.24%, 9/15/08 $ 451,492 $ 451,930 - ---------------------------------------------------------------------------------------------------------------- Citigroup Mortgage Loan Trust, Inc., Collateralized Mtg. Obligations, Series 2005-WF2, Cl. AF2, 4.922%, 8/25/35 1,2 11,430,000 11,426,428 - ---------------------------------------------------------------------------------------------------------------- DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates, Series 2004-B, Cl. A2, 2.48%, 2/8/07 3 1,360,993 1,358,674 - ---------------------------------------------------------------------------------------------------------------- Equity One ABS, Inc., Home Equity Mtg. Pass-Through Certificates, Series 2004-3, Cl. AF2, 3.80%, 7/25/34 5,400,000 5,378,091 - ---------------------------------------------------------------------------------------------------------------- Ford Credit Auto Owner Trust, Automobile Loan Pass-Through Certificates, Series 2005-B, Cl. A2, 3.77%, 9/15/07 6,010,000 6,006,364 - ---------------------------------------------------------------------------------------------------------------- NC Finance Trust, Collateralized Mtg. Obligations, Series 1999-I, Cl. ECFD, 8.75%, 1/25/29 3 645,555 174,300 - ---------------------------------------------------------------------------------------------------------------- Residential Asset Mortgage Products, Inc., Home Equity Asset-Backed Pass-Through Certificates, Series 2004-RS7, Cl. AI3, 4.45%, 7/25/28 4,561,000 4,560,060 - ---------------------------------------------------------------------------------------------------------------- Salomon Smith Barney Mutual Fund Fee Trust XIV, Asset-Backed Nts., Series 2000-14, Cl. 2, 8.61%, 9/30/08 3 3,206,406 932,864 - ---------------------------------------------------------------------------------------------------------------- USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts., Series 2004-2, Cl. A2, 2.41%, 2/15/07 1,409,612 1,406,546 - ---------------------------------------------------------------------------------------------------------------- Wells Fargo Home Equity Trust, Collateralized Mtg. Obligations, Series 2004-2, Cl. AI1B, 2.94%, 9/25/18 3,380,800 3,354,056 --------------- Total Asset-Backed Securities (Cost $37,828,828) 35,049,313 - ---------------------------------------------------------------------------------------------------------------- MORTGAGE-BACKED OBLIGATIONS--30.4% - ---------------------------------------------------------------------------------------------------------------- GOVERNMENT AGENCY--27.4% - ---------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED--27.4% Fannie Mae Whole Loan, Collateralized Mtg. Obligations Pass-Through Certificates, Trust 2004-W9, Cl. 2A2, 7%, 2/25/44 509,464 535,256 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp.: 6%, 7/1/17 2,859,935 2,951,812 7%, 11/1/22-12/1/34 12,954,200 13,559,312 8%, 4/1/16 248,612 265,624 9%, 8/1/22-5/1/25 61,968 67,504 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Multiclass Real Estate Mtg. Investment Conduit Pass-Through Certificates, Series 2116, Cl. ZA, 6%, 1/15/29 13,450,120 13,941,444 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security, Series 177, Cl. B, 9.33%, 7/1/26 4 1,533,329 288,271 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn.: 4.50%, 5/1/19-6/1/19 7,888,855 7,831,434 4.50%, 9/1/20 2 35,630,000 35,340,506 5%, 9/1/35 2 743,000 738,124 5.50%, 9/1/20 32,865,000 33,573,635 5.50%, 9/4/35 2 56,374,000 56,955,329 6%, 8/1/16-11/1/32 49,769,665 51,352,927
21 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- FHLMC/FNMA/SPONSORED Continued Federal National Mortgage Assn.: Continued 6%, 9/1/35 2 $ 116,449,000 $ 119,178,332 6%, 10/1/30 3 9,944,928 10,213,752 6.50%, 12/1/28-10/1/34 33,977,998 35,204,243 6.50%, 9/1/35 2 106,131,000 109,679,808 7%, 11/1/17 7,017,800 7,352,915 8.50%, 7/1/32 51,717 56,343 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 294, Cl. 2, 9.01%, 2/1/28 4 1,231,528 227,997 Trust 321, Cl. 2, 5.925%, 3/1/32 4 5,527,132 1,066,894 Trust 333, Cl. 2, 9.536%, 3/1/33 4 2,481,688 472,718 Trust 346, Cl. 2, 15.82%, 12/1/33 4 8,628,192 1,621,872 --------------- 502,476,052 - ---------------------------------------------------------------------------------------------------------------- GNMA/GUARANTEED--0.0% Government National Mortgage Assn., 8.50%, 8/15/17-12/15/17 90,715 98,621 --------------- 98,621 - ---------------------------------------------------------------------------------------------------------------- NON-AGENCY--3.0% - ---------------------------------------------------------------------------------------------------------------- COMMERCIAL--2.5% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2005-2, Cl. A4, 4.783%, 7/10/43 7,550,000 7,645,516 - ---------------------------------------------------------------------------------------------------------------- Bank of America Mortgage Securities, Inc., Collateralized Mtg. Obligations Pass-Through Certificates: Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 3,619,331 3,673,870 Series 2004-E, Cl. 2A9, 3.712%, 6/25/34 1,043,221 1,042,781 - ---------------------------------------------------------------------------------------------------------------- Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mtg. Obligations, Series 2003-T10, Cl. A1, 4%, 3/13/40 1,183,054 1,164,244 - ---------------------------------------------------------------------------------------------------------------- Countrywide Alternative Loan Trust, Collateralized Mtg. Obligations, Series 2005-J3, Cl. 3A1, 6.50%, 9/25/34 1,280,041 1,317,355 - ---------------------------------------------------------------------------------------------------------------- GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations: Series 2003-C1, Cl. A2, 4.093%, 1/10/38 1,081,000 1,070,155 Series 2004-C3, Cl. A2, 4.433%, 7/10/39 2,050,000 2,052,945 Series 2005-C3, Cl. A2, 4.853%, 7/10/45 4,340,000 4,403,106 - ---------------------------------------------------------------------------------------------------------------- GS Mortgage Securities Corp. II, Commercial Mtg. Pass-Through Certificates, Series 2004-GG2, Cl. A3, 4.602%, 8/10/38 1,370,000 1,379,235 - ---------------------------------------------------------------------------------------------------------------- JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2003-ML1A, Cl. A1, 3.972%, 3/12/39 744,450 732,751 Series 2005-LDP2, Cl. A2, 4.575%, 7/15/42 1,500,000 1,504,902 - ---------------------------------------------------------------------------------------------------------------- LB-UBS Securities Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2005-C5, Cl. A2, 4.885%, 9/15/30 5,240,000 5,316,963 - ---------------------------------------------------------------------------------------------------------------- Mastr Seasoned Securities Trust, Collateralized Mtg. Obligations, Series 2004-2, Cl. A1, 6.50%, 8/25/32 7,968,156 8,107,602
22 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- COMMERCIAL Continued Wachovia Bank Commercial Mortgage Trust, Commercial Mtg. Obligations, Series 2005-C20, Cl. A5, 5.087%, 7/15/42 $ 5,150,000 $ 5,280,759 - ---------------------------------------------------------------------------------------------------------------- Wells Fargo Mortgage-Backed Securities Trust, Collateralized Mtg. Obligations, Series 2004-N, Cl. A10, 3.803%, 8/25/34 3 1,556,543 1,557,317 --------------- 46,249,501 - ---------------------------------------------------------------------------------------------------------------- OTHER--0.5% Lehman XS Trust, Mortgage-Backed Obligations, Series 2005-2, Cl. 2A1B, 3.63%, 8/25/35 1,3 8,851,120 8,920,206 --------------- Total Mortgage-Backed Obligations (Cost $555,554,763) 557,744,380 - ---------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--32.2% - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Bank Unsec. Bonds: 2.50%, 4/11/06 5 17,400,000 17,256,868 3.125%, 11/15/06 90,000 89,077 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. Unsec. Nts.: 2.875%, 9/15/05 5 30,000,000 29,989,890 5.25%, 1/15/06 38,385,000 38,592,125 5.50%, 7/15/06 5 89,140,000 90,332,069 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. Unsec. Nts.: 1.50%, 9/21/05 5 20,000,000 19,975,620 2.50%, 6/15/06 20,290,000 20,070,158 3.125%, 7/15/06 30,000,000 29,796,690 5.25%, 6/15/06 50,000,000 50,506,900 5.50%, 2/15/06 5 18,000,000 18,138,060 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. Unsec. Sub. Nts., 5.50%, 5/2/06 25,000,000 25,262,775 - ---------------------------------------------------------------------------------------------------------------- U.S. Treasury Bills: 2.925%, 9/1/05 20,000,000 20,000,000 2.97%, 9/22/05 15,000,000 14,974,056 3.04%, 12/8/05 10,000,000 9,908,040 3.19%, 11/3/05 20,000,000 19,884,520 3.27%, 12/29/05 20,000,000 19,772,760 3.32%, 10/6/05 40,000,000 39,870,889 3.375%, 9/29/05 50,000,000 49,868,750 - ---------------------------------------------------------------------------------------------------------------- U.S. Treasury Nts.: 2.375%, 8/31/06 25,000,000 24,665,050 3.50%, 12/15/09 6 27,000,000 26,629,830 4.625%, 5/15/06 10,000,000 10,062,510 7%, 7/15/06 15,000,000 15,408,990 --------------- Total U.S. Government Obligations (Cost $590,679,179) 591,055,627 - ---------------------------------------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--0.2% - ---------------------------------------------------------------------------------------------------------------- New Zealand (Government of) Debs., Series RG, 10.625%, 11/15/05 1,000,000 1,012,981 - ---------------------------------------------------------------------------------------------------------------- Quebec (Province of) Unsec. Debs., 6.50%, 1/17/06 2,800,000 2,827,636 --------------- Total Foreign Government Obligations (Cost $3,847,852) 3,840,617
23 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--28.1% - ---------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--3.0% - ---------------------------------------------------------------------------------------------------------------- AUTOMOBILES--1.0% American Honda Finance Corp., 3.67% Nts., 1/20/06 1,7 $ 6,500,000 $ 6,502,061 - ---------------------------------------------------------------------------------------------------------------- DaimlerChrysler NA Holdings Corp., 6.40% Nts., 5/15/06 8,480,000 8,594,285 - ---------------------------------------------------------------------------------------------------------------- General Motors Nova Scotia Finance Co., 6.85% Nts., 10/15/08 1,205,000 1,166,139 - ---------------------------------------------------------------------------------------------------------------- Hertz Corp. (The), 6.50% Sr. Nts., 5/15/06 5 1,215,000 1,225,408 --------------- 17,487,893 - ---------------------------------------------------------------------------------------------------------------- MEDIA--1.4% Chancellor Media CCU, 8% Sr. Unsec. Nts., 11/1/08 825,000 900,582 - ---------------------------------------------------------------------------------------------------------------- Knight-Ridder, Inc., 6.30% Sr. Unsec. Nts., 12/15/05 1,992,000 2,000,327 - ---------------------------------------------------------------------------------------------------------------- News America, Inc., 6.625% Sr. Nts., 1/9/08 443,000 464,679 - ---------------------------------------------------------------------------------------------------------------- Reed Elsevier Capital, Inc., 6.125% Bonds, 8/1/06 7,885,000 7,977,436 - ---------------------------------------------------------------------------------------------------------------- Time Warner Cos., Inc., 8.18% Nts., 8/15/07 5 890,000 952,278 - ---------------------------------------------------------------------------------------------------------------- Viacom, Inc., 6.40% Sr. Nts., 1/30/06 5 7,330,000 7,392,532 - ---------------------------------------------------------------------------------------------------------------- Walt Disney Co. (The): 5.375% Sr. Unsec. Nts., 6/1/07 410,000 417,820 6.75% Sr. Unsec. Nts., Series B, 3/30/06 6,210,000 6,297,853 --------------- 26,403,507 - ---------------------------------------------------------------------------------------------------------------- MULTILINE RETAIL--0.4% Kohl's Corp., 6.70% Unsec. Nts., 2/1/06 1,210,000 1,220,544 - ---------------------------------------------------------------------------------------------------------------- Target Corp., 5.95% Sr. Unsec. Nts., 5/15/06 5,139,000 5,193,401 --------------- 6,413,945 - ---------------------------------------------------------------------------------------------------------------- SPECIALTY RETAIL--0.2% Lowe's Cos., Inc., 7.50% Sr. Unsec. Nts., 12/15/05 4,500,000 4,542,336 - ---------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES--1.0% - ---------------------------------------------------------------------------------------------------------------- BEVERAGES--0.2% PepsiAmericas, Inc., 5.95% Nts., 2/15/06 3,000,000 3,022,509 - ---------------------------------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--0.1% Kroger Co. (The), 7.625% Sr. Nts., 9/15/06 460,000 474,358 - ---------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. (Canada), 5.58% Nts., 5/1/06 7 2,000,000 2,019,728 --------------- 2,494,086 - ---------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS--0.7% General Mills, Inc., 3.875% Nts., 11/30/07 515,000 509,659 - ---------------------------------------------------------------------------------------------------------------- Heinz (H.J.) Co., 6.189% Bonds, 12/1/05 7 150,000 150,720 - ---------------------------------------------------------------------------------------------------------------- McCormick & Co., Inc., 6.40% Nts., 2/1/06 4,815,000 4,873,151
24 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- FOOD PRODUCTS Continued Unilever Capital Corp., 6.875% Sr. Unsec. Unsub. Nts., 11/1/05 $ 7,583,000 $ 7,618,109 --------------- 13,151,639 - ---------------------------------------------------------------------------------------------------------------- ENERGY--0.6% - ---------------------------------------------------------------------------------------------------------------- OIL & GAS--0.6% Petroleum Export Ltd. Cayman SPV, 4.623% Sr. Nts., Cl. A1, 6/15/10 3 11,550,000 11,365,200 - ---------------------------------------------------------------------------------------------------------------- FINANCIALS--12.1% - ---------------------------------------------------------------------------------------------------------------- CAPITAL MARKETS--0.4% Bank of New York Co., Inc. (The), 3.75% Unsec. Unsub. Nts., 2/15/08 5 470,000 464,763 - ---------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. (USA): 3.71% Nts., 6/19/06 1 2,000,000 2,005,256 5.75% Unsec. Nts., 4/15/07 600,000 614,963 5.875% Nts., 8/1/06 1,310,000 1,329,583 - ---------------------------------------------------------------------------------------------------------------- Northern Trust Co., 6.70% Sub. Nts., 9/15/05 3,600,000 3,602,243 --------------- 8,016,808 - ---------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS--5.1% ABN Amro Bank NV (Chicago Branch), 7.55% Unsec. Sub. Nts., 6/28/06 7,990,000 8,193,401 - ---------------------------------------------------------------------------------------------------------------- Bank of America Corp., 3.875% Nts., 1/15/08 5 500,000 496,701 - ---------------------------------------------------------------------------------------------------------------- Barclays Bank plc, 3.552% Certificate of Deposit, 6/21/06 1 8,575,000 8,575,369 - ---------------------------------------------------------------------------------------------------------------- Bayerische Landesbank Girozentrale: 2.50% Sr. Nts., 3/30/06 1,000,000 991,100 6.375% Unsec. Sub. Nts., 10/15/05 4,800,000 4,812,811 - ---------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. (New York), 3.38% Nts., 9/9/05 1 3,800,000 3,799,825 - ---------------------------------------------------------------------------------------------------------------- First Tennessee Bank: 3.379% Certificate of Deposit, 3/21/06 1 4,500,000 4,468,662 3.742% Nts., 11/18/05 1 1,000,000 1,000,012 - ---------------------------------------------------------------------------------------------------------------- FleetBoston Financial Corp., 4.20% Nts., 11/30/07 430,000 430,121 - ---------------------------------------------------------------------------------------------------------------- HBOS Treasury Services plc, 2.25% Nts., 5/1/06 7 3,995,000 3,940,356 - ---------------------------------------------------------------------------------------------------------------- Household Finance Corp.: 6.50% Unsec. Nts., 1/24/06 515,000 519,765 7.20% Sr. Unsec. Nts., 7/15/06 2,880,000 2,948,129 - ---------------------------------------------------------------------------------------------------------------- HSBC Bank plc, 7.625% Unsec. Sub. Nts., 6/15/06 4,200,000 4,302,383 - ---------------------------------------------------------------------------------------------------------------- Huntington National Bank, 3.49% Nts., 12/1/05 1 8,550,000 8,553,001 - ---------------------------------------------------------------------------------------------------------------- KeyCorp: 6.75% Jr. Unsec. Sub. Nts., 3/15/06 1,700,000 1,721,255 7.50% Sub. Nts., 6/15/06 395,000 404,105 - ---------------------------------------------------------------------------------------------------------------- Nordea Bank Finland plc, 6.50% Unsec. Sub. Nts., 1/15/06 5,100,000 5,148,159 - ---------------------------------------------------------------------------------------------------------------- PNC Funding Corp., 5.75% Sr. Unsec. Nts., 8/1/06 7,645,000 7,739,385 - ---------------------------------------------------------------------------------------------------------------- Regions Bank, 3.47% Deposit Nts., 12/27/05 1,3 5,000,000 5,003,000 - ---------------------------------------------------------------------------------------------------------------- Regions Financial Corp., 4.50% Bonds, 8/8/08 2,185,000 2,196,001
25 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- COMMERCIAL BANKS Continued SunTrust Bank, Inc.: 2.125% Sr. Nts., 1/30/06 $ 1,400,000 $ 1,388,552 3.46% Nts., 3/24/06 1 5,850,000 5,851,802 - ---------------------------------------------------------------------------------------------------------------- Union Planters Corp., 6.75% Unsec. Sub. Nts., 11/1/05 1,000,000 1,004,079 - ---------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc.: 2.40% Unsec. Nts., 11/3/05 4,550,000 4,538,275 4.375% Nts., 1/15/08 515,000 515,205 - ---------------------------------------------------------------------------------------------------------------- Wells Fargo & Co., 6.875% Unsec. Sub. Nts., 4/1/06 1,300,000 1,318,613 - ---------------------------------------------------------------------------------------------------------------- Wells Fargo Financial, Inc., 7% Sr. Unsec. Nts., 11/1/05 700,000 703,196 - ---------------------------------------------------------------------------------------------------------------- Zions Bancorp, 2.70% Sr. Unsec. Nts., 5/1/06 3,290,000 3,259,929 --------------- 93,823,192 - ---------------------------------------------------------------------------------------------------------------- CONSUMER FINANCE--0.2% American Express Bank FSB, 3.583% Nts., 10/17/05 1 2,525,000 2,525,101 - ---------------------------------------------------------------------------------------------------------------- SLM Corp., 2.75% Nts., 12/1/05 300,000 299,112 --------------- 2,824,213 - ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--2.7% American Express Co., 5.50% Nts., 9/12/06 5 770,000 779,021 - ---------------------------------------------------------------------------------------------------------------- Bank One Corp., 6.125% Unsec. Sub. Nts., 2/15/06 100,000 100,797 - ---------------------------------------------------------------------------------------------------------------- CIT Group, Inc., 4.125% Sr. Nts., 2/21/06 6,700,000 6,702,385 - ---------------------------------------------------------------------------------------------------------------- Citicorp, 7.75% Sub. Nts., 6/15/06 5,790,000 5,933,667 - ---------------------------------------------------------------------------------------------------------------- Citigroup, Inc.: 3.50% Nts., 2/1/08 800,000 787,386 5.75% Sr. Unsec. Nts., 5/10/06 170,000 171,758 - ---------------------------------------------------------------------------------------------------------------- Goldman Sachs Group LP, 7.25% Unsec. Nts., 10/1/05 7 2,500,000 2,505,580 - ---------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The), 4.125% Nts., 1/15/08 5 1,000,000 997,180 - ---------------------------------------------------------------------------------------------------------------- ING Security Life Institutional Funding, 3.719% Sr. Nts., 1/27/06 1,7 4,810,000 4,810,967 - ---------------------------------------------------------------------------------------------------------------- JPMorgan Chase & Co.: 4% Nts., 2/1/08 800,000 796,140 5.625% Sr. Unsub. Nts., 8/15/06 4,010,000 4,057,330 - ---------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc., 6.25% Sr. Unsec. Nts., 5/15/06 6,650,000 6,739,329 - ---------------------------------------------------------------------------------------------------------------- MBNA Corp., 5.625% Nts., 11/30/07 500,000 514,197 - ---------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc.: 2.47% Nts., Series B, 3/10/06 50,000 49,601 4% Nts., Series B, 11/15/07 410,000 408,264 - ---------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co., 6.10% Unsec. Unsub. Bond, 4/15/06 5,300,000 5,359,938 - ---------------------------------------------------------------------------------------------------------------- Morgan Stanley Group, Inc., 3.75% Sr. Nts., 3/27/06 1 1,800,000 1,802,896 - ---------------------------------------------------------------------------------------------------------------- Principal Life Global Funding, 6.125% Sec. Nts., 3/1/06 7 5,400,000 5,448,551 - ---------------------------------------------------------------------------------------------------------------- Salomon, Inc., 6.75% Nts., 1/15/06 600,000 605,672
26 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES Continued SLM Corp., 3.59% Nts., Series A, 9/15/05 1 $ 700,000 $ 699,963 --------------- 49,270,622 - ---------------------------------------------------------------------------------------------------------------- INSURANCE--2.7% Allstate Financial Global Fund, 6.15% Bonds, 2/1/06 7 1,250,000 1,260,036 - ---------------------------------------------------------------------------------------------------------------- Allstate Financial Global Funding LLC, 7.125% Nts., 9/26/05 7 2,030,000 2,033,508 - ---------------------------------------------------------------------------------------------------------------- Dresdner Bank (New York), 6.625% Unsec. Sub. Nts., 9/15/05 5,000,000 5,003,205 - ---------------------------------------------------------------------------------------------------------------- Equitable Life Assurance Society (USA), 6.95% Surplus Nts., 12/1/05 7 4,950,000 4,982,749 - ---------------------------------------------------------------------------------------------------------------- Hartford Financial Services Group, Inc. (The), 2.375% Nts., 6/1/06 12,260,000 12,089,083 - ---------------------------------------------------------------------------------------------------------------- John Hancock Global Funding II: 3.65% Nts., 9/6/05 1,7 5,200,000 5,199,984 5% Nts., 7/27/07 7 760,000 770,058 5.625% Nts., 6/27/06 7 800,000 808,027 - ---------------------------------------------------------------------------------------------------------------- Marsh & McLennan Cos., Inc., 3.625% Nts., 2/15/08 1,130,000 1,099,786 - ---------------------------------------------------------------------------------------------------------------- Metropolitan Life Insurance Co., 7% Nts., 11/1/05 900,000 904,195 - ---------------------------------------------------------------------------------------------------------------- Monumental Global Funding II: 3.85% Nts., 3/3/08 7 1,120,000 1,107,276 6.05% Sec. Nts., 1/19/06 7 6,310,000 6,353,823 - ---------------------------------------------------------------------------------------------------------------- Nationwide Life Global Funding I, 3.953% Sr. Nts., 1/27/06 1,7 962,000 962,444 - ---------------------------------------------------------------------------------------------------------------- Pricoa Global Funding I, 3.90% Nts., 12/15/08 7 1,800,000 1,773,992 - ---------------------------------------------------------------------------------------------------------------- Protective Life US Funding Trust, 4.022% Sr. Sec. Nts., 2/17/06 1,7 1,828,000 1,830,300 - ---------------------------------------------------------------------------------------------------------------- Teachers Insurance & Annuity Assn. Global Markets, 3.875% Sr. Unsec. Nts., 1/22/08 7 1,750,000 1,733,347 - ---------------------------------------------------------------------------------------------------------------- TIAA Global Markets, 2.75% Sr. Unsec. Nts., 1/13/06 7 2,000,000 1,988,652 --------------- 49,900,465 - ---------------------------------------------------------------------------------------------------------------- REAL ESTATE--0.1% EOP Operating LP, 8.10% Unsec. Nts., 8/1/10 1,260,000 1,436,397 - ---------------------------------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--0.9% Abbey National plc, 6.69% Sub. Nts., 10/17/05 6,420,000 6,440,788 - ---------------------------------------------------------------------------------------------------------------- Countrywide Home Loans, Inc.: 3.50% Nts., Series K, 12/19/05 4,810,000 4,803,006 5.50% Nts., 8/1/06 3,210,000 3,243,172 5.50% Nts., Series K, 2/1/07 5 635,000 645,349 6.875% Sr. Unsec. Unsub. Nts., Series D, 9/15/05 115,000 115,086 - ---------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc., 3.98% Sr. Unsec. Nts., 11/3/05 1 1,900,000 1,900,606 --------------- 17,148,007 - ---------------------------------------------------------------------------------------------------------------- HEALTH CARE--1.7% - ---------------------------------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--0.3% UnitedHealth Group, Inc., 7.50% Sr. Unsec. Nts., 11/15/05 5,040,000 5,068,380
27 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- PHARMACEUTICALS--1.4% Glaxo Wellcome plc, 6.125% Sr. Unsec. Unsub. Nts., 1/25/06 $ 7,110,000 $ 7,166,560 - ---------------------------------------------------------------------------------------------------------------- Merck & Co., Inc., 6.75% Unsec. Unsub. Nts., 9/19/05 4,372,000 4,372,000 - ---------------------------------------------------------------------------------------------------------------- Novartis Corp., 6.625% Sr. Sub. Nts., Series 4, 10/18/05 10,098,000 10,120,872 - ---------------------------------------------------------------------------------------------------------------- Pharmacia Corp., 5.75% Sr. Unsec. Nts., 12/1/05 5,000,000 5,022,545 --------------- 26,681,977 - ---------------------------------------------------------------------------------------------------------------- INDUSTRIALS--2.7% - ---------------------------------------------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.2% Boeing Capital Corp.: 5.65% Sr. Unsec. Nts., 5/15/06 6,661,000 6,731,600 5.75% Sr. Nts., 2/15/07 161,000 164,604 - ---------------------------------------------------------------------------------------------------------------- General Dynamics Corp., 2.125% Nts., 5/15/06 8,126,000 8,013,187 - ---------------------------------------------------------------------------------------------------------------- Honeywell International, Inc., 6.875% Nts., 10/3/05 1,915,000 1,919,081 - ---------------------------------------------------------------------------------------------------------------- McDonnell Douglas Corp., 6.875% Unsec. Unsub. Nts., 11/1/06 2,222,000 2,283,916 - ---------------------------------------------------------------------------------------------------------------- United Technologies Corp., 4.375% Nts., 5/1/10 2,855,000 2,867,982 --------------- 21,980,370 - ---------------------------------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.3% Dun & Bradstreet Corp., 6.625% Sr. Unsec. Nts., Series B, 3/15/06 4,810,000 4,865,661 - ---------------------------------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--0.6% General Electric Capital Corp.: 2.85% Nts., Series A, 1/30/06 25,000 24,889 5.35% Nts., Series A, 3/30/06 3,850,000 3,876,303 6.80% Nts., Series A, 11/1/05 2,200,000 2,209,968 - ---------------------------------------------------------------------------------------------------------------- Heller Financial, Inc., 6.375% Sr. Unsec. Nts., Cl. A, 3/15/06 2,860,000 2,893,225 - ---------------------------------------------------------------------------------------------------------------- Textron Financial Corp., 2.75% Nts., Series E, 6/1/06 3,070,000 3,039,592 --------------- 12,043,977 - ---------------------------------------------------------------------------------------------------------------- MACHINERY--0.3% Caterpillar Financial Services Corp.: 2.65% Nts., Series F, 1/30/06 2,200,000 2,187,572 5.95% Sr. Nts., 5/1/06 3,700,000 3,742,113 --------------- 5,929,685 - ---------------------------------------------------------------------------------------------------------------- ROAD & RAIL--0.3% Canadian National Railway Co., 6.45% Unsec. Nts., 7/15/06 4,905,000 4,994,472 - ---------------------------------------------------------------------------------------------------------------- MATERIALS--0.6% - ---------------------------------------------------------------------------------------------------------------- CHEMICALS--0.6% Dow Chemical Co. (The), 8.625% Unsec. Debs., 4/1/06 4,000,000 4,086,632 - ---------------------------------------------------------------------------------------------------------------- International Flavors & Fragrances, Inc., 6.45% Sr. Unsec Unsub. Nts., 5/15/06 6,133,000 6,211,012 --------------- 10,297,644
28 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--3.7% - ---------------------------------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--2.8% ALLTEL Corp., 6.75% Unsec. Debs., 9/15/05 $ 5,505,000 $ 5,508,953 - ---------------------------------------------------------------------------------------------------------------- British Telecommunications plc, 7.875% Nts., 12/15/05 7,232,000 7,307,155 - ---------------------------------------------------------------------------------------------------------------- France Telecom SA, 7.45% Sr. Unsec. Nts., 3/1/06 1 7,265,000 7,374,273 - ---------------------------------------------------------------------------------------------------------------- GTE Corp., 6.36% Unsec. Debs., 4/15/06 1,055,000 1,069,131 - ---------------------------------------------------------------------------------------------------------------- Koninklijke (Royal) KPN NV, 7.50% Sr. Unsec. Unsub. Bonds, 10/1/05 8,375,000 8,395,418 - ---------------------------------------------------------------------------------------------------------------- SBC Communications, Inc., 5.75% Sr. Nts., 5/2/06 7,405,000 7,488,106 - ---------------------------------------------------------------------------------------------------------------- Telefonica Europe BV, 7.35% Nts., 9/15/05 7,710,000 7,716,569 - ---------------------------------------------------------------------------------------------------------------- Verizon Communications, Inc., 6.60% Nts., Series A, 9/22/05 1,250,000 1,251,503 - ---------------------------------------------------------------------------------------------------------------- Verizon Global Funding Corp., 6.75% Sr. Unsec. Unsub. Nts., 12/1/05 4,210,000 4,237,348 - ---------------------------------------------------------------------------------------------------------------- Verizon Wireless Capital LLC, 5.375% Unsub. Nts., 12/15/06 860,000 872,798 --------------- 51,221,254 - ---------------------------------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.9% AT&T Wireless Services, Inc., 7.35% Sr. Unsec. Nts., 3/1/06 8,210,000 8,341,426 - ---------------------------------------------------------------------------------------------------------------- Sprint Capital Corp., 4.78% Unsec. Nts., 8/17/06 6,840,000 6,874,740 - ---------------------------------------------------------------------------------------------------------------- Vodafone Group plc, 3.95% Unsec. Nts., 1/30/08 860,000 854,744 -------------- 16,070,910 - ---------------------------------------------------------------------------------------------------------------- UTILITIES--2.7% - ---------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES--2.4% Alabama Power Co., 2.65% Nts., 2/15/06 780,000 775,335 - ---------------------------------------------------------------------------------------------------------------- Boston Edison Co., 4.099% Unsec. Debs., 10/15/05 1 5,900,000 5,901,717 - ---------------------------------------------------------------------------------------------------------------- Consolidated Edison Co. of New York, 6.625% Unsec. Debs., Series 2000-C, 12/15/05 3,700,000 3,727,014 - ---------------------------------------------------------------------------------------------------------------- Detroit Edison Co. (The), 5.05% Sr. Nts., 10/1/05 4,785,000 4,787,833 - ---------------------------------------------------------------------------------------------------------------- DTE Energy Co., 6.45% Sr. Unsub. Nts., 6/1/06 615,000 625,060 - ---------------------------------------------------------------------------------------------------------------- Florida Power & Light Co., 6.875% Sec. Bond, 12/1/05 5,945,000 5,985,622 - ---------------------------------------------------------------------------------------------------------------- FPL Group Capital, Inc., 3.25% Nts., 4/11/06 1,305,000 1,300,320 - ---------------------------------------------------------------------------------------------------------------- Georgia Power Co., 5.50% Sr. Unsec. Unsub. Nts., Series C, 12/1/05 2,940,000 2,950,378 - ---------------------------------------------------------------------------------------------------------------- MidAmerican Energy Co., 6.375% Nts., 6/15/06 4,448,000 4,527,174 - ---------------------------------------------------------------------------------------------------------------- MidAmerican Energy Holdings Co., 4.625% Sr. Nts., 10/1/07 910,000 914,714 - ---------------------------------------------------------------------------------------------------------------- Niagara Mohawk Power Corp., 7.625% Sr. Unsec. Nts., Series F, 10/1/05 4,471,875 4,482,997 - ---------------------------------------------------------------------------------------------------------------- PP&L Resources, Inc., 6.55% Bonds, 3/1/06 1,250,000 1,264,821 - ---------------------------------------------------------------------------------------------------------------- Progress Energy, Inc., 6.75% Sr. Nts., 3/1/06 465,000 471,024 - ---------------------------------------------------------------------------------------------------------------- PSI Energy, Inc., 6.65% Sr. Sec. Bonds, Series EEE, 6/15/06 3,400,000 3,464,960 - ---------------------------------------------------------------------------------------------------------------- Virginia Electric & Power Co., 5.75% Sr. Unsec. Unsub Nts., Series A, 3/31/06 2,587,000 2,611,613 --------------- 43,790,582
29 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- GAS UTILITIES--0.0% NiSource Finance Corp., 3.20% Nts., 11/1/06 $ 680,000 $ 672,948 - ---------------------------------------------------------------------------------------------------------------- MULTI-UTILITIES & UNREGULATED POWER--0.3% Niagara Mohawk Power Corp., 7.75% Sec. Bond, 5/15/06 1,630,000 1,668,584 - ---------------------------------------------------------------------------------------------------------------- Wisconsin Energy Corp., 5.875% Sr. Unsec. Unsub. Nts., 4/1/06 3,359,000 3,391,932 --------------- 5,060,516 --------------- Total Corporate Bonds and Notes (Cost $516,986,179) 515,979,195 - ---------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES--15.3% - ---------------------------------------------------------------------------------------------------------------- AIG: Goldman Sachs Commodity Index Total Return Linked Security, 2.295%, 11/2/05 8 15,000,000 31,830,603 Goldman Sachs Commodity Index Total Return Linked Security, 3.096%, 1/26/06 8 24,000,000 44,120,232 - ---------------------------------------------------------------------------------------------------------------- Cargill, Inc.: Goldman Sachs Commodity Index Total Return Linked Security, 3.39%, 3/21/06 8 29,000,000 49,448,669 Goldman Sachs Commodity Index Total Return Linked Security, 3.503%, 3/31/06 8 39,000,000 55,628,161 - ---------------------------------------------------------------------------------------------------------------- Core Investment Grade Bond Trust I, Pass-Through Certificates, Series 2002-1, 4.659%, 11/30/07 1 8,813,827 8,851,683 - ---------------------------------------------------------------------------------------------------------------- Eksportfinans AS, Goldman Sachs Commodity Index Excess Return Linked Security, 1.70%, 12/5/05 8 18,000,000 30,245,400 - ---------------------------------------------------------------------------------------------------------------- Koch Industries, Inc.: Goldman Sachs Energy Total Return Index Linked Security, 3.615%, 3/1/06 1,9 10,000,000 20,482,890 Goldman Sachs Energy Total Return Index Linked Security, 3.615%, 5/5/06 1,9 20,000,000 39,503,900 --------------- Total Structured Notes (Cost $163,918,662) 280,111,538 - ---------------------------------------------------------------------------------------------------------------- SHORT-TERM NOTES--9.2% - ---------------------------------------------------------------------------------------------------------------- Amsterdam Funding Corp., 3.61%, 10/5/05 10 5,000,000 4,982,953 - ---------------------------------------------------------------------------------------------------------------- Barton Capital Corp., 3.51%, 9/8/05 10 5,000,000 4,996,588 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Bank, 3.58%, 11/2/05 25,000,000 24,846,925 - ---------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp.: 3.36%, 11/29/05 25,000,000 24,780,275 5%, 11/22/05 9,250,000 9,171,005 - ---------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn.: 3%, 12/7/05 15,000,000 14,852,280 3.15%, 9/7/05 10,000,000 9,994,633 4%, 11/9/05 16,100,000 15,990,295 4%, 11/30/05 25,000,000 24,777,825 - ---------------------------------------------------------------------------------------------------------------- Lexington Parker Capital Co. LLC, 3.57%, 9/23/05 10 5,000,000 4,989,092 - ---------------------------------------------------------------------------------------------------------------- Neptune Funding Corp., 3.46%, 9/1/05 10 5,000,000 5,000,000 - ---------------------------------------------------------------------------------------------------------------- Old Line Funding Corp., 3.56%, 9/27/05 10 5,000,000 4,987,144 - ---------------------------------------------------------------------------------------------------------------- Regency Markets No. 1 LLC, 3.59%, 9/26/05 10 5,000,000 4,987,535
30 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------- SHORT-TERM NOTES Continued - ---------------------------------------------------------------------------------------------------------------- Sheffield Receivables Corp., 3.51%, 9/9/05 10 $ 5,000,000 $ 4,996,100 - ---------------------------------------------------------------------------------------------------------------- Steamboat Funding Corp., 3.53%, 9/15/05 10 5,000,000 4,993,136 - ---------------------------------------------------------------------------------------------------------------- Victory Receivables Corp., 3.55%, 9/19/05 10 4,669,000 4,660,713 -------------- Total Short-Term Notes (Cost $169,000,031) 169,006,499 - ---------------------------------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--2.3% - ---------------------------------------------------------------------------------------------------------------- Undivided interest of 9.37% in joint repurchase agreement (Principal Amount/ Value $438,604,000, with a maturity value of $438,647,129) with UBS Warburg LLC, 3.54%, dated 8/31/05, to be repurchased at $41,094,041 on 9/1/05, collateralized by Federal National Mortgage Assn., 6%, 4/1/35, with a value of $447,924,090 (Cost $41,090,000) 41,090,000 41,090,000 - ---------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $2,078,905,494) 119.6% 2,193,877,169 - ---------------------------------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (19.6) (359,095,534) -------------------------------- NET ASSETS 100.0% $1,834,781,635 ================================
FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Represents the current interest rate for a variable or increasing rate security. 2. When-issued security or forward commitment to be delivered and settled after August 31, 2005. See Note 1 of Notes to Financial Statements. 3. Illiquid security. The aggregate value of illiquid securities as of August 31, 2005 was $39,525,313, which represents 2.15% of the Fund's net assets. See Note 7 of Notes to Financial Statements. 4. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $3,677,752 or 0.20% of the Fund's net assets as of August 31, 2005. 5. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures sales contracts. The aggregate market value of such securities is $133,042,706. See Note 5 of Notes to Financial Statements. 6. A sufficient amount of securities has been designated to cover outstanding written put options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE SUBJECT TO PUT DATES PRICE RECEIVED SEE NOTE 1 - ---------------------------------------------------------------------------------------------------- Cocoa Futures, 12/14/05 60 9/2/05 $ 350 $ 3,450 $ 600 Coffee Futures, Cl. C, 12/19/05 67 9/9/05 90 8,626 5,025 --------------------- $ 12,076 $ 5,625 =====================
31 | OPPENHEIMER REAL ASSET FUND STATEMENT OF INVESTMENTS Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Continued 7. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $56,182,159 or 3.06% of the Fund's net assets as of August 31, 2005. 8. Security is linked to the Goldman Sachs Commodity Index, the Goldman Sachs Commodity Excess Return Index or the Goldman Sachs Commodity Index Total Return Index. The indexes currently contain twenty-four commodities from the sectors of energy, metals, livestock and agricultural products. Individual components in the index are weighted by their respective world production values. 9. Security is linked to the Goldman Sachs Energy Total Return Index. The index currently contains six commodities from the energy sector. Individual components in the index are weighted by their respective world production values. 10. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $44,593,261, or 2.43% of the Fund's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 32 | OPPENHEIMER REAL ASSET FUND STATEMENT OF ASSETS AND LIABILITIES August 31, 2005 - -------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------------------------------------- Investments, at value (cost $2,078,905,494)--see accompanying statement of investments $ 2,193,877,169 - ----------------------------------------------------------------------------------------------------------- Cash 5,103,516 - ----------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold on a when-issued basis or forward commitment 42,732,555 Shares of beneficial interest sold 18,477,340 Interest and principal paydowns 15,585,173 Other 18,217 ------------------- Total assets 2,275,793,970 - ----------------------------------------------------------------------------------------------------------- LIABILITIES - ----------------------------------------------------------------------------------------------------------- Options written, at value (premiums received $12,076) - --see accompanying statement of investments 5,625 - ----------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $407,949,324 purchased on a when-issued basis or forward commitment) 423,059,900 Shares of beneficial interest redeemed 10,765,744 Futures margins 6,034,009 Distribution and service plan fees 612,619 Transfer and shareholder servicing agent fees 265,590 Shareholder communications 113,164 Trustees' compensation 18,204 Other 137,480 ------------------- Total liabilities 441,012,335 - ----------------------------------------------------------------------------------------------------------- NET ASSETS $ 1,834,781,635 =================== - ----------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ----------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 192,013 - ----------------------------------------------------------------------------------------------------------- Additional paid-in capital 1,551,018,318 - ----------------------------------------------------------------------------------------------------------- Accumulated net investment income 6,684,985 - ----------------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments 51,380,804 - ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments 225,505,515 ------------------- NET ASSETS $ 1,834,781,635 ===================
33 | OPPENHEIMER REAL ASSET FUND STATEMENT OF ASSETS AND LIABILITIES Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - -------------------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $1,246,435,520 and 129,994,315 shares of beneficial interest outstanding) $ 9.59 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 10.18 - -------------------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $147,663,062 and 15,602,307 shares of beneficial interest outstanding) $ 9.46 - -------------------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $264,019,099 and 28,032,628 shares of beneficial interest outstanding) $ 9.42 - -------------------------------------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $25,585,796 and 2,689,646 shares of beneficial interest outstanding) $ 9.51 - -------------------------------------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $151,078,158 and 15,694,531 shares of beneficial interest outstanding) $ 9.63
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 34 | OPPENHEIMER REAL ASSET FUND STATEMENT OF OPERATIONS For the Year Ended August 31, 2005 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------- Interest (net of foreign withholding taxes $2,275) $ 32,290,910 - ------------------------------------------------------------------------------- Dividends 1,105 --------------- Total investment income 32,292,015 - ------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------- Management fees 10,191,671 - ------------------------------------------------------------------------------- Distribution and service plan fees: Class A 2,081,767 Class B 1,022,271 Class C 1,692,655 Class N 71,303 - ------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 1,616,217 Class B 307,456 Class C 400,151 Class N 46,059 Class Y 14,780 - ------------------------------------------------------------------------------- Shareholder communications: Class A 129,225 Class B 33,612 Class C 36,664 Class N 2,992 Class Y 1,498 - ------------------------------------------------------------------------------- Custodian fees and expenses 97,181 - ------------------------------------------------------------------------------- Trustees' compensation 24,754 - ------------------------------------------------------------------------------- Other 188,500 --------------- Total expenses 17,958,756 Less reduction to custodian expenses (87,293) Less waivers and reimbursements of expenses (266) --------------- Net expenses 17,871,197 - ------------------------------------------------------------------------------- NET INVESTMENT INCOME 14,420,818 35 | OPPENHEIMER REAL ASSET FUND STATEMENT OF OPERATIONS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - -------------------------------------------------------------------------------- Net realized gain on: Investments $ 62,080,176 Closing and expiration of option contracts written 467,178 Closing of futures contracts 187,046,213 Swap contracts 306,922 ---------------- Net realized gain 249,900,489 - -------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments 90,746,710 Futures contracts 134,644,941 Option contracts 9,363 Swap contracts (311,698) ---------------- Net change in unrealized appreciation 225,089,316 - -------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 489,410,623 ================ SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 | OPPENHEIMER REAL ASSET FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2005 2004 - ---------------------------------------------------------------------------------------------------------------- OPERATIONS - ---------------------------------------------------------------------------------------------------------------- Net investment income $ 14,420,818 $ 322,013 - ---------------------------------------------------------------------------------------------------------------- Net realized gain 249,900,489 140,358,876 - ---------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 225,089,316 (31,403,796) -------------------------------- Net increase in net assets resulting from operations 489,410,623 109,277,093 - ---------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ---------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Class A (7,247,857) (51,684) Class B (190,261) - Class C (467,943) - Class N (86,194) - Class Y (970,044) (64,204) - ---------------------------------------------------------------------------------------------------------------- Distributions from net realized gain: Class A (176,519,945) (9,145,151) Class B (21,692,760) (1,194,188) Class C (33,838,230) (1,409,006) Class N (2,633,667) (77,055) Class Y (14,050,224) (793,204) - ---------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ---------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from beneficial interest transactions: Class A 452,635,213 328,433,627 Class B 51,758,221 31,994,068 Class C 120,499,718 63,172,169 Class N 13,842,607 5,907,317 Class Y 81,631,447 16,401,022 - ---------------------------------------------------------------------------------------------------------------- NET ASSETS - ---------------------------------------------------------------------------------------------------------------- Total increase 952,080,704 542,450,804 - ---------------------------------------------------------------------------------------------------------------- Beginning of period 882,700,931 340,250,127 -------------------------------- End of period (including accumulated net investment income of $6,684,985 and $277,611, respectively) $1,834,781,635 $ 882,700,931 ================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 37 | OPPENHEIMER REAL ASSET FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
CLASS A YEAR ENDED AUGUST 31, 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 9.13 $ 7.51 $ 6.15 $ 6.93 $ 8.18 - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .11 1 .01 .03 .29 .45 Net realized and unrealized gain (loss) 2.84 1.85 1.38 (.71) (1.21) --------------------------------------------------------------------------- Total from investment operations 2.95 1.86 1.41 (.42) (.76) - ------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.07) -- 2 (.05) (.36) (.43) Distributions from net realized gain (2.42) (.24) -- -- (.06) --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.49) (.24) (.05) (.36) (.49) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 9.59 $ 9.13 $ 7.51 $ 6.15 $ 6.93 =========================================================================== - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 44.66% 25.44% 23.08% (5.54)% (9.83)% - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 1,246,436 $ 638,254 $ 238,828 $ 148,319 $ 117,331 - ------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 844,342 $ 413,618 $ 193,837 $ 115,458 $ 139,631 - ------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income 1.34% 0.22% 0.46% 4.73% 5.73% Total expenses 1.32% 5 1.40% 5,6 1.49% 5 1.68% 5,6 1.51% 5 - ------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 94% 7 87% 61% 49% 105%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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. 5. Reduction to custodian expenses less than 0.01%. 6. Voluntary waiver of transfer agent fees less than 0.01%. 7. The portfolio turnover rate excludes purchase and sales of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------------- Year Ended August 31, 2005 $4,827,248,691 $4,809,916,669 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 38 | OPPENHEIMER REAL ASSET FUND
CLASS B YEAR ENDED AUGUST 31, 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 9.05 $ 7.51 $ 6.16 $ 6.95 $ 8.20 - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .04 1 (.05) (.04) .23 .40 Net realized and unrealized gain (loss) 2.80 1.83 1.40 (.70) (1.22) --------------------------------------------------------------------------- Total from investment operations 2.84 1.78 1.36 (.47) (.82) - ------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.01) -- (.01) (.32) (.37) Distributions from net realized gain (2.42) (.24) -- -- (.06) --------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.43) (.24) (.01) (.32) (.43) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 9.46 $ 9.05 $ 7.51 $ 6.16 $ 6.95 =========================================================================== - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 43.33% 24.32% 22.12% (6.38)% (10.49)% - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 147,663 $ 78,125 $ 37,589 $ 24,738 $ 21,321 - ------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 102,816 $ 52,436 $ 32,101 $ 20,032 $ 26,295 - ------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) 0.46% (0.69)% (0.41)% 4.10% 4.99% Total expenses 2.19% 2.32% 2.44% 2.45% 2.27% Expenses after payments and waivers and reduction to custodian expenses N/A 4,5 2.31% 2.36% N/A 4,5 N/A 4 - ------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 94% 6 87% 61% 49% 105%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Voluntary waiver of transfer agent fees less than 0.01%. 6. The portfolio turnover rate excludes purchase and sales of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------------- Year Ended August 31, 2005 $4,827,248,691 $4,809,916,669 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 39 | OPPENHEIMER REAL ASSET FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
CLASS C YEAR ENDED AUGUST 31, 2005 2004 2003 2002 2001 - ---------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ---------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 9.02 $ 7.48 $ 6.14 $ 6.93 $ 8.17 - ---------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .05 1 (.03) (.03) .23 .41 Net realized and unrealized gain (loss) 2.79 1.81 1.38 (.70) (1.22) -------------------------------------------------------------- Total from investment operations 2.84 1.78 1.35 (.47) (.81) - ---------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.02) -- (.01) (.32) (.37) Distributions from net realized gain (2.42) (.24) -- -- (.06) -------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.44) (.24) (.01) (.32) (.43) - ---------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 9.42 $ 9.02 $ 7.48 $ 6.14 $ 6.93 ============================================================== - ---------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 43.50% 24.42% 22.04% (6.39)% (10.43)% - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 264,019 $ 110,728 $ 36,531 $ 18,115 $ 12,588 - ---------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 170,306 $ 68,392 $ 25,746 $ 11,771 $ 16,165 - ---------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income (loss) 0.57% (0.62)% (0.43)% 3.99% 4.95% Total expenses 2.11% 2.24% 2.40% 2.45% 2.26% Expenses after payments and waivers and reduction to custodian expenses N/A 4 N/A 4 2.36% N/A 4,5 N/A 4 - ---------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 94% 6 87% 61% 49% 105%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Voluntary waiver of transfer agent fees less than 0.01%. 6. The portfolio turnover rate excludes purchase and sales of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS - ----------------------------------------------------------------------- Year Ended August 31, 2005 $4,827,248,691 $4,809,916,669 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 40 | OPPENHEIMER REAL ASSET FUND
CLASS N YEAR ENDED AUGUST 31, 2005 2004 2003 2002 2001 1 - ------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 9.08 $ 7.50 $ 6.15 $ 6.99 $ 7.67 - ------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .08 2 -- .07 .30 .22 Net realized and unrealized gain (loss) 2.82 1.82 1.36 (.78) (.73) ----------------------------------------------------- Total from investment operations 2.90 1.82 1.43 (.48) (.51) - ------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.05) -- (.08) (.36) (.17) Distributions from net realized gain (2.42) (.24) -- -- -- ----------------------------------------------------- Total dividends and/or distributions to shareholders (2.47) (.24) (.08) (.36) (.17) - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 9.51 $ 9.08 $ 7.50 $ 6.15 $ 6.99 ===================================================== - ------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 44.03% 24.90% 23.63% (6.47)% (6.75)% - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 25,586 $ 8,206 $ 1,578 $ 314 $ 61 - ------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 14,654 $ 4,516 $ 1,001 $ 146 $ 14 - ------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income (loss) 1.03% (0.17)% 0.27% 3.57% 5.95% Total expenses 1.68% 1.84% 1.83% 1.94% 1.88% Expenses after payments and waivers and reduction to custodian expenses N/A 5,6 1.80% 1.63% N/A 5,6 N/A 5 - ------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 94% 7 87% 61% 49% 105%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001. 2. Per share amounts calculated based on the average shares outstanding during the period. 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. 5. Reduction to custodian expenses less than 0.01%. 6. Voluntary waiver of transfer agent fees less than 0.01%. 7. The portfolio turnover rate excludes purchase and sales of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS - -------------------------------------------------------------------------------- Year Ended August 31, 2005 $4,827,248,691 $4,809,916,669 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 41 | OPPENHEIMER REAL ASSET FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
CLASS Y YEAR ENDED AUGUST 31, 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 9.15 $ 7.52 $ 6.15 $ 6.94 $ 8.16 - ------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .15 1 .05 .06 .32 .25 Net realized and unrealized gain (loss) 2.86 1.84 1.39 (.73) (.95) ----------------------------------------------------------------- Total from investment operations 3.01 1.89 1.45 (.41) (.70) - ------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.11) (.02) (.08) (.38) (.46) Distributions from net realized gain (2.42) (.24) -- -- (.06) ----------------------------------------------------------------- Total dividends and/or distributions to shareholders (2.53) (.26) (.08) (.38) (.52) - ------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 9.63 $ 9.15 $ 7.52 $ 6.15 $ 6.94 ================================================================= - ------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 45.42% 25.84% 23.69% (5.36)% (9.21)% - ------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 151,078 $ 47,387 $ 25,724 $ 6,908 $ 1,741 - ------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 83,836 $ 31,449 $ 15,755 $ 3,420 $ 868 - ------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 1.83% 0.65% 0.83% 3.95% 6.46% Total expenses 0.88% 0.97% 1.08% 1.27% 1.38% 4 Expenses after payments and waivers and reduction to custodian expenses N/A 5 N/A 5 N/A 5 1.26% 1.17% - ------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 94% 6 87% 61% 49% 105%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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. 3. Annualized for periods of less than one full year. 4. Added since August 31, 2001 to reflect expenses before reduction to custodian expenses and voluntary waiver of transfer agent fees. 5. Reduction to custodian expenses less than 0.01%. 6. The portfolio turnover rate excludes purchase and sales of To Be Announced (TBA) mortgage-related securities as follows: PURCHASE TRANSACTIONS SALE TRANSACTIONS - ---------------------------------------------------------------------- Year Ended August 31, 2005 $4,827,248,691 $4,809,916,669 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 42 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Real Asset 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 total return. Total return refers to the change in value of an investment in shares of the Fund over time resulting from changes in value of the Fund's investments and income on those investments. The Fund's investment advisor is OppenheimerFunds, Inc. (the Advisor). The Sub-Advisor is Oppenheimer Real Asset Management, Inc. (the Manager), a wholly owned subsidiary of the Advisor. 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 Fund assesses a 2% fee on the proceeds of fund shares that are redeemed (either by selling or exchanging to another Oppenheimer fund) within 30 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. 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 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 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, in the country that is 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, 43 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities will be valued at the mean between the "bid" and "asked" prices. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. 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). - -------------------------------------------------------------------------------- STRUCTURED NOTES. The Fund invests in structured notes whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured notes are often leveraged, increasing the volatility of each note's market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured note is sold or matures. As of August 31, 2005, the market value of these securities comprised 15.3% of the Fund's net assets and resulted in unrealized cumulative gains of $116,192,876. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis or forward commitment can take place up to ten days or more after the trade date. Normally the settlement date occurs within six months after the trade date; however, the Fund may, from time to time, purchase securities whose settlement date extends six months or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued basis or forward commitment may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of August 31, 2005, the Fund had purchased $407,949,324 of securities issued on a when-issued basis 44 | OPPENHEIMER REAL ASSET FUND or forward commitment and sold $42,732,555 of securities issued on a when-issued basis or forward commitment. In connection with its ability to purchase or sell securities on a when-issued basis, the Fund may enter into forward roll transactions with respect to mortgage-related securities. Forward roll transactions require the sale of securities for delivery in the current month, and a simultaneous agreement with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; counterparty credit risk; and the potential pay down speed variance between the mortgage-related pools. - -------------------------------------------------------------------------------- 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 45 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. The tax components of capital shown in the 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 SECURITIES AND UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES -------------------------------------------------------------------------- $66,585,299 $89,627,391 $346,014 $127,718,659 1. The Fund had $346,014 of straddle losses which were deferred. 2. During the fiscal year ended August 31, 2005, the Fund did not utilize any capital loss carryforward. 3. During the fiscal year ended August 31, 2004, the Fund did not utilize any capital loss carryforward. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. Accordingly, the following amounts have been reclassified for August 31, 2005. Net assets of the Fund were unaffected by the reclassifications. INCREASE TO REDUCTION TO ACCUMULATED ACCUMULATED NET INCREASE TO NET INVESTMENT REALIZED GAIN PAID-IN CAPITAL INCOME ON INVESTMENTS 4 ----------------------------------------------------- $32,747,735 $948,855 $33,696,590 4. $32,747,735, including $23,022,965 of long-term capital gain, was distributed in connection with Fund share redemptions. 46 | OPPENHEIMER REAL ASSET FUND The tax character of distributions paid during the years ended August 31, 2005 and August 31, 2004 was as follows: YEAR ENDED YEAR ENDED AUGUST 31, 2005 AUGUST 31, 2004 ---------------------------------------------------------------- Distributions paid from: Ordinary income $ 128,279,617 $ 115,888 Long-term capital gain 129,417,508 12,618,604 --------------------------------- Total $ 257,697,125 $ 12,734,492 ================================= 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, 2005 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 $ 2,078,996,577 Federal tax cost of other investments 438,193,458 ---------------- Total federal tax cost $ 2,517,190,035 ================ Gross unrealized appreciation $ 143,516,519 Gross unrealized depreciation (15,797,860) ---------------- Net unrealized appreciation $ 127,718,659 ================ - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. 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 distributions, if any, are declared and paid quarterly. 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 47 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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 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. - -------------------------------------------------------------------------------- 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 $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
YEAR ENDED AUGUST 31, 2005 YEAR ENDED AUGUST 31, 2004 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------- CLASS A Sold 94,212,026 $ 777,455,272 60,864,784 $ 526,237,973 Dividends and/or distributions reinvested 24,089,571 160,454,202 1,021,225 7,760,573 Redeemed (58,238,089) (485,274,261) 1 (23,760,653) (205,564,919) ----------------------------------------------------------------- Net increase 60,063,508 $ 452,635,213 38,125,356 $ 328,433,627 ================================================================= - --------------------------------------------------------------------------------------------- CLASS B Sold 9,282,558 $ 76,207,355 6,075,661 $ 52,623,081 Dividends and/or distributions reinvested 2,820,081 18,521,469 136,911 1,037,789 Redeemed (5,135,305) (42,970,603) 1 (2,581,998) (21,666,802) ----------------------------------------------------------------- Net increase 6,967,334 $ 51,758,221 3,630,574 $ 31,994,068 =================================================================
48 | OPPENHEIMER REAL ASSET FUND
YEAR ENDED AUGUST 31, 2005 YEAR ENDED AUGUST 31, 2004 SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------- CLASS C Sold 18,790,237 $152,585,965 10,218,639 $ 87,296,277 Dividends and/or distributions reinvested 4,162,996 27,230,330 148,152 1,118,549 Redeemed (7,202,060) (59,316,577) 1 (2,968,721) (25,242,657) --------------------------------------------------------------- Net increase 15,751,173 $120,499,718 7,398,070 $ 63,172,169 =============================================================== - -------------------------------------------------------------------------------------------- CLASS N Sold 2,265,268 $ 18,313,212 818,178 $ 6,975,731 Dividends and/or distributions reinvested 403,003 2,665,360 10,161 77,023 Redeemed (882,773) (7,135,965) 1 (134,749) (1,145,437) --------------------------------------------------------------- Net increase 1,785,498 $ 13,842,607 693,590 $ 5,907,317 =============================================================== - -------------------------------------------------------------------------------------------- CLASS Y Sold 16,487,939 $131,638,201 3,051,718 $ 26,560,158 Dividends and/or distributions reinvested 1,252,352 8,401,675 28,193 213,586 Redeemed (7,222,356) (58,408,429) 1 (1,324,757) (10,372,722) --------------------------------------------------------------- Net increase 10,517,935 $ 81,631,447 1,755,154 $ 16,401,022 ===============================================================
1. Net of redemption fees of $92,832, $11,304, $18,724, $1,611 and $9,217 for Class A, Class B, Class C, Class N and Class Y, respectively. - -------------------------------------------------------------------------------- 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, 2005, were as follows: PURCHASES SALES ----------------------------------------------------------------- Investment securities $ 478,499,811 $ 185,127,506 U.S. government and government agency obligations 158,175,005 166,048,968 To Be Announced (TBA) mortgage-related securities 4,827,248,691 4,809,916,669 - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Management fees paid to the Advisor were in accordance with the investment advisory agreement with the Fund which provides for a fee at an annual rate of 1.00% of the first $200 million of average annual net assets, 0.90% of the next $200 million, 0.85% of the next $200 million, 0.80% of the next $200 million, and 0.75% of net assets in excess of $800 million. Under the sub-advisory agreement, the Advisor pays the Sub-Advisor the following annual fees: 0.50% of the first $200 million of average annual net assets, 0.45% of the next $200 million, 0.425% of the next $200 million, 0.40% of the next $200 million, and 0.375% of the net assets in excess of $800 million. 49 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the year ended August 31, 2005, the Fund paid $2,255,755 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $10,000 per annum for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. - -------------------------------------------------------------------------------- SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made quarterly 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 quarterly 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 years. 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% per year on Class B and Class C shares and 0.25% per year 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, 2005 for Class B, Class C and Class N shares were $3,728,815, $2,395,326 and $191,568, 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 50 | OPPENHEIMER REAL ASSET FUND 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 table below 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, 2005 $1,350,675 $23,963 $316,782 $154,457 $31,646
- -------------------------------------------------------------------------------- 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, 2005, OFS waived $131 and $135 for Class B and Class N shares, respectively. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- 5. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a commodity or financial instrument at a negotiated price on a stipulated future date. Futures contracts are traded on a commodity exchange. The Fund may buy and sell futures contracts that relate to broadly based securities indices (financial futures), debt securities (interest rate futures) and various commodities (commodity index futures) inherent in the Fund's holdings of structured notes. The Fund may also buy or write put or call options on these futures contracts. The Fund generally sells futures contracts to hedge against increases in interest rates and the resulting negative effect on the value of fixed rate portfolio securities, decreases in market value of portfolio securities, or decreases in commodity prices. The Fund may also purchase futures contracts without owning the underlying fixed-income security as an efficient or cost effective means to gain exposure to changes in interest rates, commodity prices or market indices. The Fund will then either purchase the underlying fixed-income security or close out the futures contract. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expires. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. The Statement of Assets and Liabilities reflects a receivable or payable for the daily mark to market for variation margin. Realized gains and losses are reported in the Statement of Operations as the closing and expiration of futures contracts. 51 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 5. FUTURES CONTRACTS Continued Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. As of August 31, 2005, the Fund had outstanding futures contracts as follows:
UNREALIZED EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES CONTRACTS AUGUST 31, 2005 (DEPRECIATION) - ---------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE AGRICULTURE Corn 12/14/05 1,638 $ 17,731,350 $ (2,206,220) Cotton #2 12/7/05 434 10,793,580 (1,266,345) Soybean 11/14/05 314 9,400,375 (1,984,185) Wheat 12/14/05 1,768 28,172,938 (1,822,057) ENERGY Brent Crude Oil 10/14/05 2,470 166,156,900 6,925,315 Crude Oil 9/20/05 5,221 359,935,740 24,880,898 Gas Oil 10/12/05 889 56,673,750 5,131,628 Heating Oil 9/30/05 1,338 116,690,994 14,868,393 Natural Gas 9/28/05 1,359 155,904,480 36,506,703 Unleaded Gasoline 9/30/05 1,324 125,412,722 25,981,909 LIVESTOCK Cattle Feeder 10/27/05 151 8,318,213 232,598 Lean Hogs 10/14/05 1,268 32,308,640 2,277,447 Live Cattle 10/31/05 898 29,544,200 63,701 INDUSTRIAL METALS Copper 12/28/05 687 27,814,913 2,617,319 London Metals Exchange Aluminum High Grade 10/19/05 657 30,291,806 189,470 London Metals Exchange Copper 10/19/05 43 3,972,125 (39,883) London Metals Exchange Lead 10/19/05 326 7,167,925 172,810 London Metals Exchange Nickel 10/19/05 89 7,983,300 (10,903) London Metals Exchange Zinc 10/19/05 298 10,143,175 469,630 PRECIOUS METALS Gold 100 Oz. 12/28/05 419 18,356,390 (72,968) Silver 12/28/05 56 1,919,400 (35,140) SOFTS Sugar #11 9/30/05 948 10,691,923 1,083,726 GOVERNMENTS U.S. Treasury Nts., 10 yr. 9/21/05 551 62,219,953 314,433 -------------- 114,278,279 ==============
52 | OPPENHEIMER REAL ASSET FUND
UNREALIZED EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES CONTRACTS AUGUST 31, 2005 (DEPRECIATION) - ---------------------------------------------------------------------------------------- CONTRACTS TO SELL SOFTS Cocoa 12/14/05 139 $ 1,951,560 $ (42,358) Coffee, Cl. C. 12/19/05 151 5,721,956 (48,715) GOVERNMENTS U.S. Long Bonds 12/20/05 378 44,615,813 (572,490) U.S. Treasury Nts., 2 yr. 12/30/05 3,558 736,839,563 (2,614,611) U.S. Treasury Nts., 5 yr. 12/20/05 530 57,438,750 (472,716) -------------- (3,750,890) -------------- $ 110,527,389 ==============
- -------------------------------------------------------------------------------- 6. OPTION ACTIVITY The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Contracts subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security or commodity increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security or commodity decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. 53 | OPPENHEIMER REAL ASSET FUND NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. OPTION ACTIVITY Continued Written option activity for the year ended August 31, 2005 was as follows: CALL OPTIONS PUT OPTIONS ---------------------- ----------------------- NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS - ----------------------------------------------------------------------------- Options outstanding as of August 31, 2004 90 $ 19,162 100 $ 8,026 Options written 545 298,069 2,034 375,534 Options closed or expired (273) (204,739) (1,944) (357,209) Options exercised (362) (112,492) (63) (14,275) -------------------------------------------- Options outstanding as of August 31, 2005 -- $ -- 127 $ 12,076 ============================================ - -------------------------------------------------------------------------------- 7. ILLIQUID SECURITIES As of August 31, 2005, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with the applicable footnote on the Statement of Investments. - -------------------------------------------------------------------------------- 8. LITIGATION A consolidated amended complaint has been filed as putative derivative and class actions against the Manager, OFS and the Distributor, as well as 51 of the Oppenheimer funds (as "Nominal Defendants") including the Fund, 30 present and former Directors or Trustees and 8 present and former officers of the funds. This complaint, initially filed in the U.S. District Court for the Southern District of New York on January 10, 2005 and amended on March 4, 2005, consolidates into a single action and amends six individual previously-filed putative derivative and class action complaints. Like those prior complaints, the complaint alleges that the Manager charged excessive fees for distribution and other costs, improperly used assets of the funds in the form of directed brokerage commissions and 12b-1 fees to pay brokers to promote sales of the funds, and failed to properly disclose the use of assets of the funds to make those payments in violation of the Investment Company Act of 1940 and the Investment Advisers Act of 1940. Also, like those prior complaints, the complaint further alleges that by permitting and/or participating in those actions, the Directors/Trustees and the Officers breached their fiduciary duties to shareholders of the funds under the Investment Company Act of 1940 and at common law. The complaint seeks unspecified compensatory and punitive damages, rescission of the funds' investment advisory agreements, an accounting of all fees paid, and an award of attorneys' fees and litigation expenses. 54 | OPPENHEIMER REAL ASSET FUND The defendants believe that the allegations contained in the Complaints are without merit and that they have meritorious defenses against the claims asserted. The defendants intend to defend these lawsuits vigorously and to contest any claimed liability. The defendants believe that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them and that no estimate can yet be made with any degree of certainty as to the amount or range of any potential loss. - -------------------------------------------------------------------------------- 9. FISCAL YEAR END The Fund's Board of Trustees has approved a change in the Fund's fiscal year end from August 31 to May 31. This change is anticipated to be implemented in calendar 2006. 55 | OPPENHEIMER REAL ASSET FUND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER REAL ASSET FUND: We have audited the accompanying statement of assets and liabilities of Oppenheimer Real Asset Fund, including the statement of investments, as of August 31, 2005, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2005, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Real Asset Fund as of August 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Denver, Colorado October 17, 2005 56 | OPPENHEIMER REAL ASSET FUND FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- In early 2006, if applicable, shareholders of record will receive information regarding all dividends and distributions paid to them by the Fund during calendar year 2005. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. Dividends and distributions of $2.4469, $2.4208, $2.4242, $2.4379 and $2.4603 per share were paid to Class A, Class B, Class C, Class N and Class Y shareholders, respectively, on December 13, 2004, of which $1.2589 was designated as a "capital gain distribution" for federal income tax purposes. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains). None of the dividends paid by the Fund during the fiscal year ended August 31, 2005 are eligible for the corporate dividend-received deduction. Dividends, if any, paid by the Fund during the fiscal year ended August 31, 2005, which are not designated as capital gain distributions, may be eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. In early 2006, shareholders of record will receive information regarding the percentage of distributions that are eligible for lower individual income tax rates. The amount will be the maximum amount allowed. 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. 57 | OPPENHEIMER REAL ASSET FUND PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 58 | OPPENHEIMER REAL ASSET FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Each year, the Board of Trustees (the "Board"), including a majority of the independent Trustees, is required to determine whether to renew the Fund's advisory and sub-advisory agreements (the "advisory agreements"). The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Manager and Oppenheimer Real Asset Management, Inc. (the "Sub-Adviser") provide, such information as may be reasonably necessary to evaluate the terms of the advisory agreements. The Board employs an independent consultant to prepare a report that provides information, including comparative information, that the Board requests for this purpose. In addition, the Board receives information throughout the year regarding Fund services, fees, expenses and performance. NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's advisory agreements for the current year, the Board evaluated the nature and extent of the services provided by the Manager, the Sub-Adviser and their affiliates. The Manager provides the Fund with office space, facilities and equipment; administrative, accounting, clerical, legal and compliance personnel; securities trading services and oversight of third party service providers. The Sub-Adviser, a wholly-owned subsidiary of the Manager, provides investment advise with respect to the Fund and invests and reinvests the cash, securities and property comprising the assets of the Fund, under the sub-advisory agreement between the Manager and the Sub-Adviser. QUALITY OF SERVICES. The Board also considered the quality of the services provided and the quality of the Manager's and Sub-Adviser's resources that are available to the Fund. The Board noted that the Manager has had over forty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Manager's administrative, accounting, legal and compliance services and information the Board received regarding the experience and professional qualifications of the Manager's personnel and the size and functions of its staff. The Board members also considered their experiences as directors or trustees of the Fund and other funds advised by the Manager. The Board received and reviewed information regarding the quality of services provided by affiliates of the Manager, which it also reviews at other times during the year in connection with the renewal of the Fund's service agreements. The Board also considered that the Sub-Adviser, a registered Commodity Trading Adviser with the Commodity Futures Trading Commission (CFTC), has operated as a registered investment adviser since 1989 and has been the Fund's sub-adviser since its inception. The Board was aware that there are alternatives to retaining the Manager. 59 | OPPENHEIMER REAL ASSET FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited / Continued - -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of the Fund's portfolio managers and fixed income investment team and analysts. The commodity-linked component of the Fund's portfolio has been managed by Kevin Baum since May 1999. Mr. Baum is a Vice President of the Fund and the Manager. He is a Chartered Financial Analyst and has had over ten years of experience managing commodities-related investments. The Fund's fixed-income component has been managed by Angelo Manioudakis since April 2002. Mr. Manioudakis is a Vice President of the Fund and a Senior Vice President of the Manager and has had over twelve years of experience managing fixed-income investments. The Board also reviewed information, prepared by the Manager and by the independent consultant, comparing the Fund's historical performance to relevant market indices and to the performance of other "specialty and miscellaneous" funds advised by other investment advisers. The Board also receives and reviews comparative performance information regarding the Fund and other funds at each Board meeting. The Board noted that the Fund's one-year, three-year and five-year performance were all better than its peer group average. MANAGEMENT FEES AND EXPENSES. The Board also reviewed information, including comparative information, regarding the fees paid to the Manager and its affiliates and the other expenses borne by the Fund. The independent consultant provided comparative data in regard to the fees and expenses of the Fund, other specialty and miscellaneous funds and other funds with comparable asset levels and distribution features. The Board considered that the Fund's contractual and actual management fees are higher than its peer group average, however its total expenses are lower than its peer group average. In addition, the Board evaluated the comparability of the fees charged and the services provided to the Fund to the fees charged and services provided to other types of entities advised by the Manager. The Board noted that the Manager, not the Fund, pays the Sub-Adviser's annual fee under the sub-advisory agreement. PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed information regarding the cost of services provided by the Manager and its affiliates and the Manager's profitability. The Board considered that the Manager must be able to pay and retain experienced professional personnel at competitive rates to provide services to the Fund and that maintaining the financial viability of the Manager is important in order for the Manager to continue to provide significant services to the Fund and its shareholders. In addition the Board considered information that was provided regarding the direct and 60 | OPPENHEIMER REAL ASSET FUND indirect benefits the Manager and the Sub-Adviser receive as a result of their relationship with the Fund, including compensation paid to affiliates. ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may realize economies of scale in managing and supporting the Fund and the current level of Fund assets in relation to the Fund's breakpoint schedule for its management fees. The Board considered that the Fund has recently experienced significant asset growth and that, based on current asset levels, the Fund has passed its last management fee breakpoint. CONCLUSIONS. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees' counsel are both independent of the Manager and the Sub-Adviser within the meaning and intent of the Securities and Exchange Commission Rules. Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, concluded that the nature, extent and quality of the services provided to the Fund by the Manager and the Sub-Adviser are a benefit to the Fund and in the best interest of the Fund's shareholders and that the amount and structure of the compensation received by the Manager, the Sub-Adviser and their affiliates are reasonable in relation to the services provided. Accordingly, the Board elected to continue the advisory agreements for another year. In arriving at this decision, the Board did not single out any factor or factors as being more important than others, but considered all of the factors together. The Board judged the terms and conditions of the advisory agreements, including the management fee, in light of all of the surrounding circumstances. 61 | OPPENHEIMER REAL ASSET FUND TRUSTEES AND OFFICERS Unaudited - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------- NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/ FUND, LENGTH OF SERVICE, AGE DIRECTORSHIPS HELD; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, TRUSTEES CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL. WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Chairman of the Board of Trustees Creek Mortgage Company (since 1991), Centennial State Mortgage Company (since 2003) and (since 1994), and The El Paso Mortgage Company (since 1993); Chairman of Trustee (since 1999) the following private companies: Ambassador Media Corporation (since Age: 68 1984) and Broadway Ventures (since 1984); Director of the following: Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992), Campus Crusade for Christ (since 1991) and the Bradley Foundation (since 2002); former Chairman of the following: Transland Financial Services, Inc. (private mortgage banking company) (1997-2003), Great Frontier Insurance (insurance agency) (1995-2000), Frontier Real Estate, Inc. (residential real estate brokerage) (1994-2000) and Frontier Title (title insurance agency) (1995-2000); former Director of the following: UNUMProvident (insurance company) (1991-2004), Storage Technology Corporation (computer equipment company) (1991-2003) and International Family Entertainment (television channel) (1992-1997); U.S. Senator (January 1979-January 1991). Oversees 38 portfolios in the OppenheimerFunds complex. ROBERT G. AVIS, Director and President of A.G. Edwards Capital, Inc. (General Partner of Trustee (since 1997) private equity funds) (until February 2001); Chairman, President and Age: 74 Chief Executive Officer of A.G. Edwards Capital, Inc. (until March 2000); Director of A.G. Edwards & Sons, Inc. (brokerage company) (until 2000) and A.G. Edwards Trust Company (investment adviser) (until 2000); Vice Chairman and Director of A.G. Edwards, Inc. (until March 1999); Vice Chairman of A.G. Edwards & Sons, Inc. (until March 1999); Chairman of A.G. Edwards Trust Company (until March 1999) and A.G.E. Asset Management (investment adviser) (until March 1999). Oversees 38 portfolios in the OppenheimerFunds complex. GEORGE C. BOWEN, Assistant Secretary and Director of Centennial Asset Management Trustee (since 1998) Corporation (December 1991-April 1999); President, Treasurer and Director Age: 69 of Centennial Capital Corporation (June 1989-April 1999); Chief Executive Officer and Director of MultiSource Services, Inc. (March 1996-April 1999); Mr. Bowen held several positions with the Manager and with subsidiary or affiliated companies of the Manager (September 1987-April 1999). Oversees 38 portfolios in the OppenheimerFunds complex. EDWARD L. CAMERON, Member of The Life Guard of Mount Vernon (George Washington historical Trustee (since 1999) site) (since June 2000); Director of Genetic ID, Inc. (biotech company) Age: 67 (March 2001-May 2002); Partner at PricewaterhouseCoopers LLP (accounting firm) (July 1974-June 1999); Chairman of Price Waterhouse LLP Global Investment Management Industry Services Group (July 1994-June 1998). Oversees 38 portfolios in the OppenheimerFunds complex. JON S. FOSSEL, Director of UNUMProvident (insurance company) (since June 2002); Trustee (since 1997) Director of Northwestern Energy Corp. (public utility corporation) Age: 63 (since November 2004); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (February 1998-February 2003); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of the Manager; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. ("OAC") (parent holding company of the Manager), Shareholder Services, Inc. and Shareholder Financial
62 | OPPENHEIMER REAL ASSET FUND JON S. FOSSEL, Services, Inc. (until October 1995). Oversees 38 portfolios in the Continued OppenheimerFunds complex. SAM FREEDMAN, Director of Colorado Uplift (charitable organization) (since September Trustee (since 1997) 1984). Mr. Freedman held several positions with the Manager and with Age: 64 subsidiary or affiliated companies of the Manager (until October 1994). Oversees 38 portfolios in the OppenheimerFunds complex. BEVERLY L. HAMILTON, Trustee of Monterey Institute for International Studies (educational Trustee (since 2002) organization) (since February 2000); Director of The California Age: 59 Endowment (philanthropic organization) (since April 2002); Director of Community Hospital of Monterey Peninsula (since February 2002); Director of Emerging Markets Growth Fund, Inc. (mutual fund) (since October 1991); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation and The University of Michigan; Advisor at Credit Suisse First Boston's Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 38 portfolios in the OppenheimerFunds complex. ROBERT J. MALONE, Director of Jones International University (educational organization) Trustee (since 2002) (since August 2005); Chairman, Chief Executive Officer and Director of Age: 61 Steele Street State Bank (commercial banking) (since August 2003); Director of Colorado UpLIFT (charitable organization) (since 1986); Trustee of the Gallagher Family Foundation (non-profit organization) (since 2000); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of Jones Knowledge, Inc. (2001-July 2004); and Director of U.S. Exploration, Inc. (oil and gas exploration) (1997- February 2004). Oversees 38 portfolios in the OppenheimerFunds complex. F. WILLIAM MARSHALL, JR., Trustee of MassMutual Select Funds (formerly MassMutual Institutional Trustee (since 2000) Funds) (investment company) (since 1996) and MML Series Investment Fund Age: 63 (investment company) (since 1996), the Springfield Library and Museum Association (museums) (since 1995) and the Community Music School of Springfield (music school) (since 1996); Chairman and Trustee (since 2003) and Chairman of the Investment Committee (since 1994) of the Worcester Polytech Institute (private university); President and Treasurer of the SIS Funds (private charitable fund) (since January 1999); Chairman of SIS & Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Member of the Investment Committee of the Community Foundation of Western Massachusetts (1998- 2003); and Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999). Oversees 38 portfolios in the OppenheimerFunds complex.
63 | OPPENHEIMER REAL ASSET FUND TRUSTEES AND OFFICERS Unaudited / Continuted - -------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY AND OFFICER STREET, 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN INDEFINITE TERM AND AS AN OFFICER FOR AN ANNUAL TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES. JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President and Principal President (since September 2000) of the Manager; President and Director or Executive Officer Trustee of other Oppenheimer funds; President and Director of OAC and of (since 2001) and Trustee Oppenheimer Partnership Holdings, Inc. (holding company subsidiary of the (since 2001) Manager) (since July 2001); Director of OppenheimerFunds Distributor, Inc. Age: 56 (subsidiary of the Manager) (since November 2001); Chairman and Director of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager) (since July 2001); President and Director of OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since July 2001); Director of the following investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management Corporation, Trinity Investment Management Corporation and Tremont Capital Management, Inc. (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 2001) and Director (since July 2001) of Oppenheimer Real Asset Management, Inc.; Executive Vice President of Massachusetts Mutual Life Insurance Company (OAC's parent company) (since February 1997); Director of DLB Acquisition Corporation (holding company parent of Babson Capital Management LLC) (since June 1995); Member of the Investment Company Institute's Board of Governors (since October 3, 2003); Chief Operating Officer of the Manager (September 2000-June 2001); President and Trustee of MML Series Investment Fund and MassMutual Select Funds (open-end investment companies) (November 1999-November 2001); Director of C.M. Life Insurance Company (September 1999-August 2000); President, Chief Executive Officer and Director of MML Bay State Life Insurance Company (September 1999-August 2000); Director of Emerald Isle Bancorp and Hibernia Savings Bank (wholly- owned subsidiary of Emerald Isle Bancorp) (June 1989-June 1998). Oversees 87 portfolios as a Trustee or Director and officer in the OppenheimerFunds complex. - ---------------------------------------------------------------------------------------------------------------------- OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR OF THE FUND MESSRS. BAUM, MANIOUDAKIS, AND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008, FOR MESSRS. VANDEHEY AND WIXTED, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL TERM OR UNTIL HIS OR HER EARLIER RESIGNATION, RETIREMENT, DEATH OR REMOVAL. KEVIN BAUM, Vice President of the Manager since October 2000; a Chartered Financial Vice President (since 2000) Analyst; he has served as the Fund's principal trader since its inception Age: 34 in March 1997. An officer of 1 portfolio in the OppenheimerFunds complex. ANGELO G. MANIOUDAKIS, Senior Vice President of the Manager (since April 2002), of HarbourView Sr. Vice President (since 2002) Asset Management Corporation (since April, 2002 and of OFI Institutional Age: 37 Asset Management, Inc. (since June 2002). Formerly Executive Director and portfolio manager for Miller, Anderson & Sherrerd, a division of Morgan Stanley Investment Management (August 1993-April 2002). An officer of 14 portfolios in the OppenheimerFunds complex.
64 | OPPENHEIMER REAL ASSET FUND MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since Vice President and March 2004); Vice President of OppenheimerFunds Distributor, Inc., Chief Compliance Officer Centennial Asset Management Corporation and Shareholder Services, Inc. (since 2004) (since June 1983); Vice President and Director of Internal Audit of the Age: 55 Manager (1997-February 2004). An officer of 87 portfolios in the OppenheimerFunds complex. BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer and Treasurer of the following: HarbourView Asset Management Corporation, Principal Financial and Shareholder Financial Services, Inc., Shareholder Services, Inc., Accounting Officer Oppenheimer Real Asset Management Corporation, and Oppenheimer Partnership (since 1999) Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since Age: 45 March 2000), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (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 87 portfolios in the OppenheimerFunds complex. ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since Vice President and Secretary March 2002) of the Manager; General Counsel and Director of the Distributor (since 2001) (since December 2001); General Counsel of Centennial Asset Management Age: 57 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 87 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. 65 | OPPENHEIMER REAL ASSET FUND ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Board of Trustees of the registrant has determined that Edward L. Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a member of the Board's Audit Committee, possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Messrs. Cameron and Bowen as the Audit Committee's financial experts. Messrs. Cameron and Bowen are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Audit Fees The principal accountant for the audit of the registrant's annual financial statements billed $35,000 in fiscal 2005 and $32,000 in fiscal 2004. (b) Audit-Related 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 $5,000 in fiscal 2005 and no such fees in fiscal 2004 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: seed money audit. (c) Tax Fees The principal accountant for the audit of the registrant's annual financial statements billed to the registrant $20,000 in fiscal 2005 and no such fees in fiscal 2004. The principal accountant for the audit of the registrant's annual financial statements billed no such fees during the last two fiscal years to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such services: audit of the tax provision for certain structured instruments. (d) All Other Fees The principal accountant for the audit of the registrant's annual financial statements billed to the registrant no such fees during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed no such fees during the last two fiscal years to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. (e) (1) During its regularly scheduled periodic meetings, the registrant's audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant. The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting. Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit. (2) 100% (f) Not applicable as less than 50%. (g) The principal accountant for the audit of the registrant's annual financial statements billed $25,000 in fiscal 2005 and no such fees in fiscal 2004 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 August 31, 2005, 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 Real Asset Fund By: /s/ John V. Murphy ------------------ John V. Murphy Principal Executive Officer Date: October 17, 2005 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: October 17, 2005 By: /s/ Brian W. Wixted ------------------- Brian W. Wixted Principal Financial Officer Date: October 17, 2005 EX-99.CODE ETH 2 ra735_18564ethics.txt RA735_18564ETHICS 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 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 - ---------- (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 the Oppenheimer Funds dated May 15, 2002, 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. 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, 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. 2. 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 This Code may not be amended or modified except by an amendment in writing which is approved or ratified by OFI and by a majority vote of the Independent Trustees/Directors of each of the applicable Funds. 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 Adopted by Board I of the Oppenheimer Funds June 13, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board IV of the Oppenheimer Funds May 21, 2003 /S/ ROBERT G. ZACK - ------------------ 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: Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting EX-99.CERT 3 ra735_18564ex302.txt RA735_18564EX302 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 Real Asset 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: October 17, 2005 /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 Real Asset 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: October 17, 2005 /s/ Brian W. Wixted - ------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 4 ra735_18564ex906.txt RA735_18564EX906 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 Real Asset 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 August 31, 2005 (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 Real Asset Fund Oppenheimer Real Asset Fund /s/ John V. Murphy /s/ Brian W. Wixted - ------------------ ------------------- John V. Murphy Brian W. Wixted Date: October 17, 2005 Date: October 17, 2005 -----END PRIVACY-ENHANCED MESSAGE-----