-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AKzPtZ3b6ulRZXMbbDSHJ6yEuXFAIxkCgEKnstGwIPtelzZQKg2UZgomS/DefhLX 3MPKVT4H8uEJrGpvJq6LGw== 0000950123-11-019562.txt : 20110228 0000950123-11-019562.hdr.sgml : 20110228 20110228133433 ACCESSION NUMBER: 0000950123-11-019562 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101231 FILED AS OF DATE: 20110228 DATE AS OF CHANGE: 20110228 EFFECTIVENESS DATE: 20110228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER BALANCED FUND CENTRAL INDEX KEY: 0000729968 IRS NUMBER: 133395850 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03864 FILM NUMBER: 11644731 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER MULTIPLE STRATEGIES FUND DATE OF NAME CHANGE: 19970306 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER ASSET ALLOCATION FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER RETIREMENT FUND DATE OF NAME CHANGE: 19870503 0000729968 S000008978 OPPENHEIMER BALANCED FUND C000024395 A C000024396 B C000024397 C C000024398 N N-Q 1 g07680nvq.txt N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-3864 Oppenheimer Balanced Fund (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 Date of fiscal year end: September 30 Date of reporting period: 12/31/2010 ITEM 1. SCHEDULE OF INVESTMENTS. Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Shares Value --------------- --------------- COMMON STOCKS--48.2% CONSUMER DISCRETIONARY--1.8% MEDIA--1.8% Jupiter Telecommunications Co. Ltd. 9,557 $ 10,052,561 CONSUMER STAPLES--5.1% FOOD & STAPLES RETAILING--0.6% CVS Caremark Corp. 96,000 3,337,920 FOOD PRODUCTS--2.1% Nestle SA 195,350 11,438,944 TOBACCO--2.4% Altria Group, Inc. 181,800 4,475,916 Lorillard, Inc. 110,980 9,107,019 --------------- 13,582,935 ENERGY--4.8% ENERGY EQUIPMENT & SERVICES--1.5% Halliburton Co. 107,100 4,372,893 Schlumberger Ltd. 44,300 3,699,050 --------------- 8,071,943 OIL, GAS & CONSUMABLE FUELS--3.3% BP plc, ADR 89,200 3,939,964 Chevron Corp. 124,050 11,319,563 CONSOL Energy, Inc. 67,900 3,309,446 --------------- 18,568,973 FINANCIALS--5.7% DIVERSIFIED FINANCIAL SERVICES--2.3% JPMorgan Chase & Co. 306,360 12,995,791 INSURANCE--3.4% Assurant, Inc. 112,900 4,348,908 Everest Re Group Ltd. 76,680 6,503,998 MetLife, Inc. 178,600 7,936,984 --------------- 18,789,890 HEALTH CARE--10.1% BIOTECHNOLOGY--4.2% Amgen, Inc.(1) 115,940 6,365,106 Genzyme Corp. (General Division)(1) 86,170 6,135,304 Gilead Sciences, Inc.(1) 178,250 6,459,780 Vanda Pharmaceuticals, Inc.(1) 432,010 4,086,815 --------------- 23,047,005 HEALTH CARE PROVIDERS & SERVICES--1.6% Humana, Inc.(1) 94,900 5,194,826 WellPoint, Inc.(1) 65,560 3,727,742 --------------- 8,922,568 PHARMACEUTICALS--4.3% Merck & Co., Inc. 287,327 10,355,265 Mylan, Inc.(1) 644,028 13,608,312 --------------- 23,963,577
1 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Shares Value --------------- --------------- INDUSTRIALS--1.2% AEROSPACE & DEFENSE--0.1% AerCap Holdings NV(1) 19,600 $ 276,752 INDUSTRIAL CONGLOMERATES--0.3% Tyco International Ltd. 44,900 1,860,656 MACHINERY--0.8% Navistar International Corp.(1) 73,550 4,259,281 INFORMATION TECHNOLOGY--16.8% COMMUNICATIONS EQUIPMENT--2.8% Harris Corp. 72,110 3,266,583 QUALCOMM, Inc. 246,830 12,215,617 --------------- 15,482,200 INTERNET SOFTWARE & SERVICES--3.9% eBay, Inc.(1) 280,050 7,793,792 Google, Inc., Cl. A(1) 23,280 13,827,622 --------------- 21,621,414 IT SERVICES--0.7% MasterCard, Inc., Cl. A 17,370 3,892,791 SOFTWARE--9.4% Microsoft Corp. 159,270 4,446,818 Oracle Corp. 280,300 8,773,390 Take-Two Interactive Software, Inc.(1) 2,281,547 27,926,135 THQ, Inc.(1) 1,781,530 10,796,072 --------------- 51,942,415 MATERIALS--1.8% CHEMICALS--1.8% Celanese Corp., Series A 111,890 4,606,511 Potash Corp. of Saskatchewan, Inc. 35,200 5,450,016 --------------- 10,056,527 METALS & MINING--0.0% Kaiser Aluminum Corp. 114 5,710 UTILITIES--0.9% ELECTRIC UTILITIES--0.9% Edison International, Inc. 134,730 5,200,578 --------------- Total Common Stocks (Cost $235,777,400) 267,370,431
Principal Amount --------------- ASSET-BACKED SECURITIES--3.9% Ally Auto Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 0.89%, 9/17/12 $ 535,000 536,075 Ally Auto Receivables Trust 2010-4, Automobile Receivables Nts., Series 2010-4, Cl. A3, 0.91%, 11/17/14 150,000 149,116 Ally Master Owner Trust 2010-1, Asset-Backed Certificates, Series 2010-1, Cl. A, 2.01%, 1/15/13(2,3) 540,000 550,074 Ally Master Owner Trust 2010-3, Asset-Backed Certificates, Series 2010-3, Cl. A, 2.88%, 4/15/13(2) 450,000 461,121
2 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- AmeriCredit Automobile Receivables Trust 2009-1, Automobile Receivables-Backed Nts., Series 2009-1, Cl. A3, 3.04%, 10/15/13 $ 775,000 $ 789,242 AmeriCredit Automobile Receivables Trust 2010-4, Automobile Receivables-Backed Nts., Series 2010-4, Cl. D, 4.20%, 11/8/16 275,000 271,046 AmeriCredit Prime Automobile Receivables Trust 2010-1, Automobile Receivables Nts., Series 2010-1, Cl. A2, 0.97%, 1/15/13 149,248 149,314 AmeriCredit Prime Automobile Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 1.22%, 10/8/13 225,000 225,720 Bank of America Auto Trust 2010-2, Automobile Receivables, Series 2010-2, Cl. A2, 0.91%, 10/15/12 380,000 380,761 Capital One Multi-Asset Execution Trust, Credit Card Asset-Backed Certificates, Series 2008-A5, Cl. A5, 4.85%, 2/18/14 600,000 607,505 CarMax Auto Owner Trust 2010-3, Automobile Asset-Backed Nts., Series 2010-3, Cl. A3, 0.99%, 2/17/15 135,000 134,260 Centre Point Funding LLC, Asset-Backed Nts., Series 2010-1A, Cl. 1, 5.43%, 7/20/15(2) 157,321 162,738 Chrysler Financial Lease Trust, Asset-Backed Nts., Series 2010-A, Cl. A2, 1.78%, 6/15/11(2) 290,118 290,494 Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15 310,000 326,145 Citibank Omni Master Trust, Credit Card Receivables, Series 2009-A8, Cl. A8, 2.36%, 5/16/16(2,3) 750,000 759,579 CNH Equipment Trust, Asset-Backed Certificates: Series 2009-B, Cl. A3, 2.97%, 3/15/13 178,557 179,338 Series 2010-A, Cl. A2, 0.81%, 3/25/15 542,841 543,092 Countrywide Home Loans, Asset-Backed Certificates: Series 2002-4, Cl. A1, 1.001%, 2/25/33(3) 23,065 20,942 Series 2005-16, Cl. 2AF2, 5.382%, 5/1/36(3) 1,282,069 1,098,233 Series 2005-17, Cl. 1AF2, 5.363%, 5/1/36(3) 269,266 216,645 CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 0.381%, 6/25/47(3) 920,000 823,688 DaimlerChrysler Auto Trust 2007-A, Automobile Receivable Nts., Series 2007-A, Cl. A4, 5.28%, 3/8/13 566,942 580,846 DT Auto Owner Trust, Automobile Receivable Nts., Series 2009-1, Cl. A1, 2.98%, 10/15/15(2) 303,502 305,860 First Franklin Mortgage Loan Trust 2006-FF10, Mtg. Pass-Through Certificates, Series 2006-FF10, Cl. A3, 0.351%, 7/25/36(3) 214,699 211,159 First Franklin Mortgage Loan Trust 2006-FF9, Mtg. Pass-Through Certificates, Series 2006-FF9, Cl. 2A2, 0.371%, 7/7/36(3) 109,804 104,588 Ford Credit Auto Lease Trust, Automobile Receivable Nts.: Series 2010-A, Cl. A, 1.04%, 3/15/13(2) 290,378 290,639 Series 2010-B, Cl. A2, 0.75%, 10/15/12(4) 560,000 560,001 Ford Credit Auto Owner Trust, Automobile Receivable Nts.: Series 2009-E, Cl. A2, 0.80%, 3/15/12 537,081 537,358 Series 2010-A, Cl. A4, 2.15%, 6/15/15 785,000 799,852
3 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- Ford Credit Floorplan Master Owner Trust 2009-2, Asset-Backed Nts., Series 2009-2, Cl. A, 1.81%, 9/15/12(3) $ 550,000 $ 558,296 Ford Credit Floorplan Master Owner Trust 2010-1, Asset-Backed Nts., Series 2010-1, Cl. A, 1.91%, 12/15/14(2,3) 560,000 570,545 GE Capital Credit Card Master Note Trust, Asset-Backed Nts., Series 2009-2, Cl. A, 3.69%, 7/15/15 255,000 264,984 Harley-Davidson Motorcycle Trust 2006-3, Motorcycle Contract-Backed Nts., Series 2006-3, Cl. A4, 5.22%, 6/15/13 750,027 763,382 Harley-Davidson Motorcycle Trust 2009-2, Motorcycle Contract-Backed Nts., Series 2009-2, Cl. A2, 2%, 7/15/12 33,356 33,376 Hertz Vehicle Financing LLC, Automobile Receivable Nts., Series 2010-1A, Cl. A1, 2.60%, 2/15/14(2) 540,000 545,218 HSBC Home Equity Loan Trust 2005-3, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2005-3, Cl. A1, 0.521%, 1/20/35(3) 408,597 392,394 HSBC Home Equity Loan Trust 2006-4, Closed-End Home Equity Loan Asset-Backed Certificates, Series 2006-4, Cl. A2V, 0.371%, 3/20/36(3) 129,847 129,351 MBNA Credit Card Master Note Trust, Credit Card Receivables, Series 2003-C7, Cl. C7, 1.61%, 3/15/16(3) 575,000 568,646 Merrill Auto Trust Securitization 2007-1, Asset-Backed Nts., Series 2007-1, Cl. A4, 0.32%, 12/15/13(3) 354,049 353,121 Morgan Stanley Resecuritization Trust, Automobile Receivable Nts., Series 2010-F, Cl. A, 0.511%, 6/17/11(2,3) 1,020,000 1,017,728 Navistar Financial Dealer Note Master Owner Trust, Asset-Backed Nts., Series 2010-1, Cl. A, 1.911%, 1/26/15(2,3) 900,000 902,194 Nissan Auto Lease Trust 2010-B, Automobile Asset-Backed Nts., Series 2010-B, Cl. A3, 1%, 12/15/13 500,000 499,393 Nissan Master Owner Trust, Automobile Receivable Nts., Series 2010-AA, Cl. A, 1.41%, 1/15/13(2,3) 540,000 546,376 RASC Series 2006-KS7 Trust, Home Equity Mtg. Asset-Backed Pass-Through Certificates, Series 2006-KS7, Cl. A2, 0.361%, 9/25/36(3) 206,409 205,291 Santander Drive Auto Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 0.95%, 8/15/13 515,000 515,688 Santander Drive Auto Receivables Trust 2010-3, Automobile Receivables Nts., Series 2010-3, Cl. C, 3.06%, 11/15/17 545,000 542,325 Volkswagen Auto Lease Trust 2010-A, Automobile Receivable Nts., Series 2010-A, Cl. A3, 0.99%, 11/20/13 495,000 494,177 World Financial Network Credit Card Master Note Trust, Credit Card Receivables, Series 2009-A, Cl. A, 4.60%, 9/15/15 545,000 560,426 --------------- Total Asset-Backed Securities (Cost $21,826,251) 21,528,342 MORTGAGE-BACKED OBLIGATIONS--28.1% GOVERNMENT AGENCY--23.0% FHLMC/FNMA/FHLB/SPONSORED--22.8% Federal Home Loan Mortgage Corp.: 4.50%, 5/15/18 91,663 96,790 5%, 8/15/33(5) 264,013 278,750 5.50%, 9/1/39 1,857,470 1,980,892 6%, 7/15/24 108,555 119,190
4 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- FHLMC/FNMA/FHLB/SPONSORED CONTINUED 7%, 10/1/37 $ 1,917,182 $ 2,167,390 8%, 4/1/16 19,131 21,051 9%, 8/1/22-5/1/25 6,554 7,419 Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 151, Cl. F, 9%, 5/15/21 18,409 21,289 Series 2006-11, Cl. PS, 23.611%, 3/25/36(3) 464,740 656,238 Series 2034, Cl. Z, 6.50%, 2/15/28 200,490 224,579 Series 2053, Cl. Z, 6.50%, 4/15/28 199,267 225,330 Series 2426, Cl. BG, 6%, 3/15/17 962,281 1,044,788 Series 2427, Cl. ZM, 6.50%, 3/15/32 1,053,860 1,174,632 Series 2626, Cl. TB, 5%, 6/1/33 1,178,793 1,267,156 Series 2638, Cl. KG, 4%, 11/1/27 1,363,095 1,375,558 Series 2648, Cl. JE, 3%, 2/1/30 348,461 350,053 Series 2663, Cl. BA, 4%, 8/1/16 892,488 909,891 Series 2676, Cl. KB, 5%, 2/1/20 188,849 190,765 Series 2686, Cl. CD, 4.50%, 2/1/17 484,420 494,274 Series 2907, Cl. GC, 5%, 6/1/27 232,623 236,865 Series 2911, Cl. CU, 5%, 2/1/28 616,507 627,653 Series 2929, Cl. PC, 5%, 1/1/28 232,865 236,331 Series 2952, Cl. GJ, 4.50%, 12/1/28 129,287 130,525 Series 3019, Cl. MD, 4.75%, 1/1/31 656,260 674,542 Series 3025, Cl. SJ, 23.796%, 8/15/35(3) 93,159 129,874 Series 3242, Cl. QA, 5.50%, 3/1/30 363,585 374,573 Series 3291, Cl. NA, 5.50%, 10/1/27 254,949 257,911 Series 3306, Cl. PA, 5.50%, 10/1/27 198,385 200,485 Series R001, Cl. AE, 4.375%, 4/1/15 149,182 152,163 Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 183, Cl. IO, 13.81%, 4/1/27(6) 286,982 56,056 Series 192, Cl. IO, 11.36%, 2/1/28(6) 84,557 16,876 Series 2130, Cl. SC, 51.289%, 3/15/29(6) 230,473 41,180 Series 243, Cl. 6, 1.559%, 12/15/32(6) 348,919 67,972 Series 2527, Cl. SG, 36.639%, 2/15/32(6) 119,699 5,688 Series 2531, Cl. ST, 58.869%, 2/15/30(6) 182,697 11,522 Series 2639, Cl. SA, 20.531%, 7/15/22(6) 751,524 79,526 Series 2796, Cl. SD, 68.653%, 7/15/26(6) 352,177 62,403 Series 2802, Cl. AS, 96.401%, 4/15/33(6) 394,477 35,108 Series 2920, Cl. S, 66.44%, 1/15/35(6) 1,876,365 269,923 Series 3110, Cl. SL, 99.999%, 2/15/26(6) 312,368 40,065 Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 4.252%, 6/1/26(7) 76,696 64,675 Federal National Mortgage Assn.: 3.50%, 1/1/26-1/1/41(8) 8,820,000 8,770,568 4%, 1/1/41(8) 13,080,000 13,014,600 4.50%, 1/1/26-1/1/41(8) 18,583,000 19,149,804 5%, 1/1/41(8) 14,677,000 15,431,486 5.50%, 1/1/26-1/1/41(8) 14,803,000 15,843,438 6%, 9/25/19-3/1/37 5,106,495 5,599,679
5 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- FHLMC/FNMA/FHLB/SPONSORED CONTINUED 6%, 11/1/34(5) $ 2,278,068 $ 2,499,203 6%, 1/1/41(8) 4,285,000 4,657,932 6.50%, 1/1/41(8) 3,949,000 4,388,942 7%, 11/1/17 354,691 379,947 7.50%, 1/1/33 252,425 289,502 8.50%, 7/1/32 9,518 10,722 Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Trust 1996-35, Cl. Z, 7%, 7/25/26 101,843 114,895 Trust 1998-61, Cl. PL, 6%, 11/25/28 318,714 352,258 Trust 2001-44, Cl. QC, 6%, 9/25/16 740,113 800,172 Trust 2003-130, Cl. CS, 13.579%, 12/25/33(3) 603,369 693,995 Trust 2004-101, Cl. BG, 5%, 1/25/20 2,400,000 2,566,820 Trust 2004-81, Cl. KC, 4.50%, 4/1/17 767,039 779,653 Trust 2004-9, Cl. AB, 4%, 7/1/17 158,318 162,586 Trust 2005-104, Cl. MC, 5.50%, 12/25/25 1,550,000 1,692,761 Trust 2005-12, Cl. JC, 5%, 6/1/28 579,751 592,595 Trust 2005-22, Cl. EC, 5%, 10/1/28 252,177 258,077 Trust 2005-30, Cl. CU, 5%, 4/1/29 283,758 291,610 Trust 2005-69, Cl. LE, 5.50%, 11/1/33 973,269 1,042,093 Trust 2005-71, Cl. DB, 4.50%, 8/25/25 160,000 170,409 Trust 2006-46, Cl. SW, 23.244%, 6/25/36(3) 370,348 513,015 Trust 2006-57, Cl. PA, 5.50%, 8/25/27 269,886 272,013 Trust 2009-36, Cl. FA, 1.201%, 6/25/37(3) 1,041,549 1,061,914 Trust 2009-37, Cl. HA, 4%, 4/1/19 1,479,183 1,561,851 Trust 2009-70, Cl. PA, 5%, 8/1/35 1,536,722 1,612,385 Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-63, Cl. SD, 43.081%, 12/18/31(6) 10,472 1,934 Trust 2001-65, Cl. S, 47.659%, 11/25/31(6) 802,185 150,052 Trust 2001-68, Cl. SC, 47.068%, 11/25/31(6) 7,104 1,295 Trust 2001-81, Cl. S, 37.703%, 1/25/32(6) 182,252 36,132 Trust 2002-38, Cl. SO, 58.49%, 4/25/32(6) 337,823 60,472 Trust 2002-47, Cl. NS, 35.934%, 4/25/32(6) 371,188 69,709 Trust 2002-51, Cl. S, 36.234%, 8/25/32(6) 340,833 63,956 Trust 2002-52, Cl. SD, 43.161%, 9/25/32(6) 416,111 82,596 Trust 2002-7, Cl. SK, 45.809%, 1/25/32(6) 13,681 2,097 Trust 2002-77, Cl. BS, 40.651%, 12/18/32(6) 26,009 4,232 Trust 2002-77, Cl. IS, 51.925%, 12/18/32(6) 575,550 112,557 Trust 2002-77, Cl. SH, 47.574%, 12/18/32(6) 257,477 48,223 Trust 2002-9, Cl. MS, 36.417%, 3/25/32(6) 255,186 46,159 Trust 2002-90, Cl. SN, 47.494%, 8/25/32(6) 21,713 3,241 Trust 2002-90, Cl. SY, 51.563%, 9/25/32(6) 10,718 1,649 Trust 2003-33, Cl. SP, 49.581%, 5/25/33(6) 872,384 151,450 Trust 2003-4, Cl. S, 44.321%, 2/25/33(6) 454,366 85,292 Trust 2003-46, Cl. IH, 5.83%, 6/1/33(6) 2,885,005 357,474 Trust 2003-89, Cl. XS, 54.107%, 11/25/32(6) 349,439 26,332 Trust 2004-54, Cl. DS, 51.535%, 11/25/30(6) 368,619 46,922
6 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- FHLMC/FNMA/FHLB/SPONSORED CONTINUED Trust 2004-56, Cl. SE, 17.592%, 10/25/33(6) $ 2,982,875 $ 492,435 Trust 2005-14, Cl. SE, 41.477%, 3/25/35(6) 472,693 64,501 Trust 2005-40, Cl. SA, 65.87%, 5/25/35(6) 1,067,428 178,484 Trust 2005-71, Cl. SA, 68.442%, 8/25/25(6) 1,150,420 157,127 Trust 2005-93, Cl. SI, 17.83%, 10/25/35(6) 306,901 37,930 Trust 2006-60, Cl. DI, 41.383%, 4/25/35(6) 310,487 45,397 Trust 2007-88, Cl. XI, 22.457%, 6/25/37(6) 5,658,594 789,195 Trust 2008-67, Cl. KS, 34.057%, 8/25/34(6) 1,211,807 90,788 Trust 214, Cl. 2, 36.323%, 3/1/23(6) 484,622 96,618 Trust 222, Cl. 2, 20.205%, 6/1/23(6) 624,059 116,929 Trust 247, Cl. 2, 35.138%, 10/1/23(6) 139,505 29,735 Trust 252, Cl. 2, 32.363%, 11/1/23(6) 504,923 101,873 Trust 319, Cl. 2, 6.156%, 2/1/32(6) 182,924 37,473 Trust 320, Cl. 2, 9.699%, 4/1/32(6) 813,458 223,817 Trust 331, Cl. 9, 14.989%, 2/1/33(6) 62,939 11,668 Trust 334, Cl. 17, 22.734%, 2/1/33(6) 308,798 58,729 Trust 339, Cl. 12, 7.422%, 7/1/33(6) 650,887 114,911 Trust 339, Cl. 7, 10.26%, 7/1/33(6) 1,249,443 212,775 Trust 343, Cl. 13, 3.941%, 9/1/33(6) 595,599 103,325 Trust 343, Cl. 18, 5.36%, 5/1/34(6) 97,833 16,975 Trust 345, Cl. 9, 3.365%, 1/1/34(6) 927,698 158,593 Trust 351, Cl. 10, 6.935%, 4/1/34(6) 163,664 28,099 Trust 351, Cl. 8, 8.07%, 4/1/34(6) 333,605 57,356 Trust 356, Cl. 10, 11.176%, 6/1/35(6) 279,388 47,707 Trust 356, Cl. 12, 11.687%, 2/1/35(6) 139,722 23,953 Trust 362, Cl. 13, 0.119%, 8/1/35(6) 1,554,911 262,082 Trust 364, Cl. 16, 4.034%, 9/1/35(6) 661,448 116,998 Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 1993-184, Cl. M, 4.778%, 9/25/23(7) 239,674 213,946 --------------- 126,194,069 GNMA/GUARANTEED--0.2% Government National Mortgage Assn.: 3.375%, 4/8/26(3) 14,230 14,676 7%, 1/29/24-4/29/26 111,234 127,314 7.50%, 5/29/27 482,983 557,892 8%, 5/30/17 17,064 19,405 8.50%, 8/1/17-12/15/17 9,267 10,427 Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 2001-21, Cl. SB, 88.697%, 1/16/27(6) 500,294 77,544 Series 2002-15, Cl. SM, 77.353%, 2/16/32(6) 397,030 61,471 Series 2002-76, Cl. SY, 81.106%, 12/16/26(6) 1,044,688 175,143 Series 2004-11, Cl. SM, 69.511%, 1/17/30(6) 350,828 66,549 --------------- 1,110,421
7 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- NON-AGENCY--5.1% COMMERCIAL--3.4% Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates: Series 2006-1, Cl. AM, 5.421%, 9/1/45 $ 925,000 $ 940,738 Series 2007-1, Cl. A4, 5.451%, 1/1/17 790,000 825,373 Series 2007-1, Cl. AMFX, 5.482%, 1/1/49 980,000 959,648 Bear Stearns ARM Trust 2007-4, Mtg. Pass-Through Certificates, Series 2007-4, Cl. 22A1, 5.87%, 6/1/47(3) 642,959 532,632 Citigroup, Inc./Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. A4, 5.322%, 12/1/49 655,000 679,943 Deutsche Alt-B Securities, Inc., Mtg. Pass-Through Certificates, Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36 560,977 330,884 Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Series 2010-C1, Cl. A1, 3.156%, 7/1/46(2) 653,834 656,019 Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg. Backed Security, Series 2010-C1, Cl. XPA, 4.82%, 9/1/20(4,6) 5,240,000 467,867 First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35 526,857 529,037 First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37 562,044 406,818 GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations, Series 2004-C3, Cl. A2, 4.433%, 7/10/39 135,479 136,257 GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2006-GG8, Cl. A4, 5.56%, 11/1/39 575,000 610,746 IndyMac INDX Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 5.214%, 11/1/35(3) 848,553 655,723 JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2010-C2, Cl. A2, 3.616%, 11/1/43(2) 780,000 756,324 Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/49(4) 325,000 328,315 Series 2007-LDPX, Cl. A2S, 5.305%, 1/15/49 230,000 235,546 Series 2007-LDP10, Cl. A3S, 5.317%, 4/1/13 850,000 867,071 Series 2007-LDPX, Cl. A3, 5.42%, 1/15/49 230,000 239,578 Series 2007-LD11, Cl. A2, 5.802%, 6/15/49(3) 715,000 740,812 JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Commercial Mtg. Pass-Through Certificates, Series 2006-LDP7, 5.872%, 4/1/45(3) 1,180,000 1,225,709 JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through Certificates, Series 2007-S3, Cl. 1A90, 7%, 7/1/37 841,737 657,336 LB-UBS Commercial Mortgage Trust 2006-C3, Commercial Mtg. Pass-Through Certificates, Series 2006-C3, Cl. AM, 5.712%, 3/11/39 165,000 167,314 Mastr Adjustable Rate Mortgages Trust 2004-13, Mtg. Pass-Through Certificates, Series 2004-13, Cl. 2A2, 2.83%, 4/1/34(3) 492,497 498,062
8 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- COMMERCIAL CONTINUED Mastr Alternative Loan Trust 2004-6, Mtg. Pass-Through Certificates, Series 2004-6, Cl. 10A1, 6%, 7/25/34 $ 910,439 $ 908,754 Merrill Lynch Mortgage Investors Trust 2005-A5, Mtg. Pass-Through Certificates, Series 2005-A5, Cl. A9, 2.752%, 6/1/35(3) 701,995 622,891 ML-CFC Commercial Mortgage Trust 2006-3, Commercial Mtg. Pass-Through Certificates, Series 2006-3, Cl. AM, 5.456%, 7/12/46 1,095,000 1,107,101 NCUA Guaranteed Notes, Asset-Backed Nts., Series 2010-R3, Cl. 2A, 0.825%, 12/8/20(3) 1,100,000 1,098,625 Wachovia Bank Commercial Mortgage Trust 2007-C34, Commercial Mtg. Pass-Through Certificates, Series 2007-C34, Cl. A3, 5.678%, 7/1/17 585,000 611,392 WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4, 2.671%, 12/1/35(3) 453,125 390,486 Wells Fargo Commercial Mortgage Trust 2010-C1, Commercial Mtg. Pass-Through Certificates, Series 2010-C1, Cl. A1, 3.349%, 10/1/57(2) 427,670 429,018 Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg. Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.134%, 11/1/37(3) 596,630 484,362 --------------- 19,100,381 MULTIFAMILY--0.5% Citigroup Mortgage Loan Trust, Inc. 2006-AR3, Mtg. Pass-Through Certificates, Series 2006-AR3, Cl. 1A2A, 5.77%, 6/1/36(3) 562,832 524,871 GE Capital Commercial Mortgage Corp., Commercial Mtg. Pass-Through Certificates, Series 2001-3, Cl. A2, 6.07%, 6/1/38 730,000 749,720 Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 3.203%, 3/25/36(3) 1,366,708 1,217,646 --------------- 2,492,237 OTHER--0.1% Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A4, 5.444%, 3/1/39 710,000 749,102 RESIDENTIAL--1.1% Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-E, Cl. 2A6, 2.87%, 6/1/34(3) 421,431 401,024 CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36 604,927 553,635 Countrywide Alternative Loan Trust 2005-29CB, Mtg. Pass-Through Certificates, Series 2005-29CB, Cl. A4, 5%, 7/1/35 1,896,868 1,517,173 GSR Mortgage Loan Trust 2006-5F, Mtg. Pass-Through Certificates, Series 2006-5F, Cl. 2A1, 6%, 6/1/36 609,948 587,709 JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36 603,981 544,617 RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33 271,818 273,855
9 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- RESIDENTIAL CONTINUED RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36 $ 54,317 $ 34,456 Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-Through Certificates, Series 2004-5, Cl. 3A1, 2.602%, 5/1/34(3) 790,035 747,331 WaMu Mortgage Pass-Through Certificates 2007-HY7 Trust, Mtg. Pass-Through Certificates, Series 2007-HY7, Cl. 2A1, 5.629%, 7/1/37(3) 708,170 498,766 WaMu Mortgage Pass-Through Certificates Series 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1, 5.743%, 5/1/37(3) 544,510 498,036 Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1, 6.25%, 11/1/37 464,914 406,595 Wells Fargo Mortgage-Backed Securities 2004-R Trust, Mtg. Pass-Through Certificates, Series 2004-R, Cl. 2A1, 2.872%, 9/1/34(3) 214,338 208,085 --------------- 6,271,282 --------------- Total Mortgage-Backed Obligations (Cost $152,896,570) 155,917,492 U.S. GOVERNMENT OBLIGATIONS--0.5% Federal Home Loan Mortgage Corp. Nts.: 1.75%, 9/10/15 675,000 664,217 5%, 2/16/17 240,000 270,578 5.25%, 4/18/16 425,000 486,719 Federal National Mortgage Assn. Nts.: 1.625%, 10/26/15 635,000 619,632 4.875%, 12/15/16 200,000 224,503 5%, 3/15/16 270,000 305,381 --------------- Total U.S. Government Obligations (Cost $2,565,544) 2,571,030 NON-CONVERTIBLE CORPORATE BONDS AND NOTES--13.3% CONSUMER DISCRETIONARY--1.7% AUTO COMPONENTS--0.1% BorgWarner, Inc., 4.625% Sr. Unsec. Unsub. Nts., 9/15/20 483,000 477,770 DIVERSIFIED CONSUMER SERVICES--0.1% Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15 530,000 545,900 HOTELS, RESTAURANTS & LEISURE--0.3% Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/15(2) 780,000 816,662 Marriott International, Inc., 6.20% Sr. Unsec. Unsub. Nts., 6/15/16 580,000 634,876 --------------- 1,451,538 HOUSEHOLD DURABLES--0.2% Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14 398,000 431,673 Jarden Corp., 6.125% Sr. Unsec. Nts., 11/15/22 554,000 531,148 Whirlpool Corp., 8% Sr. Unsec. Nts., 5/1/12 410,000 441,964 --------------- 1,404,785 LEISURE EQUIPMENT & PRODUCTS--0.2% Mattel, Inc.: 5.625% Sr. Unsec. Nts., 3/15/13 490,000 527,073
10 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- LEISURE EQUIPMENT & PRODUCTS CONTINUED 6.125% Sr. Unsec. Nts., 6/15/11 $ 505,000 $ 515,747 --------------- 1,042,820 MEDIA--0.7% Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22 317,000 439,461 DirecTV Holdings LLC/DirecTV Financing Co., Inc., 7.625% Sr. Unsec. Unsub. Nts., 5/15/16 935,000 1,037,831 Interpublic Group of Co., Inc. (The), 10% Sr. Unsec. Nts., 7/15/17 450,000 528,750 Lamar Media Corp., 9.75% Sr. Unsec. Nts., 4/1/14 487,000 562,485 Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33 279,000 353,094 Viacom, Inc., 7.875% Sr. Unsec. Debs., 7/30/30 296,000 350,418 Virgin Media Secured Finance plc, 6.50% Sr. Sec. Nts., 1/15/18 535,000 565,763 --------------- 3,837,802 SPECIALTY RETAIL--0.1% Staples, Inc., 7.75% Sr. Unsec. Unsub. Nts., 4/1/11 770,000 782,442 CONSUMER STAPLES--0.7% BEVERAGES--0.2% Anheuser-Busch InBev Worldwide, Inc., 7.75% Sr. Unsec. Unsub. Nts., 1/15/19(2) 770,000 959,639 Constellation Brands, Inc., 8.375% Sr. Nts., 12/15/14 495,000 543,263 --------------- 1,502,902 FOOD & STAPLES RETAILING--0.1% Delhaize Group, 5.70% Sr. Unsec. Nts., 10/1/40(2) 339,000 323,813 FOOD PRODUCTS--0.2% Bunge Ltd. Finance Corp.: 5.35% Sr. Unsec. Unsub. Nts., 4/15/14 63,000 66,270 8.50% Sr. Unsec. Nts., 6/15/19 365,000 428,636 TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18 550,000 597,438 --------------- 1,092,344 TOBACCO--0.2% Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39 588,000 852,335 Lorillard Tobacco Co., 8.125% Sr. Unsec. Nts., 5/1/40 320,000 329,046 --------------- 1,181,381 ENERGY--1.4% ENERGY EQUIPMENT & SERVICES--0.2% Rowan Cos., Inc., 5% Sr. Unsec. Nts., 9/1/17 475,000 479,808 Weatherford International Ltd., 6.50% Sr. Unsec. Bonds, 8/1/36 340,000 348,345 --------------- 828,153 OIL, GAS & CONSUMABLE FUELS--1.2% Cloud Peak Energy Resources LLC, 8.25% Sr. Unsec. Unsub. Nts., 12/15/17 495,000 533,981 Energy Transfer Partners LP: 5.65% Sr. Unsec. Unsub. Nts., 8/1/12 210,000 222,580 7.50% Sr. Unsec. Unsub. Bonds, 7/1/38 375,000 437,557 Enterprise Products Operating LLP, 7.50% Sr. Unsec. Unsub. Nts., 2/1/11 430,000 431,907 Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13 980,000 1,061,411
11 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- OIL, GAS & CONSUMABLE FUELS CONTINUED Kinder Morgan Energy Partners LP, 6.50% Sr. Unsec. $ 428,000 $ 443,598 Unsub. Nts., 9/1/39 Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37 279,000 271,162 ONEOK Partners LP, 7.10% Sr. Unsec. Nts., 3/15/11 226,000 228,726 Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19 345,000 377,344 Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14(2) 305,000 330,012 Rockies Express Pipeline LLC: 3.90% Sr. Unsec. Unsub. Nts., 4/15/15(2) 605,000 598,984 5.625% Sr. Unsec. Unsub. Nts., 4/15/20(2) 365,000 353,445 Southwestern Energy Co., 7.50% Sr. Nts., 2/1/18 510,000 577,575 Woodside Finance Ltd., 4.50% Nts., 11/10/14(2) 770,000 810,042 --------------- 6,678,324 FINANCIALS--5.1% CAPITAL MARKETS--0.8% Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts., 8/15/19(2) 780,000 803,100 Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34 570,000 544,726 Macquarie Group Ltd., 4.875% Sr. Unsec. Nts., 8/10/17(2) 865,000 848,103 Morgan Stanley: 5.50% Sr. Unsec. Unsub. Nts., 7/24/20(2) 218,000 220,646 5.55% Sr. Unsec. Unsub. Nts., Series F, 4/27/17 1,275,000 1,330,058 TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts., 12/1/12 525,000 537,416 UBS AG Stamford, CT, 2.25% Sr. Unsec. Nts., 8/12/13 533,000 537,887 --------------- 4,821,936 COMMERCIAL BANKS--1.3% ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/12(2) 530,000 538,434 Barclays Bank plc, 6.278% Perpetual Bonds(9) 1,160,000 986,000 BNP Paribas SA, 5.186% Sub. Perpetual Nts.(2,9) 560,000 513,800 Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37 742,000 710,465 HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35(3) 1,370,000 1,274,100 Huntington BancShares, Inc., 7% Sub. Nts., 12/15/20 875,000 922,936 Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/20(2) 535,000 493,074 Sanwa Bank Ltd. (The), 7.40% Sub. Nts., 6/15/11 500,000 509,534 Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K(9) 1,096,000 1,161,760 --------------- 7,110,103 CONSUMER FINANCE--0.2% American Express Bank FSB, 5.55% Sr. Unsec. Nts., 10/17/12 470,000 502,935 Capital One Capital IV, 6.745% Sub. Bonds, 2/17/37(3) 845,000 842,888 --------------- 1,345,823 DIVERSIFIED FINANCIAL SERVICES--0.9% Bank of America Corp., 5.875% Sr. Unsec. Unsub. Nts., 1/5/21 210,000 217,678 Citigroup, Inc.: 5.375% Sr. Unsec. Nts., 8/9/20 1,052,000 1,095,082 6.01% Sr. Unsec. Nts., 1/15/15 529,000 580,849
12 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- DIVERSIFIED FINANCIAL SERVICES CONTINUED ING Groep NV, 5.775% Jr. Unsec. Sub. Perpetual Bonds(9) $ 585,000 $ 506,025 JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1(9) 1,515,000 1,615,855 Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38 788,000 820,176 --------------- 4,835,665 INSURANCE--1.5% American International Group, Inc.: 5.85% Sr. Unsec. Nts., Series G, 1/16/18 505,000 522,222 6.40% Sr. Unsec. Unsub. Nts., 12/15/20 530,000 557,104 CNS Financial Corp., 5.875% Sr. Unsec. Unsub. Bonds., 8/15/20 540,000 538,640 Genworth Financial, Inc., 8.625% Sr. Unsec. Unsub. Nts., 12/15/16 479,000 539,321 Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/12(2) 490,000 519,937 Hartford Financial Services Group, Inc. (The), 5.25% Sr. Unsec. Nts., 10/15/11 545,000 561,179 Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec. Unsub. Nts., 1/14/13(2) 720,000 646,157 Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67 1,050,000 979,125 Manulife Financial Corp., 4.90% Sr. Unsec. Unsub. Nts., 9/17/20 310,000 295,579 PartnerRe Finance B LLC, 5.50% Sr. Unsec. Nts., 6/1/20 500,000 504,429 Prudential Financial, Inc., 3.625% Sr. Unsec. Unsub. Nts., 9/17/12 524,000 544,040 RenRe North America Holdings, Inc., 5.75% Sr. Unsec. Nts., 3/15/20 547,000 550,128 Swiss Re Capital I LP, 6.854% Perpetual Bonds(2,9) 1,010,000 969,876 ZFS Finance USA Trust IV, 5.875% Sub. Bonds, 5/9/32(2) 604,000 591,697 --------------- 8,319,434 REAL ESTATE INVESTMENT TRUSTS--0.4% AvalonBay Communities, Inc., 6.625% Sr. Unsec. Unsub. Nts., 9/15/11 225,000 233,548 Brandywine Operating Partnership LP, 5.75% Sr. Unsec. Unsub. Nts., 4/1/12 277,000 286,918 Liberty Property LP, 7.25% Sr. Unsec. Unsub. Nts., 3/15/11 540,000 546,207 Mack-Cali Realty LP, 5.25% Sr. Unsec. Unsub. Nts., 1/15/12 208,000 213,463 Simon Property Group LP, 5% Sr. Unsec. Unsub. Nts., 3/1/12 514,000 528,306 WCI Finance LLC/WEA Finance LLC, 5.40% Sr. Unsec. Unsub. Nts., 10/1/12(2) 241,000 255,596 --------------- 2,064,038 HEALTH CARE--0.6% BIOTECHNOLOGY--0.2% Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40 540,000 525,239 Genzyme Corp., 5% Sr. Unsec. Nts., 6/15/20 513,000 539,595 --------------- 1,064,834 HEALTH CARE PROVIDERS & SERVICES--0.3% Laboratory Corp. of America Holdings, 4.625% Nts., 11/15/20 400,000 397,169 Quest Diagnostic, Inc., 5.75% Sr. Unsec. Nts., 1/30/40 580,000 554,391 WellPoint, Inc., 5% Sr. Unsec. Unsub. Nts., 1/15/11 485,000 485,515 --------------- 1,437,075
13 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- PHARMACEUTICALS--0.1% Hospira, Inc., 5.60% Sr. Unsec. Unsub. Nts., 9/15/40 $ 175,000 $ 172,615 Mylan, Inc., 6% Sr. Nts., 11/15/18(2) 565,000 556,525 --------------- 729,140 INDUSTRIALS--0.9% AEROSPACE & DEFENSE--0.2% Alliant Techsystems, Inc., 6.75% Sr. Sub. Nts., 4/1/16 526,000 547,698 BE Aerospace, Inc., 8.50% Sr. Unsec. Nts., 7/1/18 475,000 521,313 --------------- 1,069,011 COMMERCIAL SERVICES & SUPPLIES--0.3% Browning-Ferris Industries, Inc., 7.40% Sr. Unsec. Debs., 9/15/35 180,000 213,636 Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17 525,000 559,781 R.R. Donnelley & Sons Co., 5.625% Sr. Unsec. Nts., 1/15/12 515,000 527,516 Republic Services, Inc., 6.75% Sr. Unsec. Unsub. Nts., 8/15/11 445,000 459,447 --------------- 1,760,380 INDUSTRIAL CONGLOMERATES--0.2% General Electric Capital Corp., 4.25% Sr. Unsec. Nts., Series A, 6/15/12 495,000 514,962 Tyco International Ltd./Tyco International Finance SA, 6.875% Sr. Unsec. Unsub. Nts., 1/15/21 436,000 525,561 --------------- 1,040,523 MACHINERY--0.1% SPX Corp., 7.625% Sr. Unsec. Nts., 12/15/14 585,000 639,113 PROFESSIONAL SERVICES--0.1% FTI Consulting, Inc., 6.75% Sr. Nts., 10/1/20(2) 550,000 548,625 INFORMATION TECHNOLOGY--0.6% COMMUNICATIONS EQUIPMENT--0.3% Harris Corp., 6.15% Sr. Unsec. Nts., 12/15/40 985,000 1,011,591 Motorola, Inc., 8% Sr. Unsec. Nts., 11/1/11 490,000 516,151 --------------- 1,527,742 ELECTRONIC EQUIPMENT & INSTRUMENTS--0.1% Arrow Electronics, Inc., 3.375% Sr. Unsec. Unsub. Nts., 11/1/15 990,000 960,760 IT SERVICES--0.1% SAIC, Inc., 5.95% Sr. Unsec. Unsub. Nts., 12/1/40(2) 329,000 334,781 SOFTWARE--0.1% Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20 700,000 643,427 MATERIALS--1.1% CHEMICALS--0.5% Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41 828,000 880,036 Airgas, Inc., 3.25% Sr. Nts., 10/1/15 456,000 450,950 Ashland, Inc., 9.125% Sr. Unsec. Nts., 6/1/17 485,000 561,388 CF Industries, Inc., 6.875% Sr. Unsec. Unsub. Nts., 5/1/18 531,000 569,498 Potash Corp., 5.625% Sr. Unsec. Unsub. Nts., 12/1/40 323,000 327,160 --------------- 2,789,032 CONTAINERS & PACKAGING--0.3% Ball Corp., 7.125% Sr. Unsec. Nts., 9/1/16 555,000 600,788 Sealed Air Corp., 7.875% Sr. Nts., 6/15/17 643,000 708,007 Sonoco Products Co., 5.75% Sr. Unsec. Unsub. Nts., 11/1/40 270,000 261,199 --------------- 1,569,994
14 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
Principal Amount Value --------------- --------------- METALS & MINING--0.3% Freeport-McMoRan Copper & Gold, Inc., 8.375% Sr. Nts., 4/1/17 $ 759,000 $ 840,674 Vale Inco Ltd., 5.70% Sr. Unsec. Unsub. Nts., 10/15/15 31,000 33,429 Xstrata Canada Corp.: 5.375% Sr. Unsec. Unsub. Nts., 6/1/15 170,000 180,365 6% Sr. Unsec. Unsub. Nts., 10/15/15 296,000 324,106 Xstrata Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Bonds, 11/15/16(2) 78,000 85,668 --------------- 1,464,242 TELECOMMUNICATION SERVICES--0.7% DIVERSIFIED TELECOMMUNICATION SERVICES--0.6% AT&T, Inc., 6.30% Sr. Unsec. Bonds, 1/15/38 485,000 513,351 British Telecommunications plc, 9.875% Bonds, 12/15/30 325,000 434,263 Embarq Corp., 6.738% Sr. Unsec. Nts., 6/1/13 505,000 548,845 Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17 527,000 581,018 Qwest Corp., 7.625% Sr. Unsec. Unsub. Nts., 6/15/15 480,000 543,600 Telus Corp., 8% Nts., 6/1/11 224,000 230,132 Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38 318,000 352,955 --------------- 3,204,164 WIRELESS TELECOMMUNICATION SERVICES--0.1% American Tower Corp., 7% Sr. Unsec. Nts., 10/15/17 370,000 417,754 UTILITIES--0.5% ELECTRIC UTILITIES--0.4% Allegheny Energy Supply Co. LLC, 8.25% Bonds, 4/15/12(2) 465,000 499,045 FirstEnergy Solutions Corp., 6.80% Sr. Unsec. Nts., 8/15/39 317,000 308,185 Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13 350,000 353,787 Northeast Utilities, 7.25% Sr. Unsec. Nts., 4/1/12 525,000 561,609 Texas-New Mexico Power Co., 9.50% Sec. Nts., 4/1/19(2) 540,000 688,579 --------------- 2,411,205 GAS UTILITIES--0.1% AmeriGas Partners LP, 7.25% Sr. Unsec. Nts., 5/20/15 515,000 531,738 --------------- Total Non-Convertible Corporate Bonds and Notes (Cost $71,258,419) 73,790,513
Shares --------------- INVESTMENT COMPANIES--22.2% JPMorgan U.S. Treasury Plus Money Market Fund, Agency Shares, 0.00%(10,11) 897,212 897,212 Oppenheimer Institutional Money Market Fund, Cl. E, 0.21%(10,12) 121,955,448 121,955,448 --------------- Total Investment Companies (Cost $122,852,660) 122,852,660 TOTAL INVESTMENTS, AT VALUE (COST $607,176,844) 116.2% 644,030,468 Liabilities in Excess of Other Assets (16.2) (89,680,732) --------------- --------------- Net Assets 100.0% $ 554,349,736 =============== ===============
15 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) Footnotes to Statement of Investments (1.) Non-income producing security. (2.) Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $21,550,167 or 3.89% of the Fund's net assets as of December 31, 2010. (3.) Represents the current interest rate for a variable or increasing rate security. (4.) Restricted security. The aggregate value of restricted securities as of December 31, 2010 was $1,356,183, which represents 0.24% of the Fund's net assets. See accompanying Notes. Information concerning restricted securities is as follows:
UNREALIZED ACQUISITION APPRECIATION SECURITY DATE COST VALUE (DEPRECIATION) - ------------------------------------------------- ------------ ---------- ---------- -------------- Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security, Series 2010-C1, Cl. XPA, 4.82%, 9/1/20 10/27/10 $ 478,161 $ 467,867 $(10,294) Ford Credit Auto Lease Trust, Automobile Receivable Nts., Series 2010-B, Cl. A2, 0.75%, 10/15/12 10/21/10 559,989 560,001 12 JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/49 7/14/10 320,938 328,315 7,377 ---------- ---------- -------- $1,359,088 $1,356,183 $ (2,905) ========== ========== ========
(5.) All or a portion of the security position is held in collateralized accounts to cover initial margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $347,222. See accompanying Notes. (6.) Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $6,562,140 or 1.18% of the Fund's net assets as of December 31, 2010. (7.) Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $278,621 or 0.05% of the Fund's net assets as of December 31, 2010. (8.) When-issued security or delayed delivery to be delivered and settled after December 31, 2010. See accompanying Notes. (9.) This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. (10.) Rate shown is the 7-day yield as of December 31, 2010. (11.) Interest rate is less than 0.0005%. (12.) Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended December 31, 2010, 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 SEPTEMBER 30, 2010 ADDITIONS REDUCTIONS DECEMBER 31, 2010 ------------------ ---------- ---------- ----------------- Oppenheimer Institutional Money Market Fund, Cl. E 61,571,966 98,206,674 37,823,192 121,955,448
VALUE INCOME ------------ ------- Oppenheimer Institutional Money Market Fund, Cl. E $121,955,448 $52,399
VALUATION INPUTS Various data inputs are used in determining the value of each of the Fund's 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 Manager's own judgments about assumptions that market participants would use in pricing the asset or liability). The table below categorizes amounts as of December 31, 2010 based on valuation input level: 16 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited)
LEVEL 3-- LEVEL 1-- LEVEL 2-- SIGNIFICANT UNADJUSTED OTHER SIGNIFICANT UNOBSERVABLE QUOTED PRICES OBSERVABLE INPUTS INPUTS VALUE ------------- ----------------- ------------ ------------ ASSETS TABLE INVESTMENTS, AT VALUE: Common Stocks Consumer Discretionary $ 10,052,561 $ -- $-- $ 10,052,561 Consumer Staples 28,359,799 -- -- 28,359,799 Energy 26,640,916 -- -- 26,640,916 Financials 31,785,681 -- -- 31,785,681 Health Care 55,933,150 -- -- 55,933,150 Industrials 6,396,689 -- -- 6,396,689 Information Technology 92,938,820 -- -- 92,938,820 Materials 10,062,237 -- -- 10,062,237 Utilities 5,200,578 -- -- 5,200,578 Asset-Backed Securities -- 21,528,342 -- 21,528,342 Mortgage-Backed Obligations -- 155,917,492 -- 155,917,492 U.S. Government Obligations -- 2,571,030 -- 2,571,030 Non-Convertible Corporate Bonds and Notes -- 73,790,513 -- 73,790,513 Investment Companies 122,852,660 -- -- 122,852,660 ------------ ------------ --- ------------ Total Investments, at Value 390,223,091 253,807,377 -- 644,030,468 OTHER FINANCIAL INSTRUMENTS: Futures margins 122,574 -- -- 122,574 ------------ ------------ --- ------------ Total Assets $390,345,665 $253,807,377 $-- $644,153,042 ------------ ------------ --- ------------ LIABILITIES TABLE OTHER FINANCIAL INSTRUMENTS: Futures margins $ (34,156) $ -- $-- $ (34,156) ------------ ------------ --- ------------ Total Liabilities $ (34,156) $ -- $-- $ (34,156) ------------ ------------ --- ------------
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION METHODOLOGIES, IF ANY, DURING THE REPORTING PERIOD. FUTURES CONTRACTS AS OF DECEMBER 31, 2010 ARE AS FOLLOWS:
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - -------------------------------- -------- --------- ---------- ----------- -------------- U.S. Treasury Long Bonds, 20 yr. Buy 105 3/22/11 $12,823,125 $(61,863) U.S. Treasury Nts., 2 yr. Sell 89 3/31/11 19,482,656 6,739 U.S. Treasury Nts., 5 yr. Sell 9 3/31/11 1,059,469 19,916 U.S. Treasury Nts., 10 yr. Sell 17 3/22/11 2,047,438 (9,308) U.S. Ultra Bonds Buy 5 3/22/11 635,469 10,153 -------- $(34,363) ========
17 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) NOTES TO STATEMENT OF INVESTMENTS SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. 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. Unadjusted quoted prices in active markets for identical securities are classified as "Level 1," inputs other than unadjusted quoted prices for an asset that are observable are classified as "Level 2" and significant unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability, are classified as "Level 3." The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by portfolio pricing services approved by the Board of Trustees or dealers. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. U.S. domestic and international debt instruments (including corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and "money market-type" debt instruments with a remaining maturity in excess of sixty days are valued at the mean between the "bid" and "asked" prices utilizing price quotations obtained from independent pricing services or broker-dealers. Such prices are typically determined based upon information obtained from market participants including reported trade data, broker-dealer price quotations and inputs such as benchmark yields and issuer spreads from identical or similar securities. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. In the absence of a readily available unadjusted quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. There have been no significant changes to the fair valuation methodologies of the Fund during the period. SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are 18 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of December 31, 2010, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS ------------------------------- Purchased securities $89,808,914 Sold securities 8,236,634
The Fund may enter into "forward roll" transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price. Forward roll transactions may be deemed to entail embedded leverage since the Fund purchases mortgage-related securities with extended settlement dates rather than paying for the securities under a normal settlement cycle. This embedded leverage increases the Fund's market value of investments relative to its net assets which can incrementally increase the volatility of the Fund's performance. Forward roll transactions can be replicated over multiple settlement periods. Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; and counterparty credit risk. 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 also the investment adviser of IMMF. When applicable, the Fund's 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 IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the 19 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations in the annual and semiannual reports. RISK EXPOSURES AND THE USE OF DERIVATIVE INSTRUMENTS The Fund's investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors. MARKET RISK FACTORS. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors: COMMODITY RISK. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products. CREDIT RISK. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds. EQUITY RISK. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. FOREIGN EXCHANGE RATE RISK. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency. INTEREST RATE RISK. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities. VOLATILITY RISK. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument's price over a defined time period. Large increases or decreases in a financial instrument's price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk. The Fund's actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below. RISKS OF INVESTING IN DERIVATIVES. The Fund's use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions. Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund's performance. 20 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow. COUNTERPARTY CREDIT RISK. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund's derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction. CREDIT RELATED CONTINGENT FEATURES. The Fund's agreements with derivative counterparties have several credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund's net assets and or a percentage decrease in the Fund's Net Asset Value or NAV. The contingent features are established within the Fund's International Swap and Derivatives Association, Inc. master agreements which govern certain positions in swaps, over-the-counter options and swaptions, and forward currency exchange contracts for each individual counterparty. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities in the annual and semiannual reports. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations in the annual and semiannual reports. Realized gains (losses) are reported in the Statement of Operations in the annual and semiannual reports at the closing or expiration of futures contracts. The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk. The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk. During the period ended December 31, 2010, the Fund had an average market value of $22,749,781 and $18,273,016 on futures contracts purchased and sold, respectively. Additional associated risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. SWAP CONTRACTS 21 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The values of swap contracts are aggregated by positive and negative values and disclosed separately on the Statement of Assets and Liabilities in the annual and semiannual reports by contracts in unrealized appreciation and depreciation positions. Upfront payments paid or received, if any, affect the value of the respective swap. Therefore, to determine the unrealized appreciation (depreciation) on swaps, upfront payments paid should be subtracted from, while upfront payments received should be added to, the value of contracts reported as an asset on the Statement of Assets and Liabilities in the annual and semiannual reports. Conversely, upfront payments paid should be added to, while upfront payments received should be subtracted from the value of contracts reported as a liability. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations in the annual and semiannual reports. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations in the annual and semiannual reports. Swap contract agreements are exposed to the market risk factor of the specific underlying reference asset. Swap contracts are typically more attractively priced compared to similar investments in related cash securities because they isolate the risk to one market risk factor and eliminate the other market risk factors. Investments in cash securities (for instance bonds) have exposure to multiple risk factors (credit and interest rate risk). Because swaps require little or no initial cash investment, they can expose the Fund to substantial risk in the isolated market risk factor. CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract that enables an investor to buy or sell protection on a debt security against a defined-issuer credit event, such as the issuer's failure to make timely payments of interest or principal on the debt security, bankruptcy or restructuring. The Fund may enter into credit default swaps either by buying or selling protection on a single security, sovereign debt, or a basket of securities (the "reference asset"). The buyer of protection pays a periodic fee to the seller of protection based on the notional amount of debt securities underlying the swap contract. The seller of protection agrees to compensate the buyer of protection for future potential losses as a result of a credit event on the reference asset. The contract effectively transfers the credit event risk of the reference asset from the buyer of protection to the seller of protection. The ongoing value of the contract will fluctuate throughout the term of the contract based primarily on the credit risk of the reference asset. If the credit quality of the reference asset improves relative to the credit quality at contract initiation, the buyer of protection may have an unrealized loss greater than the anticipated periodic fee owed. This unrealized loss would be the result of current credit protection being cheaper than the cost of credit protection at contract initiation. If the buyer elects to terminate the contract prior to its maturity, and there has been no credit event, this unrealized loss will become realized. If the contract is held to maturity, and there has been no credit event, the realized loss will be equal to the periodic fee paid over the life of the contract. If there is a credit event, the buyer of protection can exercise its rights under the contract and receive a payment from the seller of protection equal to the notional amount of the reference asset less the market value of the reference asset. Upon exercise of the contract the difference between the value of the underlying reference asset and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations in the annual and semiannual reports. The Fund has engaged in pairs trades by purchasing protection through a credit default swap referenced to the debt of an issuer, and simultaneously selling protection through a credit default swap referenced to the debt of a different issuer with the intent to realize gains from the pricing differences of the two issuers who are expected to have similar market risks. Pairs trades attempt to gain exposure to credit risk while hedging or offsetting the effects of overall market movements. For the period ended December 31, 2010, the Fund had average notional amounts of $530,000 and $530,000 on credit default swaps to buy protection and credit default swaps to sell protection, respectively. 22 | OPPENHEIMER BALANCED FUND Oppenheimer Balanced Fund STATEMENT OF INVESTMENTS December 31, 2010 (Unaudited) Additional associated risks to the Fund include counterparty credit risk and liquidity risk. As of December 31, 2010, the Fund had no such credit default swaps outstanding. RESTRICTED SECURITIES As of December 31, 2010, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments. FEDERAL TAXES. The approximate 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 December 31, 2010 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses. Federal tax cost of securities $ 607,626,862 Federal tax cost of other investments (9,096,606) -------------- Total federal tax cost $ 598,530,256 ============== Gross unrealized appreciation $ 64,446,341 Gross unrealized depreciation (28,077,098) -------------- Net unrealized appreciation $ 36,369,243 ==============
23 | OPPENHEIMER BALANCED FUND ITEM 2. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 12/31/2010, the registrant's principal executive officer and principal financial officer found the registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in the registrant's internal controls over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Exhibits 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 Balanced Fund By: /s/ William F. Glavin, Jr. --------------------------------- William F. Glavin, Jr. Principal Executive Officer Date: 02/08/2011 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: 02/08/2011 By: /s/ Brian W. Wixted --------------------------------- Brian W. Wixted Principal Financial Officer Date: 02/08/2011 EX-99.CERT 2 g07680exv99wcert.txt EX-99.CERT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, William F. Glavin, Jr., certify that: 1. I have reviewed this report on Form N-Q of Oppenheimer Balanced Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ William F. Glavin, Jr. - ------------------------------------- William F. Glavin, Jr. Principal Executive Officer Date: 02/08/2011 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-Q of Oppenheimer Balanced Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ Brian W. Wixted - ------------------------------------- Brian W. Wixted Principal Financial Officer Date: 02/08/2011 -----END PRIVACY-ENHANCED MESSAGE-----