N-SAR EXHIBIT 77E


Pending Litigation. Since 2009, a number of lawsuits have been filed in federal
courts against OppenheimerFunds, Inc. - the Manager's immediate parent ("OFI"),
the Sub-Distributor, and certain funds in the Oppenheimer family of funds (the
"Defendant Funds") advised by OFI and distributed by the Sub-Distributor (but
not against the Fund). The lawsuits naming the Defendant Funds also name certain
officers, trustees and former trustees of the respective Defendant Funds. The
plaintiffs seek class action status on behalf of purchasers of shares of the
respective Defendant Fund during a particular time period. The lawsuits against
the Defendant Funds raise claims under federal securities laws alleging that,
among other things, the disclosure documents of the respective Defendant Fund
contained misrepresentations and omissions, that such Defendant Fund's
investment policies were not followed, and that such Defendant Fund and the
other defendants violated federal securities laws and regulations. The
plaintiffs seek unspecified damages, equitable relief and an award of attorneys'
fees and litigation expenses. Additionally, in 2009, lawsuits were filed in
state court against OFI, the Sub-Distributor and another subsidiary of OFI (but
not against the Fund), on behalf of the New Mexico Education Plan Trust. All of
these lawsuits allege breach of contract, breach of fiduciary duty, negligence
and violation of state securities laws, and seek compensatory damages, equitable
relief and an award of attorneys' fees and litigation expenses.

         Other lawsuits have been filed since 2008 in various state and federal
courts, by investors who made investments through an affiliate of OFI, against
OFI and certain of its affiliates (other than the Manager). Those lawsuits
relate to the alleged investment fraud perpetrated by Bernard Madoff and his
firm ("Madoff") and allege 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 an award of attorneys' fees and
litigation expenses. None of the suits have named the Manager, the Distributor,
the Sub-Distributor, any of the Oppenheimer or Centennial mutual funds or any of
their independent Trustees or Directors. None of the Oppenheimer or Centennial
funds invested in any funds or accounts managed by Madoff.

         OFI believes that the lawsuits described above are without legal merit
and intends to defend them vigorously. The Defendant Funds' Boards of Trustees
have also engaged counsel to defend the suits vigorously on behalf of those
Funds, their boards and the individual Trustees named in those suits. OFI
believes that it is premature to render any opinion as to the likelihood of an
outcome unfavorable to it and that no estimate can be made with any degree of
certainty as to the amount or range of any potential loss. OFI also believes
that these suits should not impair the ability of the Sub-Distributor to perform
its duties to the Fund, and that the outcome of all the suits together should
not have any material effect on the operations of any of the Oppenheimer or
Centennial Funds.