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 811-21686
Oppenheimer Portfolio Series
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Arthur S. Gabinet
OFI Global Asset Management, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
Registrants telephone number, including area code: (303) 768-3200
Date of fiscal year end: January 31
Date of reporting period: 7/31/2014
Item 1. Reports to Stockholders.
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 7/31/14
Class A Shares of the Fund | ||||||||
Without Sales Charge |
With Sales Charge | Barclays U.S. Aggregate Bond Index |
S&P 500 Index | |||||
6-Month |
4.46% | -1.54% | 2.16% | 9.44% | ||||
1-Year |
7.63 | 1.44 | 3.97 | 16.94 | ||||
5-Year |
7.92 | 6.65 | 4.47 | 16.79 | ||||
Since Inception (4/5/05) |
1.87 | 1.22 | 4.85 | 7.65 |
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 investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
2 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
During the six-month reporting period ended July 31, 2014, the Funds Class A shares (without sales charge) produced a total return of 4.46%. During a period in which equities outperformed fixed-income securities, the Fund outperformed the Barclays U.S. Aggregate Bond Indexs return of 2.16%, but underperformed the S&P 500 Indexs return of 9.44%.
MARKET OVERVIEW
1. The Fund is invested in Class I shares of all underlying funds discussed in this Fund Performance Discussion, except for Oppenheimer Master Inflation Protected Securities Fund, LLC and Oppenheimer Master Loan Fund, LLC, which do not offer Class I shares.
3 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
4 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
5 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
6 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
7 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 7/31/14
Inception Date |
6-Month | 1-Year | 5-Year | Since Inception |
||||||||
Class A (OACIX) |
4/5/05 | 4.46% | 7.63% | 7.92% | 1.87% | |||||||
Class B (OBCIX) |
4/5/05 | 4.14% | 6.91% | 7.04% | 1.32% | |||||||
Class C (OCCIX) |
4/5/05 | 4.17% | 6.81% | 7.12% | 1.07% | |||||||
Class R (ONCIX) |
4/5/05 | 4.36% | 7.41% | 7.63% | 1.57% | |||||||
Class Y (OYCIX) |
4/5/05 | 4.56% | 7.87% | 8.26% | 2.17% |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 7/31/14
Inception Date |
6-Month | 1-Year | 5-Year | Since Inception |
||||||||
Class A (OACIX) |
4/5/05 | -1.54% | 1.44% | 6.65% | 1.22% | |||||||
Class B (OBCIX) |
4/5/05 | -0.86% | 1.91% | 6.73% | 1.32% | |||||||
Class C (OCCIX) |
4/5/05 | 3.17% | 5.81% | 7.12% | 1.07% | |||||||
Class R (ONCIX) |
4/5/05 | 3.36% | 6.41% | 7.63% | 1.57% | |||||||
Class Y (OYCIX) |
4/5/05 | 4.56% | 7.87% | 8.26% | 2.17% |
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 investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge (CDSC) of 5.75%; for Class B shares, the contingent deferred sales charge of 5% (1-year) and 2% (5-year); and for Class C shares, the 1% CDSC for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14.) There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, 10-year returns for Class B shares reflect Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized.
The Funds performance is compared to the performance of the S&P 500 Index and the Barclays U.S. Aggregate Bond Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy. The Barclays U.S. Aggregate Bond Index is an index of U.S.-dollar-denominated, investment-grade U.S. corporate government and mortgage-backed securities. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a
8 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
benchmark for the Funds performance, and does not predict or depict performance of the Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
9 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
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 (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 July 31, 2014.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section 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 first section 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 second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the 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). Therefore, the hypothetical section of the table is 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.
10 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Actual | Beginning Value |
Ending Account July 31, 2014 |
Expenses Paid During 6 Months Ended July 31, 2014 | |||||||||||||||
Class A |
$ | 1,000.00 | $ | 1,044.60 | $ | 2.13 | ||||||||||||
Class B |
1,000.00 | 1,041.40 | 5.89 | |||||||||||||||
Class C |
1,000.00 | 1,041.70 | 5.89 | |||||||||||||||
Class R |
1,000.00 | 1,043.60 | 4.11 | |||||||||||||||
Class Y |
1,000.00 | 1,045.60 | 0.91 | |||||||||||||||
Hypothetical | ||||||||||||||||||
(5% return before expenses) |
||||||||||||||||||
Class A |
1,000.00 | 1,022.71 | 2.11 | |||||||||||||||
Class B |
1,000.00 | 1,019.04 | 5.82 | |||||||||||||||
Class C |
1,000.00 | 1,019.04 | 5.82 | |||||||||||||||
Class R |
1,000.00 | 1,020.78 | 4.07 | |||||||||||||||
Class Y |
1,000.00 | 1,023.90 | 0.90 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended July 31, 2014 are as follows:
Class | Expense Ratios | |||||
Class A |
0.42 | % | ||||
Class B |
1.16 | |||||
Class C |
1.16 | |||||
Class R |
0.81 | |||||
Class Y |
0.18 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Funds Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
11 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2014 Unaudited
Shares | Value | |||||||
|
||||||||
Investment Company99.8%1 |
||||||||
|
||||||||
Alternative Funds19.2% |
||||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I2 |
$ | 4,156,978 | $ | 12,720,353 | ||||
|
||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
1,037,427 | 27,491,824 | ||||||
|
||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I2 |
580,216 | 11,221,384 | ||||||
|
||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
3,792,020 | 44,712,856 | ||||||
|
||||||||
Oppenheimer Real Estate Fund, Cl. I |
600,723 | 16,285,612 | ||||||
|
|
|||||||
112,432,029 | ||||||||
|
||||||||
Domestic Equity Funds21.2% |
||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
761,869 | 50,969,061 | ||||||
|
||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
539,018 | 18,288,864 | ||||||
|
||||||||
Oppenheimer Value Fund, Cl. I |
1,757,068 | 55,435,488 | ||||||
|
|
|||||||
124,693,413 | ||||||||
|
||||||||
Domestic Fixed Income Funds42.4% |
||||||||
Oppenheimer Core Bond Fund, Cl. I |
21,872,127 | 150,698,956 | ||||||
|
||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
7,558,871 | 68,785,724 | ||||||
|
||||||||
Oppenheimer Master Loan Fund, LLC |
2,010,904 | 29,349,902 | ||||||
|
|
|||||||
248,834,582 | ||||||||
|
||||||||
Foreign Equity Funds4.6% |
||||||||
Oppenheimer Developing Markets Fund, Cl. I |
113,805 | 4,522,599 | ||||||
|
||||||||
Oppenheimer International Growth Fund, Cl. I |
279,321 | 10,488,493 | ||||||
|
||||||||
Oppenheimer International Small Company Fund, Cl. I |
80,977 | 2,700,598 | ||||||
|
||||||||
Oppenheimer International Value Fund, Cl. I |
490,213 | 9,078,746 | ||||||
|
|
|||||||
26,790,436 | ||||||||
|
||||||||
Foreign Fixed Income Fund11.2% |
||||||||
Oppenheimer International Bond Fund, Cl. I |
10,719,692 | 65,711,714 | ||||||
|
||||||||
Money Market Fund1.2% |
||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 0.09%3 |
7,227,914 | 7,227,914 | ||||||
|
||||||||
Total Investments, at Value (Cost $515,248,832) |
99.8% | 585,690,088 | ||||||
|
||||||||
Net Other Assets (Liabilities) |
0.2 | 887,304 | ||||||
|
|
|||||||
Net Assets |
100.0% | $ | 586,577,392 | |||||
|
|
Footnotes to Statement of Investments
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 31, 2014, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
Shares | Gross | Gross | Shares | |||||||||||||
January 31, 2014 | Additions | Reductions | July 31, 2014 | |||||||||||||
|
||||||||||||||||
Oppenheimer Capital Appreciation |
||||||||||||||||
Fund, Cl. I |
836,423 | 29,984 | 104,538 | 761,869 | ||||||||||||
Oppenheimer Commodity Strategy |
4,156,978 | |||||||||||||||
Total Return Fund, Cl. I |
3,900,433 | 384,831 | 128,286 | |||||||||||||
Oppenheimer Core Bond Fund, Cl. I |
20,779,782 | 1,746,558 | 654,213 | 21,872,127 | ||||||||||||
Oppenheimer Currency Opportunities Fund, Cl. Ia |
703,120 | 122,458 | 825,578 | |
12 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Footnotes to Statement of Investments (Continued)
Shares | Gross | Gross | Shares | |||||||||||||
January 31, 2014 | Additions | Reductions | July 31, 2014 | |||||||||||||
|
||||||||||||||||
Oppenheimer Developing Markets Fund, Cl. I |
111,683 | 5,604 | 3,482 | 113,805 | ||||||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
561,059 | 498,692 | 22,324 | 1,037,427 | ||||||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
427,561 | 170,259 | 17,604 | 580,216 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
6,710,370 | 736,848 | 219,304 | 7,227,914 | ||||||||||||
Oppenheimer International Bond Fund, Cl. I |
9,873,734 | 1,168,249 | 322,291 | 10,719,692 | ||||||||||||
Oppenheimer International Growth Fund, Cl. I |
339,038 | 11,312 | 71,029 | 279,321 | ||||||||||||
Oppenheimer International Small Company Fund, Cl. I |
97,886 | 3,255 | 20,164 | 80,977 | ||||||||||||
Oppenheimer International Value Fund, Cl. I |
556,717 | 19,650 | 86,154 | 490,213 | ||||||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
7,015,394 | 771,581 | 228,104 | 7,558,871 | ||||||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
616,057 | 21,514 | 98,553 | 539,018 | ||||||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
3,285,100 | 620,649 | 113,729 | 3,792,020 | ||||||||||||
Oppenheimer Master Loan Fund, LLC |
1,948,059 | 123,650 | 60,805 | 2,010,904 | ||||||||||||
Oppenheimer Real Estate Fund, Cl. I |
611,102 | 28,885 | 39,264 | 600,723 | ||||||||||||
Oppenheimer Value Fund, Cl. I |
2,051,888 | 88,658 | 383,478 | 1,757,068 | ||||||||||||
Realized Gain | ||||||||||||||||
Value | Income | (Loss) | ||||||||||||||
|
||||||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
$ | 50,969,061 | $ | | $ | 753,514 | ||||||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I |
12,720,353 | | (7,780) | |||||||||||||
Oppenheimer Core Bond Fund, Cl. I |
150,698,956 | 2,574,654 | (906,391) | |||||||||||||
Oppenheimer Currency Opportunities Fund, Cl. Ia |
| | (232,082) | |||||||||||||
Oppenheimer Developing Markets Fund, Cl. I |
4,522,599 | | 5,487 | |||||||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
27,491,824 | 349,815 | 7,145 | |||||||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
11,221,384 | | (404,097) | |||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
7,227,914 | 2,830 | | |||||||||||||
Oppenheimer International Bond Fund, Cl. I |
65,711,714 | 1,089,206 | (76,180) | |||||||||||||
Oppenheimer International Growth Fund, Cl. I |
10,488,493 | | 861,562 | |||||||||||||
Oppenheimer International Small Company Fund, Cl. I |
2,700,598 | | 173,190 | |||||||||||||
Oppenheimer International Value Fund, Cl. I |
9,078,746 | | 179,958 | |||||||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
68,785,724 | 541,338 | (20,968) | |||||||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
18,288,864 | | 1,112,553 | |||||||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
44,712,856 | 841,257 b | (64,553)b | |||||||||||||
Oppenheimer Master Loan Fund, LLC |
29,349,902 | 721,790 c | 382,979c | |||||||||||||
Oppenheimer Real Estate Fund, Cl. I |
16,285,612 | 137,601 | 92,520 | |||||||||||||
Oppenheimer Value Fund, Cl. I |
55,435,488 | 585,946 | 2,896,699 | |||||||||||||
|
|
|||||||||||||||
Total |
$ | 585,690,088 | $ | 6,844,437 | $ | 4,753,556 | ||||||||||
|
|
13 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Footnotes to Statement of Investments (Continued)
a. Oppenheimer Currency Opportunities Fund, Cl. I liquidated on August 1, 2014.
b. Represents the amount allocated to the Fund from Oppenheimer Master Inflation Protected Securities Fund, LLC.
c. Represents the amount allocated to the Fund from Oppenheimer Master Loan Fund, LLC.
2. Non-income producing security.
3. Rate shown is the 7-day yield as of July 31, 2014.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
ASSETS AND LIABILITIES July 31, 2014 Unaudited
|
||||
Assets |
||||
Investments, at valuesee accompanying statement of investmentsaffiliated companies (cost $515,248,832) |
$ | 585,690,088 | ||
|
||||
Receivables and other assets: |
||||
Shares of beneficial interest sold |
1,607,123 | |||
Dividends |
711,140 | |||
Investments sold |
21,966 | |||
Other |
31,709 | |||
|
|
|||
Total assets |
588,062,026 | |||
|
||||
Liabilities |
||||
Bank overdraft |
44,521 | |||
|
||||
Payables and other liabilities: |
||||
Investments purchased |
710,618 | |||
Shares of beneficial interest redeemed |
546,814 | |||
Distribution and service plan fees |
124,136 | |||
Trustees compensation |
40,698 | |||
Shareholder communications |
4,254 | |||
Other |
13,593 | |||
|
|
|||
Total liabilities |
1,484,634 | |||
Net Assets |
$ | 586,577,392 | ||
|
|
|||
|
||||
Composition of Net Assets |
||||
Par value of shares of beneficial interest |
$ | 64,565 | ||
|
||||
Additional paid-in capital |
636,328,696 | |||
|
||||
Accumulated net investment income |
7,461,058 | |||
|
||||
Accumulated net realized loss on investments |
(127,718,183) | |||
|
||||
Net unrealized appreciation on investments |
70,441,256 | |||
|
|
|||
Net Assets |
$ | 586,577,392 | ||
|
|
15 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
|
| |||
Net Asset Value Per Share |
||||
Class A Shares: |
||||
Net asset value and redemption price per share (based on net assets of $358,370,790 and 39,255,799 shares of beneficial interest outstanding) |
$9.13 | |||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) |
$9.69 | |||
Class B Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $20,403,768 and 2,253,039 shares of beneficial interest outstanding) |
$9.06 | |||
Class C Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $160,391,571 and 17,848,602 shares of beneficial interest outstanding) |
$8.99 | |||
Class R Shares: |
||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $42,263,035 and 4,646,490 shares of beneficial interest outstanding) |
$9.10 | |||
Class Y Shares: |
||||
Net asset value, redemption price and offering price per share (based on net assets of $5,148,228 and 561,373 shares of beneficial interest outstanding) |
$9.17 |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
OPERATIONS For the Six Months Ended July 31, 2014 Unaudited |
Allocation of Income and Expenses from Master Funds1 |
||||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC: |
||||
Interest |
$ | 840,778 | ||
Dividends |
479 | |||
Net expenses |
(88,297) | |||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC |
752,960 | |||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC: |
||||
Interest |
720,874 | |||
Dividends |
916 | |||
Net expenses |
(45,863) | |||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC |
675,927 | |||
Total allocation of net investment income from master funds |
1,428,887 | |||
Investment Income |
||||
Dividends from affiliated companies |
5,281,390 | |||
Interest |
273 | |||
Total investment income |
5,281,663 | |||
Expenses |
||||
Distribution and service plan fees: |
||||
Class A |
419,263 | |||
Class B |
106,708 | |||
Class C |
778,201 | |||
Class R2 |
106,844 | |||
Transfer and shareholder servicing agent fees: |
||||
Class A |
373,317 | |||
Class B |
23,465 | |||
Class C |
171,325 | |||
Class R2 |
47,134 | |||
Class Y |
4,494 | |||
Shareholder communications: |
||||
Class A |
3,650 | |||
Class B |
488 | |||
Class C |
1,114 | |||
Class R2 |
221 | |||
Class Y |
48 | |||
Trustees compensation |
4,047 | |||
Custodian fees and expenses |
3,280 | |||
Other |
16,710 | |||
Total expenses |
2,060,309 | |||
Less waivers and reimbursements of expenses |
(281,862) | |||
Net expenses |
1,778,447 |
1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 1 of the accompanying Notes.
2. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
17 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
STATEMENT OF OPERATIONS Unaudited / Continued
Net Investment Income
|
$ | 4,932,103 | ||
Realized and Unrealized Gain (Loss) |
||||
Net realized gain on: |
||||
Investments from unaffiliated companies |
11,374 | |||
Affiliated companies |
4,435,128 | |||
|
||||
Net realized gain (loss) allocated from: |
||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
(64,553) | |||
Oppenheimer Master Loan Fund, LLC |
382,979 | |||
|
|
|||
Net realized gain |
4,764,928 | |||
|
||||
Net change in unrealized appreciation/depreciation on investments |
14,177,973 | |||
|
||||
Net change in unrealized appreciation/depreciation allocated from: |
||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
697,648 | |||
Oppenheimer Master Loan Fund, LLC |
(385,661) | |||
|
|
|||
Net change in unrealized appreciation/depreciation |
14,489,960 | |||
|
||||
Net Increase in Net Assets Resulting from Operations |
$ | 24,186,991 | ||
|
|
See accompanying Notes to Financial Statements.
18 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
STATEMENTS OF CHANGES IN NET ASSETS |
Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
|||||||
Operations |
||||||||
Net investment income |
$ | 4,932,103 | $ | 9,659,947 | ||||
Net realized gain |
4,764,928 | 548,951 | ||||||
Net change in unrealized appreciation/depreciation |
14,489,960 | 8,129,827 | ||||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
24,186,991 | 18,338,725 | ||||||
|
||||||||
Dividends and/or Distributions to Shareholders |
||||||||
Dividends from net investment income: |
||||||||
Class A |
| (5,588,157) | ||||||
Class B |
| (185,497) | ||||||
Class C |
| (1,509,237) | ||||||
Class R1 |
| (602,136) | ||||||
Class Y |
| (68,071) | ||||||
|
|
|||||||
| (7,953,098) | |||||||
|
||||||||
Beneficial Interest Transactions |
||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: |
||||||||
Class A |
14,656,287 | 9,965,997 | ||||||
Class B |
(3,953,203) | (7,609,283) | ||||||
Class C |
106,950 | (2,042,144) | ||||||
Class R1 |
(2,859,315) | (8,191,114) | ||||||
Class Y |
1,425,849 | 594,930 | ||||||
|
|
|
|
|||||
9,376,568 | (7,281,614) | |||||||
|
||||||||
Net Assets |
||||||||
Total increase |
33,563,559 | 3,104,013 | ||||||
Beginning of period |
553,013,833 | 549,909,820 | ||||||
|
|
|
|
|||||
End of period (including accumulated net investment income of $7,461,058 and $3,704,163, respectively) | $ | 586,577,392 | $ | 553,013,833 | ||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Class A | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.74 | $ | 8.57 | $ | 8.13 | $ | 8.12 | $ | 7.39 | $ | 6.23 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 |
0.09 | 0.18 | 0.20 | 0.25 | 0.23 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain | 0.30 | 0.14 | 0.42 | 0.002 | 0.72 | 1.14 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.39 | 0.32 | 0.62 | 0.25 | 0.95 | 1.24 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.15) | (0.18) | (0.24) | (0.22) | (0.08) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 9.13 | $ | 8.74 | $ | 8.57 | $ | 8.13 | $ | 8.12 | $ | 7.39 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value3 | 4.46% | 3.75% | 7.62% | 3.17% | 12.91% | 19.86% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 358,371 | $ | 328,792 | $ | 312,860 | $ | 238,435 | $ | 216,715 | $ | 164,988 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 346,290 | $ | 321,008 | $ | 263,955 | $ | 228,718 | $ | 191,109 | $ | 146,527 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:4 |
||||||||||||||||||||||||
Net investment income |
1.99%5 | 2.04%5 | 2.33%5 | 3.05%5 | 2.94%5 | 1.50% | ||||||||||||||||||
Total expenses6 |
0.52%5 | 0.52%5 | 0.49%5 | 0.48%5 | 0.49%5 | 0.50% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.42%5 | 0.41%5 | 0.41%5 | 0.48%5 | 0.49%5 | 0.50% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
9% | 12% | 27% | 12% | 36% | 21% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Less than $0.005 per share.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Includes the Funds share of the allocated expenses and/or net investment income from the Master Funds.
6. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.05 | % | ||||||
Year Ended January 31, 2014 |
1.08 | % | ||||||
Year Ended January 31, 2013 |
1.08 | % | ||||||
Year Ended January 31, 2012 |
1.10 | % | ||||||
Year Ended January 31, 2011 |
1.10 | % | ||||||
Year Ended January 31, 2010 |
1.10 | % |
See accompanying Notes to Financial Statements.
20 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Class B | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.70 | $ | 8.52 | $ | 8.07 | $ | 8.07 | $ | 7.35 | $ | 6.20 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 |
0.06 | 0.10 | 0.12 | 0.18 | 0.16 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.30 | 0.15 | 0.43 | (0.01) | 0.71 | 1.11 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.36 | 0.25 | 0.55 | 0.17 | 0.87 | .1.16 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.07) | (0.10) | (0.17) | (0.15) | (0.01) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 9.06 | $ | 8.70 | $ | 8.52 | $ | 8.07 | $ | 8.07 | $ | 7.35 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 4.14% | 2.90% | 6.84% | 2.15% | 11.90% | 18.77% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 20,404 | $ | 23,457 | $ | 30,526 | $ | 31,443 | $ | 31,470 | $ | 28,860 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 21,829 | $ | 26,741 | $ | 30,910 | $ | 30,889 | $ | 29,729 | $ | 26,346 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income |
1.24%4 | 1.16%4 | 1.47%4 | 2.16%4 | 2.07%4 | 0.72% | ||||||||||||||||||
Total expenses5 |
1.26%4 | 1.31%4 | 1.31%4 | 1.34%4 | 1.37%4 | 1.45% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.16%4 | 1.20%4 | 1.23%4 | 1.34%4 | 1.36%4 | 1.40% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
9% | 12% | 27% | 12% | 36% | 21% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.79 | % | ||||||
Year Ended January 31, 2014 |
1.87 | % | ||||||
Year Ended January 31, 2013 |
1.90 | % | ||||||
Year Ended January 31, 2012 |
1.96 | % | ||||||
Year Ended January 31, 2011 |
1.98 | % | ||||||
Year Ended January 31, 2010 |
2.05 | % |
See accompanying Notes to Financial Statements.
21 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued | ||||
Class C | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.63 | $ | 8.47 | $ | 8.04 | $ | 8.04 | $ | 7.33 | $ | 6.18 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 |
0.05 | 0.11 | 0.13 | 0.19 | 0.17 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.31 | 0.14 | 0.42 | (0.01) | 0.70 | 1.14 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.36 | 0.25 | 0.55 | 0.18 | 0.87 | 1.17 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.09) | (0.12) | (0.18) | (0.16) | (0.02) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 8.99 | $ | 8.63 | $ | 8.47 | $ | 8.04 | $ | 8.04 | $ | 7.33 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 4.17% | 2.89% | 6.90% | 2.34% | 11.92% | 18.98% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 160,391 | $ | 153,973 | $ | 153,128 | $ | 119,266 | $ | 105,918 | $ | 86,890 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 158,830 | $ | 154,195 | $ | 131,124 | $ | 112,026 | $ | 97,991 | $ | 77,652 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income |
1.24%4 | 1.26%4 | 1.59%4 | 2.29%4 | 2.15%4 | 0.50% | ||||||||||||||||||
Total expenses5 |
1.26%4 | 1.28%4 | 1.23%4 | 1.24%4 | 1.27%4 | 1.35% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.16%4 | 1.17%4 | 1.15% | 1.24%4 | 1.27%4 | 1.35% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
9% | 12% | 27% | 12% | 36% | 21% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.79 | % | ||||||
Year Ended January 31, 2014 |
1.84 | % | ||||||
Year Ended January 31, 2013 |
1.82 | % | ||||||
Year Ended January 31, 2012 |
1.86 | % | ||||||
Year Ended January 31, 2011 |
1.88 | % | ||||||
Year Ended January 31, 2010 |
1.95 | % |
See accompanying Notes to Financial Statements.
22 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Class R | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.72 | $ | 8.55 | $ | 8.10 | $ | 8.09 | $ | 7.36 | $ | 6.20 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 |
0.09 | 0.15 | 0.17 | 0.22 | 0.20 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain | 0.29 | 0.14 | 0.43 | 0.002 | 0.72 | 1.18 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.38 | 0.29 | 0.60 | 0.22 | 0.92 | 1.21 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.12) | (0.15) | (0.21) | (0.19) | (0.05) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 9.10 | $ | 8.72 | $ | 8.55 | $ | 8.10 | $ | 8.09 | $ | 7.36 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value3 | 4.36% | 3.40% | 7.40% | 2.80% | 12.55% | 19.55% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 42,263 | $ | 43,246 | $ | 50,510 | $ | 47,055 | $ | 54,286 | $ | 54,890 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 36,600 | $ | 47,223 | $ | 46,844 | $ | 50,465 | $ | 54,933 | $ | 50,202 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:4 |
||||||||||||||||||||||||
Net investment income |
1.97%5 | 1.69%5 | 2.00%5 | 2.69%5 | 2.63%5 | 0.45% | ||||||||||||||||||
Total expenses6 |
0.91%5 | 0.79%5 | 0.80%5 | 0.77%5 | 0.81%5 | 0.96% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.81%5 | 0.68%5 | 0.72%5 | 0.77%5 | 0.79%5 | 0.88% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
9% | 12% | 27% | 12% | 36%5 | 21% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Less than $0.005 per share.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Includes the Funds share of the allocated expenses and/or net investment income from the Master Funds.
6. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.44 | % | ||||||
Year Ended January 31, 2014 |
1.35 | % | ||||||
Year Ended January 31, 2013 |
1.39 | % | ||||||
Year Ended January 31, 2012 |
1.39 | % | ||||||
Year Ended January 31, 2011 |
1.42 | % | ||||||
Year Ended January 31, 2010 |
1.56 | % |
See accompanying Notes to Financial Statements.
23 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued |
Class Y | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 8.77 | $ | 8.60 | $ | 8.15 | $ | 8.14 | $ | 7.41 | $ | 6.25 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)1 |
0.10 | 0.21 | 0.22 | 0.28 | 0.26 | (0.05) | ||||||||||||||||||
Net realized and unrealized gain | 0.30 | 0.14 | 0.43 | 0.002 | 0.72 | 1.31 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.40 | 0.35 | 0.65 | 0.28 | 0.98 | 1.26 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.18) | (0.20) | (0.27) | (0.25) | (0.10) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 9.17 | $ | 8.77 | $ | 8.60 | $ | 8.15 | $ | 8.14 | $ | 7.41 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value3 | 4.56% | 4.01% | 7.96% | 3.47% | 13.27% | 20.17% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 5,148 | $ | 3,546 | $ | 2,886 | $ | 3,015 | $ | 2,047 | $ | 963 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 4,168 | $ | 3,099 | $ | 2,922 | $ | 2,522 | $ | 1,398 | $ | 609 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:4 |
||||||||||||||||||||||||
Net investment income (loss) |
2.24%5 | 2.37%5 | 2.58%5 | 3.42%5 | 3.31%5 | (0.74)% | ||||||||||||||||||
Total expenses6 |
0.28%5 | 0.27%5 | 0.21%5 | 0.17%5 | 0.14%5 | 0.22% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.18%5 | 0.16%5 | 0.13%5 | 0.17%5 | 0.14%5 | 0.14% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
9% | 12% | 27% | 12% | 36% | 21% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Less than $0.005 per share.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Includes the Funds share of the allocated expenses and/or net investment income from the Master Funds.
6. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
0 .81 | % | ||||||
Year Ended January 31, 2014 |
0 .83 | % | ||||||
Year Ended January 31, 2013 |
0 .80 | % | ||||||
Year Ended January 31, 2012 |
0 .79 | % | ||||||
Year Ended January 31, 2011 |
0 .75 | % | ||||||
Year Ended January 31, 2010 |
0 .82 | % |
See accompanying Notes to Financial Statements.
24 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
FINANCIAL STATEMENTS July 31, 2014 Unaudited
1. Significant Accounting Policies
Oppenheimer Portfolio Series (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. Conservative Investor Fund (the Fund) is a series of the Trust whose investment objective is to seek total return. The Fund normally invests in a diversified portfolio of Oppenheimer mutual funds (individually, an Underlying Fund and collectively, the Underlying Funds). The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI.
The Fund offers Class A, Class C, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a CDSC on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. 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 R shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Risks of Investing in the Underlying Funds. Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, the Fund will have greater exposure to the risks of that Underlying Fund.
25 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued | ||
| ||
1. Significant Accounting Policies (Continued)
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund (IMMF) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the Funds investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMFs Class E expenses, including its management fee.
Investment in Oppenheimer Master Funds. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Inflation Protected Securities Fund, LLC (the Master Funds). Each Master Fund has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Master Fund than in another, the Fund will have greater exposure to the risks of that Master Fund.
The investment objective of Oppenheimer Master Loan Fund, LLC is to seek income. The investment objective of Oppenheimer Master Inflation Protected Securities Fund, LLC is to seek total return. The Funds investments in the Master Funds are included in the Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each Master Fund according to its allocated pro-rata share, based on its relative proportion of total outstanding Master Fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the Master Funds. As a shareholder, the Fund is subject to its proportional share of the Master Funds expenses, including their management fee.
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 to shareholders. Therefore, no federal income or excise
26 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
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1. Significant Accounting Policies (Continued)
tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remain open for the three preceding fiscal reporting period ends.
During the fiscal year ended January 31, 2014, the Fund utilized $4,663,623 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended January 31, 2014 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
|
||||
2018 |
$ | 15,654,819 | ||
2019 |
44,255,962 | |||
No expiration |
18,270,817 | |||
|
|
|||
Total |
$ | 78,181,598 | ||
|
|
As of July 31, 2014, it is estimated that the capital loss carryforwards would be $59,910,781 expiring by 2019 and $13,505,889 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended July 31, 2014, it is estimated that the Fund will utilize $4,764,928 of capital loss carryforward to offset realized capital gains.
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.
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 July 31, 2014 are noted in the following table. 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 |
$ | 569,101,958 | ||
|
|
|||
Gross unrealized appreciation |
$ | 20,916,347 | ||
Gross unrealized depreciation |
(4,328,217) | |||
|
|
|||
Net unrealized appreciation |
$ | 16,588,130 | ||
|
|
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with
27 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
1. Significant Accounting Policies (Continued)
respect to their benefits under the Plan. During the six months ended July 31, 2014, the Funds projected benefit obligations, payments to retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased |
$ | 276 | ||
Payments Made to Retired Trustees |
| |||
Accumulated Liability as of July 31, 2014 |
14,175 |
The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of the Fund, and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
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 overdraft at a rate equal to the 1
28 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
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1. Significant Accounting Policies (Continued)
Month LIBOR Rate plus 2.00%. The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The Funds organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net asset value of its shares based upon the net asset value of the applicable Underlying Fund. For each Underlying Fund, the net asset value per share for a class of shares is determined 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 trading by dividing the value of the Underlying Funds net assets attributable to that class by the number of outstanding shares of that class on that day.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuations Methods and Inputs
To determine their net asset values, the Underlying Funds assets are valued primarily on the basis of current market quotations as generally supplied by third party portfolio pricing services or by dealers. Such market quotations are typically based on unadjusted quoted prices in active markets for identical securities or other observable market inputs.
29 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
2. Securities Valuation (Continued)
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those Underlying Funds.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Managers own judgments about assumptions that market participants would use in pricing the asset or liability).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The Fund classifies each of its investments in those Underlying Funds which are publicly offered and reported on an exchange as Level 1, and those Underlying Funds which are not
30 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
|
2. Securities Valuation (Continued)
publicly offered as Level 2, without consideration as to the classification level of the specific investments held by the Underlying Funds.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of July 31, 2014 based on valuation input level:
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
|
||||||||||||||||
Assets Table |
||||||||||||||||
Investments, at Value: |
||||||||||||||||
Investment Companies |
$ | 511,627,330 | $ | 74,062,758 | $ | | $ | 585,690,088 | ||||||||
|
|
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Total Assets |
$ | 511,627,330 | $ | 74,062,758 | $ | | $ | 585,690,088 | ||||||||
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|
Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contracts value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
3. 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:
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class A Sold |
5,938,110 | $ | 53,467,900 | 11,937,768 | $ | 103,749,675 | ||||||||||
Dividends and/or distributions reinvested |
| | 618,995 | 5,440,640 | ||||||||||||
Redeemed |
(4,310,717 | ) | (38,811,613 | ) | (11,424,745 | ) | (99,224,318) | |||||||||
|
|
|||||||||||||||
Net increase |
1,627,393 | $ | 14,656,287 | 1,132,018 | $ | 9,965,997 | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class B |
||||||||||||||||
Sold |
122,886 | $ | 1,102,151 | 221,309 | $ | 1,906,720 | ||||||||||
Dividends and/or distributions reinvested |
| | 20,465 | 179,278 | ||||||||||||
Redeemed |
(566,064 | ) | (5,055,354 | ) | (1,127,778 | ) | (9,695,281) | |||||||||
|
|
|||||||||||||||
Net decrease |
(443,178 | ) | $ | (3,953,203 | ) | (886,004 | ) | $ | (7,609,283) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class C |
||||||||||||||||
Sold |
2,249,921 | $ | 19,978,968 | 4,926,144 | $ | 42,183,947 | ||||||||||
Dividends and/or distributions reinvested |
| | 170,436 | 1,481,086 | ||||||||||||
Redeemed |
(2,236,981 | ) | (19,872,018 | ) | (5,336,498 | ) | (45,707,177) | |||||||||
|
|
|||||||||||||||
Net increase (decrease) |
12,940 | $ | 106,950 | (239,918 | ) | $ | (2,042,144) | |||||||||
|
|
31 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
3. Shares of Beneficial Interest (Continued)
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class R1 |
||||||||||||||||
Sold |
517,370 | $ | 4,640,027 | 1,383,365 | $ | 11,957,384 | ||||||||||
Dividends and/or distributions reinvested |
| | 66,201 | 580,586 | ||||||||||||
Redeemed |
(832,298 | ) | (7,499,342 | ) | (2,399,012 | ) | (20,729,084) | |||||||||
|
|
|||||||||||||||
Net decrease |
(314,928 | ) | $ | (2,859,315 | ) | (949,446 | ) | $ | (8,191,114) | |||||||
|
|
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|
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Class Y |
||||||||||||||||
Sold |
219,750 | $ | 1,987,826 | 256,114 | $ | 2,236,938 | ||||||||||
Dividends and/or distributions reinvested |
| | 7,583 | 66,884 | ||||||||||||
Redeemed |
(62,755 | ) | (561,977 | ) | (194,787 | ) | (1,708,892) | |||||||||
|
|
|||||||||||||||
Net increase |
156,995 | $ | 1,425,849 | 68,910 | $ | 594,930 | ||||||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R.
4. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended July 31, 2014 were as follows:
Purchases | Sales | |||||||||
Investment securities |
$61,742,826 | $50,867,384 |
5. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Manager does not charge a management fee, but rather collects indirect management fees from the Funds investments in the Underlying Funds. The weighted indirect management fees collected from the Funds investment in the Underlying Funds, as a percent of average daily net assets of the Fund for the six months ended July 31, 2014 was 0.49%. This amount is gross of any waivers or reimbursements of management fees implemented at the Underlying Fund level.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
32 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
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5. Fees and Other Transactions with Affiliates (Continued)
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.
Distribution and Service Plans for Class B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, Class C and Class R shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees vote annually to approve its continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
Sales Charges. Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
33 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
5. Fees and Other Transactions with Affiliates (Continued)
Six Months Ended | Class A Front-End Sales Charges Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales |
|||||||||||||||
July 31, 2014 |
$117,082 | $ | $23,171 | $8,622 | $586 |
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse the Fund for certain expenses in order to limit Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, (the combined direct (Fund level) and indirect (Underlying Fund level) expenses), will not exceed the annual rate of 1.25%, 2.00%, 2.00%, 1.50% and 1.00%, for Class A, Class B, Class C, Class R and Class Y, respectively. The expense limitations do not include extraordinary expenses and other expenses not incurred in the ordinary course of the Funds business. Notwithstanding the foregoing limits, the Manager is not required to waive or reimburse Fund expenses in excess of the amount of indirect management fees earned from investments in the Underlying Funds.
The Manager has also contractually agreed to waive fees and/or reimburse certain Fund expenses at an annual rate of 0.10% as calculated on the daily net assets of the Fund. This waiver and/or reimbursement is applied after (and in addition to) any other applicable waiver and/or expense reimbursements that may apply. During the six months ended July 31, 2014, the manager waived fees and/or reimbursed the Fund $281,862.
Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
6. Pending Litigation
In 2009, seven class action lawsuits were filed in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the Defendant Funds). The lawsuits also named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities law and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. On March 5, 2014, the parties in six of these lawsuits executed stipulations and agreements
34 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
|
6. Pending Litigation (Continued)
of settlement resolving those actions. On July 31, 2014, the court entered an order and final judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund.
Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the courts order approving the settlement. In June 2014, the appellate court affirmed the lower courts order approving the settlement. Certain parties subsequently filed a petition for certiorari before the U.S. Supreme Court further challenging the settlement approval order. The settlement does not resolve other outstanding lawsuits against OFI and its affiliates relating to BLMIS.
OFI believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, OFI believes that these suits should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.
35 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR 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 Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at oppenheimerfunds.com, and (iii) on the SECs 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 Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs 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 Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
36 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
© | 2014 OppenheimerFunds, Inc. All rights reserved. |
37 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
| Applications or other forms |
| When you create a user ID and password for online account access |
| When you enroll in eDocs Direct, our electronic document delivery service |
| Your transactions with us, our affiliates or others |
| A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited |
| When you set up challenge questions to reset your password online |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
38 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
| All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
| Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. |
| You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., and each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2013. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
39 OPPENHEIMER PORTFOLIO SERIES CONSERVATIVE INVESTOR FUND
|
3 | |||||
7 | ||||||
10 | ||||||
12 | ||||||
15 | ||||||
17 | ||||||
19 | ||||||
20 | ||||||
25 | ||||||
Portfolio Proxy Voting Policies and Procedures; Updates to Statement of Investments | 36 | |||||
37 | ||||||
38 | ||||||
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 7/31/14
Class A Shares of the Fund | ||||||||||||||
Without Sales Charge |
With Sales Charge
|
Barclays U.S. Aggregate Bond Index |
S&P 500 Index
| |||||||||||
6-Month |
5.77% | -0.31% | 2.16% | 9.44% | ||||||||||
| ||||||||||||||
1-Year |
10.93 | 4.55 | 3.97 | 16.94 | ||||||||||
| ||||||||||||||
5-Year |
10.33 | 9.03 | 4.47 | 16.79 | ||||||||||
| ||||||||||||||
Since Inception (4/5/05) |
3.46 | 2.81 | 4.85 | 7.65 | ||||||||||
|
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 investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
2 OPPENHEIMER PORTFOLIO SERIES MODRATE INVESTOR FUND
During the six-month reporting period ended July 31, 2014, the Funds Class A shares (without sales charge) produced a total return of 5.77%. During a period in which equities outperformed fixed-income securities, the Fund outperformed the Barclays U.S. Aggregate Bond Indexs return of 2.16%, but underperformed the S&P 500 Indexs return of 9.44%.
MARKET OVERVIEW
1. The Fund is invested in Class I shares of all underlying funds discussed in this Fund Performance Discussion, except for Oppenheimer Master Inflation Protected Securities Fund, LLC and Oppenheimer Master Loan Fund, LLC, which do not offer Class I shares.
3 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
FUND REVIEW
4 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
5 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
6 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
7 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 7/31/14
Inception Date | 6-Month | 1-Year | 5-Year | Since Inception | ||||||||||||||||
Class A (OAMIX) |
4/5/05 | 5.77% | 10.93% | 10.33% | 3.46% | |||||||||||||||
Class B (OBMIX) |
4/5/05 | 5.45% | 10.16% | 9.40% | 2.90% | |||||||||||||||
Class C (OCMIX) |
4/5/05 | 5.38% | 9.99% | 9.47% | 2.65% | |||||||||||||||
Class R (ONMIX) |
4/5/05 | 5.60% | 10.60% | 10.03% | 3.19% | |||||||||||||||
Class Y (OYMIX) |
4/5/05 | 5.93% | 11.20% | 10.63% | 3.80% |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 7/31/14
Inception Date | 6-Month | 1-Year | 5-Year | Since Inception | ||||||||||||||||
Class A (OAMIX) |
4/5/05 | -0.31% | 4.55% | 9.03% | 2.81% | |||||||||||||||
Class B (OBMIX) |
4/5/05 | 0.45% | 5.16% | 9.12% | 2.90% | |||||||||||||||
Class C (OCMIX) |
4/5/05 | 4.38% | 8.99% | 9.47% | 2.65% | |||||||||||||||
Class R (ONMIX) |
4/5/05 | 4.60% | 9.60% | 10.03% | 3.19% | |||||||||||||||
Class Y (OYMIX) |
4/5/05 | 5.93% | 11.20% | 10.63% | 3.80% |
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 investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). 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 (CDSC) of 5% (1-year) and 2% (5-year); and for Class C shares, the 1% CDSC for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14.) There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, 10-year returns for Class B shares reflect Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized.
The Funds performance is compared to the performance of the S&P 500 Index and the Barclays U.S. Aggregate Bond Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy. The Barclays U.S. Aggregate Bond Index is an index of U.S.-dollar-denominated, investment-grade U.S. corporate government and mortgage-backed securities. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the
8 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
9 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
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 (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 July 31, 2014.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section 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 first section 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 second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the 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). Therefore, the hypothetical section of the table is 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.
10 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Actual | Beginning Account Value February 1, 2014 |
Ending Account Value July 31, 2014 |
Expenses Paid During 6 Months Ended July 31, 2014 | |||
Class A |
$ 1,000.00 | $ 1,057.70 | $ 2.14 | |||
Class B |
1,000.00 | 1,054.50 | 5.98 | |||
Class C |
1,000.00 | 1,053.80 | 5.97 | |||
Class R |
1,000.00 | 1,056.00 | 3.42 | |||
Class Y |
1,000.00 | 1,059.30 | 0.92 | |||
Hypothetical (5% return before expenses) |
||||||
Class A |
1,000.00 | 1,022.71 | 2.11 | |||
Class B |
1,000.00 | 1,018.99 | 5.87 | |||
Class C |
1,000.00 | 1,018.99 | 5.87 | |||
Class R |
1,000.00 | 1,021.47 | 3.36 | |||
Class Y |
1,000.00 | 1,023.90 | 0.90 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended July 31, 2014 are as follows:
Class | Expense Ratios | |||||
Class A |
0.42 | % | ||||
Class B |
1.17 | |||||
Class C |
1.17 | |||||
Class R |
0.67 | |||||
Class Y |
0.18 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Funds Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
11 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2014 Unaudited |
Shares | Value | |||||||
|
||||||||
Investment Company100.2%1 |
| |||||||
Alternative Funds10.2% |
| |||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I2 |
5,440,936 | $ | 16,649,263 | |||||
|
||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
1,358,921 | 36,011,399 | ||||||
|
||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I2 |
760,217 | 14,702,595 | ||||||
|
||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
6,020,067 | 70,984,438 | ||||||
|
||||||||
Oppenheimer Real Estate Fund, Cl. I |
788,275 | 21,370,136 | ||||||
|
|
|||||||
|
159,717,831
|
| ||||||
|
||||||||
Domestic Equity Funds41.0% |
||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
3,912,086 | 261,718,544 | ||||||
|
||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
2,765,279 | 93,825,926 | ||||||
|
||||||||
Oppenheimer Value Fund, Cl. I |
9,019,583 | 284,567,856 | ||||||
|
|
|||||||
|
640,112,326
|
| ||||||
|
||||||||
Domestic Fixed Income Funds25.3% |
||||||||
Oppenheimer Core Bond Fund, Cl. I |
34,753,199 | 239,449,542 | ||||||
|
||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
12,011,227 | 109,302,166 | ||||||
|
||||||||
Oppenheimer Master Loan Fund, LLC |
3,194,280 | 46,621,721 | ||||||
|
|
|||||||
|
395,373,429
|
| ||||||
|
||||||||
Foreign Equity Funds16.3% |
||||||||
Oppenheimer Developing Markets Fund, Cl. I |
1,087,178 | 43,204,443 | ||||||
|
||||||||
Oppenheimer International Growth Fund, Cl. I |
2,644,908 | 99,316,291 | ||||||
|
||||||||
Oppenheimer International Small Company Fund, Cl. I |
770,860 | 25,708,168 | ||||||
|
||||||||
Oppenheimer International Value Fund, Cl. I |
4,659,382 | 86,291,758 | ||||||
|
|
|||||||
|
254,520,660
|
| ||||||
|
||||||||
Foreign Fixed Income Fund6.7% |
||||||||
Oppenheimer International Bond Fund, Cl. I
|
|
17,024,021
|
|
|
104,357,246
|
| ||
|
||||||||
Money Market Fund0.7% |
||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 0.09%3 |
11,456,957 | 11,456,957 | ||||||
|
||||||||
Total Investments, at Value (Cost $1,220,377,426) |
100.2% | 1,565,538,449 | ||||||
|
||||||||
Net Other Assets (Liabilities) |
(0.2) | (3,874,859) | ||||||
|
|
|||||||
Net Assets |
100.0% | $ | 1,561,663,590 | |||||
|
|
Footnotes to Statement of Investments
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 31, 2014, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
Shares January 31, 2014 |
Gross Additions | Gross Reductions |
Shares July 31, 2014 |
|||||||||||||
|
||||||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
4,035,693 | 89,360 | 212,967 | 3,912,086 | ||||||||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I |
4,913,769 | 617,790 | 90,623 | 5,440,936 | ||||||||||||
Oppenheimer Core Bond Fund, Cl. I |
31,779,925 | 3,533,076 | 559,802 | 34,753,199 | ||||||||||||
Oppenheimer Currency Opportunities Fund, Cl. Ia |
869,893 | 198,742 | 1,068,635 | |
12 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Footnotes to Statement of Investments (Continued) |
Shares January 31, 2014 |
Gross Additions | Gross Reductions |
Shares July 31, 2014 |
|||||||||||||
|
||||||||||||||||
Oppenheimer Developing Markets Fund, Cl. I |
1,004,989 | 99,998 | 17,809 | 1,087,178 | ||||||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
693,686 | 682,227 | 16,992 | 1,358,921 | ||||||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
543,721 | 228,858 | 12,362 | 760,217 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
10,210,831 | 1,433,500 | 187,374 | 11,456,957 | ||||||||||||
Oppenheimer International Bond Fund, Cl. I |
15,068,612 | 2,231,022 | 275,613 | 17,024,021 | ||||||||||||
Oppenheimer International Growth Fund, Cl. I |
2,913,139 | 62,303 | 330,534 | 2,644,908 | ||||||||||||
Oppenheimer International Small Company Fund, Cl. I |
932,237 | 17,949 | 179,326 | 770,860 | ||||||||||||
Oppenheimer International Value Fund, Cl. I |
4,740,077 | 108,218 | 188,913 | 4,659,382 | ||||||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
10,694,011 | 1,512,539 | 195,323 | 12,011,227 | ||||||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
2,940,433 | 64,177 | 239,331 | 2,765,279 | ||||||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
4,800,467 | 1,316,677 | 97,077 | 6,020,067 | ||||||||||||
Oppenheimer Master Loan Fund, LLC |
3,018,491 | 227,771 | 51,982 | 3,194,280 | ||||||||||||
Oppenheimer Real Estate Fund, Cl. I |
868,254 | 25,291 | 105,270 | 788,275 | ||||||||||||
Oppenheimer Value Fund, Cl. I |
9,766,275 | 301,780 | 1,048,472 | 9,019,583 |
Value | Income | Realized Gain (Loss) |
||||||||||
|
||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
$ | 261,718,544 | $ | | $ | 246,487 | ||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I |
16,649,263 | | (1,373) | |||||||||
Oppenheimer Core Bond Fund, Cl. I |
239,449,542 | 4,039,578 | (889,827) | |||||||||
Oppenheimer Currency Opportunities Fund, Cl. Ia |
| | (292,947) | |||||||||
Oppenheimer Developing Markets Fund, Cl. I |
43,204,443 | | 58,889 | |||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
36,011,399 | 473,403 | 4,286 | |||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
14,702,595 | | (284,395) | |||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
11,456,957 | 4,435 | | |||||||||
Oppenheimer International Bond Fund, Cl. I |
104,357,246 | 1,710,407 | (13,841) | |||||||||
Oppenheimer International Growth Fund, Cl. I |
99,316,291 | | 3,219,394 | |||||||||
Oppenheimer International Small Company Fund, Cl. I |
25,708,168 | | 1,467,888 | |||||||||
Oppenheimer International Value Fund, Cl. I |
86,291,758 | | 27,423 | |||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
109,302,166 | 849,204 | (25,125) | |||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
93,825,926 | | 1,519,212 | |||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
70,984,438 | 1,316,333 | b | (105,833 )b | ||||||||
Oppenheimer Master Loan Fund, LLC |
46,621,721 | 1,139,270 | c | 609,636 c | ||||||||
Oppenheimer Real Estate Fund, Cl. I |
21,370,136 | 185,943 | 764,809 | |||||||||
Oppenheimer Value Fund, Cl. I |
284,567,856 | 2,883,828 | 3,956,117 | |||||||||
|
|
|||||||||||
Total |
$ | 1,565,538,449 | $ | 12,602,401 | $ | 10,260,800 | ||||||
|
|
13 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF INVESTMENTS Unaudited / Continued |
Footnotes to Statement of Investments (Continued)
a. Oppenheimer Currency Opportunities Fund, Cl. I liquidated on August 1, 2014.
b. Represents the amount allocated to the Fund from Oppenheimer Master Inflation Protected Securities
Fund, LLC.
c. Represents the amount allocated to the Fund from Oppenheimer Master Loan Fund, LLC.
2. Non-income producing security.
3. Rate shown is the 7-day yield as of July 31, 2014.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2014 Unaudited |
|
||||
Assets |
||||
Investments, at valuesee accompanying statement of investmentsaffiliated companies (cost $1,220,377,426) |
$ | 1,565,538,449 | ||
|
||||
Receivables and other assets: |
||||
Shares of beneficial interest sold |
1,746,290 | |||
Dividends |
1,130,902 | |||
Investments sold |
113,192 | |||
Other |
77,222 | |||
|
|
|||
Total assets |
1,568,606,055 | |||
|
||||
Liabilities |
||||
Bank overdraft |
565,369 | |||
|
||||
Payables and other liabilities: |
||||
Shares of beneficial interest redeemed |
4,782,479 | |||
Investments purchased |
1,130,072 | |||
Distribution and service plan fees |
334,019 | |||
Trustees compensation |
106,393 | |||
Shareholder communications |
6,515 | |||
Other |
17,618 | |||
|
|
|||
Total liabilities |
6,942,465 | |||
|
||||
Net Assets |
$ | 1,561,663,590 | ||
|
|
|||
|
||||
Composition of Net Assets |
||||
Par value of shares of beneficial interest |
$ | 1,318,583 | ||
|
||||
Additional paid-in capital |
1,476,285,277 | |||
|
||||
Accumulated net investment income |
15,560,324 | |||
|
||||
Accumulated net realized loss on investments |
(276,661,617) | |||
|
||||
Net unrealized appreciation on investments |
345,161,023 | |||
|
|
|||
Net Assets |
$ | 1,561,663,590 | ||
|
|
15 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued |
|
||||
Net Asset Value Per Share |
||||
Class A Shares: |
||||
Net asset value and redemption price per share (based on net assets of $969,085,185 and 89,577,980 shares of beneficial interest outstanding) | $10.82 | |||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $11.48 | |||
|
||||
Class B Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $84,185,379 and 7,907,245 shares of beneficial interest outstanding) | $10.65 | |||
|
||||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $387,127,265 and 36,580,407 shares of beneficial interest outstanding) | $10.58 | |||
|
||||
Class R Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $109,948,115 and 10,236,639 shares of beneficial interest outstanding) | $10.74 | |||
|
||||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $11,317,646 and 1,039,388 shares of beneficial interest outstanding) | $10.89 |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF OPERATIONS For the Six Months Ended July 31, 2014 Unaudited |
|
||||
Allocation of Income and Expenses from Master Funds1 |
||||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC: |
||||
Interest |
$ | 1,315,586 | ||
Dividends |
747 | |||
Net expenses |
(136,710) | |||
|
|
|||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC | 1,179,623 | |||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC: |
||||
Interest |
1,137,832 | |||
Dividends |
1,438 | |||
Net expenses |
(72,420) | |||
|
|
|||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC |
1,066,850 | |||
|
|
|||
Total allocation of net investment income from master funds |
2,246,473 | |||
|
||||
Investment Income |
||||
Dividends from affiliated companies |
10,146,798 | |||
Interest |
508 | |||
|
|
|||
Total investment income |
10,147,306 | |||
|
||||
Expenses |
||||
Distribution and service plan fees: |
||||
Class A |
1,132,403 | |||
Class B |
443,178 | |||
Class C |
1,853,760 | |||
Class R2 |
273,023 | |||
|
||||
Transfer and shareholder servicing agent fees: |
||||
Class A |
1,020,571 | |||
Class B |
97,349 | |||
Class C |
409,324 | |||
Class R2 |
120,292 | |||
Class Y |
11,538 | |||
|
||||
Shareholder communications: |
||||
Class A |
3,373 | |||
Class B |
741 | |||
Class C |
1,250 | |||
Class R2 |
228 | |||
Class Y |
29 | |||
|
||||
Trustees compensation |
10,901 | |||
|
||||
Custodian fees and expenses |
6,051 | |||
|
||||
Other |
24,539 | |||
|
|
|||
Total expenses |
5,408,550 | |||
Less waivers and reimbursements of expenses |
(528,238) | |||
|
|
|||
Net expenses |
4,880,312 |
17 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF OPERATIONS Unaudited / Continued |
|
||||
Net Investment Income |
$ | 7,513,467 | ||
|
||||
Realized and Unrealized Gain (Loss) |
||||
Net realized gain on investments from affiliated companies |
9,756,997 | |||
Net realized gain (loss) allocated from: |
||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
(105,833) | |||
Oppenheimer Master Loan Fund, LLC |
609,636 | |||
|
|
|||
Net realized gain |
10,260,800 | |||
|
||||
Net change in unrealized appreciation/depreciation on investments |
64,924,270 | |||
|
||||
Net change in unrealized appreciation/depreciation allocated from: |
||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
1,114,156 | |||
Oppenheimer Master Loan Fund, LLC |
(610,752) | |||
|
|
|||
Net change in unrealized appreciation/depreciation |
65,427,674 | |||
|
||||
Net Increase in Net Assets Resulting from Operations |
$ | 83,201,941 | ||
|
|
1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 1 of the accompanying Notes.
2. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
18 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
STATEMENT OF CHANGES IN NET ASSETS |
Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
|||||||
|
||||||||
Operations |
||||||||
Net investment income |
$ | 7,513,467 | $ | 17,759,313 | ||||
|
||||||||
Net realized gain |
10,260,800 | 15,335,784 | ||||||
|
||||||||
Net change in unrealized appreciation/depreciation |
65,427,674 | 94,676,761 | ||||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
83,201,941 | 127,771,858 | ||||||
|
||||||||
Dividends and/or Distributions to Shareholders |
||||||||
Dividends from net investment income: |
||||||||
Class A |
| (11,523,535) | ||||||
Class B |
| (429,700) | ||||||
Class C |
| (2,285,768) | ||||||
Class R1 |
| (1,145,246) | ||||||
Class Y |
| (158,644) | ||||||
|
|
|||||||
| (15,542,893) | |||||||
|
||||||||
Beneficial Interest Transactions |
||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: |
||||||||
Class A |
28,571,693 | 58,667,082 | ||||||
Class B |
(16,373,306 | ) | (25,652,640) | |||||
Class C |
7,808,895 | 19,240,036 | ||||||
Class R1 |
(6,378,318 | ) | (14,610,224) | |||||
Class Y |
699,505 | 752,179 | ||||||
|
|
|
|
|||||
14,328,469 | 38,396,433 | |||||||
|
||||||||
Net Assets |
||||||||
Total increase |
97,530,410 | 150,625,398 | ||||||
|
||||||||
Beginning of period |
1,464,133,180 | 1,313,507,782 | ||||||
End of period (including accumulated net investment income of $15,560,324 and $8,046,857, respectively) |
$ | 1,561,663,590 | $ | 1,464,133,180 | ||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS |
Class A | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 10.23 | $ | 9.42 | $ | 8.67 | $ | 8.77 | $ | 7.72 | $ | 6.12 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.06 | 0.15 | 0.18 | 0.21 | 0.18 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
0.53 | 0.80 | 0.73 | (0.10) | 1.05 | 1.54 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.59 | 0.95 | 0.91 | 0.11 | 1.23 | 1.61 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.14) | (0.16) | (0.21) | (0.18) | (0.01) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period |
$ | 10.82 | $ | 10.23 | $ | 9.42 | $ | 8.67 | $ | 8.77 | $ | 7.72 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
5.77% | 10.00% | 10.51% | 1.31% | 15.94% | 26.28% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 969,085 | $ | 888,533 | $ | 763,081 | $ | 538,032 | $ | 542,308 | $ | 450,074 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 946,560 | $ | 830,952 | $ | 606,831 | $ | 539,801 | $ | 491,634 | $ | 403,150 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 1.23%4 | 1.56%4 | 2.00%4 | 2.38%4 | 2.20%4 | 1.04% | ||||||||||||||||||
Total expenses5 | 0.49%4 | 0.49%4 | 0.45%4 | 0.45%4 | 0.47%4 | 0.51% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.42%4 | 0.41%4 | 0.39%4 | 0.45%4 | 0.47%4 | 0.51% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 8% | 6% | 23% | 12% | 43% | 13% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.07 | % | ||||
Year Ended January 31, 2014 |
1.11 | % | ||||
Year Ended January 31, 2013 |
1.09 | % | ||||
Year Ended January 31, 2012 |
1.11 | % | ||||
Year Ended January 31, 2011 |
1.12 | % | ||||
Year Ended January 31, 2010 |
1.15 | % |
See accompanying Notes to Financial Statements.
20 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Class B | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 10.10 | $ | 9.30 | $ | 8.56 | $ | 8.65 | $ | 7.62 | $ | 6.09 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.03 | 0.06 | 0.09 | 0.13 | 0.11 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
0.52 | 0.78 | 0.73 | (0.09) | 1.03 | 1.50 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.55 | 0.84 | 0.82 | 0.04 | 1.14 | 1.53 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.04) | (0.08) | (0.13) | (0.11) | 0.00 | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period |
$ | 10.65 | $ | 10.10 | $ | 9.30 | $ | 8.56 | $ | 8.65 | $ | 7.62 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
5.45% | 9.07% | 9.59% | 0.49% | 14.94% | 25.12% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 84,186 | $ | 95,620 | $ | 112,666 | $ | 108,665 | $ | 118,398 | $ | 105,937 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 90,562 | $ | 102,915 | $ | 106,286 | $ | 113,632 | $ | 111,116 | $ | 96,884 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income |
0.49%4 | 0.62%4 | 1.07%4 | 1.48%4 | 1.32%4 | 0.43% | ||||||||||||||||||
Total expenses5 |
1.24%4 | 1.27%4 | 1.29%4 | 1.32%4 | 1.34%4 | 1.41% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.17%4 | 1.19%4 | 1.23%4 | 1.32%4 | 1.34%4 | 1.40% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
8% | 6% | 23% | 12% | 43% | 13% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.82 | % | ||||
Year Ended January 31, 2014 |
1.89 | % | ||||
Year Ended January 31, 2013 |
1.93 | % | ||||
Year Ended January 31, 2012 |
1.98 | % | ||||
Year Ended January 31, 2011 |
1.99 | % | ||||
Year Ended January 31, 2010 |
2.05 | % |
See accompanying Notes to Financial Statements.
21 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued |
Class C | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 10.04 | $ | 9.26 | $ | 8.54 | $ | 8.63 | $ | 7.61 | $ | 6.07 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.03 | 0.08 | 0.11 | 0.14 | 0.12 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
0.51 | 0.76 | 0.71 | (0.09) | 1.02 | 1.51 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.54 | 0.84 | 0.82 | 0.05 | 1.14 | 1.54 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.06) | (0.10) | (0.14) | (0.12) | 0.00 | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period |
$ | 10.58 | $ | 10.04 | $ | 9.26 | $ | 8.54 | $ | 8.63 | $ | 7.61 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
5.38% | 9.11% | 9.63% | 0.65% | 14.97% | 25.37% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 387,127 | $ | 359,725 | $ | 313,572 | $ | 231,079 | $ | 230,368 | $ | 194,113 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 379,484 | $ | 336,609 | $ | 257,063 | $ | 231,140 | $ | 209,895 | $ | 175,655 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income |
0.48%4 | 0.79%4 | 1.22%4 | 1.61%4 | 1.42%4 | 0.45% | ||||||||||||||||||
Total expenses5 |
1.24%4 | 1.25%4 | 1.21%4 | 1.22%4 | 1.25%4 | 1.30% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.17%4 | 1.17%4 | 1.15%4 | 1.22%4 | 1.25%4 | 1.30% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
8% | 6% | 23% | 12% | 43% | 13% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.82 | % | ||||
Year Ended January 31, 2014 |
1.87 | % | ||||
Year Ended January 31, 2013 |
1.85 | % | ||||
Year Ended January 31, 2012 |
1.88 | % | ||||
Year Ended January 31, 2011 |
1.90 | % | ||||
Year Ended January 31, 2010 |
1.94 | % |
See accompanying Notes to Financial Statements.
22 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Class R | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.17 | $ | 9.36 | $ | 8.62 | $ | 8.71 | $ | 7.67 | $ | 6.09 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 | 0.05 | 0.12 | 0.15 | 0.18 | 0.16 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.52 | 0.80 | 0.72 | (0.09) | 1.04 | 1.54 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.57 | 0.92 | 0.87 | 0.09 | 1.20 | 1.58 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.11) | (0.13) | (0.18) | (0.16) | 0.00 | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 10.74 | $ | 10.17 | $ | 9.36 | $ | 8.62 | $ | 8.71 | $ | 7.67 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
5.60% | 9.76% | 10.17% | 1.12% | 15.62% | 25.94% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 109,948 | $ | 110,232 | $ | 115,659 | $ | 95,267 | $ | 109,375 | $ | 93,550 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 111,487 | $ | 111,927 | $ | 99,577 | $ | 105,816 | $ | 101,701 | $ | 85,066 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 0.98%4 | 1.21%4 | 1.71%4 | 2.08%4 | 1.93%4 | 0.61% | ||||||||||||||||||
Total expenses5 | 0.74%4 | 0.74%4 | 0.71%4 | 0.72%4 | 0.73%4 | 0.78% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.67%4 | 0.66%4 | 0.65%4 | 0.72%4 | 0.73%4 | 0.78% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 8% | 6% | 23% | 12% | 43% | 13% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.32 | % | ||||
Year Ended January 31, 2014 |
1.36 | % | ||||
Year Ended January 31, 2013 |
1.35 | % | ||||
Year Ended January 31, 2012 |
1.38 | % | ||||
Year Ended January 31, 2011 |
1.38 | % | ||||
Year Ended January 31, 2010 |
1.42 | % |
See accompanying Notes to Financial Statements.
23 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued |
Class Y | Six Months Ended July 31, 2014 (Unaudited) |
Year Ended January 31, 2014 |
Year Ended January 31, 2013 |
Year Ended January 31, 2012 |
Year Ended January 31, 2011 |
Year Ended January 31, 2010 |
||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.28 | $ | 9.47 | $ | 8.70 | $ | 8.80 | $ | 7.75 | $ | 6.14 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income1 | 0.08 | 0.19 | 0.18 | 0.24 | 0.22 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.53 | 0.79 | 0.75 | (0.11) | 1.04 | 1.60 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.61 | 0.98 | 0.93 | 0.13 | 1.26 | 1.65 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.17) | (0.16) | (0.23) | (0.21) | (0.04) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 10.89 | $ | 10.28 | $ | 9.47 | $ | 8.70 | $ | 8.80 | $ | 7.75 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
5.93% | 10.29% | 10.72% | 1.57% | 16.32% | 26.81% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 11,318 | $ | 10,023 | $ | 8,530 | $ | 9,505 | $ | 6,631 | $ | 2,700 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 10,696 | $ | 9,064 | $ | 8,449 | $ | 8,314 | $ | 4,695 | $ | 2,137 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 1.47%4 | 1.93%4 | 2.01%4 | 2.71%4 | 2.68%4 | 0.72% | ||||||||||||||||||
Total expenses5 | 0.25%4 | 0.15%4 | 0.31%4 | 0.25%4 | 0.08%4 | 0.09% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.18%4 | 0.07%4 | 0.24%4 | 0.25%4 | 0.08%4 | 0.09% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 8% | 6% | 23% | 12% | 43% | 13% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment income from Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
0.83 | % | ||||
Year Ended January 31, 2014 |
0.77 | % | ||||
Year Ended January 31, 2013 |
0.95 | % | ||||
Year Ended January 31, 2012 |
0.91 | % | ||||
Year Ended January 31, 2011 |
0.73 | % | ||||
Year Ended January 31, 2010 |
0.73 | % |
See accompanying Notes to Financial Statements.
24 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
1. Significant Accounting Policies
Oppenheimer Portfolio Series (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. Moderate Investor Fund (the Fund) is a series of the Trust whose investment objective is to seek total return. The Fund normally invests in a diversified portfolio of Oppenheimer mutual funds (individually, an Underlying Fund and collectively, the Underlying Funds). The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI.
The Fund offers Class A, Class C, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a CDSC on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. 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 R shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Risks of Investing in the Underlying Funds. Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, the Fund will have greater exposure to the risks of that Underlying Fund.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market
25 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
NOTES TO |
1. Significant Accounting Policies (Continued)
Fund (IMMF) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the Funds investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMFs Class E expenses, including its management fee.
Investment in Oppenheimer Master Funds. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Inflation Protected Securities Fund, LLC (the Master Funds). Each Master Fund has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Master Fund than in another, the Fund will have greater exposure to the risks of that Master Fund.
The investment objective of Oppenheimer Master Loan Fund, LLC is to seek income. The investment objective of Oppenheimer Master Inflation Protected Securities Fund, LLC is to seek total return. The Funds investments in the Master Funds are included in the Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each Master Fund according to its allocated pro-rata share, based on its relative proportion of total outstanding Master Fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the Master Funds. As a shareholder, the Fund is subject to its proportional share of the Master Funds expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Funds investment in the Master Funds.
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 to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remain open for the three preceding fiscal reporting period ends.
26 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
1. Significant Accounting Policies (Continued)
During the fiscal year ended January 31, 2014, the Fund utilized $17,988,389 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended January 31, 2014 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
|
||||
2017 |
$ | 1,226,854 | ||
2018 |
32,374,275 | |||
2019 |
142,546,959 | |||
No expiration |
38,959,379 | |||
|
|
|||
Total |
$ | 215,107,467 | ||
|
|
As of July 31, 2014, it is estimated that the capital loss carryforwards would be $176,148,088 expiring by 2019 and $28,698,579 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended July 31, 2014, it is estimated that the Fund will utilize $10,260,800 of capital loss carryforward to offset realized capital gains.
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.
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 July 31, 2014 are noted in the following table. 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 |
$ | 1,291,854,640 | ||
|
|
|||
Gross unrealized appreciation |
$ | 281,113,004 | ||
Gross unrealized depreciation |
(7,429,195) | |||
|
|
|||
Net unrealized appreciation |
$ | 273,683,809 | ||
|
|
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the six months ended July 31, 2014, the
27 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
NOTES TO |
1. Significant Accounting Policies (Continued)
Funds projected benefit obligations, payments to retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased |
$ | 728 | ||
Accumulated Liability as of July 31, 2014 |
37,410 |
The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of the Fund, and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager.
The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
Investment Income. Dividend distributions received from the Underlying Funds are recorded on the ex-dividend date. Upon receipt of notification from an Underlying Fund, and subsequent to the ex-dividend date, some of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the Underlying Fund and/or increasing the realized gain on sales of investments in the Underlying Fund.
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 overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. 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.
28 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
1. Significant Accounting Policies (Continued)
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The Funds organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net asset value of its shares based upon the net asset value of the applicable Underlying Fund. For each Underlying Fund, the net asset value per share for a class of shares is determined 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 trading by dividing the value of the Underlying Funds net assets attributable to that class by the number of outstanding shares of that class on that day.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuations Methods and Inputs
To determine their net asset values, the Underlying Funds assets are valued primarily on the basis of current market quotations as generally supplied by third party portfolio pricing services or by dealers. Such market quotations are typically based on unadjusted quoted prices in active markets for identical securities or other observable market inputs.
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the security is fair valued
29 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
2. Securities Valuation (Continued)
either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those Underlying Funds.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Managers own judgments about assumptions that market participants would use in pricing the asset or liability).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The Fund classifies each of its investments in those Underlying Funds which are publicly offered and reported on an exchange as Level 1, and those Underlying Funds which are not publicly offered as Level 2, without consideration as to the classification level of the specific investments held by the Underlying Funds.
30 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
2. Securities Valuation (Continued)
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of July 31, 2014 based on valuation input level:
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
|
||||||||||||||||
Assets Table |
| |||||||||||||||
Investments, at Value: |
| |||||||||||||||
Investment Companies |
$ | 1,447,932,290 | $ | 117,606,159 | $ | | $ | 1,565,538,449 | ||||||||
|
|
|||||||||||||||
Total Assets |
$ | 1,447,932,290 | $ | 117,606,159 | $ | | $ | 1,565,538,449 | ||||||||
|
|
Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contracts value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.
3. 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:
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class A |
||||||||||||||||
Sold |
10,458,389 | $ | 111,446,373 | 20,306,975 | $ | 201,309,488 | ||||||||||
Dividends and/or distributions reinvested |
| | 1,085,305 | 11,341,500 | ||||||||||||
Redeemed |
(7,761,354) | (82,874,680) | (15,529,250) | (153,983,906) | ||||||||||||
|
|
|||||||||||||||
Net increase |
2,697,035 | $ | 28,571,693 | 5,863,030 | $ | 58,667,082 | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class B |
||||||||||||||||
Sold |
146,381 | $ | 1,538,421 | 464,729 | $ | 4,535,135 | ||||||||||
Dividends and/or distributions reinvested |
| | 41,223 | 425,828 | ||||||||||||
Redeemed |
(1,704,673) | (17,911,727) | (3,159,022) | (30,613,603) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(1,558,292) | $ | (16,373,306) | (2,653,070) | $ | (25,652,640) | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class C |
||||||||||||||||
Sold |
3,974,433 | $ | 41,401,493 | 8,557,626 | $ | 83,252,725 | ||||||||||
Dividends and/or distributions reinvested |
| | 219,068 | 2,249,790 | ||||||||||||
Redeemed |
(3,218,068) | (33,592,598) | (6,825,872) | (66,262,479) | ||||||||||||
|
|
|||||||||||||||
Net increase |
756,365 | $ | 7,808,895 | 1,950,822 | $ | 19,240,036 | ||||||||||
|
|
31 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
3. Shares of Beneficial Interest (Continued)
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class R1 |
||||||||||||||||
Sold |
990,323 | $ | 10,441,808 | 2,409,704 | $ | 23,822,012 | ||||||||||
Dividends and/or distributions reinvested |
| | 104,224 | 1,082,890 | ||||||||||||
Redeemed |
(1,596,588 | ) | (16,820,126 | ) | (4,026,419 | ) | (39,515,126) | |||||||||
|
|
|||||||||||||||
Net decrease |
(606,265 | ) | $ | (6,378,318 | ) | (1,512,491 | ) | $ | (14,610,224) | |||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
Sold |
148,395 | $ | 1,600,411 | 258,188 | $ | 2,576,079 | ||||||||||
Dividends and/or distributions reinvested |
| | 14,782 | 155,207 | ||||||||||||
Redeemed |
(83,865 | ) | (900,906 | ) | (199,204 | ) | (1,979,107) | |||||||||
|
|
|||||||||||||||
Net increase |
64,530 | $ | 699,505 | 73,766 | $ | 752,179 | ||||||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R.
4. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended July 31, 2014 were as follows:
Purchases | Sales | |||||||
|
||||||||
Investment securities |
$ | 123,806,335 | $ | 102,941,676 |
5. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Manager does not charge a management fee, but rather collects indirect management fees from the Funds investments in the Underlying Funds. The weighted indirect management fees collected from the Funds investment in the Underlying Funds, as a percent of average daily net assets of the Fund for the six months ended July 31, 2014 was 0.53%. This amount is gross of any waivers or reimbursements of management fees implemented at the Underlying Fund level.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
32 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
5. Fees and Other Transactions with Affiliates (Continued)
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.
Distribution and Service Plans for Class B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, Class C and Class R shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. . Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees vote annually to approve its continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
Sales Charges. Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
33 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued |
5. Fees and Other Transactions with Affiliates (Continued)
Six Months Ended | Class A Front-End |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales Charges Retained by Distributor |
|||||||||||||||
|
||||||||||||||||||||
July 31, 2014 |
$471,886 | $ | $50,123 | $22,760 | $1,967 |
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse the Fund for certain expenses in order to limit Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, (the combined direct (Fund level) and indirect (Underlying Fund level) expenses), will not exceed the annual rate of 1.30%, 2.05%, 2.05%, 1.55% and 1.05%, for Class A, Class B, Class C, Class R and Class Y, respectively. The expense limitations do not include extraordinary expenses and other expenses not incurred in the ordinary course of the Funds business. Notwithstanding the foregoing limits, the Manager is not required to waive or reimburse Fund expenses in excess of the amount of indirect management fees earned from investments in the Underlying Funds.
The Manager has also contractually agreed to waive fees and/or reimburse certain Fund expenses at an annual rate of 0.07% as calculated on the daily net assets of the Fund. This waiver and/or reimbursement is applied after (and in addition to) any other applicable waiver and/or expense reimbursements that may apply. During the six months ended July 31, 2014, the Manager waived fees and/or reimbursed the Fund $528,238.
Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
6. Pending Litigation
In 2009, seven class action lawsuits were filed in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the Defendant Funds). The lawsuits also named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities law and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. On March 5, 2014, the parties in six of these lawsuits executed stipulations and agreements of settlement resolving those actions. On July 31, 2014, the court entered an order and final
34 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
6. Pending Litigation (Continued)
judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund.
Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the courts order approving the settlement. In June 2014, the appellate court affirmed the lower courts order approving the settlement. Certain parties subsequently filed a petition for certiorari before the U.S. Supreme Court further challenging the settlement approval order. The settlement does not resolve other outstanding lawsuits against OFI and its affiliates relating to BLMIS.
OFI believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, OFI believes that these suits should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.
35 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR 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 Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at oppenheimerfunds.com, and (iii) on the SECs 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 Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs 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 Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
36 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
OPPENHEIMER
PORTFOLIO SERIES MODERATE
INVESTOR FUND
© 2014 OppenheimerFunds, Inc. All rights reserved.
37 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
| Applications or other forms |
| When you create a user ID and password for online account access |
| When you enroll in eDocs Direct, our electronic document delivery service |
| Your transactions with us, our affiliates or others |
| A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited |
| When you set up challenge questions to reset your password online |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
38 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
| All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
| Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. |
| You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., and each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2013. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
39 OPPENHEIMER PORTFOLIO SERIES MODERATE INVESTOR FUND
3 | ||||
7 | ||||
10 | ||||
12 | ||||
15 | ||||
17 | ||||
19 | ||||
20 | ||||
26 | ||||
Portfolio Proxy Voting Policies and Procedures; Updates to Statement of Investments | 37 | |||
38 | ||||
39 |
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 7/31/14
Class A Shares of the Fund | ||||||||||
Without Sales Charge | With Sales Charge | S&P 500 Index | Barclays U.S. Aggregate Bond Index |
|||||||
6-Month |
6.16% | 0.06% | 9.44% | 2.16% | ||||||
|
||||||||||
1-Year |
12.52 | 6.05 | 16.94 | 3.97 | ||||||
|
||||||||||
5-Year |
11.46 | 10.15 | 16.79 | 4.47 | ||||||
|
||||||||||
Since Inception (4/5/05) |
4.58 | 3.92 | 7.65 | 4.85 | ||||||
|
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 investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
2 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
During the six-month reporting period ended July 31, 2014, the Funds Class A shares (without sales charge) produced a total return of 6.16%. During a period in which equities outperformed fixed-income securities, the Fund outperformed the Barclays U.S. Aggregate Bond Indexs return of 2.16%, but underperformed the S&P 500 Indexs return of 9.44%.
MARKET OVERVIEW
1. The Fund is invested in Class I shares of all underlying funds discussed in this Fund Performance Discussion, except for Oppenheimer Master Event-Linked Bond Fund, LLC, Oppenheimer Master Inflation Protected Securities Fund, LLC and Oppenheimer Master Loan Fund, LLC, which do not offer Class I shares.
3 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
4 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
5 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
6 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
7 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 7/31/14
Inception Date |
6-Month | 1-Year | 5-Year | Since Inception | ||||||
Class A (OAAAX) |
4/5/05 | 6.16% | 12.52% | 11.46% | 4.58% | |||||
Class B (OAABX) |
4/5/05 | 5.82 | 11.77 | 10.54 | 4.03 | |||||
Class C (OAACX) |
4/5/05 | 5.85 | 11.76 | 10.64 | 3.80 | |||||
Class R (OAANX) |
4/5/05 | 6.11 | 12.33 | 11.22 | 4.37 | |||||
Class Y (OAAYX) |
4/5/05 | 6.35 | 12.84 | 11.84 | 4.97 |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 7/31/14
Inception Date |
6-Month | 1-Year | 5-Year | Since Inception | ||||||
Class A (OAAAX) |
4/5/05 | 0.06% | 6.05% | 10.15% | 3.92% | |||||
Class B (OAABX) |
4/5/05 | 0.82 | 6.77 | 10.27 | 4.03 | |||||
Class C (OAACX) |
4/5/05 | 4.85 | 10.76 | 10.64 | 3.80 | |||||
Class R (OAANX) |
4/5/05 | 5.11 | 11.33 | 11.22 | 4.37 | |||||
Class Y (OAAYX) |
4/5/05 | 6.35 | 12.84 | 11.84 | 4.97 |
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 investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). 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 (CDSC) of 5% (1-year) and 2% (5-year); and for Class C shares, the 1% CDSC for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14.) There is no sales charge for Class Y shares. Returns for periods of less than one year are cumulative and not annualized.
The Funds performance is compared to the performance of the S&P 500 Index and the Barclays U.S. Aggregate Bond Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy. The Barclays U.S. Aggregate Bond Index is an index of U.S.-dollar-denominated, investment-grade U.S. corporate government and mortgage-backed securities. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the
8 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
9 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
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 (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 July 31, 2014.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section 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 first section 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 second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the 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). Therefore, the hypothetical section of the table is 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.
10 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Actual | Beginning Account Value February 1, 2014 |
Ending Account Value July 31, 2014 |
Expenses Paid During 6 Months Ended | |||||||||||||||
Class A |
$ | 1,000.00 | $ | 1,061.60 | $ | 2.82 | ||||||||||||
Class B |
1,000.00 | 1,058.20 | 6.60 | |||||||||||||||
Class C |
1,000.00 | 1,058.50 | 6.60 | |||||||||||||||
Class R |
1,000.00 | 1,061.10 | 4.10 | |||||||||||||||
Class Y |
1,000.00 | 1,063.50 | 1.54 | |||||||||||||||
Hypothetical | ||||||||||||||||||
(5% return before expenses) |
||||||||||||||||||
Class A |
1,000.00 | 1,022.07 | 2.76 | |||||||||||||||
Class B |
1,000.00 | 1,018.40 | 6.48 | |||||||||||||||
Class C |
1,000.00 | 1,018.40 | 6.48 | |||||||||||||||
Class R |
1,000.00 | 1,020.83 | 4.02 | |||||||||||||||
Class Y |
1,000.00 | 1,023.31 | 1.51 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended July 31, 2014 are as follows:
Class | Expense Ratios | |||||
Class A |
0.55 | % | ||||
Class B |
1.29 | |||||
Class C |
1.29 | |||||
Class R |
0.80 | |||||
Class Y |
0.30 |
The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Funds Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
11 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
STATEMENT OF INVESTMENTS July 31, 2014 Unaudited
Shares | Value | |||||||
|
||||||||
Investment Company100.1%1 |
||||||||
Alternative Funds5.6% |
||||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I2 |
3,940,407 | $ | 12,057,646 | |||||
|
||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
808,216 | 21,417,714 | ||||||
|
||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I2 |
466,458 | 9,021,303 | ||||||
|
||||||||
Oppenheimer Master Event-Linked Bond Fund, LLC |
1,956,707 | 27,698,377 | ||||||
|
||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
4,559,227 | 53,759,231 | ||||||
|
||||||||
Oppenheimer Real Estate Fund, Cl. I |
517,808 | 14,037,786 | ||||||
|
|
|||||||
137,992,057 | ||||||||
|
||||||||
Domestic Equity Funds48.6% |
||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
7,276,707 | 486,811,700 | ||||||
|
||||||||
Oppenheimer Main Street Mid Cap, Cl. I |
5,425,177 | 184,076,247 | ||||||
|
||||||||
Oppenheimer Value Fund, Cl. I |
16,897,842 | 533,126,912 | ||||||
|
|
|||||||
1,204,014,859 | ||||||||
|
||||||||
Domestic Fixed Income Funds11.8% |
||||||||
Oppenheimer Core Bond Fund, Cl. I |
25,203,099 | 173,649,355 | ||||||
|
||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
8,345,245 | 75,941,734 | ||||||
|
||||||||
Oppenheimer Master Loan Fund, LLC |
2,898,990 | 42,311,862 | ||||||
|
|
|||||||
291,902,951 | ||||||||
|
||||||||
Foreign Equity Funds30.1% |
||||||||
Oppenheimer Developing Markets Fund, Cl. I |
3,073,539 | 122,142,431 | ||||||
|
||||||||
Oppenheimer International Growth Fund, Cl. I |
7,511,831 | 282,069,270 | ||||||
|
||||||||
Oppenheimer International Small Company Fund, Cl. I |
2,476,637 | 82,595,856 | ||||||
|
||||||||
Oppenheimer International Value Fund, Cl. I |
13,965,987 | 258,650,077 | ||||||
|
|
|||||||
745,457,634 | ||||||||
|
||||||||
Foreign Fixed Income Fund3.6% |
||||||||
Oppenheimer International Bond Fund, Cl. I |
14,459,351 | 88,635,818 | ||||||
|
||||||||
Money Market Fund0.4% |
||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 0.09%3 |
10,922,124 | 10,922,124 | ||||||
|
||||||||
Total Investments, at Value (Cost $1,689,746,042) |
100.1 | % | 2,478,925,443 | |||||
|
||||||||
Net Other Liabilities |
(0.1 | ) | (2,315,714) | |||||
|
|
|||||||
Net Assets |
100.0 | % | $ | 2,476,609,729 | ||||
|
|
Footnotes to Statement of Investments
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 31, 2014, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
Shares January 31, 2014 |
Gross Additions |
Gross Reductions |
Shares July 31, 2014 |
|||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
7,498,202 | 86,131 | 307,626 | 7,276,707 | ||||||||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I |
3,425,410 | 656,913 | 141,916 | 3,940,407 | ||||||||||||
Oppenheimer Core Bond Fund, Cl. I |
24,311,077 | 2,999,119 | 2,107,097 | 25,203,099 |
12 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Footnotes to Statement of Investments (Continued)
Shares January 31, 2014 |
Gross Additions |
Gross Reductions |
Shares July 31, 2014 |
|||||||||||||
Oppenheimer Currency |
||||||||||||||||
Opportunities Fund, Cl. Ia |
445,112 | 122,363 | 567,475 | | ||||||||||||
Oppenheimer Developing Markets Fund, Cl. I |
2,604,302 | 559,436 | 90,199 | 3,073,539 | ||||||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
456,414 | 370,822 | 19,020 | 808,216 | ||||||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
305,376 | 211,745 | 50,663 | 466,458 | ||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
14,190,166 | 95,668 | 3,363,710 | 10,922,124 | ||||||||||||
Oppenheimer International Bond Fund, Cl. I |
11,154,152 | 3,708,494 | 403,295 | 14,459,351 | ||||||||||||
Oppenheimer International Growth Fund, Cl. I |
8,191,094 | 92,336 | 771,599 | 7,511,831 | ||||||||||||
Oppenheimer International Small Company Fund, Cl. I |
2,876,973 | 39,934 | 440,270 | 2,476,637 | ||||||||||||
Oppenheimer International Value Fund, Cl. I |
13,907,048 | 631,832 | 572,893 | 13,965,987 | ||||||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
7,413,800 | 1,187,903 | 256,458 | 8,345,245 | ||||||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I (formerly Oppenheimer Main Street Small- & Mid Cap-Fund, Cl. I) |
5,568,892 | 307,488 | 451,203 | 5,425,177 | ||||||||||||
Oppenheimer Master Event-Linked Bond Fund, LLC |
1,928,964 | 86,189 | 58,446 | 1,956,707 | ||||||||||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
3,714,678 | 1,643,286 | 798,737 | 4,559,227 | ||||||||||||
Oppenheimer Master Loan Fund, LLC |
3,542,255 | 295,547 | 938,812 | 2,898,990 | ||||||||||||
Oppenheimer Real Estate Fund, Cl. I |
508,869 | 36,115 | 27,176 | 517,808 | ||||||||||||
Oppenheimer Value Fund, Cl. I |
17,952,293 | 374,141 | 1,428,592 | 16,897,842 |
Realized Gain | ||||||||||||
Value | Income | (Loss) | ||||||||||
|
||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
$ | 486,811,700 | $ | | $ | 1,975,062 | ||||||
Oppenheimer Commodity Strategy Total Return Fund, Cl. I |
12,057,646 | | 22,253 | |||||||||
Oppenheimer Core Bond Fund, Cl. I |
173,649,355 | 3,047,738 | (748,515) | |||||||||
Oppenheimer Currency Opportunities Fund, Cl. Ia |
| | (171,283) | |||||||||
Oppenheimer Developing Markets Fund, Cl. I |
122,142,431 | | 497,003 | |||||||||
Oppenheimer Global Multi Strategies Fund, Cl. I |
21,417,714 | 306,570 | 8,836 | |||||||||
Oppenheimer Gold & Special Minerals Fund, Cl. I |
9,021,303 | | (389,674) | |||||||||
Oppenheimer Institutional Money Market Fund, Cl. E |
10,922,124 | 4,867 | | |||||||||
Oppenheimer International Bond Fund, Cl. I |
88,635,818 | 1,325,709 | (58,276) | |||||||||
Oppenheimer International Growth Fund, Cl. I |
282,069,270 | | 9,280,984 | |||||||||
Oppenheimer International Small Company Fund, Cl. I |
82,595,856 | | 3,970,465 | |||||||||
Oppenheimer International Value Fund, Cl. I |
258,650,077 | | 822,319 | |||||||||
Oppenheimer Limited-Term Government Fund, Cl. I |
75,941,734 | 590,889 | (36,989) | |||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I (formerly Oppenheimer Main Street Small- & Mid-Cap Fund, Cl. I) |
184,076,247 | | 4,732,688 |
13 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments (Continued)
Value | Income | Realized Gain (Loss) |
||||||||||
|
||||||||||||
Oppenheimer Master Event-Linked Bond Fund, LLC |
$ | 27,698,377 | $ | 884,985 | b | $ | 160,001 | b | ||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
53,759,231 | 1,075,368 | c | (72,843 | ) c | |||||||
Oppenheimer Master Loan Fund, LLC |
42,311,862 | 1,246,762 | d | 560,091 | d | |||||||
Oppenheimer Real Estate Fund, Cl. I |
14,037,786 | 117,502 | 263,967 | |||||||||
Oppenheimer Value Fund, Cl. I |
533,126,912 | 5,336,865 | 7,414,404 | |||||||||
|
|
|||||||||||
Total |
$ | 2,478,925,443 | $ | 13,937,255 | $ | 28,230,493 | ||||||
|
|
a. Oppenheimer Currency Opportunities Fund, Cl. I liquidated August 1, 2014.
b. Represents the amount allocated to the Fund from Oppenheimer Master Event-Linked Bond Fund, LLC.
c. Represents the amount allocated to the Fund from Oppenheimer Master Inflation Protected Securities Fund, LLC.
d. Represents the amount allocated to the Fund from Oppenheimer Master Loan Fund, LLC.
2. Non-income producing security.
3. Rate shown is the 7-day yield as of July 31, 2014.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
ASSETS AND LIABILITIES July 31, 2014 Unaudited
Assets |
||||||
Investments, at valuesee accompanying statement of investmentsaffiliated companies |
||||||
(cost $ 1,689,746,042) |
$ | 2,478,925,443 | ||||
| ||||||
Receivables and other assets: |
||||||
Shares of beneficial interest sold |
1,261,092 | |||||
Dividends |
856,392 | |||||
Investments sold |
523,502 | |||||
Other |
160,058 | |||||
|
| |||||
Total assets |
2,481,726,487 | |||||
Liabilities |
||||||
Bank overdraft |
434,651 | |||||
| ||||||
Payables and other liabilities: |
||||||
Shares of beneficial interest redeemed |
2,994,791 | |||||
Investments purchased |
855,599 | |||||
Distribution and service plan fees |
532,452 | |||||
Trustees compensation |
257,240 | |||||
Shareholder communications |
17,369 | |||||
Other |
24,656 | |||||
|
| |||||
Total liabilities |
5,116,758 | |||||
Net Assets |
$ | 2,476,609,729 | ||||
|
| |||||
Composition of Net Assets |
||||||
Par value of shares of beneficial interest |
$ | 203,923 | ||||
| ||||||
Additional paid-in capital |
2,435,722,180 | |||||
| ||||||
Accumulated net investment income |
24,098,284 | |||||
| ||||||
Accumulated net realized loss on investments |
(772,594,059 | ) | ||||
| ||||||
Net unrealized appreciation on investments |
789,179,401 | |||||
|
| |||||
Net Assets |
$ | 2,476,609,729 | ||||
|
|
15 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
ASSETS AND LIABILITIES Unaudited / Continued
Net Asset Value Per Share |
||||||
Class A Shares: |
||||||
Net asset value and redemption price per share (based on net assets of $1,602,174,216 and 130,977,765 shares of beneficial interest outstanding) |
$ | 12.23 | ||||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) |
$ | 12.98 | ||||
| ||||||
Class B Shares: |
||||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $165,434,998 and 13,789,535 shares of beneficial interest outstanding) | $ | 12.00 | ||||
| ||||||
Class C Shares: |
||||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $564,347,787 and 47,275,821 shares of beneficial interest outstanding) | $ | 11.94 | ||||
| ||||||
Class R Shares: |
||||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $126,947,464 and 10,450,366 shares of beneficial interest outstanding) | $ | 12.15 | ||||
| ||||||
Class Y Shares: |
||||||
Net asset value, redemption price and offering price per share (based on net assets of $17,705,264 and 1,429,202 shares of beneficial interest outstanding) | $ | 12.39 |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
OPERATIONS For the Six Months Ended July 31, 2014 Unaudited
Allocation of Income and Expenses from Master Funds1 |
||||||
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC: |
||||||
Interest |
$ | 884,811 | ||||
Dividends |
174 | |||||
Net expenses |
(56,769 | ) | ||||
|
| |||||
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC |
828,216 | |||||
| ||||||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC: |
||||||
Interest |
1,074,759 | |||||
Dividends |
609 | |||||
Net expenses |
(109,753 | ) | ||||
|
| |||||
Net investment income allocated from Oppenheimer Master Inflation Protected Securities Fund, LLC |
965,615 | |||||
| ||||||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC: |
||||||
Interest |
1,245,148 | |||||
Dividends |
1,614 | |||||
Net expenses |
(79,336 | ) | ||||
|
| |||||
Net investment income allocated from Oppenheimer Master Loan Fund, LLC |
1,167,426 | |||||
|
| |||||
Total allocation of net investment income from master funds |
2,961,257 | |||||
Investment Income |
||||||
Dividendsaffiliated companies |
10,730,140 | |||||
Interest |
439 | |||||
|
| |||||
Total investment income |
10,730,579 | |||||
Expenses |
||||||
Distribution and service plan fees: |
||||||
Class A |
1,905,438 | |||||
Class B |
894,673 | |||||
Class C |
2,737,332 | |||||
Class R2 |
319,981 | |||||
| ||||||
Transfer and shareholder servicing agent fees: |
||||||
Class A |
1,702,243 | |||||
Class B |
195,609 | |||||
Class C |
604,436 | |||||
Class R2 |
141,058 | |||||
Class Y |
14,269 | |||||
| ||||||
Shareholder communications: |
||||||
Class A |
8,264 | |||||
Class B |
2,025 | |||||
Class C |
2,658 | |||||
Class R2 |
357 | |||||
Class Y |
36 |
1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 1 of the accompanying Notes.
2. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
17 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
STATEMENT OF OPERATIONS Unaudited / Continued
Expenses (Continued) |
||||||
Asset Allocation Fees |
$ | 1,209,689 | ||||
| ||||||
Trustees compensation |
17,522 | |||||
| ||||||
Custodian fees and expenses |
11,559 | |||||
| ||||||
Other |
33,436 | |||||
|
| |||||
Total expenses |
9,800,585 | |||||
Less waivers and reimbursements of expenses |
(483,777 | ) | ||||
|
| |||||
Net expenses |
9,316,808 | |||||
Net Investment Income |
4,375,028 | |||||
Realized and Unrealized Gain (Loss) |
||||||
Net realized gain on affiliated companies |
27,583,244 | |||||
| ||||||
Net realized gain (loss) allocated from: |
||||||
Oppenheimer Master Event-Linked Bond Fund, LLC |
160,001 | |||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
(72,843 | ) | ||||
Oppenheimer Master Loan Fund, LLC |
560,091 | |||||
|
| |||||
Net realized gain |
28,230,493 | |||||
| ||||||
Net change in unrealized appreciation/depreciation on investments |
111,434,812 | |||||
| ||||||
Net change in unrealized appreciation/depreciation allocated from: |
||||||
Oppenheimer Master Event-Linked Bond Fund, LLC |
(471,835 | ) | ||||
Oppenheimer Master Inflation Protected Securities Fund, LLC |
880,688 | |||||
Oppenheimer Master Loan Fund, LLC |
(573,916 | ) | ||||
|
| |||||
Net change in unrealized appreciation/depreciation |
111,269,749 | |||||
Net Increase in Net Assets Resulting from Operations |
$ | 143,875,270 | ||||
|
|
See accompanying Notes to Financial Statements.
18 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended | ||||||||||
July 31, 2014 | Year Ended | |||||||||
(Unaudited) | January 31, 2014 | |||||||||
Operations |
||||||||||
Net investment income |
$ | 4,375,028 | $ | 19,453,940 | ||||||
| ||||||||||
Net realized gain |
28,230,493 | 40,411,480 | ||||||||
| ||||||||||
Net change in unrealized appreciation/depreciation |
111,269,749 | 227,640,820 | ||||||||
|
| |||||||||
Net increase in net assets resulting from operations |
143,875,270 | 287,506,240 | ||||||||
Dividends and/or Distributions to Shareholders |
||||||||||
Dividends from net investment income: |
||||||||||
Class A |
| (21,135,894 | ) | |||||||
Class B |
| (1,036,414 | ) | |||||||
Class C |
| (3,940,923 | ) | |||||||
Class R1 |
| (1,518,140 | ) | |||||||
Class Y |
| (154,574 | ) | |||||||
|
| |||||||||
| (27,785,945 | ) | ||||||||
Beneficial Interest Transactions |
||||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: |
||||||||||
Class A |
11,984,752 | 28,898,164 | ||||||||
Class B |
(42,726,107 | ) | (78,631,046 | ) | ||||||
Class C |
(2,631,764 | ) | (15,121,265 | ) | ||||||
Class R1 |
(8,749,931 | ) | (25,349,890 | ) | ||||||
Class Y |
7,590,164 | 666,695 | ||||||||
|
| |||||||||
(34,532,886 | ) | (89,537,342 | ) | |||||||
Net Assets |
||||||||||
Total increase |
109,342,384 | 170,182,953 | ||||||||
| ||||||||||
Beginning of period |
2,367,267,345 | 2,197,084,392 | ||||||||
|
| |||||||||
End of period (including accumulated net investment income of $24,098,284 and |
||||||||||
$19,723,256, respectively) |
$ | 2,476,609,729 | $ | 2,367,267,345 | ||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class A |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 11.52 | $ | 10.27 | $ | 9.25 | $ | 9.66 | $ | 8.19 | $ | 6.28 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.04 | 0.13 | 0.15 | 0.16 | 0.15 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.67 | 1.28 | 1.02 | (0.36) | 1.41 | 1.96 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.71 | 1.41 | 1.17 | (0.20) | 1.56 | 2.00 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.16) | (0.15) | (0.21) | (0.09) | (0.09) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 12.23 | $ | 11.52 | $ | 10.27 | $ | 9.25 | $ | 9.66 | $ | 8.19 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 6.16% | 13.73% | 12.67% | (2.02)% | 19.01% | 31.77% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,602,174 | $ | 1,496,909 | $ | 1,308,798 | $ | 1,097,812 | $ | 1,201,751 | $ | 1,070,411 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 1,579,330 | $ | 1,416,982 | $ | 1,153,465 | $ | 1,147,826 | $ | 1,124,399 | $ | 983,645 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 0.59% | 4 | 1.14% | 4 | 1.56% | 4 | 1.63% | 4 | 1.70% | 4 | 0.59% | |||||||||||||
Total expenses5 | 0.59% | 4 | 0.59% | 4 | 0.56% | 4 | 0.55% | 4 | 0.57% | 4 | 0.61% | |||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.55% | 4 | 0.54% | 4 | 0.52% | 4 | 0.55% | 4 | 0.57% | 4 | 0.60% | |||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
27% | 9% | 28% | 6 | 21% | 6 | 54% | 31% |
20 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.21% | |||
Year Ended January 31, 2014 |
1.26% | |||
Year Ended January 31, 2013 |
1.24% | |||
Year Ended January 31, 2012 |
1.25% | |||
Year Ended January 31, 2011 |
1.27% | |||
Year Ended January 29, 2010 |
1.30% |
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||||
|
| |||||||||
Year Ended January 31, 2013 |
$113,842,157 | $114,874,878 | ||||||||
Year Ended January 31, 2012 |
$38,216,147 | $38,258,011 |
See accompanying Notes to Financial Statements.
21 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
FINANCIAL HIGHLIGHTS Continued
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
July 31, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class B | 2014 | January 31, | January 31, | January 31, | January 31, | January 29, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 11.34 | $ | 10.10 | $ | 9.09 | $ | 9.49 | $ | 8.05 | $ | 6.17 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.01) | 0.01 | 0.06 | 0.07 | 0.07 | (0.01) | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.67 | 1.29 | 1.00 | (0.35) | 1.38 | 1.91 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.66 | 1.30 | 1.06 | (0.28) | 1.45 | 1.90 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.06) | (0.05) | (0.12) | (0.01) | (0.02) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 12.00 | $ | 11.34 | $ | 10.10 | $ | 9.09 | $ | 9.49 | $ | 8.05 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 5.82% | 12.83% | 11.73% | (2.90)% | 18.03% | 30.85% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 165,435 | $ | 197,214 | $ | 249,959 | $ | 286,036 | $ | 343,069 | $ | 312,190 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 182,718 | $ | 220,028 | $ | 259,073 | $ | 315,211 | $ | 322,814 | $ | 291,118 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income (loss) | (0.15)% | 4 | 0.14% | 4 | 0.61% | 4 | 0.74% | 4 | 0.84% | 4 | (0.18)% | |||||||||||||
Total expenses5 | 1.33% | 4 | 1.37% | 4 | 1.40% | 4 | 1.40% | 4 | 1.43% | 4 | 1.49% | |||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.29% | 4 | 1.32% | 4 | 1.36% | 4 | 1.40% | 4 | 1.43% | 4 | 1.48% | |||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
27% | 9% | 28% | 6 | 21% | 6 | 54% | 31% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.95% | |||
Year Ended January 31, 2014 |
2.04% | |||
Year Ended January 31, 2013 |
2.08% | |||
Year Ended January 31, 2012 |
2.10% | |||
Year Ended January 31, 2011 |
2.13% | |||
Year Ended January 29, 2010 |
2.18% |
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||||
|
| |||||||||
Year Ended January 31, 2013 |
$113,842,157 | $114,874,878 | ||||||||
Year Ended January 31, 2012 |
$38,216,147 | $38,258,011 |
See accompanying Notes to Financial Statements.
22 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
July 31, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class C | 2014 | January 31, | January 31, | January 31, | January 31, | January 29, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 11.28 | $ | 10.06 | $ | 9.08 | $ | 9.48 | $ | 8.04 | $ | 6.17 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.01) | 0.04 | 0.08 | 0.08 | 0.08 | (0.01) | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.67 | 1.26 | 0.98 | (0.35) | 1.38 | 1.91 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.66 | 1.30 | 1.06 | (0.27) | 1.46 | 1.90 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.08) | (0.08) | (0.13) | (0.02) | (0.03) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 11.94 | $ | 11.28 | $ | 10.06 | $ | 9.08 | $ | 9.48 | $ | 8.04 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 5.85% | 12.93% | 11.70% | (2.76)% | 18.17% | 30.80% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 564,348 | $ | 535,716 | $ | 492,455 | $ | 432,564 | $ | 492,493 | $ | 442,036 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 560,523 | $ | 518,457 | $ | 445,399 | $ | 463,116 | $ | 461,832 | $ | 413,626 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income (loss) | (0.15)% | 4 | 0.35% | 4 | 0.79% | 4 | 0.86% | 4 | 0.94% | 4 | (0.07)% | |||||||||||||
Total expenses5 | 1.33% | 4 | 1.33% | 4 | 1.30% | 4 | 1.30% | 4 | 1.32% | 4 | 1.38% | |||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.29% | 4 | 1.28% | 4 | 1.26% | 4 | 1.30% | 4 | 1.32% | 4 | 1.37% | |||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
27% | 9% | 28% | 6 | 21% | 6 | 54% | 31% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.95% | |||
Year Ended January 31, 2014 |
2.00% | |||
Year Ended January 31, 2013 |
1.98% | |||
Year Ended January 31, 2012 |
2.00% | |||
Year Ended January 31, 2011 |
2.02% | |||
Year Ended January 29, 2010 |
2.07% |
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||||
|
| |||||||||
Year Ended January 31, 2013 |
$113,842,157 | $114,874,878 | ||||||||
Year Ended January 31, 2012 |
$38,216,147 | $38,258,011 |
See accompanying Notes to Financial Statements.
23 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
FINANCIAL HIGHLIGHTS Continued
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
July 31, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class R | 2014 | January 31, | January 31, | January 31, | January 31, | January 29, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 11.45 | $ | 10.21 | $ | 9.20 | $ | 9.61 | $ | 8.14 | $ | 6.24 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.02 | 0.09 | 0.13 | 0.13 | 0.13 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.68 | 1.28 | 1.01 | (0.36) | 1.41 | 1.96 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.70 | 1.37 | 1.14 | (0.23) | 1.54 | 1.98 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.13) | (0.13) | (0.18) | (0.07) | (0.08) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 12.15 | $ | 11.45 | $ | 10.21 | $ | 9.20 | $ | 9.61 | $ | 8.14 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 6.11% | 13.42% | 12.42% | (2.27)% | 18.92% | 31.62% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 126,948 | $ | 128,012 | $ | 138,042 | $ | 122,589 | $ | 148,609 | $ | 134,276 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 130,718 | $ | 133,527 | $ | 122,558 | $ | 136,771 | $ | 141,119 | $ | 123,718 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 0.34% | 4 | 0.78% | 4 | 1.37% | 4 | 1.39% | 4 | 1.51% | 4 | 0.27% | |||||||||||||
Total expenses5 | 0.84% | 4 | 0.81% | 4 | 0.77% | 4 | 0.75% | 4 | 0.76% | 4 | 0.79% | |||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.80% | 4 | 0.76% | 4 | 0.73% | 4 | 0.75% | 4 | 0.76% | 4 | 0.78% | |||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 27% | 9% | 28% | 6 | 21% | 6 | 54% | 31% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.46% | |||
Year Ended January 31, 2014 |
1.48% | |||
Year Ended January 31, 2013 |
1.45% | |||
Year Ended January 31, 2012 |
1.45% | |||
Year Ended January 31, 2011 |
1.46% | |||
Year Ended January 29, 2010 |
1.48% |
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||||
|
| |||||||||
Year Ended January 31, 2013 |
$113,842,157 | $114,874,878 | ||||||||
Year Ended January 31, 2012 |
$38,216,147 | $38,258,011 |
See accompanying Notes to Financial Statements.
24 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
July 31, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class Y | 2014 | January 31, | January 31, | January 31, | January 31, | January 29, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 11.65 | $ | 10.38 | $ | 9.35 | $ | 9.76 | $ | 8.27 | $ | 6.33 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.05 | 0.17 | 0.16 | 0.19 | 0.20 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.69 | 1.30 | 1.04 | (0.36) | 1.41 | 2.00 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.74 | 1.47 | 1.20 | (0.17) | 1.61 | 2.06 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.20) | (0.17) | (0.24) | (0.12) | (0.12) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 12.39 | $ | 11.65 | $ | 10.38 | $ | 9.35 | $ | 9.76 | $ | 8.27 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 6.35% | 14.07% | 12.92% | (1.63)% | 19.51% | 32.47% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 17,705 | $ | 9,416 | $ | 7,830 | $ | 11,742 | $ | 12,123 | $ | 3,555 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 13,230 | $ | 8,437 | $ | 11,661 | $ | 12,392 | $ | 8,568 | $ | 3,138 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income | 0.83% | 4 | 1.48% | 4 | 1.69% | 4 | 2.02% | 4 | 2.26% | 4 | 0.77% | |||||||||||||
Total expenses5 | 0.34% | 4 | 0.30% | 4 | 0.21% | 4 | 0.20% | 4 | 0.20% | 4 | 0.19% | |||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.30% | 4 | 0.25% | 4 | 0.17% | 4 | 0.20% | 4 | 0.20% | 4 | 0.18% | |||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 27% | 9% | 28% | 6 | 21% | 6 | 54% | 31% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Includes the Funds share of the allocated expenses and/or net investment from the Master Funds.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
0.96% | |||
Year Ended January 31, 2014 |
0.97% | |||
Year Ended January 31, 2013 |
0.89% | |||
Year Ended January 31, 2012 |
0.90% | |||
Year Ended January 31, 2011 |
0.90% | |||
Year Ended January 29, 2010 |
0.88% |
6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:
Purchase Transactions | Sale Transactions | |||||||||
|
| |||||||||
Year Ended January 31, 2013 |
$113,842,157 | $114,874,878 | ||||||||
Year Ended January 31, 2012 |
$38,216,147 | $38,258,011 |
See accompanying Notes to Financial Statements.
25 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS July 31, 2014 Unaudited
1. Significant Accounting Policies
Oppenheimer Portfolio Series (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. Active Allocation Fund (the Fund) is a series of the Trust whose investment objective is to seek total return. The Fund normally invests in a diversified portfolio of Oppenheimer mutual funds (individually, an Underlying Fund and collectively, the Underlying Funds). The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI.
The Fund offers Class A, Class C, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a CDSC on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. 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 R shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Risks of Investing in the Underlying Funds. Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, the Fund will have greater exposure to the risks of that Underlying Fund.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund
26 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
1. Significant Accounting Policies (Continued)
(IMMF) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the Funds investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMFs Class E expenses, including its management fee.
Investment in Oppenheimer Master Funds. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC, Oppenheimer Master Event-Linked Bond Fund, LLC and Oppenheimer Master Inflation Protected Securities Fund, LLC (the Master Funds). Each Master Fund has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Master Fund than in another, the Fund will have greater exposure to the risks of that Master Fund.
The investment objective of Oppenheimer Master Loan Fund, LLC is to seek income. The investment objective of Oppenheimer Master Event-Linked Bond Fund, LLC is to seek total return. The investment objective of Oppenheimer Master Inflation Protected Securities Fund, LLC is to seek total return. The Funds investments in the Master Funds are included in the Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each Master Fund according to its allocated pro-rata share, based on its relative proportion of total outstanding Master Fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the Master Funds. As a shareholder, the Fund is subject to its proportional share of the Master Funds expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Funds investment in the Master Funds.
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 to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state
27 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies (Continued)
jurisdictions. The statute of limitations on the Funds tax return filings generally remain open for the three preceding fiscal reporting period ends.
During the fiscal year ended January 31, 2014, the Fund utilized $42,846,696 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended January 31, 2014 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
2017 |
$ | 68,767,077 | ||
2018 |
410,568,137 | |||
2019 |
221,029,215 | |||
No expiration |
33,902 | |||
|
|
|||
Total |
$ | 700,398,331 | ||
|
|
As of July 31, 2014, it is estimated that the capital loss carryforwards would be $672,167,838 expiring by 2019. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended July 31, 2014, it is estimated that the Fund will utilize $28,230,493 of capital loss carryforward to offset realized capital gains.
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.
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 July 31, 2014 are noted in the following table. 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 |
$ | 1,792,562,755 | ||
|
|
|||
Gross unrealized appreciation |
$ | 691,618,934 | ||
Gross unrealized depreciation |
(5,256,246) | |||
|
|
|||
Net unrealized appreciation |
$ | 686,362,688 | ||
|
|
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with
28 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
1. Significant Accounting Policies (Continued)
respect to their benefits under the Plan. During the six months ended July 31, 2014, the Funds projected benefit obligations, payments to retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased |
$ | 2,068 | ||
Accumulated Liability as of July 31, 2014 |
106,189 |
The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of the Fund, and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager.
The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
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 overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. 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.
29 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies (Continued)
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The Funds organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net asset value of its shares based upon the net asset value of the applicable Underlying Fund. For each Underlying Fund, the net asset value per share for a class of shares is determined 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 trading by dividing the value of the Underlying Funds net assets attributable to that class by the number of outstanding shares of that class on that day.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuations Methods and Inputs
To determine their net asset values, the Underlying Funds assets are valued primarily on the basis of current market quotations as generally supplied by third party portfolio pricing services or by dealers. Such market quotations are typically based on unadjusted quoted prices in active markets for identical securities or other observable market inputs.
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or
30 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
2. Securities Valuation (Continued)
(ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those Underlying Funds.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Managers own judgments about assumptions that market participants would use in pricing the asset or liability).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The Fund classifies each of its investments in those Underlying Funds which are publicly offered and reported on an exchange as Level 1, and those Underlying Funds which are not publicly offered as Level 2, without consideration as to the classification level of the specific investments held by the Underlying Funds.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of July 31, 2014 based on valuation input level:
31 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Securities Valuation (Continued)
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant Observable Inputs |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
|
||||||||||||||||
Assets Table |
||||||||||||||||
Investments, at Value: |
||||||||||||||||
Investment Companies |
$ | 2,355,155,973 | $ | 123,769,470 | $ | | $ | 2,478,925,443 | ||||||||
|
|
|||||||||||||||
Total Assets |
$ | 2,355,155,973 | $ | 123,769,470 | $ | | $ | 2,478,925,443 | ||||||||
|
|
3. 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:
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class A |
||||||||||||||||
Sold |
10,876,679 | $ | 131,186,925 | 22,989,515 | $ | 253,299,078 | ||||||||||
Dividends and/or distributions reinvested |
| | 1,749,872 | 20,806,209 | ||||||||||||
Redeemed |
(9,871,651) | (119,202,173) | (22,255,988) | (245,207,123) | ||||||||||||
|
|
|||||||||||||||
Net increase |
1,005,028 | $ | 11,984,752 | 2,483,399 | $ | 28,898,164 | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class B |
||||||||||||||||
Sold |
57,708 | $ | 680,675 | 208,354 | $ | 2,272,454 | ||||||||||
Dividends and/or distributions reinvested |
| | 87,572 | 1,026,348 | ||||||||||||
Redeemed |
(3,663,013) | (43,406,782) | (7,658,860) | (81,929,848) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(3,605,305) | $ | (42,726,107) | (7,362,934) | $ | (78,631,046) | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class C |
||||||||||||||||
Sold |
3,666,269 | $ | 43,092,211 | 7,476,895 | $ | 80,831,099 | ||||||||||
Dividends and/or distributions reinvested |
| | 333,890 | 3,893,061 | ||||||||||||
Redeemed |
(3,880,140) | (45,723,975) | (9,253,403) | (99,845,425) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(213,871) | $ | (2,631,764) | (1,442,618) | $ | (15,121,265) | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class R1 |
||||||||||||||||
Sold |
680,210 | $ | 8,120,164 | 1,740,002 | $ | 18,988,954 | ||||||||||
Dividends and/or distributions reinvested |
| | 122,625 | 1,450,646 | ||||||||||||
Redeemed |
(1,408,475) | (16,870,095) | (4,209,854) | (45,789,490) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(728,265) | $ | (8,749,931) | (2,347,227) | $ | (25,349,890) | ||||||||||
|
|
32 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
3. Shares of Beneficial Interest (Continued)
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
Sold |
736,845 | $ | 9,010,007 | 323,991 | $ | 3,675,139 | ||||||||||
Dividends and/or distributions reinvested |
| | 12,442 | 149,674 | ||||||||||||
Redeemed |
(115,812) | (1,419,843) | (282,496) | (3,158,118) | ||||||||||||
|
|
|||||||||||||||
Net increase |
621,033 | $ | 7,590,164 | 53,937 | $ | 666,695 | ||||||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R.
4. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended July 31, 2014 were as follows:
Purchases | Sales | |||||||
|
||||||||
Investment securities |
$672,667,611 | $773,102,689 |
5. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Manager does not charge a management fee, but rather collects indirect management fees from the Funds investments in the Underlying Funds. The weighted indirect management fees collected from the Funds investment in the Underlying Funds, as a percent of average daily net assets of the Fund for the six months ended July 31, 2014 was 0.58%. This amount is gross of any waivers or reimbursements of management fees implemented at the Underlying Fund level. In addition, the Fund pays the Manager an asset allocation fee equal to an annual rate of 0.10% of the first $3 billion of the daily net assets of the Fund and 0.08% of the daily net assets in excess of $3 billion.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer
33 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Fees and Other Transactions with Affiliates (Continued)
agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.
Distribution and Service Plans for Class B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, Class C and Class R shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. . Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees vote annually to approve its continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
Sales Charges. Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
34 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
5. Fees and Other Transactions with Affiliates (Continued)
Six Months Ended | Class A Front-End Retained by Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales Charges Retained by Distributor |
|||||||||||||||
|
||||||||||||||||||||
July 31, 2014 |
$628,234 | $1,002 | $100,210 | $15,083 | $1,566 |
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse the Fund for certain expenses in order to limit Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, (the combined direct (Fund level) and indirect (Underlying Fund level) expenses), will not exceed the annual rate of 1.45%, 2.20%, 2.20%, 1.70% and 1.20%, for Class A, Class B, Class C, Class R and Class Y, respectively. The expense limitations do not include extraordinary expenses and other expenses not incurred in the ordinary course of the Funds business. Notwithstanding the foregoing limits, the Manager is not required to waive or reimburse Fund expenses in excess of the amount of indirect management fees earned from investments in the Underlying Funds.
The Manager has also contractually agreed to waive fees and/or reimburse certain Fund expenses at an annual rate of 0.04% as calculated on the daily net assets of the Fund. This waiver and/or reimbursement is applied after (and in addition to) any other applicable waiver and/or expense reimbursements that may apply. During the six months ended July 31, 2014, the Manager waived fees and/or reimbursed the Fund $483,777.
Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
6. Pending Litigation
In 2009, seven class action lawsuits were filed in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the Defendant Funds). The lawsuits also named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities law and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. On March 5, 2014, the parties in six of these lawsuits executed stipulations and agreements of settlement resolving those actions. On July 31, 2014, the court entered an order and final
35 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Pending Litigation (Continued)
judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund.
Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the courts order approving the settlement. In June 2014, the appellate court affirmed the lower courts order approving the settlement. Certain parties subsequently filed a petition for certiorari before the U.S. Supreme Court further challenging the settlement approval order. The settlement does not resolve other outstanding lawsuits against OFI and its affiliates relating to BLMIS.
OFI believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, OFI believes that these suits should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.
36 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION 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 Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at oppenheimerfunds.com, and (iii) on the SECs 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 Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs 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 Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
37 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
OPPENHEIMER PORTFOLIO SERIES ACTIVE
ALLOCATION FUND
Trustees and Officers | Brian F. Wruble, Chairman of the Board of Trustees and Trustee | |
David K. Downes, Trustee | ||
Matthew P. Fink, Trustee | ||
Edmund P. Giambastiani, Jr., Trustee | ||
Mary F. Miller, Trustee | ||
Joel W. Motley, Trustee | ||
Joanne Pace, Trustee | ||
Joseph M. Wikler, Trustee | ||
Peter I. Wold, Trustee | ||
William F. Glavin, Jr., Trustee, President and Principal Executive Officer | ||
Mark Hamilton, Vice President | ||
Caleb Wong, Vice President | ||
Dokyoung Lee, Vice President | ||
Arthur S. Gabinet, Secretary and Chief Legal Officer | ||
Christina M. Nasta, Vice President and Chief Business Officer | ||
Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money | ||
Laundering Officer | ||
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer | ||
Manager | OFI Global Asset Management, Inc. | |
Sub-Adviser | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder Servicing Agent | OFI Global Asset Management, Inc. | |
Sub-Transfer Agent | Shareholder Services, Inc. DBA OppenheimerFunds Services | |
Independent Registered Public Accounting Firm | KPMG LLP | |
Counsel | Kramer Levin Naftalis & Frankel LLP | |
The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm. |
© 2014 OppenheimerFunds, Inc. All rights reserved.
38 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
| Applications or other forms |
| When you create a user ID and password for online account access |
| When you enroll in eDocs Direct, our electronic document delivery service |
| Your transactions with us, our affiliates or others |
| A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited |
| When you set up challenge questions to reset your password online |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
39 OPPENHEIMER PORTFOLIO SERIES ACTIVE ALLOCATION FUND
PRIVACY POLICY NOTICE Continued
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
| All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
| Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. |
| You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., and each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2013. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
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33 |
Class A Shares
AVERAGE ANNUAL TOTAL RETURNS AT 7/31/14
Class A Shares of the Fund | ||||||||||
Without Sales Charge | With Sales Charge | S&P 500 Index | MSCI World Index | |||||||
6-Month |
6.37% | 0.26% | 9.44% | 8.50% | ||||||
1-Year |
13.68 | 7.15 | 16.94 | 15.96 | ||||||
5-Year |
13.34 | 12.01 | 16.79 | 12.77 | ||||||
Since Inception (4/5/05) |
6.78 | 6.11 | 7.65 | 6.58 |
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 investors shares, when redeemed, may be worth more or less than their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).
2 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
During the six-month reporting period ended July 31, 2014, the Funds Class A shares (without sales charge) produced a total return of 6.37%. On a relative basis, the Fund underperformed its benchmarks, the S&P 500 Index and the MSCI World Index, which returned 9.44% and 8.50%, respectively.
MARKET OVERVIEW
1. The Fund is invested in Class I shares of all underlying funds discussed in this Fund Performance Discussion.
3 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
FUND REVIEW
4 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
5 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
6 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Share Class Performance
AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 7/31/14
Inception Date | 6-Month | 1-Year | 5-Year | Since Inception | ||||||||
Class A (OAAIX) |
4/5/05 | 6.37% | 13.68% | 13.34% | 6.78% | |||||||
Class B (OBAIX) |
4/5/05 | 6.03% | 12.83% | 12.44% | 6.23% | |||||||
Class C (OCAIX) |
4/5/05 | 6.03% | 12.87% | 12.50% | 5.98% | |||||||
Class R (ONAIX) |
4/5/05 | 6.32% | 13.41% | 13.10% | 6.58% | |||||||
Class Y (OYAIX) |
4/5/05 | 6.56% | 14.06% | 13.78% | 7.22% |
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 7/31/14
Inception Date | 6-Month | 1-Year | 5-Year | Since Inception | ||||||||
Class A (OAAIX) |
4/5/05 | 0.26% | 7.15% | 12.01% | 6.11% | |||||||
Class B (OBAIX) |
4/5/05 | 1.03% | 7.83% | 12.19% | 6.23% | |||||||
Class C (OCAIX) |
4/5/05 | 5.03% | 11.87% | 12.50% | 5.98% | |||||||
Class R (ONAIX) |
4/5/05 | 5.32% | 12.41% | 13.10% | 6.58% | |||||||
Class Y (OYAIX) |
4/5/05 | 6.56% | 14.06% | 13.78% | 7.22% |
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 investors shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individuals investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). 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 (CDSC) of 5% (1-year) and 2% (5-year); and for Class C shares, the 1% CDSC for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14.) There is no sales charge for Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, 10-year returns for Class B shares reflect Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized.
The Funds performance is compared to the performance of the S&P 500 Index and the MSCI World Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks intended to be a representative sample of leading companies in leading industries within the U.S. economy. The MSCI World Index is designed to measure the equity market performance of developed markets. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Funds performance, it must be noted that the Funds investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Funds performance, and does not predict or depict performance of the Fund. The Funds performance reflects the effects of the Funds business and operating expenses.
7 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
The Funds investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
8 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
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 (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 July 31, 2014.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section 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 first section 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 second section of the table provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the 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). Therefore, the hypothetical section of the table is 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.
9 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Actual | Beginning Account Value February 1, 2014 |
Ending Account Value July 31, 2014 |
Expenses Paid During 6 Months Ended | |||||||||||||||
Class A |
$ | 1,000.00 | $ | 1,063.70 | $ | 2.41 | ||||||||||||
Class B |
1,000.00 | 1,060.30 | 6.20 | |||||||||||||||
Class C |
1,000.00 | 1,060.30 | 6.20 | |||||||||||||||
Class R |
1,000.00 | 1,063.20 | 3.69 | |||||||||||||||
Class Y |
1,000.00 | 1,065.60 | 1.18 | |||||||||||||||
Hypothetical | ||||||||||||||||||
(5% return before expenses) |
||||||||||||||||||
Class A |
1,000.00 | 1,022.46 | 2.36 | |||||||||||||||
Class B |
1,000.00 | 1,018.79 | 6.07 | |||||||||||||||
Class C |
1,000.00 | 1,018.79 | 6.07 | |||||||||||||||
Class R |
1,000.00 | 1,021.22 | 3.61 | |||||||||||||||
Class Y |
1,000.00 | 1,023.65 | 1.15 |
Expenses are equal to the Funds annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended July 31, 2014 are as follows:
Class | Expense Ratios | |||||
Class A |
0.47 | % | ||||
Class B |
1.21 | |||||
Class C |
1.21 | |||||
Class R |
0.72 | |||||
Class Y |
0.23 |
The Financial Highlights tables in the Funds financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
10 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2014 Unaudited
Shares | Value | |||||||
|
||||||||
Investment Company100.1%1 |
||||||||
Domestic Equity Funds47.5% |
||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
2,382,050 | $ | 159,359,148 | |||||
|
||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
1,795,119 | 60,908,378 | ||||||
|
||||||||
Oppenheimer Value Fund, Cl. I |
5,794,271 | 182,809,248 | ||||||
|
|
|||||||
403,076,774 | ||||||||
|
||||||||
Foreign Equity Funds52.6% |
||||||||
Oppenheimer Developing Markets Fund, Cl. I |
1,653,643 | 65,715,772 | ||||||
|
||||||||
Oppenheimer International Growth Fund, Cl. I |
4,739,568 | 177,970,780 | ||||||
|
||||||||
Oppenheimer International Small Company Fund, Cl. I |
1,571,019 | 52,393,491 | ||||||
|
||||||||
Oppenheimer International Value Fund, Cl. I |
8,088,079 | 149,791,218 | ||||||
|
|
|||||||
445,871,261 | ||||||||
|
||||||||
Total Investments, at Value (Cost $547,108,751) |
100.1 | % | 848,948,035 | |||||
|
||||||||
Net Other Assets (Liabilities) |
(0.1 | ) | (788,241) | |||||
|
|
|||||||
Net Assets |
100.0 | % | $ | 848,159,794 | ||||
|
|
Footnotes to Statement of Investments
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 31, 2014, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
Shares January 31, 2014 |
Gross Additions |
Gross Reductions |
Shares July 31, 2014 |
|||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
2,385,074 | 49,156 | 52,180 | 2,382,050 | ||||||||||||
Oppenheimer Developing Markets Fund, Cl. I |
1,656,290 | 40,992 | 43,639 | 1,653,643 | ||||||||||||
Oppenheimer International Growth Fund, Cl. I |
4,746,721 | 99,695 | 106,848 | 4,739,568 | ||||||||||||
Oppenheimer International Small Company Fund, Cl. I |
1,573,011 | 28,744 | 30,736 | 1,571,019 | ||||||||||||
Oppenheimer International Value Fund, Cl. I |
8,100,656 | 173,155 | 185,732 | 8,088,079 | ||||||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
1,797,428 | 35,362 | 37,671 | 1,795,119 | ||||||||||||
Oppenheimer Value Fund, Cl. I |
5,744,933 | 171,523 | 122,185 | 5,794,271 |
Realized Gain | ||||||||||||
Value | Income | (Loss) | ||||||||||
|
||||||||||||
Oppenheimer Capital Appreciation Fund, Cl. I |
$ | 159,359,148 | $ | | $ | 486,623 | ||||||
Oppenheimer Developing Markets Fund, Cl. I |
65,715,772 | | 221,562 | |||||||||
Oppenheimer International Growth Fund, Cl. I |
177,970,780 | | 392,384 | |||||||||
Oppenheimer International Small Company Fund, Cl. I |
52,393,491 | | 112,262 | |||||||||
Oppenheimer International Value Fund, Cl. I |
149,791,218 | | 226,671 | |||||||||
Oppenheimer Main Street Mid Cap Fund, Cl. I |
60,908,378 | | 215,025 | |||||||||
Oppenheimer Value Fund, Cl. I |
182,809,248 | 1,760,792 | 547,237 | |||||||||
|
|
|||||||||||
Total |
$ | 848,948,035 | $ | 1,760,792 | $ | 2,201,764 | ||||||
|
|
See accompanying Notes to Financial Statements.
11 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
ASSETS AND LIABILITIES July 31, 2014 Unaudited
|
||||
Assets |
||||
Investments, at valuesee accompanying statement of investmentsaffiliated companies |
||||
(cost $547,108,751) |
$ | 848,948,035 | ||
|
||||
Cash |
380,364 | |||
|
||||
Receivables and other assets: |
||||
Shares of beneficial interest sold |
729,710 | |||
Other |
40,226 | |||
|
|
|||
Total assets |
850,098,335 | |||
|
||||
Liabilities |
||||
Payables and other liabilities: |
||||
Shares of beneficial interest redeemed |
1,105,145 | |||
Investments purchased |
578,851 | |||
Distribution and service plan fees |
179,702 | |||
Trustees compensation |
57,796 | |||
Shareholder communications |
2,899 | |||
Other |
14,148 | |||
|
|
|||
Total liabilities |
1,938,541 | |||
|
||||
Net Assets |
$ | 848,159,794 | ||
|
|
|||
|
||||
Composition of Net Assets |
||||
Par value of shares of beneficial interest |
$ | 56,279 | ||
|
||||
Additional paid-in capital |
641,385,444 | |||
|
||||
Accumulated net investment income |
3,282,002 | |||
|
||||
Accumulated net realized loss on investments |
(98,403,215) | |||
|
||||
Net unrealized appreciation on investments |
301,839,284 | |||
|
|
|||
Net Assets |
$ | 848,159,794 | ||
|
|
12 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
|
||||
Net Asset Value Per Share |
||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $527,878,178 and | ||||
34,742,216 shares of beneficial interest outstanding) | $ | 15.19 | ||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $ | 16.12 | ||
|
||||
Class B Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $55,495,652 and 3,756,510 shares of beneficial interest outstanding) | $ | 14.77 | ||
|
||||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $191,355,374 and 12,945,560 shares of beneficial interest outstanding) | $ | 14.78 | ||
|
||||
Class R Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $52,689,234 and 3,477,458 shares of beneficial interest outstanding) | $ | 15.15 | ||
|
||||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $20,741,356 and 1,357,432 shares of beneficial interest outstanding) | $ | 15.28 |
See accompanying Notes to Financial Statements.
13 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
OPERATIONS For the Six Months Ended July 31, 2014 Unaudited
|
||||
Investment Income |
||||
Dividends from affiliated companies |
$ | 1,760,792 | ||
|
||||
Interest |
128 | |||
|
|
|||
Total investment income |
1,760,920 | |||
|
||||
Expenses |
||||
|
||||
Distribution and service plan fees: |
||||
Class A |
625,583 | |||
Class B |
295,563 | |||
Class C |
919,887 | |||
Class R1 |
133,246 | |||
|
||||
Transfer and shareholder servicing agent fees: |
||||
Class A |
558,833 | |||
Class B |
65,090 | |||
Class C |
203,216 | |||
Class R1 |
58,659 | |||
Class Y |
22,221 | |||
|
||||
Shareholder communications: |
||||
Class A |
2,131 | |||
Class B |
503 | |||
Class C |
703 | |||
Class R1 |
131 | |||
Class Y |
38 | |||
|
||||
Trustees compensation |
5,968 | |||
|
||||
Custodian fees and expenses |
5,159 | |||
|
||||
Other |
18,625 | |||
|
|
|||
Total expenses |
2,915,556 | |||
|
||||
Net Investment Loss |
(1,154,636) | |||
|
||||
Realized and Unrealized Gain |
||||
Net realized gain on affiliated companies |
2,201,764 | |||
|
||||
Net change in unrealized appreciation/depreciation on investments |
49,389,355 | |||
|
||||
Net Increase in Net Assets Resulting from Operations |
$ | 50,436,483 | ||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended | ||||||||
July 31, 2014 | Year Ended | |||||||
(Unaudited) | January 31, 2014 | |||||||
|
||||||||
Operations |
||||||||
Net investment income (loss) |
$ | (1,154,636 | ) | $ | 4,504,284 | |||
|
||||||||
Net realized gain |
2,201,764 | 8,049,513 | ||||||
|
||||||||
Net change in unrealized appreciation/depreciation |
49,389,355 | 100,455,225 | ||||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
50,436,483 | 113,009,022 | ||||||
|
||||||||
Dividends and/or Distributions to Shareholders |
||||||||
Dividends from net investment income: |
||||||||
Class A |
| (3,674,760) | ||||||
Class B |
| | ||||||
Class C |
| (215,015) | ||||||
Class R1 |
| (260,098) | ||||||
Class Y |
| (202,072) | ||||||
|
|
|
|
|||||
| (4,351,945) | |||||||
|
||||||||
Beneficial Interest Transactions |
||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: |
||||||||
Class A |
14,321,999 | 29,452,453 | ||||||
Class B |
(11,856,418 | ) | (19,505,677) | |||||
Class C |
2,763,754 | 3,273,823 | ||||||
Class R1 |
(3,046,992 | ) | (9,557,126) | |||||
Class Y |
(855,077 | ) | 1,970,876 | |||||
|
|
|
|
|||||
1,327,266 | 5,634,349 | |||||||
|
||||||||
Net Assets |
||||||||
Total increase |
51,763,749 | 114,291,426 | ||||||
|
||||||||
Beginning of period |
796,396,045 | 682,104,619 | ||||||
|
|
|
|
|||||
End of period (including accumulated net investment income of |
||||||||
$3,282,002 and $4,436,638, respectively) |
$ | 848,159,794 | $ | 796,396,045 | ||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class A |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 14.28 | $ | 12.30 | $ | 10.62 | $ | 11.17 | $ | 9.12 | $ | 6.46 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.00 | 0.12 | 0.11 | 0.09 | 0.08 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
0.91 | 1.97 | 1.66 | (0.56) | 2.00 | 2.84 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.91 | 2.09 | 1.77 | (0.47) | 2.08 | 2.88 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.11) | (0.09) | (0.08) | (0.03) | (0.05) | ||||||||||||||||||
Distributions from net realized gain |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
||||||||||||||||||||||||
Total dividends and/or distributions to shareholders |
0.00 | (0.11) | (0.09) | (0.08) | (0.03) | (0.22) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period |
$ | 15.19 | $ | 14.28 | $ | 12.30 | $ | 10.62 | $ | 11.17 | $ | 9.12 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
6.37% | 16.95% | 16.73% | (4.19)% | 22.76% | 44.42% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 527,878 | $ | 482,285 | $ | 388,790 | $ | 335,138 | $ | 352,321 | $ | 286,580 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 518,209 | $ | 442,886 | $ | 350,996 | $ | 343,680 | $ | 314,559 | $ | 244,278 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income (loss) |
(0.05)% | 0.89% | 0.99% | 0.82% | 0.76% | 0.52% | ||||||||||||||||||
Total expenses4 |
0.47% | 0.48% | 0.47% | 0.48% | 0.51% | 0.58% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
0.47% | 0.47% | 0.47% | 0.48% | 0.51% | 0.58% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
2% | 6% | 17% | 5% | 54% | 11% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.14% | |||
Year Ended January 31, 2014 |
1.23% | |||
Year Ended January 31, 2013 |
1.22% | |||
Year Ended January 31, 2012 |
1.25% | |||
Year Ended January 31, 2011 |
1.26% | |||
Year Ended January 31, 2010 |
1.30% |
See accompanying Notes to Financial Statements.
16 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class B |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.93 | $ | 12.01 | $ | 10.37 | $ | 10.91 | $ | 8.97 | $ | 6.38 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss1 | (0.06) | (0.02) | 0.002 | (0.01) | (0.01) | (0.03) | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.90 | 1.94 | 1.64 | (0.53) | 1.95 | 2.79 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.84 | 1.92 | 1.64 | (0.54) | 1.94 | 2.76 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Distributions from net realized gain | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total dividends and/or distributions to shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 14.77 | $ | 13.93 | $ | 12.01 | $ | 10.37 | $ | 10.91 | $ | 8.97 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value3 | 6.03% | 15.99% | 15.82% | (4.95)% | 21.63% | 43.19% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 55,496 | $ | 63,602 | $ | 72,843 | $ | 81,718 | $ | 92,953 | $ | 76,495 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 60,418 | $ | 68,259 | $ | 75,680 | $ | 87,253 | $ | 83,498 | $ | 66,935 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income (loss) | (0 .79)% | (0 .12)% | 0.03% | (0 .06)% | (0 .08)% | (0.33)% | ||||||||||||||||||
Total expenses5 | 1.21% | 1.25% | 1.30% | 1.32% | 1.35% | 1.45% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.21% | 1.24% | 1.30% | 1.32% | 1.35% | 1.41% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
2% | 6% | 17% | 5% | 54% | 11% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Less than $0.005 per share.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.88% | |||
Year Ended January 31, 2014 |
2.00% | |||
Year Ended January 31, 2013 |
2.05% | |||
Year Ended January 31, 2012 |
2.09% | |||
Year Ended January 31, 2011 |
2.10% | |||
Year Ended January 31, 2010 |
2.17% |
See accompanying Notes to Financial Statements.
17 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class C |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.94 | $ | 12.02 | $ | 10.38 | $ | 10.92 | $ | 8.97 | $ | 6.37 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)1 | (0.06) | 0.02 | 0.02 | 0.01 | 0.002 | (0.02) | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.90 | 1.92 | 1.63 | (0.55) | 1.95 | 2.79 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.84 | 1.94 | 1.65 | (0.54) | 1.95 | 2.77 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.02) | (0.01) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Distributions from net realized gain | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total dividends and/or distributions to shareholders | 0.00 | (0.02) | (0.01) | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 14.78 | $ | 13.94 | $ | 12.02 | $ | 10.38 | $ | 10.92 | $ | 8.97 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value3 | 6.03% | 16.11% | 15.91% | (4.95)% | 21.74% | 43.41% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 191,355 | $ | 177,813 | $ | 150,848 | $ | 136,229 | $ | 144,759 | $ | 118,730 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 188,405 | $ | 164,340 | $ | 139,727 | $ | 140,831 | $ | 129,727 | $ | 102,982 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:4 | ||||||||||||||||||||||||
Net investment income (loss) | (0.79)% | 0.12% | 0.22% | 0.08% | 0.00% | 5 | (0.26)% | |||||||||||||||||
Total expenses6 | 1.21% | 1.23% | 1.21% | 1.23% | 1.26% | 1.35% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.21% | 1.22% | 1.21% | 1.23% | 1.26% | 1.34% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 2% | 6% | 17% | 5% | 54% | 11% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Less than $0.005 per share.
3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.88% | |||
Year Ended January 31, 2014 |
1.98% | |||
Year Ended January 31, 2013 |
1.96% | |||
Year Ended January 31, 2012 |
2.00% | |||
Year Ended January 31, 2011 |
2.01% | |||
Year Ended January 31, 2010 |
2.07% |
See accompanying Notes to Financial Statements.
18 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class R |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.25 | $ | 12.27 | $ | 10.59 | $ | 11.13 | $ | 9.09 | $ | 6.44 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)1 | (0.02) | 0.06 | 0.07 | 0.06 | 0.06 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.92 | 1.99 | 1.67 | (0.55) | 1.99 | 2.82 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations | 0.90 | 2.05 | 1.74 | (0.49) | 2.05 | 2.85 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | 0.00 | (0.07) | (0.06) | (0.05) | (0.01) | (0.03) | ||||||||||||||||||
Distributions from net realized gain | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total dividends and/or distributions to shareholders | 0.00 | (0.07) | (0.06) | (0.05) | (0.01) | (0.20) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period | $ | 15.15 | $ | 14.25 | $ | 12.27 | $ | 10.59 | $ | 11.13 | $ | 9.09 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 | 6.32% | 16.68% | 16.43% | (4.36)% | 22.52% | 44.18% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 52,689 | $ | 52,433 | $ | 53,846 | $ | 60,029 | $ | 75,333 | $ | 61,344 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) | $ | 54,357 | $ | 54,751 | $ | 55,283 | $ | 66,834 | $ | 68,038 | $ | 52,200 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 | ||||||||||||||||||||||||
Net investment income (loss) | (0.30)% | 0.46% | 0.62% | 0.58% | 0.57% | 0.31% | ||||||||||||||||||
Total expenses4 | 0.72% | 0.71% | 0.69% | 0.68% | 0.70% | 0.76% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.72% | 0.70% | 0.69% | 0.68% | 0.70% | 0.76% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate | 2% | 6% | 17% | 5% | 54% | 11% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
1.39% | |||
Year Ended January 31, 2014 |
1.46% | |||
Year Ended January 31, 2013 |
1.44% | |||
Year Ended January 31, 2012 |
1.45% | |||
Year Ended January 31, 2011 |
1.45% | |||
Year Ended January 31, 2010 |
1.48% |
See accompanying Notes to Financial Statements.
19 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
Class Y |
July 31, 2014 | January 31, | January 31, | January 31, | January 31, | January 31, | ||||||||||||||||||
(Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
|
||||||||||||||||||||||||
Per Share Operating Data |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 14.34 | $ | 12.35 | $ | 10.66 | $ | 11.21 | $ | 9.15 | $ | 6.48 | ||||||||||||
|
||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income1 |
0.01 | 0.16 | 0.15 | 0.13 | 0.19 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
0.93 | 1.98 | 1.68 | (0.56) | 1.94 | 2.83 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.94 | 2.14 | 1.83 | (0.43) | 2.13 | 2.93 | ||||||||||||||||||
|
||||||||||||||||||||||||
Dividends and/or distributions to shareholders: |
||||||||||||||||||||||||
Dividends from net investment income |
0.00 | (0.15) | (0.14) | (0.12) | (0.07) | (0.09) | ||||||||||||||||||
Distributions from net realized gain |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | ||||||||||||||||||
Total dividends and/or distributions to shareholders |
0.00 | (0.15) | (0.14) | (0.12) | (0.07) | (0.26) | ||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, end of period |
$ | 15.28 | $ | 14.34 | $ | 12.35 | $ | 10.66 | $ | 11.21 | $ | 9.15 | ||||||||||||
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||
Total Return, at Net Asset Value2 |
6.56% | 17.27% | 17.20% | (3.81)% | 23.31% | 45.03% | ||||||||||||||||||
|
||||||||||||||||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (in thousands) |
$ | 20,741 | $ | 20,263 | $ | 15,778 | $ | 13,815 | $ | 14,579 | $ | 4,495 | ||||||||||||
|
||||||||||||||||||||||||
Average net assets (in thousands) |
$ | 20,598 | $ | 17,842 | $ | 14,008 | $ | 14,243 | $ | 8,034 | $ | 3,087 | ||||||||||||
|
||||||||||||||||||||||||
Ratios to average net assets:3 |
||||||||||||||||||||||||
Net investment income |
0.19% | 1.21% | 1.35% | 1.21% | 1.91% | 1.23% | ||||||||||||||||||
Total expenses4 |
0.23% | 0.18% | 0.08% | 0.12% | 0.07% | 0.07% | ||||||||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses |
0.23% | 0.17% | 0.08% | 0.12% | 0.07% | 0.07% | ||||||||||||||||||
|
||||||||||||||||||||||||
Portfolio turnover rate |
2% | 6% | 17% | 5% | 54% | 11% |
1. Per share amounts calculated based on the average shares outstanding during the period.
2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended July 31, 2014 |
0.90% | |||
Year Ended January 31, 2014 |
0.93% | |||
Year Ended January 31, 2013 |
0.83% | |||
Year Ended January 31, 2012 |
0.89% | |||
Year Ended January 31, 2011 |
0.82% | |||
Year Ended January 31, 2010 |
0.79% |
See accompanying Notes to Financial Statements.
20 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
FINANCIAL STATEMENTS July 31, 2014 Unaudited
1. Significant Accounting Policies
Oppenheimer Portfolio Series (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. Equity Investor Fund (the Fund) is a series of the Trust whose investment objective is to seek capital appreciation. The Fund normally invests in a diversified portfolio of Oppenheimer mutual funds (individually, an Underlying Fund and collectively, the Underlying Funds). The Funds investment adviser is OFI Global Asset Management, Inc. (OFI Global or the Manager), a wholly-owned subsidiary of OppenheimerFunds, Inc. (OFI or the Sub-Adviser). The Manager has entered into a sub-advisory agreement with OFI.
The Fund offers Class A, Class C, Class R and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a CDSC on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold, and Class B shares were sold, without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class Y shares. 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 R shares have separate distribution and/or service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Risks of Investing in the Underlying Funds. Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Funds investments and therefore the value of the Funds shares. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, the Fund will have greater exposure to the risks of that Underlying Fund.
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
21 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies (Continued)
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 to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds tax return filings generally remain open for the three preceding fiscal reporting period ends.
During the fiscal year ended January 31, 2014, the Fund utilized $7,941,916 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended January 31, 2014 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.
Expiring | ||||
2018 |
$ | 4,798,012 | ||
2019 |
76,413,767 | |||
|
|
|||
Total |
$ | 81,211,779 | ||
|
|
As of July 31, 2014, it is estimated that the capital loss carryforwards would be $79,010,015 expiring by 2019. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended July 31, 2014, it is estimated that the Fund will utilize $2,201,764 of capital loss carryforward to offset realized capital gains.
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.
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 July 31, 2014 are noted in the following table. 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 |
$ | 565,696,490 | ||
|
|
|||
Gross unrealized appreciation |
$ | 283,251,545 | ||
Gross unrealized depreciation |
| |||
|
|
|||
Net unrealized appreciation |
$ | 283,251,545 | ||
|
|
22 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
1. Significant Accounting Policies (Continued)
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the Funds independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the six months ended July 31, 2014, the Funds projected benefit obligations, payments to retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased |
$ | 415 | ||
Payments Made to Retired Trustees |
| |||
Accumulated Liability as of July 31, 2014 |
21,295 |
The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of the Fund, and will not materially affect the Funds assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. The tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the Funds fiscal year end may ultimately be categorized as a tax return of capital.
Investment Income. Dividend distributions received from the Underlying Funds are recorded on the ex-dividend date. Upon receipt of notification from an Underlying Fund, and subsequent to the ex-dividend date, some of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the Underlying Fund and/or increasing the realized gain on sales of investments in the Underlying Fund.
23 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies (Continued)
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 overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.
Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.
Indemnifications. The Funds organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Securities Valuation
The Fund calculates the net asset value of its shares based upon the net asset value of the applicable Underlying Fund. For each Underlying Fund, the net asset value per share for a class of shares is determined 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 trading by dividing the value of the Underlying Funds net assets attributable to that class by the number of outstanding shares of that class on that day.
The Funds Board has adopted procedures for the valuation of the Funds securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committees fair valuation determinations are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Valuations Methods and Inputs
To determine their net asset values, the Underlying Funds assets are valued primarily on the basis of current market quotations as generally supplied by third party portfolio pricing
24 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
2. Securities Valuation (Continued)
services or by dealers. Such market quotations are typically based on unadjusted quoted prices in active markets for identical securities or other observable market inputs.
If a market value or price cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Manager, the market value or price obtained does not constitute a readily available market quotation, or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Funds Board or (ii) as determined in good faith by the Managers Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Funds Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those Underlying Funds.
To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
Classifications
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Funds investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:
1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)
2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)
3) Level 3-significant unobservable inputs (including the Managers own judgments about assumptions that market participants would use in pricing the asset or liability).
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
25 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Securities Valuation (Continued)
The Fund classifies each of its investments in those Underlying Funds which are publicly offered and reported on an exchange as Level 1, and those Underlying Funds which are not publicly offered as Level 2, without consideration as to the classification level of the specific investments held by the Underlying Funds.
The table below categorizes amounts that are included in the Funds Statement of Assets and Liabilities as of July 31, 2014 based on valuation input level:
Level 1 Unadjusted Quoted Prices |
Level 2 Other Significant |
Level 3 Significant Unobservable Inputs |
Value | |||||||||||||
|
||||||||||||||||
Assets Table |
||||||||||||||||
Investments, at Value: |
||||||||||||||||
Investment Companies |
$ | 848,948,035 | $ | | $ | | $ | 848,948,035 | ||||||||
|
|
|||||||||||||||
Total Assets |
$ | 848,948,035 | $ | | $ | | $ | 848,948,035 | ||||||||
|
|
3. 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:
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class A |
||||||||||||||||
Sold |
3,541,534 | $ | 53,122,146 | 7,459,417 | $ | 100,807,372 | ||||||||||
Dividends and/or distributions reinvested |
| | 241,867 | 3,613,476 | ||||||||||||
Redeemed |
(2,581,321) | (38,800,147) | (5,535,417) | (74,968,395) | ||||||||||||
|
|
|||||||||||||||
Net increase |
960,213 | $ | 14,321,999 | 2,165,867 | $ | 29,452,453 | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class B |
||||||||||||||||
Sold |
40,409 | $ | 585,172 | 108,086 | $ | 1,430,953 | ||||||||||
Dividends and/or distributions reinvested |
| | | | ||||||||||||
Redeemed |
(848,906) | (12,441,590) | (1,610,544) | (20,936,630) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(808,497) | $ | (11,856,418) | (1,502,458) | $ | (19,505,677) | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class C |
||||||||||||||||
Sold |
1,170,198 | $ | 17,123,681 | 2,495,238 | $ | 32,980,446 | ||||||||||
Dividends and/or distributions reinvested |
| | 14,550 | 212,426 | ||||||||||||
Redeemed |
(980,397) | (14,359,927) | (2,300,695) | (29,919,049) | ||||||||||||
|
|
|||||||||||||||
Net increase |
189,801 | $ | 2,763,754 | 209,093 | $ | 3,273,823 | ||||||||||
|
|
26 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
3. Shares of Beneficial Interest
Six Months Ended July 31, 2014 | Year Ended January 31, 2014 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
|
||||||||||||||||
Class R1 |
||||||||||||||||
Sold |
222,204 | $ | 3,333,085 | 779,306 | $ | 10,424,657 | ||||||||||
Dividends and/or distributions reinvested |
| | 17,018 | 253,906 | ||||||||||||
Redeemed |
(423,170) | (6,380,077) | (1,504,876) | (20,235,689) | ||||||||||||
|
|
|||||||||||||||
Net decrease |
(200,966) | $ | (3,046,992) | (708,552) | $ | (9,557,126) | ||||||||||
|
|
|||||||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
Sold |
141,173 | $ | 2,115,290 | 417,822 | $ | 5,749,315 | ||||||||||
Dividends and/or distributions reinvested |
| | 13,394 | 200,918 | ||||||||||||
Redeemed |
(196,818) | (2,970,367) | (296,069) | (3,979,357) | ||||||||||||
|
|
|||||||||||||||
Net increase (decrease) |
(55,645) | $ | (855,077) | 135,147 | $ | 1,970,876 | ||||||||||
|
|
1. Effective July 1, 2014, Class N shares were renamed Class R.
4. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended July 31, 2014 were as follows:
Purchases | Sales | |||||||
|
||||||||
Investment securities |
$19,105,050 | $18,704,732 |
5. Fees and Other Transactions with Affiliates
Management Fees. Under the investment advisory agreement, the Manager does not charge a management fee, but rather collects indirect management fees from the Funds investments in the Underlying Funds. The weighted indirect management fees collected from the Funds investment in the Underlying Funds, as a percent of average daily net assets of the Fund for the six months ended July 31, 2014 was 0.65%. This amount is gross of any waivers or reimbursements of management fees implemented at the Underlying Fund level.
Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.
Transfer Agent Fees. OFI Global (the Transfer Agent) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.
27 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Fees and Other Transactions with Affiliates (Continued)
Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the Sub-Transfer Agent), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.
Distribution and Service Plans for Class B, Class C and Class R Shares. The Fund has adopted Distribution and Service Plans (the Plans) for Class B, Class C and Class R shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Funds Board of Trustees vote annually to approve its continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.
Sales Charges. Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. The sales charges retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the redemption of shares is shown in the following table for the period indicated.
28 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
5. Fees and Other Transactions with Affiliates (Continued)
Six Months Ended | Class A Front-End Sales Charges Retained by Distributor |
Class A Contingent Deferred Sales Charges Retained by Distributor |
Class B Contingent Deferred Sales Charges Retained by Distributor |
Class C Contingent Deferred Sales Charges Retained by Distributor |
Class R Contingent Deferred Sales Charges Retained by Distributor |
|||||||||||||||
|
||||||||||||||||||||
July 31, 2014 |
$270,513 | $252 | $39,935 | $5,818 | $1,161 |
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse the Fund for certain expenses in order to limit Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, (the combined direct (Fund level) and indirect (Underlying Fund level) expenses), will not exceed the annual rate of 1.45%, 2.20%, 2.20%, 1.70% and 1.20%, for Class A, Class B, Class C, Class R and Class Y, respectively. The expense limitations do not include extraordinary expenses and other expenses not incurred in the ordinary course of the Funds business. Notwithstanding the foregoing limits, the Manager is not required to waive or reimburse Fund expenses in excess of the amount of indirect management fees earned from investments in the Underlying Funds.
Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.
6. Pending Litigation
In 2009, seven class action lawsuits were filed in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (OFI), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor (the Distributor), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the Defendant Funds). The lawsuits also named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities law and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. The Defendant Funds Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. On March 5, 2014, the parties in six of these lawsuits executed stipulations and agreements of settlement resolving those actions. On July 31, 2014, the court entered an order and final judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund.
Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff
29 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Pending Litigation (Continued)
and his firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the courts order approving the settlement. In June 2014, the appellate court affirmed the lower courts order approving the settlement. Certain parties subsequently filed a petition for certiorari before the U.S. Supreme Court further challenging the settlement approval order. The settlement does not resolve other outstanding lawsuits against OFI and its affiliates relating to BLMIS.
OFI believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, OFI believes that these suits should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.
30 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR 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 Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Funds website at oppenheimerfunds.com, and (iii) on the SECs 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 Funds voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SECs 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 Funds Form N-Q filings are available on the SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery of Shareholder Documents
This is to inform you about OppenheimerFunds householding policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the funds prospectus (or, if available, the funds summary prospectus), annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.
Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus (or, if available, the summary prospectus), reports and privacy policy within 30 days of receiving your request to stop householding.
31 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
OPPENHEIMER PORTFOLIO SERIES EQUITY
INVESTOR FUND
Trustees and Officers | Brian F. Wruble, Chairman of the Board of Trustees and Trustee | |
David K. Downes, Trustee | ||
Matthew P. Fink, Trustee | ||
Edmund P. Giambastiani, Jr., Trustee | ||
Mary F. Miller, Trustee | ||
Joel W. Motley, Trustee | ||
Joanne Pace, Trustee | ||
Joseph M. Wikler, Trustee | ||
Peter I. Wold, Trustee | ||
William F. Glavin, Jr., Trustee, President and Principal Executive Officer | ||
Mark Hamilton, Vice President | ||
Dokyoung Lee, Vice President | ||
Arthur S. Gabinet, Secretary and Chief Legal Officer | ||
Christina M. Nasta, Vice President and Chief Business Officer | ||
Mary Ann Picciotto, Chief Compliance Officer and Chief Anti- | ||
Money Laundering Officer | ||
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer | ||
Manager | OFI Global Asset Management, Inc. | |
Sub-Adviser | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder Servicing Agent | OFI Global Asset Management, Inc. | |
Sub-Transfer Agent | Shareholder Services, Inc. DBA OppenheimerFunds Services | |
Independent Registered Public Accounting Firm | KPMG LLP | |
Legal Counsel | Kramer Levin Naftalis & Frankel LLP | |
The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm. |
© 2014 OppenheimerFunds, Inc. All rights reserved.
32 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
| Applications or other forms |
| When you create a user ID and password for online account access |
| When you enroll in eDocs Direct, our electronic document delivery service |
| Your transactions with us, our affiliates or others |
| A software program on our website, often referred to as a cookie, which indicates which parts of our site youve visited |
| When you set up challenge questions to reset your password online |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to opt in or opt out of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or opt out of such disclosure.
33 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
PRIVACY POLICY NOTICE Continued
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website.
As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.
| All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
| Encryption is achieved through an electronic scrambling technology that uses a key to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. |
| You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., and each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security numberwhether or not you remain a shareholder of our funds. This notice was last updated November 2013. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
34 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
THIS PAGE INTENTIONALLY LEFT BLANK.
35 OPPENHEIMER PORTFOLIO SERIES EQUITY INVESTOR FUND
Item 2. Code of Ethics.
Not applicable to semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable to semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable to semiannual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
b) 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 Funds Governance Committee Provisions with Respect to Nominations of
Directors/Trustees to the Respective Boards
None
Item 11. Controls and Procedures.
Based on their evaluation of the registrants 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 7/31/2014, the registrants principal executive officer and principal financial officer found the registrants 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 registrants 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 registrants internal controls over financial reporting that occurred during the registrants second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits.
(a) | (1) Not applicable to semiannual reports. |
(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 Portfolio Series
By: | /s/ William F. Glavin, Jr. | |
William F. Glavin, Jr. | ||
Principal Executive Officer | ||
Date: | 9/10/2014 |
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/ William F. Glavin, Jr. | |
William F. Glavin, Jr. | ||
Principal Executive Officer | ||
Date: | 9/10/2014 |
By: | /s/ Brian W. Wixted | |
Brian W. Wixted | ||
Principal Financial Officer | ||
Date: | 9/10/2014 |
Exhibit 99.CERT
Section 302 Certifications
CERTIFICATIONS
I, William F. Glavin, Jr., certify that:
1. | I have reviewed this report on Form N-CSR of Oppenheimer Portfolio Series; |
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 registrants 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 registrants 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 registrants 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 registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Date: 9/10/2014
/s/ William F. Glavin, Jr. |
William F. Glavin, Jr. |
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 Portfolio Series; |
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 registrants 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 registrants 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 registrants 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 registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Date: 9/10/2014
/s/ Brian W. Wixted |
Brian W. Wixted |
Principal Financial Officer |
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
William F. Glavin, Jr., Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer Portfolio Series (the Registrant), each certify to the best of his knowledge that:
1. | The Registrants periodic report on Form N-CSR for the period ended 7/31/2014 (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. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission. |
Principal Executive Officer | Principal Financial Officer | |||||
Oppenheimer Portfolio Series | Oppenheimer Portfolio Series | |||||
/s/ William F. Glavin, Jr. |
/s/ Brian W. Wixted | |||||
William F. Glavin, Jr. | Brian W. Wixted | |||||
Date: 9/10/2014 | Date: 9/10/2014 |
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