N-SAR EXHIBIT 77E

Pending Litigation. Since 2009, a number of lawsuits have been filed in federal
courts against OppenheimerFunds, Inc., the Fund's investment advisor (the
"Manager"), OppenheimerFunds Distributor, Inc., the Fund's principal underwriter
and distributor (the "Distributor"), and certain funds in the Oppenheimer family
of funds (the "Defendant Funds") advised by the Manager and distributed by the
Distributor - including the Fund. The lawsuits naming the Fund as a defendant
also name as defendants certain officers, trustees and former trustees of the
Fund. The plaintiffs seek class action status on behalf of purchasers of shares
of the Fund during a particular time period. The lawsuits raise claims under
federal securities laws alleging that, among other things, the disclosure
documents of the Fund contained misrepresentations and omissions, that the
Fund's investment policies were not followed, and that the 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. Litigation against certain other Oppenheimer funds is
similar in nature. Additionally, in 2009, what are claimed to be derivative
lawsuits were filed in state court against the Manager, the Distributor and
another subsidiary of the Manager, on behalf of the New Mexico Education Plan
Trust. 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.

         The Distributor and another subsidiary of the Manager have been named
as defendants in a putative class action filed in federal court in 2010. The
plaintiff, a participant in the State of Texas' college savings plan, asserts on
behalf of all persons who invested in qualified 529 plans managed by these
subsidiaries of the Manager and which held investments in a certain mutual fund
managed by the Manager and distributed by the Distributor. Plaintiff alleges
causes of action for "improper investments," breach of fiduciary duty," and
"punitive damages" arising from that fund's investments in 2008 and 2009.

         Other lawsuits have been filed since 2008 in various state and federal
courts, against the Manager and certain of its affiliates. Those lawsuits were
filed by investors who made investments through an affiliate of the Manager, and
relate to the alleged investment fraud perpetrated by Bernard Madoff and his
firm ("Madoff"). Those suits 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 Distributor, any of
the Oppenheimer mutual funds or any of their independent Trustees or Directors
as defendants. None of the Oppenheimer funds invested in any funds or accounts
managed by Madoff.

         The Manager believes that the lawsuits described above are without
legal merit and is defending against them vigorously. The Fund's Board of
Trustees has also engaged counsel to represent the Fund and the present and
former Independent Trustees named in those suits. While it is premature to
render any opinion as to the outcome in these lawsuits, or whether any costs
that the Fund may bear in defending the suits might not be reimbursed by
insurance, the Manager believes that these suits should not have any material
effect on the operations of the Fund, that the outcome of all of the suits
together should not impair the ability of the Manager 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 funds.