-----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, Pw5D3HMZ3IxfOyzC5Uz9fkaliYL5yqdcnvKTrqHpPjUAzaa/zofIAoMc99E2lnGg X2TDRurluoYdqXOiwzrc7Q== 0000935069-03-001087.txt : 20030827 0000935069-03-001087.hdr.sgml : 20030827 20030827134246 ACCESSION NUMBER: 0000935069-03-001087 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030827 EFFECTIVENESS DATE: 20030827 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04108 FILM NUMBER: 03868106 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 N-CSR 1 rs0640_8016vef.txt RS0640_8016VEF 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 811-4108 Oppenheimer High Income Fund/VA (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. 498 Seventh Avenue, New York, New York 10018 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: December 31 Date of reporting period: January 1, 2003 - June 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS June 30, 2003 / Unaudited - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Asset-Backed Securities--0.1% Consumer Credit Reference Index Securities Program, Credit Card Asset- Backed Certificates, Series 2002-B, Cl. FX, 10.421%, 3/22/07 1 (Cost $497,606) $ 500,000 $ 527,663 - -------------------------------------------------------------------------------- Mortgage-Backed Obligations--1.8% Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates, Series 1996-D2, Cl. A3, 7.498%, 2/14/29 2 3,000,000 3,286,791 - -------------------------------------------------------------------------------- CBA Mortgage Corp., Commercial Mtg. Pass-Through Certificates, Series 1993-C1, Cl. F, 6.72%, 12/25/03 1 700,000 676,375 - -------------------------------------------------------------------------------- First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through Certificates: Series 1997-CHL1, Cl. D, 7.939%, 4/29/39 1,2 300,000 308,297 Series 1997-CHL1, Cl. E, 9.939%, 4/29/39 1,2 1,500,000 1,316,484 - -------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates, Series 1997-RR, Cl. D, 7.642%, 4/30/39 2,3 2,150,116 2,053,705 - -------------------------------------------------------------------------------- Salomon Brothers Mortgage Securities VII, Inc., Commercial Mtg. Pass-Through Certificates, Series 1996-B, Cl. 1, 6.893%, 4/25/26 1,2 430,234 382,908 ------------- Total Mortgage-Backed Obligations (Cost $7,456,084) 8,024,560 - -------------------------------------------------------------------------------- Loan Participations--0.0% Telergy, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche A, 11.111%, 1/1/02 1,4,5 (Cost $966,644) 986,362 -- - -------------------------------------------------------------------------------- Corporate Bonds and Notes--83.2% - -------------------------------------------------------------------------------- Consumer Discretionary--23.8% - -------------------------------------------------------------------------------- Auto Components--2.0% Collins & Aikman Floorcoverings, Inc., 9.75% Sr. Sub. Nts., Series B, 2/15/10 1 800,000 840,000 - -------------------------------------------------------------------------------- Collins & Aikman Products Co., 10.75% Sr. Nts., 12/31/11 500,000 442,500 - -------------------------------------------------------------------------------- Dana Corp.: 9% Unsec. Nts., 8/15/11 980,000 1,065,750 10.125% Nts., 3/15/10 500,000 553,750 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Auto Components Continued Dura Operating Corp.: 8.625% Sr. Nts., Series B, 4/15/12 $ 1,000,000 $ 1,030,000 9% Sr. Sub. Nts., Series B, 5/1/09 [EUR] 300,000 318,667 9% Sr. Unsec. Sub. Nts., Series D, 5/1/09 200,000 185,000 - -------------------------------------------------------------------------------- Exide Corp., 10% Sr. Unsec. Nts., 4/15/05 1,4,5 600,000 15,000 - -------------------------------------------------------------------------------- Lear Corp., 8.11% Sr. Unsec. Nts., Series B, 5/15/09 1,400,000 1,610,000 - -------------------------------------------------------------------------------- Metaldyne Corp., 11% Sr. Sub. Nts., 6/15/12 750,000 626,250 - -------------------------------------------------------------------------------- Stoneridge, Inc., 11.50% Sr. Nts., 5/1/12 900,000 1,012,500 - -------------------------------------------------------------------------------- Tenneco Automotive, Inc., 10.25% Sr. Sec. Nts., 7/15/13 3 700,000 712,250 - -------------------------------------------------------------------------------- United Components, Inc., 9.375% Sr. Sub. Nts., 6/15/13 3 400,000 417,000 ------------- 8,828,667 - -------------------------------------------------------------------------------- Automobiles--0.4% DirecTV Holdings LLC, 8.375% Sr. Nts., 3/15/13 3 1,800,000 2,016,000 - -------------------------------------------------------------------------------- Hotels, Restaurants & Leisure--6.4% Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 1 940,000 333,700 - -------------------------------------------------------------------------------- Aztar Corp., 9% Sr. Unsec. Sub. Nts., 8/15/11 450,000 489,375 - -------------------------------------------------------------------------------- Boca Resorts, Inc., 9.875% Sr. Sub. Nts., 4/15/09 800,000 866,000 - -------------------------------------------------------------------------------- Boyd Gaming Corp., 8.75% Sr. Sub. Nts., 4/15/12 800,000 880,000 - -------------------------------------------------------------------------------- Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 1,4,5 9,500 -- - -------------------------------------------------------------------------------- Coast Hotels & Casinos, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/09 1,100,000 1,182,500 - -------------------------------------------------------------------------------- Dominos, Inc., 8.25% Sr. Sub. Nts., 7/1/11 3 800,000 830,000 - -------------------------------------------------------------------------------- Family Restaurants, Inc., 10.875% Sr. Sub. Disc. Nts., 2/1/04 1,4,5 100,000 875 - -------------------------------------------------------------------------------- Herbst Gaming, Inc., 10.75% Sr. Sec. Nts., 9/1/08 250,000 276,875 - -------------------------------------------------------------------------------- Hilton Hotels Corp.: 7.625% Nts., 5/15/08 700,000 756,000 7.625% Nts., 12/1/12 500,000 550,000 - -------------------------------------------------------------------------------- Hollywood Park, Inc., 9.25% Sr. Unsec. Sub. Nts., Series B, 2/15/07 500,000 495,000 - -------------------------------------------------------------------------------- Intrawest Corp., 9.75% Sr. Nts., 8/15/08 900,000 943,875 - -------------------------------------------------------------------------------- Isle of Capri Casinos, Inc., 9% Sr. Sub. Nts., 3/15/12 600,000 657,000 3 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Hotels, Restaurants & Leisure Continued John Q. Hammons Hotels, Inc., 8.875% Sr. Nts., Series B, 5/15/12 $ 900,000 $ 949,500 - -------------------------------------------------------------------------------- Jupiters Ltd., 8.50% Sr. Unsec. Nts., 3/1/06 1 1,000,000 1,105,000 - -------------------------------------------------------------------------------- Mandalay Resort Group, 10.25% Sr. Unsec. Sub. Nts., Series B, 8/1/07 800,000 908,000 - -------------------------------------------------------------------------------- MGM Mirage, Inc., 8.375% Sr. Unsec. Sub. Nts., 2/1/11 1,700,000 1,942,250 - -------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority: 8% Sr. Sub. Nts., 4/1/12 700,000 759,500 8.375% Sr. Sub. Nts., 7/1/11 1,200,000 1,305,000 8.75% Sr. Unsec. Sub. Nts., 1/1/09 1,000,000 1,082,500 - -------------------------------------------------------------------------------- Park Place Entertainment Corp., 7.875% Sr. Sub. Nts., 3/15/10 1,500,000 1,620,000 - -------------------------------------------------------------------------------- Penn National Gaming, Inc., 8.875% Sr. Sub. Nts., 3/15/10 600,000 639,000 - -------------------------------------------------------------------------------- Prime Hospitality Corp., 8.375% Sr. Sub. Nts., 5/1/12 400,000 386,000 - -------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd.: 8% Sr. Unsec. Nts., 5/15/10 200,000 209,000 8.75% Sr. Unsub. Nts., 2/2/11 600,000 639,000 - -------------------------------------------------------------------------------- Six Flags, Inc.: 8.875% Sr. Nts., 2/1/10 400,000 386,000 9.75% Sr. Nts., 4/15/13 3 1,500,000 1,492,500 - -------------------------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc., 7.875% Sr. Nts., 5/1/12 1,500,000 1,650,000 - -------------------------------------------------------------------------------- Sun International Hotels Ltd., 8.875% Sr. Unsec. Sub. Nts., 8/15/11 1,000,000 1,087,500 - -------------------------------------------------------------------------------- Trump Casino Holdings LLC/ Trump Casino Funding, Inc., 11.625% Nts., 3/15/10 3 600,000 576,000 - -------------------------------------------------------------------------------- Universal City Development Partners, 11.75% Sr. Nts., 4/1/10 1 1,000,000 1,102,500 - -------------------------------------------------------------------------------- Vail Resorts, Inc., 8.75% Sr. Unsec. Sub. Nts., 5/15/09 1 700,000 735,000 - -------------------------------------------------------------------------------- Venetian Casino Resort LLC/ Las Vegas Sands, Inc., 11% Sec. Nts., 6/15/10 850,000 962,625 - -------------------------------------------------------------------------------- Yum! Brands, Inc., 7.70% Sr. Nts., 7/1/12 300,000 343,500 ------------- 28,141,575 - -------------------------------------------------------------------------------- Household Durables--2.1% Beazer Homes USA, Inc., 8.375% Sr. Nts., 4/15/12 500,000 556,250 - -------------------------------------------------------------------------------- D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 300,000 342,750 - -------------------------------------------------------------------------------- Del Webb Corp., 10.25% Sr. Unsec. Sub. Debs., 2/15/10 600,000 657,000 - -------------------------------------------------------------------------------- Interface, Inc., 10.375% Sr. Nts., 2/1/10 500,000 482,500 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Household Durables Continued K. Hovnanian Enterprises, Inc., 8.875% Sr. Sub. Nts., 4/1/12 $ 800,000 $ 878,000 - -------------------------------------------------------------------------------- KB Home: 8.625% Sr. Sub. Nts., 12/15/08 150,000 171,000 9.50% Sr. Unsec. Sub. Nts., 2/15/11 350,000 397,688 - -------------------------------------------------------------------------------- Meritage Corp., 9.75% Sr. Unsec. Nts., 6/1/11 500,000 555,000 - -------------------------------------------------------------------------------- Salton, Inc., 10.75% Sr. Unsec. Sub. Nts., 12/15/05 500,000 505,000 - -------------------------------------------------------------------------------- Standard Pacific Corp., 9.25% Sr. Sub. Nts., 4/15/12 1 700,000 789,250 - -------------------------------------------------------------------------------- Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 500,000 562,500 - -------------------------------------------------------------------------------- WCI Communities, Inc.: 9.125% Sr. Sub. Nts., 5/1/12 800,000 856,000 10.625% Sr. Unsec. Sub. Nts., 2/15/11 600,000 666,000 - -------------------------------------------------------------------------------- William Lyon Homes, Inc., 10.75% Sr. Nts., 4/1/13 800,000 854,000 - -------------------------------------------------------------------------------- Williams Scotsman, Inc., 9.875% Sr. Unsec. Nts., 6/1/07 1,000,000 985,000 ------------- 9,257,938 - -------------------------------------------------------------------------------- Leisure Equipment & Products--0.2% Remington Arms Co., Inc., 10.50% Sr. Nts., 2/1/11 3 800,000 840,000 - -------------------------------------------------------------------------------- Media--9.9% Adelphia Communications Corp.: 7.875% Sr. Unsec. Nts., 5/1/09 4,5 360,000 219,600 8.125% Sr. Nts., Series B, 7/15/03 4,5 1,000,000 625,000 8.375% Sr. Nts., Series B, 2/1/08 4,5 1,000,000 625,000 10.25% Sr. Unsec. Nts., 11/1/06 4,5 200,000 123,000 10.875% Sr. Unsec. Nts., 10/1/10 4,5 1,000,000 625,000 - -------------------------------------------------------------------------------- Allbritton Communications Co., 7.75% Sr. Unsec. Sub. Nts., 12/15/12 700,000 726,250 - -------------------------------------------------------------------------------- AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 1,200,000 1,248,000 - -------------------------------------------------------------------------------- American Media, Inc., 8.875% Sr. Sub. Nts., 1/15/11 3 600,000 652,500 - -------------------------------------------------------------------------------- AOL Time Warner, Inc., 6.875% Nts., 5/1/12 850,000 972,341 - -------------------------------------------------------------------------------- Block Communications, Inc., 9.25% Sr. Sub. Nts., 4/15/09 600,000 657,000 - -------------------------------------------------------------------------------- British Sky Broadcasting Group plc, 8.20% Sr. Unsec. Nts., 7/15/09 700,000 830,715 - -------------------------------------------------------------------------------- CanWest Media, Inc., 7.625% Sr. Nts., 4/15/13 3 300,000 320,250 - -------------------------------------------------------------------------------- Carmike Cinemas, Inc., 10.375% Gtd. Sr. Sub. Nts., Series B, 2/1/09 1,250,000 1,318,750 - -------------------------------------------------------------------------------- CBD Media, Inc./CBD Finance, 8.625% Sr. Sub. Nts., 6/1/11 3 200,000 207,000 4 OPPENHEIMER HIGH INCOME FUND/VA Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Media Continued Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: 0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11 6 $ 2,500,000 $ 1,656,250 0%/11.75% Sr. Unsec. Sub. Disc. Nts., 5/15/11 6 1,500,000 765,000 8.625% Sr. Unsec. Nts., 4/1/09 4,200,000 3,045,000 10% Sr. Nts., 4/1/09 500,000 385,000 11.125% Sr. Unsec. Nts., 1/15/11 600,000 468,000 - -------------------------------------------------------------------------------- Cinemark USA, Inc., 9% Sr. Sub. Nts., 2/1/13 800,000 872,000 - -------------------------------------------------------------------------------- Classic Cable, Inc., 10.50% Sr. Sub. Nts., 3/1/10 1,4,5 1,000,000 -- - -------------------------------------------------------------------------------- Corus Entertainment, Inc., 8.75% Sr. Sub. Nts., 3/1/12 800,000 864,000 - -------------------------------------------------------------------------------- CSC Holdings, Inc., 7.625% Sr. Unsec. Unsub. Nts., Series B, 4/1/11 3,400,000 3,451,000 - -------------------------------------------------------------------------------- Diva Systems Corp., 12.625% Sr. Unsec. Disc. Nts., Series B, 3/1/08 1,4,5 500,000 30,625 - -------------------------------------------------------------------------------- EchoStar DBS Corp.: 9.125% Sr. Nts., 1/15/09 300,000 336,750 9.375% Sr. Unsec. Nts., 2/1/09 450,000 482,063 10.375% Sr. Unsec. Nts., 10/1/07 1,800,000 2,002,500 - -------------------------------------------------------------------------------- Emmis Communications Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 3/15/09 800,000 842,000 - -------------------------------------------------------------------------------- Entravision Communications Corp., 8.125% Sr. Sub. Nts., 3/15/09 600,000 627,000 - -------------------------------------------------------------------------------- Garden State Newspapers, Inc., 8.75% Sr. Sub. Nts., 10/1/09 500,000 518,750 - -------------------------------------------------------------------------------- Gray Television, Inc., 9.25% Sr. Sub. Nts., 12/15/11 500,000 555,000 - -------------------------------------------------------------------------------- Hollinger International Publishing, Inc., 9% Sr. Unsec. Nts., 12/15/10 600,000 645,000 - -------------------------------------------------------------------------------- Houghton Mifflin Co., 8.25% Sr. Nts., 2/1/11 3 700,000 742,000 - -------------------------------------------------------------------------------- Lamar Media Corp., 7.25% Sr. Unsec. Sub. Nts., 1/1/13 200,000 213,000 - -------------------------------------------------------------------------------- Liberty Media Corp., 7.875% Sr. Nts., 7/15/09 1,750,000 2,053,051 - -------------------------------------------------------------------------------- Lin Television Corp., 6.50% Sr. Sub. Nts., 5/15/13 3 500,000 501,250 - -------------------------------------------------------------------------------- LodgeNet Entertainment Corp., 9.50% Sr. Sub. Debs., 6/15/13 400,000 412,000 - -------------------------------------------------------------------------------- Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 300,000 318,750 - -------------------------------------------------------------------------------- News America Holdings, Inc., 8.875% Sr. Debs., 4/26/23 625,000 801,078 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Media Continued PanAmSat Corp., 8.50% Sr. Unsec. Nts., 2/1/12 $ 1,200,000 $ 1,305,000 - -------------------------------------------------------------------------------- PRIMEDIA, Inc., 8% Sr. Nts., 5/15/13 3 1,700,000 1,751,000 - -------------------------------------------------------------------------------- R.H. Donnelley Financial Corp. I: 8.875% Sr. Nts., 12/15/10 3 700,000 777,000 10.875% Sr. Sub. Nts., 12/15/12 3 1,000,000 1,170,000 - -------------------------------------------------------------------------------- Radio One, Inc., 8.875% Sr. Unsec. Sub. Nts., Series B, 7/1/11 300,000 331,500 - -------------------------------------------------------------------------------- Regal Cinemas, Inc., 9.375% Sr. Sub. Nts., Series B, 2/1/12 1,200,000 1,329,000 - -------------------------------------------------------------------------------- Rogers Communications, Inc., 8.75% Sr. Nts., 7/15/07 [CAD] 500,000 379,945 - -------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8% Sr. Sub. Nts., 3/15/12 900,000 965,250 8% Sr. Sub. Nts., 3/15/12 3 700,000 750,750 - -------------------------------------------------------------------------------- Spanish Broadcasting System, Inc., 9.625% Sr. Unsec. Sub. Nts., 11/1/09 600,000 640,500 - -------------------------------------------------------------------------------- United Pan-Europe Communications NV: 0%/13.375% Sr. Unsec. Disc. Nts., Series B, 11/1/09 4,5,6 1,000,000 147,500 10.875% Sr. Unsec. Nts., Series B, 8/1/09 4,5 600,000 132,000 11.25% Sr. Nts., Series B, 11/1/09 1,4,5 [EUR] 500,000 111,246 - -------------------------------------------------------------------------------- Vertis, Inc.: 9.75% Sr. Sec. Nts., 4/1/09 3 400,000 418,000 10.875% Sr. Unsec. Nts., Series B, 6/15/09 200,000 201,000 - -------------------------------------------------------------------------------- Vivendi Universal SA, 9.25% Sr. Nts., 4/15/10 3 800,000 914,000 - -------------------------------------------------------------------------------- WRC Media, Inc./Weekly Reader Corp./Compass Learning Corp., 12.75% Sr. Sub. Nts., 11/15/09 600,000 627,750 ------------- 43,688,914 - -------------------------------------------------------------------------------- Multiline Retail--0.6% J. C. Penney Co., Inc.: 7.60% Nts., 4/1/07 1,000,000 1,055,000 8% Nts., 3/1/10 800,000 842,000 - -------------------------------------------------------------------------------- Saks, Inc.: 8.25% Sr. Unsec. Nts., 11/15/08 250,000 265,625 9.875% Nts., 10/1/11 1 600,000 678,000 ------------- 2,840,625 - -------------------------------------------------------------------------------- Specialty Retail--1.8% Asbury Automotive Group, Inc., 9% Sr. Sub. Nts., 6/15/12 600,000 582,000 - -------------------------------------------------------------------------------- AutoNation, Inc., 9% Sr. Unsec. Nts., 8/1/08 1,200,000 1,338,000 - -------------------------------------------------------------------------------- Building Materials Corp., 8% Sr. Nts., 12/1/08 300,000 279,000 6 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Specialty Retail Continued CSK Auto, Inc., 12% Sr. Unsec. Nts., 6/15/06 $ 900,000 $ 1,003,500 - -------------------------------------------------------------------------------- Finlay Enterprises, Inc., 9% Debs., 5/1/08 700,000 710,500 - -------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 8.375% Sr. Nts., 5/1/08 1 600,000 624,000 - -------------------------------------------------------------------------------- Gap, Inc. (The): 6.90% Nts., 9/15/07 650,000 703,625 10.55% Unsub. Nts., 12/15/08 200,000 244,000 - -------------------------------------------------------------------------------- Hollywood Entertainment Corp., 9.625% Sr. Sub. Nts., 3/15/11 800,000 879,000 - -------------------------------------------------------------------------------- Petco Animal Supplies, Inc., 10.75% Sr. Sub. Nts., 11/1/11 1 750,000 858,750 - -------------------------------------------------------------------------------- Rent-A-Center, Inc., 7.50% Sr. Sub. Nts., 5/1/10 3 350,000 369,250 - -------------------------------------------------------------------------------- United Auto Group, Inc., 9.625% Sr. Unsec. Sub. Nts., 3/15/12 200,000 215,000 ------------- 7,806,625 - -------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods--0.4% Galey & Lord, Inc., 9.125% Sr. Unsec. Sub. Nts., 3/1/08 1,4,5 700,000 7,875 - -------------------------------------------------------------------------------- Levi Strauss & Co.: 11.625% Sr. Unsec. Nts., 1/15/08 200,000 172,500 12.25% Sr. Nts., 12/15/12 400,000 335,000 - -------------------------------------------------------------------------------- Oxford Industries, Inc., 8.875% Sr. Nts., 6/1/11 3 500,000 527,500 - -------------------------------------------------------------------------------- Phillips/Van Heusen Corp., 8.125% Sr. Nts., 5/1/13 1 300,000 309,375 - -------------------------------------------------------------------------------- Russell Corp., 9.25% Sr. Nts., 5/1/10 1 600,000 657,000 ------------- 2,009,250 - -------------------------------------------------------------------------------- Consumer Staples--4.2% - -------------------------------------------------------------------------------- Beverages--0.3% Constellation Brands, Inc., 8.125% Sr. Sub. Nts., 1/15/12 500,000 542,500 - -------------------------------------------------------------------------------- Packaged Ice, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/1/05 800,000 812,000 ------------- 1,354,500 - -------------------------------------------------------------------------------- Food & Staples Retailing--0.9% Delhaize America, Inc., 8.125% Unsub. Debs., 4/15/11 1,500,000 1,650,000 - -------------------------------------------------------------------------------- Fleming Cos., Inc., 10.125% Sr. Unsec. Nts., 4/1/08 4,5 500,000 77,500 - -------------------------------------------------------------------------------- Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 400,000 376,000 - -------------------------------------------------------------------------------- Pantry, Inc. (The), 10.25% Sr. Sub. Nts., 10/15/07 325,000 336,375 - -------------------------------------------------------------------------------- Real Time Data Co., 13% Disc. Nts., 5/31/09 1,4,5,7 476,601 9,532 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Food & Staples Retailing Continued Rite Aid Corp.: 8.125% Sr. Sec. Nts., 5/1/10 3 $ 900,000 $ 936,000 9.50% Sr. Sec. Nts., 2/15/11 3 450,000 486,000 ------------- 3,871,407 - -------------------------------------------------------------------------------- Food Products--2.1% American Seafood Group LLC, 10.125% Sr. Sub. Nts., 4/15/10 1 500,000 570,000 - -------------------------------------------------------------------------------- Aurora Foods, Inc., 8.75% Sr. Sub. Nts., Series B, 7/1/08 4 500,000 178,750 - -------------------------------------------------------------------------------- Burns Philp Capital Pty Ltd., 9.75% Sr. Sub. Nts., 7/15/12 3 400,000 392,000 - -------------------------------------------------------------------------------- Del Monte Corp.: 8.625% Sr. Sub. Nts., 12/15/123 1,000,000 1,065,000 9.25% Sr. Unsec. Sub. Nts., 5/15/11 100,000 107,500 - -------------------------------------------------------------------------------- Doane Pet Care Co., 10.75% Sr. Nts., 3/1/10 800,000 876,000 - -------------------------------------------------------------------------------- Dole Food Co., Inc.: 8.625% Sr. Nts., 5/1/09 900,000 956,250 8.875% Sr. Nts., 3/15/11 3 400,000 426,000 - -------------------------------------------------------------------------------- Michael Foods, Inc., 11.75% Sr. Unsec. Sub. Nts., 4/1/11 1 400,000 462,000 - -------------------------------------------------------------------------------- New World Pasta Co., 9.25% Sr. Nts., 2/15/09 200,000 64,000 - -------------------------------------------------------------------------------- Smithfield Foods, Inc.: 7.625% Sr. Unsec. Sub. Nts., 2/15/08 925,000 955,063 8% Sr. Nts., Series B, 10/15/09 900,000 978,750 - -------------------------------------------------------------------------------- Swift & Co., 10.125% Sr. Nts., 10/1/09 3 1,000,000 1,045,000 - -------------------------------------------------------------------------------- United Biscuits Finance plc, 10.625% Sr. Sub. Nts., 4/15/11 [EUR] 1,000,000 1,303,377 ------------- 9,379,690 - -------------------------------------------------------------------------------- Household Products--0.8% AKI, Inc., 10.50% Sr. Unsec. Nts., 7/1/08 1 1,000,000 1,030,000 - -------------------------------------------------------------------------------- Armkel LLC/Armkel Finance, Inc., 9.50% Sr. Sub. Nts., 8/15/09 600,000 672,000 - -------------------------------------------------------------------------------- Holmes Products Corp., 9.875% Sr. Unsec. Sub. Nts., Series B, 11/15/07 1 300,000 269,250 - -------------------------------------------------------------------------------- Playtex Products, Inc., 9.375% Sr. Unsec. Sub. Nts., 6/1/11 1,000,000 1,005,000 - -------------------------------------------------------------------------------- Revlon Consumer Products Corp., 12% Sr. Sec. Nts., 12/1/05 400,000 391,000 - -------------------------------------------------------------------------------- Styling Technology Corp., 10.875% Sr. Unsec. Sub. Nts., 7/1/08 1,4,5 600,000 -- ------------- 3,367,250 - -------------------------------------------------------------------------------- Personal Products--0.1% French Fragrances, Inc., 10.375% Gtd. Sr. Unsec. Nts., Series D, 5/15/07 400,000 413,000 6 OPPENHEIMER HIGH INCOME FUND/VA Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Energy--6.0% - -------------------------------------------------------------------------------- Energy Equipment & Services--1.6% BRL Universal Equipment Corp., 8.875% Sr. Sec. Nts., 2/15/08 $ 750,000 $ 817,500 - -------------------------------------------------------------------------------- Dresser, Inc., 9.375% Sr. Sub. Nts., 4/15/11 400,000 414,000 - -------------------------------------------------------------------------------- Grant Geophysical, Inc., 9.75% Sr. Unsec. Nts., Series B, 2/15/08 1,4,5 1,025,000 261,375 - -------------------------------------------------------------------------------- Grant Prideco Escrow Corp., 9% Sr. Unsec. Nts., 12/15/09 300,000 334,500 - -------------------------------------------------------------------------------- Hanover Equipment Trust 2001A, 8.50% Sr. Sec. Nts., Series A, 9/1/08 500,000 527,500 - -------------------------------------------------------------------------------- Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08 1,750,000 1,938,125 - -------------------------------------------------------------------------------- Ocean Rig Norway AS, 10.25% Sr. Sec. Nts., 6/1/08 1,600,000 1,338,000 - -------------------------------------------------------------------------------- Petroleum Helicopters, Inc., 9.375% Sr. Nts., 5/1/09 600,000 675,750 - -------------------------------------------------------------------------------- Universal Compression, Inc., 7.25% Sr. Nts., 5/15/10 3 800,000 832,000 ------------- 7,138,750 - -------------------------------------------------------------------------------- Oil & Gas--4.4% Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 500,000 475,000 - -------------------------------------------------------------------------------- Chesapeake Energy Corp.: 8.125% Sr. Unsec. Nts., 4/1/11 1,000,000 1,082,500 8.375% Sr. Unsec. Nts., 11/1/08 1,000,000 1,087,500 9% Sr. Nts., 8/15/12 300,000 336,000 - -------------------------------------------------------------------------------- El Paso Energy Partners LP: 8.50% Sr. Sub. Nts., 6/1/10 3 500,000 537,500 8.50% Sr. Unsec. Sub. Nts., Series B, 6/1/11 700,000 752,500 10.625% Sr. Sub. Nts., 12/1/12 700,000 812,000 - -------------------------------------------------------------------------------- Forest Oil Corp., 7.75% Sr. Nts., 5/1/14 1,000,000 1,045,000 - -------------------------------------------------------------------------------- Frontier Escrow Corp., 8% Sr. Nts., 4/15/13 3 500,000 525,000 - -------------------------------------------------------------------------------- Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09 800,000 884,000 - -------------------------------------------------------------------------------- Leviathan Gas Pipeline Partners LP/ Leviathan Finance Corp., 10.375% Sr. Unsec. Sub. Nts., Series B, 6/1/09 1 500,000 536,250 - -------------------------------------------------------------------------------- Newfield Exploration Co., 8.375% Sr. Sub. Nts., 8/15/12 600,000 678,750 - -------------------------------------------------------------------------------- Pioneer Natural Resources Co., 7.50% Sr. Nts., 4/15/12 1,000,000 1,147,488 - -------------------------------------------------------------------------------- Pogo Producing Co., 8.75% Sr. Sub. Nts., Series B, 5/15/07 1 600,000 621,000 - -------------------------------------------------------------------------------- Premcor Refining Group, Inc., 9.50% Sr. Nts., 2/1/13 1,300,000 1,443,000 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Oil & Gas Continued Stone Energy Corp.: 8.25% Sr. Unsec. Sub. Nts., 12/15/11 $ 800,000 $ 848,000 8.75% Sr. Sub. Nts., 9/15/07 735,000 766,237 - -------------------------------------------------------------------------------- Teekay Shipping Corp., 8.875% Sr. Nts., 7/15/11 575,000 633,219 - -------------------------------------------------------------------------------- Tesoro Petroleum Corp.: 8% Sr. Sec. Nts., 4/15/08 3 1,000,000 1,030,000 9.625% Sr. Sub. Nts., 4/1/12 1,500,000 1,380,000 - -------------------------------------------------------------------------------- Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts., 11/1/11 1,400,000 1,540,000 - -------------------------------------------------------------------------------- XTO Energy, Inc., 7.50% Sr. Nts., 4/15/12 1,000,000 1,140,000 ------------- 19,300,944 - -------------------------------------------------------------------------------- Financials--2.5% - -------------------------------------------------------------------------------- Capital Markets--0.1% Decrane Aircraft Holdings, Inc., 12% Sr. Unsec. Sub. Nts., Series B, 9/30/08 1,550,000 736,250 - -------------------------------------------------------------------------------- Commercial Banks--0.4% Bank Plus Corp., 12% Sr. Nts., 7/18/07 1 517,000 556,421 - -------------------------------------------------------------------------------- Local Financial Corp., 11% Sr. Nts., 9/8/04 1 800,000 820,000 - -------------------------------------------------------------------------------- Western Financial Bank, 9.625% Unsec. Sub. Debs., 5/15/12 400,000 434,000 ------------- 1,810,421 - -------------------------------------------------------------------------------- Diversified Financial Services--0.5% AmeriCredit Corp., 9.875% Sr. Nts., 4/15/06 400,000 394,000 - -------------------------------------------------------------------------------- Berry Plastics Corp., 10.75% Sr. Sub. Nts., 7/15/12 800,000 884,000 - -------------------------------------------------------------------------------- Finova Group, Inc. (The), 7.50% Nts., 11/15/09 500,000 220,000 - -------------------------------------------------------------------------------- LaBranche & Co., Inc., 12% Sr. Unsec. Sub. Nts., 3/2/07 600,000 687,000 ------------- 2,185,000 - -------------------------------------------------------------------------------- Real Estate--1.5% Capstar Hotel Co., 8.75% Sr. Sub. Nts., 8/15/07 200,000 182,000 - -------------------------------------------------------------------------------- CB Richard Ellis Services, Inc., 11.25% Sr. Unsec. Sub. Nts., 6/15/11 1 300,000 323,250 - -------------------------------------------------------------------------------- Corrections Corp. of America: 7.50% Sr. Nts., 5/1/11 500,000 525,000 9.875% Sr. Nts., 5/1/09 500,000 560,625 - -------------------------------------------------------------------------------- Felcor Lodging LP: 9% Sr. Nts., 6/1/11 780,000 789,750 10% Sr. Unsec. Nts., 9/15/08 200,000 207,500 - -------------------------------------------------------------------------------- Felcor Suites LP, 7.375% Sr. Nts., 10/1/04 200,000 203,500 7 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Real Estate Continued HMH Properties, Inc., 7.875% Sr. Nts., Series B, 8/1/08 $ 1,750,000 $ 1,785,000 - -------------------------------------------------------------------------------- iStar Financial, Inc., 8.75% Sr. Unsec. Nts., 8/15/08 250,000 273,750 - -------------------------------------------------------------------------------- MeriStar Hospitality Corp., 9.125% Sr. Unsec. Nts., 1/15/11 400,000 394,000 - -------------------------------------------------------------------------------- Saul (B.F.) Real Estate Investment Trust, 9.75% Sr. Sec. Nts., Series B, 4/1/08 1,300,000 1,306,500 ------------- 6,550,875 - -------------------------------------------------------------------------------- Health Care--5.2% - -------------------------------------------------------------------------------- Health Care Equipment & Supplies--0.8% Alaris Medical, Inc., 7.25% Sr. Sub. Nts., 7/1/11 250,000 254,375 - -------------------------------------------------------------------------------- Dade Behring Holdings, Inc., 11.91% Sr. Unsec. Sub. Nts., 10/3/10 200,000 227,000 - -------------------------------------------------------------------------------- Fisher Scientific International, Inc., 8.125% Sr. Sub. Nts., 5/1/12 900,000 967,500 - -------------------------------------------------------------------------------- HMP Equity Holdings Corp., Units (each unit consists of $1,000 zero coupon sr. sec. disc. nts., 15.43%, 5/15/08 and one warrant to purchase 2.8094 shares of Huntsman Corp. common stock) 8,9 1,000,000 510,000 - -------------------------------------------------------------------------------- Kinetic Concepts, Inc., 9.625% Sr. Unsec. Sub. Nts., Series B, 11/1/07 1 400,000 418,000 - -------------------------------------------------------------------------------- Sybron Dental Specialties, Inc., 8.125% Sr. Sub. Nts., 6/15/12 700,000 742,000 - -------------------------------------------------------------------------------- Vanguard Health Systems, Inc., 9.75% Sr. Unsec. Sub. Nts., 8/1/11 500,000 500,000 ------------- 3,618,875 - -------------------------------------------------------------------------------- Health Care Providers & Services--4.4% Alderwoods Group, Inc., 12.25% Sr. Nts., 1/2/09 700,000 735,000 - -------------------------------------------------------------------------------- Alliance Imaging, Inc., 10.375% Sr. Unsec. Sub. Nts., 4/15/11 400,000 420,000 - -------------------------------------------------------------------------------- AmeriPath, Inc., 10.50% Sr. Sub. Nts., 4/1/13 3 700,000 754,250 - -------------------------------------------------------------------------------- AmerisourceBergen Corp., 7.25% Sr. Unsec. Nts., 11/15/12 200,000 218,000 - -------------------------------------------------------------------------------- Beverly Enterprises, Inc., 9.625% Sr. Unsec. Nts., 4/15/09 925,000 892,625 - -------------------------------------------------------------------------------- Extendicare Health Services, Inc., 9.50% Sr. Unsec. Sub. Nts., 7/1/10 500,000 527,500 - -------------------------------------------------------------------------------- Fresenius Medical Care Capital Trust II, 7.875% Nts., 2/1/08 1,600,000 1,688,000 - -------------------------------------------------------------------------------- Hanger Orthopedic Group, Inc., 10.375% Sr. Nts., 2/15/09 400,000 444,000 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Health Care Providers & Services Continued HCA, Inc.: 6.30% Sr. Unsec. Nts., 10/1/12 $ 300,000 $ 307,242 6.95% Sr. Nts., 5/1/12 1,000,000 1,067,438 7.875% Sr. Nts., 2/1/11 305,000 342,067 - -------------------------------------------------------------------------------- HCA-Healthcare Co. (The), 8.75% Sr. Nts., 9/1/10 400,000 466,585 - -------------------------------------------------------------------------------- Healthsouth Corp., 7.625% Nts., 6/1/12 4,5 1,250,000 975,000 - -------------------------------------------------------------------------------- InSight Health Services Corp., 9.875% Sr. Sub. Nts., 11/1/11 500,000 527,500 - -------------------------------------------------------------------------------- Magellan Health Services, Inc.: 9% Sr. Sub. Nts., 2/15/08 4,5 300,000 130,500 9.375% Sr. Nts., 11/15/07 3 2,000,000 2,010,000 - -------------------------------------------------------------------------------- Medquest, Inc., 11.875% Sr. Unsec. Sub. Nts., Series B, 8/15/12 700,000 731,500 - -------------------------------------------------------------------------------- NDCHealth Corp., 10.50% Sr. Sub. Nts., 12/1/12 3 600,000 646,500 - -------------------------------------------------------------------------------- PacifiCare Health Systems, Inc., 10.75% Sr. Unsec. Unsub. Nts., 6/1/09 1,100,000 1,267,750 - -------------------------------------------------------------------------------- Rotech Healthcare, Inc., 9.50% Sr. Unsec. Sub. Nts., 4/1/12 600,000 619,500 - -------------------------------------------------------------------------------- Select Medical Corp., 9.50% Sr. Unsec. Sub. Nts., 6/15/09 200,000 218,250 - -------------------------------------------------------------------------------- Stewart Enterprises, Inc., 10.75% Sr. Unsec. Sub. Nts., 7/1/08 1,800,000 2,016,000 - -------------------------------------------------------------------------------- Tenet Healthcare Corp., 6.375% Sr. Nts., 12/1/11 760,000 706,800 - -------------------------------------------------------------------------------- US Oncology, Inc., 9.625% Sr. Sub. Nts., 2/1/12 300,000 322,500 - -------------------------------------------------------------------------------- Vicar Operating, Inc., 9.875% Sr. Sub. Nts., 12/1/09 1 1,000,000 1,100,000 ------------- 19,134,507 - -------------------------------------------------------------------------------- Pharmaceuticals--0.0% aaiPharma, Inc., 11% Sr. Sub. Nts., 4/1/10 100,000 110,500 - -------------------------------------------------------------------------------- Industrials--9.7% - -------------------------------------------------------------------------------- Aerospace & Defense--1.3% Alliant Techsystems, Inc., 8.50% Sr. Unsec. Sub. Nts., 5/15/11 900,000 1,003,500 - -------------------------------------------------------------------------------- American Plumbing & Mechanical, Inc., 11.625% Sr. Sub. Nts., Series B, 10/15/08 500,000 167,500 - -------------------------------------------------------------------------------- K&F Industries, Inc., 9.625% Sr. Unsec. Sub. Nts., 12/15/10 300,000 334,500 - -------------------------------------------------------------------------------- L-3 Communications Corp., 7.625% Sr. Sub. Nts., 6/15/12 800,000 884,000 - -------------------------------------------------------------------------------- Rexnord Corp., 10.125% Sr. Sub. Nts., 12/15/12 3 700,000 773,500 - -------------------------------------------------------------------------------- TransDigm, Inc., 10.375% Sr. Sub. Nts., 12/1/08 400,000 435,572 8 OPPENHEIMER HIGH INCOME FUND/VA Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Aerospace & Defense Continued TRW Automotive, Inc.: 9.375% Sr. Nts., 2/15/13 3 $ 650,000 $ 708,500 11% Sr. Sub. Nts., 2/15/13 3 700,000 766,500 - -------------------------------------------------------------------------------- Vought Aircraft Industries, Inc., 8% Sr. Nts., 7/15/11 3 500,000 505,000 ------------- 5,578,572 - -------------------------------------------------------------------------------- Air Freight & Logistics--0.0% Atlas Air, Inc., 9.25% Sr. Nts., 4/15/08 4,5 500,000 108,125 - -------------------------------------------------------------------------------- Airlines--0.4% America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 1 1,000,000 565,000 - -------------------------------------------------------------------------------- Amtran, Inc., 10.50% Sr. Nts., 8/1/04 1,500,000 1,087,500 ------------- 1,652,500 - -------------------------------------------------------------------------------- Building Products--0.6% Associated Materials, Inc., 9.75% Sr. Sub. Nts., 4/15/12 700,000 767,375 - -------------------------------------------------------------------------------- Green Star Products, Inc., 10.15% Bonds, 6/24/10 3 339,340 359,777 - -------------------------------------------------------------------------------- Jacuzzi Brands, Inc., 9.625% Sr. Sec. Nts., 7/1/10 3,10 800,000 826,000 - -------------------------------------------------------------------------------- Nortek, Inc.: 9.125% Sr. Unsec. Nts., Series B, 9/1/07 1 200,000 210,000 9.875% Sr. Unsec. Sub. Nts., 6/15/11 1 400,000 423,000 ------------- 2,586,152 - -------------------------------------------------------------------------------- Commercial Services & Supplies--3.3% Allied Waste North America, Inc.: 7.875% Sr. Nts., 4/15/13 800,000 841,000 7.875% Sr. Unsec. Nts., Series B, 1/1/09 400,000 420,500 8.50% Sr. Sub. Nts., 12/1/08 1,000,000 1,080,000 8.875% Sr. Nts., Series B, 4/1/08 900,000 981,000 9.25% Sr. Nts., 9/1/12 3 2,800,000 3,101,000 10% Sr. Unsec. Sub. Nts., Series B, 8/1/09 400,000 427,000 - -------------------------------------------------------------------------------- American Color Graphics, Inc., 10% Sr. Sec. Nts., 6/15/10 3,10 400,000 400,000 - -------------------------------------------------------------------------------- American Pad & Paper Co., 13% Sr. Sub. Nts., Series B, 11/15/05 1,4,5 200,000 2,250 - -------------------------------------------------------------------------------- Budget Group, Inc., 9.125% Sr. Unsec. Nts., 4/1/06 1,4,5 900,000 212,625 - -------------------------------------------------------------------------------- Buhrmann US, Inc., 12.25% Sr. Unsec. Sub. Nts., 11/1/09 600,000 648,000 - -------------------------------------------------------------------------------- Coinmach Corp., 9% Sr. Nts., 2/1/10 800,000 860,000 - -------------------------------------------------------------------------------- Comforce Operating, Inc., 12% Sr. Nts., Series B, 12/1/07 1 350,000 169,750 - -------------------------------------------------------------------------------- Hydrochem Industrial Services, Inc., 10.375% Sr. Sub. Nts., 8/1/07 1 250,000 176,875 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Commercial Services & Supplies Continued IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09 1,4,5 $ 550,000 $ -- - -------------------------------------------------------------------------------- Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts., 2/15/09 750,000 759,375 - -------------------------------------------------------------------------------- Mail-Well I Corp., 9.625% Sr. Nts., 3/15/12 700,000 740,250 - -------------------------------------------------------------------------------- Moore North American Finance, Inc., 7.875% Sr. Nts., 1/15/11 3 400,000 419,000 - -------------------------------------------------------------------------------- Protection One, Inc./Protection One Alarm Monitoring, Inc., 7.375% Sr. Unsec. Nts., 8/15/05 900,000 742,500 - -------------------------------------------------------------------------------- Stericycle, Inc., 12.375% Sr. Unsec. Sub. Nts., Series B, 11/15/09 488,000 563,640 - -------------------------------------------------------------------------------- Synagro Technologies, Inc., 9.50% Sr. Sub. Nts., 4/1/09 700,000 752,500 - -------------------------------------------------------------------------------- United Rentals (North America), Inc.: 10.75% Sr. Nts., 4/15/08 3 400,000 439,000 10.75% Sr. Nts., 4/15/08 3 600,000 658,500 10.75% Sr. Unsec. Nts., 4/15/08 300,000 329,250 ------------- 14,724,015 - -------------------------------------------------------------------------------- Construction & Engineering--0.1% Integrated Electrical Services, Inc.: 9.375% Sr. Sub. Nts., Series B, 2/1/09 1 100,000 102,000 9.375% Sr. Sub. Nts., Series C, 2/1/09 100,000 102,000 - -------------------------------------------------------------------------------- URS Corp., 11.50% Sr. Unsec. Nts., 9/15/09 1 300,000 321,000 ------------- 525,000 - -------------------------------------------------------------------------------- Electrical Equipment--0.0% Dayton Superior Corp., 13% Sr. Unsec. Sub. Nts., 6/15/09 1 100,000 85,500 - -------------------------------------------------------------------------------- Industrial Conglomerates--1.3% Great Lakes Dredge & Dock Corp., 11.25% Sr. Unsec. Sub. Nts., 8/15/08 1,715,000 1,826,475 - -------------------------------------------------------------------------------- Norse CBO Ltd., 9.342% Sub. Bonds, Series 1A, Cl. C2, 8/13/10 1 1,500,000 577,500 - -------------------------------------------------------------------------------- Tyco International Group SA: 6.375% Nts., 10/15/11 2,900,000 3,074,000 6.75% Sr. Unsub. Nts., 2/15/11 100,000 106,500 ------------- 5,584,475 - -------------------------------------------------------------------------------- Machinery--1.6% Actuant Corp., 13% Sr. Sub. Nts., 5/1/09 378,000 444,150 - -------------------------------------------------------------------------------- AGCO Corp., 9.50% Sr. Unsec. Nts., 5/1/08 1,000,000 1,085,000 - -------------------------------------------------------------------------------- Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 650,000 555,750 - -------------------------------------------------------------------------------- Eagle-Picher Industries, Inc., 9.375% Sr. Unsec. Sub. Nts., 3/1/08 850,000 799,000 9 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Machinery Continued Insilco Corp., 12% Sr. Sub. Nts., 8/15/07 1,4,5 $ 1,200,000 $ 22,500 - -------------------------------------------------------------------------------- Manitowoc Co., Inc. (The), 10.50% Sr. Sub. Nts., 8/1/12 800,000 892,000 - -------------------------------------------------------------------------------- NMHG Holding Co., 10% Sr. Nts., 5/15/09 600,000 663,000 - -------------------------------------------------------------------------------- Roller Bearing Co. of America, Inc., 9.625% Sr. Sub. Nts., Series B, 6/15/07 560,000 478,800 - -------------------------------------------------------------------------------- SPX Corp., 7.50% Sr. Nts., 1/1/13 900,000 978,750 - -------------------------------------------------------------------------------- Terex Corp.: 8.875% Sr. Unsec. Sub. Nts., 4/1/08 510,000 532,950 9.25% Sr. Unsec. Sub. Nts., 7/15/11 800,000 864,000 ------------- 7,315,900 - -------------------------------------------------------------------------------- Marine--0.7% CP Ships Ltd., 10.375% Sr. Nts., 7/15/12 1,000,000 1,121,250 - -------------------------------------------------------------------------------- Millenium Seacarriers, Inc., 12% Sr. Sec. Nts., 7/15/05 1,4,5 700,000 315,000 - -------------------------------------------------------------------------------- Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07 1,4,5 1,000,000 325,000 - -------------------------------------------------------------------------------- Pacific & Atlantic Holdings, Inc., 10.50% Sec. Nts., 12/31/07 3 368,171 130,701 - -------------------------------------------------------------------------------- Sea Containers Ltd., 7.875% Sr. Nts., 2/15/08 1,500,000 1,200,000 ------------- 3,091,951 - -------------------------------------------------------------------------------- Road & Rail--0.3% Kansas City Southern Railway Co. (The), 7.50% Sr. Nts., 6/15/09 500,000 520,625 - -------------------------------------------------------------------------------- Stena AB, 9.625% Sr. Nts., 12/1/12 600,000 662,250 ------------- 1,182,875 - -------------------------------------------------------------------------------- Transportation Infrastructure--0.1% Worldspan LP/Worldspan Financial Corp., 9.625% Sr. Nts., 6/15/11 3 350,000 362,250 - -------------------------------------------------------------------------------- Information Technology--2.6% - -------------------------------------------------------------------------------- Communications Equipment--0.1% Orion Network Systems, Inc., 12.50% Sr. Disc. Nts., 1/15/07 4 1,150,000 398,475 - -------------------------------------------------------------------------------- Computers & Peripherals--0.2% Seagate Technology Hdd Holdings, 8% Sr. Nts., 5/15/09 900,000 978,750 - -------------------------------------------------------------------------------- Electronic Equipment & Instruments--0.6% Flextronics International Ltd., 9.875% Sr. Unsec. Sub. Nts., 7/1/10 700,000 770,000 - -------------------------------------------------------------------------------- Ingram Micro, Inc., 9.875% Sr. Unsec. Sub. Nts., 8/15/08 1 1,200,000 1,302,000 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Electronic Equipment & Instruments Continued Xerox Capital plc (Europe), 5.875% Nts., 5/15/04 $ 400,000 $ 404,000 ------------- 2,476,000 - -------------------------------------------------------------------------------- Internet Software & Services--0.0% Exodus Communications, Inc., 10.75% Sr. Nts., 12/15/09 1,4,5 [EUR] 866,302 44,767 - -------------------------------------------------------------------------------- FirstWorld Communications, Inc., 0%/13% Sr. Disc. Nts., 4/15/08 1,4,5,6 500,000 50 - -------------------------------------------------------------------------------- Globix Corp., 11% Sr. Nts., 4/26/08 1 109,359 82,566 - -------------------------------------------------------------------------------- PSINet, Inc.: 10.50% Sr. Unsec. Nts., 12/1/06 1,4,5 [EUR] 1,000,000 57,417 11% Sr. Nts., 8/1/09 4,5 919,282 63,201 ------------- 248,001 - -------------------------------------------------------------------------------- IT Services--0.6% Iron Mountain, Inc.: 7.75% Sr. Sub. Nts., 1/15/15 500,000 531,250 8.625% Sr. Unsec. Sub. Nts., 4/1/13 1,600,000 1,720,000 - -------------------------------------------------------------------------------- Titan Corp. (The), 8% Sr. Sub. Nts., 5/15/11 3 400,000 426,000 ------------- 2,677,250 - -------------------------------------------------------------------------------- Office Electronics--0.1% ASAT Finance LLC, 12.50% Sr. Unsec. Nts., 11/1/06 1 325,000 281,125 - -------------------------------------------------------------------------------- Xerox Corp., 7.15% Nts., 8/1/04 200,000 204,000 ------------- 485,125 - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment--1.0% AMI Semiconductor, Inc., 10.75% Sr. Sub. Nts., 2/1/13 3 1,000,000 1,135,000 - -------------------------------------------------------------------------------- Amkor Technology, Inc.: 7.75% Sr. Nts., 5/15/13 3 800,000 764,000 9.25% Sr. Unsec. Sub. Nts., 2/15/08 1,000,000 1,045,000 - -------------------------------------------------------------------------------- ChipPAC International Co. Ltd., 12.75% Sr. Unsec. Sub. Nts., Series B, 8/1/09 500,000 565,000 - -------------------------------------------------------------------------------- Fairchild Semiconductor Corp., 10.375% Sr. Unsec. Nts., 10/1/07 850,000 898,348 ------------- 4,407,348 - -------------------------------------------------------------------------------- Materials--11.0% - -------------------------------------------------------------------------------- Chemicals--3.5% Applied Extrusion Technologies, Inc., 10.75% Sr. Nts., Series B, 7/1/11 450,000 333,000 - -------------------------------------------------------------------------------- ClimaChem, Inc., 10.75% Sr. Unsec. Nts., Series B, 12/1/07 1 250,000 101,250 - -------------------------------------------------------------------------------- Compass Minerals Group, Inc., 10% Sr. Sub. Nts., 8/15/11 1,200,000 1,350,000 10 OPPENHEIMER HIGH INCOME FUND/VA Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Chemicals Continued Equistar Chemicals LP/ Equistar Funding Corp.: 8.75% Sr. Unsec. Nts., 2/15/09 $ 600,000 $ 585,000 10.625% Sr. Nts., 5/1/11 3 800,000 824,000 - -------------------------------------------------------------------------------- Huntsman Corp./ ICI Chemical Co. plc: Zero Coupon Sr. Unsec. Disc. Nts., 13.09%, 12/31/09 9 400,000 158,000 10.125% Sr. Unsec. Sub. Nts., 7/1/09 [EUR] 100,000 105,935 10.125% Sr. Unsec. Sub. Nts., 7/1/09 1,800,000 1,737,000 - -------------------------------------------------------------------------------- Huntsman International LLC, 9.875% Sr. Nts., 3/1/09 1,800,000 1,881,000 - -------------------------------------------------------------------------------- IMC Global, Inc., 7.625% Bonds, 11/1/05 200,000 213,000 - -------------------------------------------------------------------------------- ISP Chemco, Inc., 10.25% Sr. Unsec. Sub. Nts., 7/1/11 500,000 567,500 - -------------------------------------------------------------------------------- ISP Holdings, Inc., 10.625% Sr. Sec. Nts., 12/15/09 300,000 320,250 - -------------------------------------------------------------------------------- Lyondell Chemical Co.: 9.50% Sec. Nts., 12/15/08 500,000 477,500 9.50% Sr. Sec. Debs., 12/15/083 100,000 95,500 9.625% Sr. Sec. Nts., Series A, 5/1/07 900,000 886,500 9.875% Sec. Nts., Series B, 5/1/07 2,100,000 2,068,500 10.875% Sr. Sub. Nts., 5/1/09 800,000 748,000 - -------------------------------------------------------------------------------- Millennium America, Inc., 9.25% Sr. Nts., 6/15/08 3 800,000 864,000 - -------------------------------------------------------------------------------- Noveon, Inc., 11% Sr. Unsec. Sub. Nts., Series B, 2/28/11 1 1,200,000 1,368,000 - -------------------------------------------------------------------------------- OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11 100,000 98,000 - -------------------------------------------------------------------------------- PCI Chemicals Canada, 10% Sr. Sec. Nts., 12/31/08 319,909 279,121 - -------------------------------------------------------------------------------- Pioneer Cos., Inc., 4.60% Sr. Sec. Nts., 12/31/06 2 101,304 86,615 - -------------------------------------------------------------------------------- Sterling Chemicals, Inc.: 10% Sr. Sec. Nts., 12/19/07 1 383,491 356,167 11.25% Sr. Sub. Nts., 8/15/06 4,5 300,000 -- 11.75% Sr. Unsec. Sub. Nts., 8/15/06 4,5 300,000 -- ------------- 15,503,838 - -------------------------------------------------------------------------------- Construction Materials--0.2% Texas Industries, Inc., 10.25% Sr. Nts., 6/15/11 3 800,000 840,000 - -------------------------------------------------------------------------------- Containers & Packaging--3.6% Ball Corp.: 6.875% Sr. Unsec. Nts., 12/15/12 3 300,000 319,500 7.75% Sr. Unsec. Nts., 8/1/06 700,000 770,000 8.25% Sr. Unsec. Sub. Nts., 8/1/08 800,000 844,000 - -------------------------------------------------------------------------------- Crown Euro Holdings SA, 9.50% Sr. Sec. Nts., 3/1/11 3 900,000 976,500 - -------------------------------------------------------------------------------- Graphic Packaging Corp., 8.625% Sub. Nts., 2/15/12 1,000,000 1,025,000 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Containers & Packaging Continued Jefferson Smurfit Corp., 8.25% Sr. Unsec. Nts., 10/1/12 $ 800,000 $ 862,000 - -------------------------------------------------------------------------------- MDP Acquisitions plc, 9.625% Sr. Nts., 10/1/12 800,000 888,000 - -------------------------------------------------------------------------------- Owens-Brockway Glass Container, Inc.: 7.75% Sr. Sec. Nts., 5/15/11 3 1,000,000 1,062,500 8.25% Sr. Unsec. Nts., 5/15/13 3 500,000 525,000 8.75% Sr. Sec. Nts., 11/15/12 1,350,000 1,471,500 8.875% Sr. Sec. Nts., 2/15/09 1,300,000 1,417,000 - -------------------------------------------------------------------------------- Packaging Corp. of America, 9.625% Sr. Unsec. Sub. Nts., 4/1/09 500,000 553,125 - -------------------------------------------------------------------------------- Riverwood International Corp.: 10.625% Sr. Unsec. Nts., 8/1/07 500,000 521,250 10.875% Sr. Sub. Nts., 4/1/08 500,000 515,000 - -------------------------------------------------------------------------------- Stone Container Corp.: 8.375% Sr. Nts., 7/1/12 900,000 969,750 9.25% Sr. Unsec. Nts., 2/1/08 1,000,000 1,095,000 9.75% Sr. Unsec. Nts., 2/1/11 1,000,000 1,100,000 - -------------------------------------------------------------------------------- TriMas Corp., 9.875% Sr. Unsec. Sub. Nts., 6/15/12 1,000,000 1,030,000 ------------- 15,945,125 - -------------------------------------------------------------------------------- Metals & Mining--2.4% AK Steel Corp.: 7.75% Sr. Unsec. Nts., 6/15/12 1,400,000 1,169,000 7.875% Sr. Unsec. Nts., 2/15/09 300,000 256,500 - -------------------------------------------------------------------------------- Arch Western Finance LLC, 6.75% Sr. Nts., 7/1/13 3 800,000 824,000 - -------------------------------------------------------------------------------- California Steel Industries Corp., 8.50% Sr. Unsec. Nts., Series B, 4/1/09 300,000 306,000 - -------------------------------------------------------------------------------- Century Aluminum Co., 11.75% Sr. Sec. Nts., 4/15/08 885,000 907,125 - -------------------------------------------------------------------------------- Great Lakes Carbon Corp., 10.25% Sr. Sub. Nts., Series B, 5/15/08 579,000 495,045 - -------------------------------------------------------------------------------- IPSCO, Inc., 8.75% Sr. Nts., 6/1/13 3 300,000 307,500 - -------------------------------------------------------------------------------- Jorgensen (Earle M.) Co., 9.75% Sr. Sec. Nts., 6/1/12 1 800,000 852,000 - -------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp.: 10.875% Sr. Nts., Series B, 10/15/06 1,4,5 1,000,000 785,000 12.75% Sr. Sub. Nts., 2/1/04 1,4,5 1,200,000 75,000 - -------------------------------------------------------------------------------- Metallurg, Inc., 11% Sr. Nts., 12/1/07 740,000 403,300 - -------------------------------------------------------------------------------- National Steel Corp., 9.875% First Mtg. Bonds, Series D, 3/1/09 4,5 642,808 38,568 - -------------------------------------------------------------------------------- Northwest Pipeline Corp., 8.125% Sr. Nts., 3/1/10 200,000 216,000 - -------------------------------------------------------------------------------- Oregon Steel Mills, Inc., 10% Sr. Nts., 7/15/09 800,000 724,000 11 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Metals & Mining Continued Peabody Energy Corp., 6.875% Sr. Nts., 3/15/13 3 $ 1,000,000 $ 1,052,500 - -------------------------------------------------------------------------------- Steel Dynamics, Inc., 9.50% Sr. Nts., 3/15/09 400,000 421,000 - -------------------------------------------------------------------------------- UCAR Finance, Inc., 10.25% Sr. Nts., 2/15/12 400,000 394,000 - -------------------------------------------------------------------------------- United States Steel Corp.: 9.75% Sr. Nts., 5/15/10 800,000 816,000 10.75% Sr. Nts., 8/1/08 600,000 633,000 ------------- 10,675,538 - -------------------------------------------------------------------------------- Paper & Forest Products--1.3% Abitibi-Consolidated, Inc., 8.55% Nts., 8/1/10 300,000 336,591 - -------------------------------------------------------------------------------- Ainsworth Lumber Co. Ltd.: 12.50% Sr. Nts., 7/15/07 7 400,000 454,000 13.875% Sr. Sec. Nts., 7/15/07 1 250,000 285,000 - -------------------------------------------------------------------------------- Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 1,4,5 2,000,000 440,000 - -------------------------------------------------------------------------------- Georgia-Pacific Corp.: 8.125% Sr. Unsec. Nts., 5/15/11 1,200,000 1,239,000 9.375% Sr. Nts., 2/1/13 3 1,600,000 1,772,000 - -------------------------------------------------------------------------------- Louisiana-Pacific Corp., 10.875% Sr. Sub. Nts., 11/15/08 1 250,000 286,250 - -------------------------------------------------------------------------------- Tembec Industries, Inc., 7.75% Sr. Nts., 3/15/12 700,000 682,500 - -------------------------------------------------------------------------------- U.S. Timberlands Co. LP, 9.625% Sr. Nts., 11/15/07 300,000 174,750 ------------- 5,670,091 - -------------------------------------------------------------------------------- Telecommunication Services--8.4% - -------------------------------------------------------------------------------- Diversified Telecommunication Services--3.0% 360networks, Inc.: 13% Sr. Unsec. Nts., 5/1/08 1,4,5 400,000 40 13% Sr. Unsec. Nts., 5/1/08 1,4,5 [EUR] 500,000 57 - -------------------------------------------------------------------------------- American Tower Corp., 9.375% Sr. Nts., 2/1/09 550,000 555,500 - -------------------------------------------------------------------------------- COLO.com, Inc., 13.875% Sr. Nts., 3/15/10 1,4,5 517,087 5,171 - -------------------------------------------------------------------------------- Concentric Network Corp., Escrow Shares, 12/15/07 4,5 800,000 -- - -------------------------------------------------------------------------------- Dex Media East LLC/Dex Media East Finance Co., 9.875% Sr. Unsec. Nts., 11/15/09 800,000 896,000 - -------------------------------------------------------------------------------- Diamond Holdings plc, 9.125% Sr. Nts., 2/1/08 200,000 186,250 - -------------------------------------------------------------------------------- Focal Communications Corp., 11.875% Sr. Unsec. Nts., Series B, 1/15/10 1,4,5 100,000 6,000 - -------------------------------------------------------------------------------- Intermedia Communications, Inc., 0%/12.25% Sr. Disc. Nts., Series B, 3/1/09 4,5,6 200,000 64,000 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Diversified Telecommunication Services Continued IPC Acquisition Corp., 11.50% Sr. Sub. Nts., 12/15/09 $ 350,000 $ 372,750 - -------------------------------------------------------------------------------- Level 3 Communications, Inc.: 0%/10.50% Sr. Disc. Nts., 12/1/08 6 200,000 173,500 9.125% Sr. Unsec. Nts., 5/1/08 1,900,000 1,710,000 - -------------------------------------------------------------------------------- Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts., Series B, 11/15/08 4,5 600,000 38,250 - -------------------------------------------------------------------------------- Nextlink Communications, Inc.: Escrow Shares, 10/1/07 4,5 500,000 -- Escrow Shares, 11/15/08 4,5 200,000 -- Escrow Shares, 3/15/08 4,5 800,000 -- Escrow Shares, 6/1/09 4,5 500,000 -- - -------------------------------------------------------------------------------- NorthPoint Communications Group, Inc., 12.875% Nts., 2/15/10 4,5 300,000 52,500 - -------------------------------------------------------------------------------- Qwest Capital Funding, Inc.: 5.875% Nts., 8/3/04 1,400,000 1,347,500 7.75% Nts., 8/15/06 500,000 467,500 - -------------------------------------------------------------------------------- Qwest Communications International, Inc., 7.50% Sr. Unsec. Nts., Series B, 11/1/08 900,000 837,000 - -------------------------------------------------------------------------------- Qwest Corp.: 7.20% Unsec. Nts., 11/1/04 400,000 412,000 8.875% Nts., 3/15/12 3 1,600,000 1,796,000 - -------------------------------------------------------------------------------- Qwest Services Corp., 13.50% Nts., 12/15/10 3 1,000,000 1,135,000 - -------------------------------------------------------------------------------- Sprint Capital Corp., 8.375% Nts., 3/15/12 1,050,000 1,259,600 - -------------------------------------------------------------------------------- Telewest Communications plc: 0%/9.25% Sr. Disc. Nts., 4/15/09 4,5,6 1,000,000 317,500 0%/9.875% Sr. Disc. Nts., 4/15/09 1,4,5,6 [GBP] 500,000 253,711 11.25% Sr. Nts., 11/1/08 4,5 800,000 294,000 - -------------------------------------------------------------------------------- Teligent, Inc., 11.50% Sr. Nts., 12/1/07 1,4,5 400,000 -- - -------------------------------------------------------------------------------- Time Warner Telecom LLC/ Time Warner Telecom, Inc., 9.75% Sr. Nts., 7/15/08 1,100,000 1,067,000 - -------------------------------------------------------------------------------- Time Warner Telecom, Inc., 10.125% Sr. Unsec. Sub. Nts., 2/1/11 200,000 194,000 - -------------------------------------------------------------------------------- Viatel, Inc., 11.25% Sr. Sec. Nts., 4/15/08 1,4,5 600,000 -- - -------------------------------------------------------------------------------- Winstar Communications, Inc., 12.75% Sr. Nts., 4/15/10 1,4,5 1,000,000 100 ------------- 13,440,929 - -------------------------------------------------------------------------------- Wireless Telecommunication Services--5.4% Alamosa Delaware, Inc., 12.50% Sr. Unsec. Nts., 2/1/11 1,000,000 825,000 - -------------------------------------------------------------------------------- American Cellular Corp., 9.50% Sr. Sub. Nts., 10/15/09 4 800,000 404,000 12 OPPENHEIMER HIGH INCOME FUND/VA Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Wireless Telecommunication Services Continued American Tower Escrow Corp., Zero Coupon Sr. Sub. Disc. Nts., 12.25%, 8/1/08 9 $ 1,400,000 $ 910,000 - -------------------------------------------------------------------------------- CellNet Data Systems, Inc., 14% Sr. Unsec. Disc. Nts., 10/1/07 1,4,5 1,834,000 -- - -------------------------------------------------------------------------------- Centennial Cellular Operating Co./ Centennial Communications Corp., 10.125% Sr. Nts., 6/15/13 3 1,200,000 1,194,000 - -------------------------------------------------------------------------------- Crown Castle International Corp.: 0%/10.375% Sr. Disc. Nts., 5/15/11 6 1,400,000 1,344,000 10.625% Sr. Unsec. Disc. Nts., 11/15/07 940,000 994,050 10.75% Sr. Nts., 8/1/11 1,350,000 1,478,250 - -------------------------------------------------------------------------------- CTI Holdings SA, 0%/11.50% Sr. Deferred Coupon Nts., 4/15/08 1,4,5,6 1,000,000 115,000 - -------------------------------------------------------------------------------- Dobson Communications Corp., 10.875% Sr. Unsec. Nts., 7/1/10 500,000 542,500 - -------------------------------------------------------------------------------- IPCS, Inc., 0%/14% Sr. Unsec. Disc. Nts., 7/15/10 1,4,5,6 350,000 19,250 - -------------------------------------------------------------------------------- Leap Wireless International, Inc.: 0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 1,4,5,6 400,000 38,000 12.50% Sr. Nts., 4/15/10 1,4 400,000 54,000 - -------------------------------------------------------------------------------- Nextel Communications, Inc.: 9.375% Sr. Unsec. Nts., 11/15/09 4,550,000 4,908,312 10.65% Sr. Disc. Nts., 9/15/07 500,000 518,750 12% Sr. Unsec. Nts., 11/1/08 250,000 270,000 - -------------------------------------------------------------------------------- Nextel Partners, Inc.: 8.125% Sr. Nts., 7/1/11 3 300,000 300,750 11% Sr. Nts., 3/15/10 300,000 325,500 12.50% Sr. Nts., 11/15/09 1,700,000 1,921,000 - -------------------------------------------------------------------------------- Omnipoint Corp., 11.50% Sr. Nts., 9/15/09 3 1,500,000 1,760,625 - -------------------------------------------------------------------------------- Orbcomm Global LP, Escrow Shares, 8/15/04 4,5 600,000 -- - -------------------------------------------------------------------------------- Rural Cellular Corp.: 9.625% Sr. Sub. Nts., Series B, 5/15/08 950,000 845,500 9.75% Sr. Sub. Nts., 1/15/10 500,000 445,000 - -------------------------------------------------------------------------------- SBA Communications Corp.: 10.25% Sr. Unsec. Nts., 2/1/09 200,000 185,000 12% Sr. Unsec. Disc. Nts., 3/1/08 1,850,000 1,900,875 - -------------------------------------------------------------------------------- SpectraSite, Inc., 8.25% Sr. Nts., 5/15/10 3 400,000 418,000 - -------------------------------------------------------------------------------- Triton PCS, Inc.: 8.50% Sr. Nts., 6/1/13 3 800,000 864,000 8.75% Sr. Unsec. Sub. Nts., 11/15/11 300,000 300,750 9.375% Sr. Unsec. Sub. Nts., 2/1/11 500,000 513,750 - -------------------------------------------------------------------------------- US Unwired, Inc., 0%/13.375% Sr. Unsec. Sub. Disc. Nts., Series B, 11/1/09 6 800,000 332,000 ------------- 23,727,862 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Utilities--9.8% - -------------------------------------------------------------------------------- Electric Utilities--4.4% AES Corp. (The): 8.75% Sr. Sec. Nts., 5/15/13 3 $ 2,200,000 $ 2,299,000 8.75% Sr. Unsec. Unsub. Nts., 6/15/08 451,000 448,745 8.875% Sr. Unsec. Nts., 2/15/11 144,000 141,480 9.375% Sr. Unsec. Nts., 9/15/10 252,000 254,520 9.50% Sr. Unsec. Nts., 6/1/09 58,000 58,870 10% Sec. Nts., 7/15/05 3 600,000 625,500 10.25% Sr. Unsec. Sub. Nts., 7/15/06 800,000 796,000 - -------------------------------------------------------------------------------- AES Drax Holdings Ltd., 10.41% Sr. Sec. Sub. Nts., Series B, 12/31/20 1 300,000 195,000 - -------------------------------------------------------------------------------- Allegheny Energy, Inc., 7.75% Nts., 8/1/05 300,000 301,500 - -------------------------------------------------------------------------------- Caithness Coso Funding Corp., 9.05% Sr. Sec. Nts., Series B, 12/15/09 445,792 476,997 - -------------------------------------------------------------------------------- Calpine Corp.: 8.25% Sr. Unsec. Nts., 8/15/05 400,000 374,000 8.50% Sr. Unsec. Nts., 2/15/11 4,100,000 3,095,500 8.625% Sr. Nts., 8/15/10 200,000 151,000 8.75% Sr. Nts., 7/15/07 400,000 329,000 - -------------------------------------------------------------------------------- CMS Energy Corp.: 7.50% Sr. Nts., 1/15/09 300,000 298,125 9.875% Sr. Unsec. Nts., 10/15/07 1,400,000 1,499,750 - -------------------------------------------------------------------------------- CMS Energy X-TRAS Pass-Through Trust I, 7% Sr. Unsec. Pass-Through Certificates, 1/15/05 500,000 494,375 - -------------------------------------------------------------------------------- CMS Panhandle Holding Co.: 6.125% Sr. Nts., 3/15/04 1,325,000 1,359,781 7% Sr. Nts., 7/15/29 985,000 1,041,638 - -------------------------------------------------------------------------------- Edison Mission Energy, 10% Sr. Unsec. Nts., 8/15/08 200,000 190,000 - -------------------------------------------------------------------------------- ESI Tractebel Acquisition Corp., 7.99% Sec. Bonds, Series B, 12/30/11 1 942,000 947,888 - -------------------------------------------------------------------------------- FirstEnergy Corp., 7.375% Sr. Unsub. Nts., Series C, 11/15/31 1,000,000 1,124,294 - -------------------------------------------------------------------------------- Mirant Americas Generation LLC, 8.30% Sr. Unsec. Nts., 5/1/11 4 200,000 125,000 - -------------------------------------------------------------------------------- MSW Energy Holdings LLC/ MSW Energy Finance Co., Inc., 8.50% Sr. Sec. Nts., 9/1/10 3 400,000 413,000 - -------------------------------------------------------------------------------- Panhandle Eastern Pipe Line Co., 8.25% Sr. Nts., Series B, 4/1/10 200,000 239,000 - -------------------------------------------------------------------------------- PG&E Corp., 6.875% Sr. Sec. Nts., 7/15/08 3 800,000 832,000 - -------------------------------------------------------------------------------- Reliant Resources, Inc.: 9.25% Sr. Sec. Nts., 7/15/10 3 600,000 603,750 9.50% Sr. Sec. Nts., 7/15/13 3 600,000 606,000 ------------- 19,321,713 13 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Gas Utilities--2.8% AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 8.875% Sr. Unsec. Nts., Series B, 5/20/11 11 $ 1,400,000 $ 1,533,000 - -------------------------------------------------------------------------------- ANR Pipeline, Inc., 8.875% Sr. Nts., 3/15/10 3 400,000 439,000 - -------------------------------------------------------------------------------- El Paso Corp., 7.875% Nts., 6/15/12 3 1,200,000 1,117,500 - -------------------------------------------------------------------------------- El Paso Energy Corp., 7.625% Nts., 7/15/11 800,000 732,000 - -------------------------------------------------------------------------------- SEMCO Energy, Inc.: 7.125% Sr. Nts., 5/15/08 3 400,000 420,000 7.75% Sr. Nts., 5/15/13 3 400,000 428,000 - -------------------------------------------------------------------------------- Southern Natural Gas Co.: 7.35% Nts., 2/15/31 600,000 613,500 8% Sr. Unsub. Nts., 3/1/32 900,000 977,625 8.875% Sr. Nts., 3/15/10 3 700,000 766,500 - -------------------------------------------------------------------------------- Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 2,365,000 2,441,862 - -------------------------------------------------------------------------------- Williams Cos., Inc. (The), 7.125% Nts., 9/1/11 2,850,000 2,793,000 ------------- 12,261,987 - -------------------------------------------------------------------------------- Multi-Utilities & Unregulated Power--2.5% AES Red Oak LLC, 8.54% Sr. Sec. Bonds, Series A, 11/30/19 1,083,539 1,135,007 - -------------------------------------------------------------------------------- Aquila, Inc., 7% Sr. Unsec. Nts., 7/15/04 300,000 285,375 - -------------------------------------------------------------------------------- Consumers Energy Co.: 6.25% Nts., 9/15/06 300,000 333,317 6.375% Sr. Sec. Nts., 2/1/08 450,000 503,161 7.375% Nts., 9/15/23 350,000 365,686 - -------------------------------------------------------------------------------- Dynegy Holdings, Inc.: 6.875% Sr. Unsec. Unsub. Nts., 4/1/11 3,540,000 2,991,300 8.125% Sr. Unsec. Unsub. Nts., 3/15/05 300,000 293,250 8.75% Sr. Nts., 2/15/12 600,000 561,000 - -------------------------------------------------------------------------------- El Paso Production Holding Co., 7.75% Sr. Nts., 6/1/13 3 1,100,000 1,102,750 - -------------------------------------------------------------------------------- Mirant Mid-Atlantic LLC, 8.625% Sec. Pass-Through Certificates, Series A, 6/30/12 868,851 835,915 - -------------------------------------------------------------------------------- Transcontinental Gas Pipe Line Corp.: 6.125% Nts., 1/15/05 200,000 201,000 8.875% Sr. Unsub. Nts., Series B, 7/15/12 200,000 227,000 - -------------------------------------------------------------------------------- Williams Cos., Inc. (The): 8.625% Sr. Nts., 6/1/10 800,000 840,000 9.25% Sr. Unsec. Unsub. Nts., 3/15/04 1,200,000 1,236,000 - -------------------------------------------------------------------------------- Williams Holdings of Delaware, Inc., 6.50% Nts., 12/1/08 300,000 294,000 ------------- 11,204,761 Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Water Utilities--0.1% National Waterworks, Inc., 10.50% Sr. Unsec. Sub. Nts., Series B, 12/1/12 1 $ 300,000 $ 333,375 ------------- Total Corporate Bonds and Notes (Cost $364,412,705) 367,795,046 Shares - -------------------------------------------------------------------------------- Preferred Stocks--0.7% - -------------------------------------------------------------------------------- AmeriKing, Inc., 13% Cum. Sr. Exchangeable, Non-Vtg. 1,7 13,764 138 - -------------------------------------------------------------------------------- Dobson Communications Corp., 12.25% Sr. Exchangeable, Non-Vtg. 7 1 992 - -------------------------------------------------------------------------------- e.spire Communications, Inc., 12.75% Jr. Redeemable, Non-Vtg. 1,5,7 498 50 - -------------------------------------------------------------------------------- Eagle-Picher Holdings, Inc., 11.75% Cum. Exchangeable, Series B, Non-Vtg. 1,5 8,000 354,000 - -------------------------------------------------------------------------------- Global Crossing Holdings Ltd., 10.50% Sr. Exchangeable, Non-Vtg. 1,5,7 7,893 -- - -------------------------------------------------------------------------------- ICG Holdings, Inc., 14.25% Exchangeable, Non-Vtg. 1,5,7 342 3 - -------------------------------------------------------------------------------- McLeodUSA, Inc., 2.50% Cv., Series A 5 3,258 23,588 - -------------------------------------------------------------------------------- Nebco Evans Holdings, Inc., 11.25% Sr. Redeemable Exchangeable, Non-Vtg. 1,7 7,274 -- - -------------------------------------------------------------------------------- Nextel Communications, Inc., 13% Cum., Series D, Non-Vtg. 7 2 213 - -------------------------------------------------------------------------------- NTL Europe, Inc., 10% Nts., Series A, Non-Vtg. 1,5 24 48 - -------------------------------------------------------------------------------- Pacific & Atlantic Holdings, Inc., 7.50% Cum. Cv., Series A 1,7 18,905 37,810 - -------------------------------------------------------------------------------- Paxson Communications Corp., 13.25% Cum. Jr. Exchangeable, Non-Vtg. 7 75 740,625 - -------------------------------------------------------------------------------- Rural Cellular Corp., 11.375% Cum., Series B, Non-Vtg. 7 1,178 745,085 - -------------------------------------------------------------------------------- Sovereign Real Estate Investment Trust, 12% Non-Cum., Series A 1 10,000 1,452,500 - -------------------------------------------------------------------------------- XO Communications, Inc., 13.50% Sr., Series E, Non-Vtg. 7 1 -- ------------- Total Preferred Stocks (Cost $5,642,482) 3,355,052 - -------------------------------------------------------------------------------- Common Stocks--0.6% - -------------------------------------------------------------------------------- Charles River Laboratories International, Inc. 5 8,360 269,025 - -------------------------------------------------------------------------------- Chesapeake Energy Corp. 100,909 1,019,181 - -------------------------------------------------------------------------------- Covad Communications Group, Inc. 5 20,660 20,867 - -------------------------------------------------------------------------------- Equinix, Inc. 5 16,431 128,983 - -------------------------------------------------------------------------------- Geotek Communications, Inc. 1,5 226 -- - -------------------------------------------------------------------------------- Globix Corp. 1,5 11,467 31,534 - -------------------------------------------------------------------------------- 14 OPPENHEIMER HIGH INCOME FUND/VA Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Common Stocks Continued - -------------------------------------------------------------------------------- Gulfstream Holding, Inc. 1,5 56 $ -- - -------------------------------------------------------------------------------- ICO Global Communication Holdings Ltd. 1,5 42,107 35,791 - -------------------------------------------------------------------------------- Manitowoc Co., Inc. (The) 1,039 23,170 - -------------------------------------------------------------------------------- Microcell Telecommunications, Inc. 5 1,861 15,922 - -------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. A 5 15 130 - -------------------------------------------------------------------------------- Microcell Telecommunications, Inc., Cl. B 5 1,850 14,466 - -------------------------------------------------------------------------------- NTL, Inc. 5 18,902 644,936 - -------------------------------------------------------------------------------- Orbital Sciences Corp. 5 1,370 10,001 - -------------------------------------------------------------------------------- Pioneer Cos., Inc. 5 20,688 75,511 - -------------------------------------------------------------------------------- Polymer Group, Inc., Cl. A 1,5 20,634 136,700 - -------------------------------------------------------------------------------- Prandium, Inc. 5 62,829 35,184 - -------------------------------------------------------------------------------- Southern Pacific Funding Corp., Liquidating Trust 1 251,604 -- - -------------------------------------------------------------------------------- Sterling Chemicals, Inc. 5 375 6,375 - -------------------------------------------------------------------------------- TVMAX Holdings, Inc. 1,5 7,500 15,937 - -------------------------------------------------------------------------------- Viatel Holding Ltd. (Bermuda) 1,5 2,349 1,175 - -------------------------------------------------------------------------------- WRC Media Corp. 1,5 1,353 27 - -------------------------------------------------------------------------------- XO Communications, Inc. 5 2,646 19,184 ------------- Total Common Stocks (Cost $4,110,610) 2,504,099 Units - -------------------------------------------------------------------------------- Rights, Warrants and Certificates--0.1% - -------------------------------------------------------------------------------- American Tower Corp. Wts., Exp. 8/1/08 1,5 1,400 144,200 - -------------------------------------------------------------------------------- ASAT Finance LLC Wts., Exp. 11/1/06 1,5 500 875 - -------------------------------------------------------------------------------- Chesapeake Energy Corp. Wts., Exp. 9/1/04 5 2,671 602 - -------------------------------------------------------------------------------- Citigroup, Inc. Wts., Exp. 12/31/50 (Litigation Wts.) 5 15,626 15,939 - -------------------------------------------------------------------------------- COLO.com, Inc. Wts., Exp. 3/15/10 1,5 600 6 - -------------------------------------------------------------------------------- Concentric Network Corp. Wts., Exp. 12/15/07 1,5 750 8 - -------------------------------------------------------------------------------- Covergent Communications, Inc. Wts., Exp. 4/1/08 1,5 2,000 20 - -------------------------------------------------------------------------------- Decrane Aircraft Holdings, Inc. Wts., Exp. 9/30/08 1,5 1,750 -- - -------------------------------------------------------------------------------- Diva Systems Corp. Wts., Exp. 3/1/08 1,5 1,500 15 - -------------------------------------------------------------------------------- e.spire Communications, Inc. Wts., Exp. 11/1/05 1,5 475 5 - -------------------------------------------------------------------------------- Horizon PCS, Inc. Wts., Exp. 10/1/10 1,5 1,300 65 - -------------------------------------------------------------------------------- ICG Communications, Inc. Wts., Exp. 9/15/05 1,5 5,940 59 - -------------------------------------------------------------------------------- Market Value Units See Note 1 - -------------------------------------------------------------------------------- Rights, Warrants and Certificates Continued ICO Global Communication Holdings Ltd. Wts.: Exp. 5/16/06 1,5 10,561 $ 53 Exp. 5/16/06 1,5 16 -- - -------------------------------------------------------------------------------- Imperial Credit Industries, Inc. Wts., Exp. 1/31/08 1,5 5,148 -- - -------------------------------------------------------------------------------- Insilco Corp. Wts., Exp. 8/15/07 1,5 765 -- - -------------------------------------------------------------------------------- IPCS, Inc. Wts., Exp. 6/15/10 1,5 750 8 - -------------------------------------------------------------------------------- Leap Wireless International, Inc. Wts., Exp. 4/15/10 1,5 550 -- - -------------------------------------------------------------------------------- Long Distance International, Inc. Wts., Exp. 4/13/08 1,5 800 -- - -------------------------------------------------------------------------------- Loral Space & Communications Ltd. Wts., Exp. 1/15/07 1,5 800 8 - -------------------------------------------------------------------------------- McLeodUSA, Inc. Wts., Exp. 4/16/07 1,5 7,220 3,032 - -------------------------------------------------------------------------------- Microcell Telecommunications, Inc.: Cl. A Wts., Exp. 5/1/05 5 687 233 Cl. B Wts., Exp. 5/1/08 5 1,145 674 - -------------------------------------------------------------------------------- Millenium Seacarriers, Inc. Wts., Exp. 7/15/05 1,5 1,500 15 - -------------------------------------------------------------------------------- Ntelos, Inc. Wts., Exp. 8/15/10 1,5 1,000 1,500 - -------------------------------------------------------------------------------- Pathmark Stores, Inc. Wts., Exp. 9/19/10 5 20,000 27,600 - -------------------------------------------------------------------------------- Protection One, Inc. Wts.: Exp. 11/1/03 1,5 28,000 -- Exp. 6/30/05 1,5 1,600 -- - -------------------------------------------------------------------------------- Real Time Data Co. Wts., Exp. 5/31/04 1,5 121,440 -- - -------------------------------------------------------------------------------- Republic Technologies International LLC Wts., Exp. 7/15/09 1,5 500 5 - -------------------------------------------------------------------------------- Sterling Chemicals, Inc. Wts., Exp. 12/19/08 5 610 -- - -------------------------------------------------------------------------------- Telergy, Inc. Wts., Exp. 9/25/10 1,5 2,019 -- - -------------------------------------------------------------------------------- Telus Corp. Wts., Exp. 9/15/05 5 1,079 7,615 - -------------------------------------------------------------------------------- Transocean, Inc. Wts., Exp. 5/1/09 3 1,000 56,475 - -------------------------------------------------------------------------------- XO Communications, Inc.: Cl. A Wts., Exp. 1/16/10 5 5,300 17,490 Cl. B Wts., Exp. 1/16/10 5 3,975 6,360 Cl. C Wts., Exp. 1/16/10 5 3,975 2,185 ------------- Total Rights, Warrants and Certificates (Cost $262,416) 285,047 15 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- Principal Market Value Amount See Note 1 - -------------------------------------------------------------------------------- Structured Notes--5.9% JPMorgan Chase Bank: High Beta High Yield Index Nts., 10%, 6/20/08 $ 2,000,000 $ 2,025,000 High Yield Index-B Nts., 9%, 6/20/08 22,900,000 23,987,750 ------------- Total Structured Notes (Cost $25,836,997) 26,012,750 - -------------------------------------------------------------------------------- Joint Repurchase Agreements--12.7% 12 Undivided interest of 12.72% in joint repurchase agreement (Principal Amount/Market Value $440,796,000, with a maturity value of $440,808,979) with Banc One Capital Markets, Inc., 1.06%, dated 6/30/03, to be repurchased at $56,086,651 on 7/1/03, collateralized by U.S. Treasury Bonds, 3.375%, 4/30/04, with a value of $449,915,616 (Cost $56,085,000) 56,085,000 56,085,000 - -------------------------------------------------------------------------------- Total Investments, at Value (Cost $465,270,544) 105.1% 464,589,217 - -------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (5.1) (22,610,722) --------------------------- Net Assets 100.0% $441,978,495 =========================== Footnotes to Statement of Investments Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: CAD Canadian Dollar EUR Euro GBP British Pound Sterling 1. Identifies issues considered to be illiquid or restricted--See Note 7 of Notes to Financial Statements. 2. Represents the current interest rate for a variable or increasing rate security. 3. 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 $67,138,783 or 15.19% of the Fund's net assets as of June 30, 2003. 4. Issuer is in default. See Note 1 of Notes to Financial Statements. 5. Non-income producing security. 6. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 7. Interest or dividend is paid-in-kind. 8. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units, which represent debt securities, principal amount disclosed represents total underlying principal. 9. Zero coupon bond reflects effective yield on the date of purchase. 10. When-issued security to be delivered and settled after June 30, 2003. See Note 1 of Notes to Financial Statements. 11. Securities with an aggregate market value of $240,900 are held in collateralized accounts to cover initial margin requirements on open futures sales contracts. See Note 6 of Notes to Financial Statements. 12. The Fund may have elements of risk due to concentrated investments. Such concentrations may subject the Fund to additional risks. See accompanying Notes to Financial Statements. 16 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
June 30, 2003 - -------------------------------------------------------------------------------------------------------------------------- Assets Investments, at value (including cost and market value of $56,085,000 in repurchase agreements) (cost $465,270,544)--see accompanying statement $ 464,589,217 - -------------------------------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 8,142,591 Shares of beneficial interest sold 486,856 Investments sold (including $408,000 sold on a when-issued basis) 437,250 Daily variation on futures contracts 1,969 Other 2,484 -------------- Total assets 473,660,367 - -------------------------------------------------------------------------------------------------------------------------- Liabilities Bank overdraft 23,697,285 - -------------------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $1,200,000 purchased on a when-issued basis) 4,829,151 Shares of beneficial interest redeemed 3,084,707 Service plan fees 22,380 Shareholder reports 18,916 Trustees' compensation 1,927 Transfer and shareholder servicing agent fees 524 Other 26,982 -------------- Total liabilities 31,681,872 - -------------------------------------------------------------------------------------------------------------------------- Net Assets $ 441,978,495 ============== - -------------------------------------------------------------------------------------------------------------------------- Composition of Net Assets Par value of shares of beneficial interest $ 55,502 - -------------------------------------------------------------------------------------------------------------------------- Additional paid-in capital 536,325,987 - -------------------------------------------------------------------------------------------------------------------------- Undistributed net investment income 15,259,498 - -------------------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (108,982,656) - -------------------------------------------------------------------------------------------------------------------------- Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies (679,836) -------------- Net Assets $ 441,978,495 ============== - -------------------------------------------------------------------------------------------------------------------------- Net Asset Value Per Share Non-Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $400,333,041 and 50,261,046 shares of beneficial interest outstanding) $7.97 - -------------------------------------------------------------------------------------------------------------------------- Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $41,645,454 and 5,241,408 shares of beneficial interest outstanding) $7.95
See accompanying Notes to Financial Statements. 17 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 - ------------------------------------------------------------------------------------------- Investment Income Interest (net of foreign withholding taxes of $93) $ 19,144,694 - ------------------------------------------------------------------------------------------- Dividends 174,095 -------------- Total investment income 19,318,789 - ------------------------------------------------------------------------------------------- Expenses Management fees 1,441,120 - ------------------------------------------------------------------------------------------- Distribution and service plan fees-Service shares 34,621 - ------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 4,243 Service shares 5,861 - ------------------------------------------------------------------------------------------- Shareholder reports 19,629 - ------------------------------------------------------------------------------------------- Trustees' compensation 8,338 - ------------------------------------------------------------------------------------------- Custodian fees and expenses 3,495 - ------------------------------------------------------------------------------------------- Other 24,394 -------------- Total expenses 1,541,701 Less reduction to custodian expenses (690) -------------- Net expenses 1,541,011 - ------------------------------------------------------------------------------------------- Net Investment Income 17,777,778 - ------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (6,258,244) Closing of futures contracts (130,781) Foreign currency transactions 3,885,819 -------------- Net realized loss (2,503,206) - ------------------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments 39,009,562 Translation of assets and liabilities denominated in foreign currencies 485,030 Futures contracts 110,571 -------------- Net change in unrealized appreciation 39,605,163 - ------------------------------------------------------------------------------------------- Net Increase in Net Assets Resulting from Operations $54,879,735 ==============
See accompanying Notes to Financial Statements. 18 OPPENHEIMER HIGH INCOME FUND/VA STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year Ended Ended June 30, 2003 December 31, (Unaudited) 2002 - --------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 17,777,778 $ 28,331,405 - --------------------------------------------------------------------------------------------------------------- Net realized loss (2,503,206) (54,882,881) - --------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 39,605,163 18,653,181 ------------------------------ Net increase (decrease) in net assets resulting from operations 54,879,735 (7,898,295) - --------------------------------------------------------------------------------------------------------------- Dividends and/or Distributions to Shareholders Dividends from net investment income: Non-Service shares (26,819,814) (35,408,403) Service shares (1,672,018) (306) - --------------------------------------------------------------------------------------------------------------- Beneficial Interest Transactions Net increase in net assets resulting from beneficial interest transactions: Non-Service shares 30,623,722 44,572,082 Service shares 21,592,157 17,318,687 - --------------------------------------------------------------------------------------------------------------- Net Assets Total increase 78,603,782 18,583,765 - --------------------------------------------------------------------------------------------------------------- Beginning of period 363,374,713 344,790,948 ------------------------------ End of period [including undistributed net investment income of $15,259,498 and $25,973,552, respectively] $441,978,495 $363,374,713 ==============================
See accompanying Notes to Financial Statements. 19 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Six Months Year Ended Ended June 30, 2003 December 31, Non-Service shares (Unaudited) 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 7.51 $ 8.54 $ 9.27 $10.72 $ 11.02 $ 11.52 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .34 .58 .84 1.00 1.01 .95 Net realized and unrealized gain (loss) .71 (.76) (.62) (1.36) (.55) (.90) ------------------------------------------------------------------------ Total from investment operations 1.05 (.18) .22 (.36) .46 .05 - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.59) (.85) (.95) (1.09) (.76) (.25) Distributions from net realized gain -- -- -- -- -- (.30) ------------------------------------------------------------------------ Total dividends and/or distributions to shareholders (.59) (.85) (.95) (1.09) (.76) (.55) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $7.97 $7.51 $8.54 $ 9.27 $10.72 $11.02 ======================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 1 14.74% (2.40)% 1.97% (3.74)% 4.29% 0.31% - ---------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $400,333 $345,670 $344,788 $333,533 $340,829 $328,563 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $368,199 $335,894 $347,723 $329,260 $340,519 $322,748 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 9.07% 8.29% 9.94% 10.47% 9.61% 8.65% Expenses, gross 0.76% 0.77% 0.79% 0.79% 0.75% 0.78% 3 Expenses, net 0.76% 4 0.77% 4 0.79% 4 0.79% 4 0.75% 4 0.78% - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 26% 75% 46% 31% 33% 161% 1. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. 4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements. 20 OPPENHEIMER HIGH INCOME FUND/VA
Six Months Year Ended Ended June 30, 2003 December 31, Service shares (Unaudited) 2002 2001 1 - -------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $ 7.49 $ 8.54 $ 8.40 - -------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .39 .88 .20 Net realized and unrealized gain (loss) .65 (1.08) (.06) ----------------------------------- Total from investment operations 1.04 (.20) .14 - -------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.58) (.85) -- Distributions from net realized gain -- -- -- ----------------------------------- Total dividends and/or distributions to shareholders (.58) (.85) -- - -------------------------------------------------------------------------------------------------------- Net asset value, end of period $7.95 $7.49 $8.54 =================================== - -------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 2 14.70% (2.67)% 1.67% - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $41,645 $17,705 $3 - -------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $28,046 $ 5,602 $2 - -------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 8.74% 8.91% 12.51% Expenses, gross 1.05% 1.02% 0.96% Expenses, net 1.05% 4 1.02% 4,5 0.96% 4 - -------------------------------------------------------------------------------------------------------- Portfolio turnover rate 26% 75% 46% 1. For the period from September 18, 2001 (inception of offering) to December 31, 2001. 2. Assumes an investment on the business day before the first day of the fiscal period (or inception of offering), 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. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Voluntary waiver of transfer agent fees less than 0.01%. See accompanying Notes to Financial Statements.
21 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer High Income Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek a high level of current income from investment in high-yield fixed-income securities. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. All classes of shares have identical rights and voting privileges. Earnings, net assets and net asset value per share may differ by minor amounts due to each class having its own expenses directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- Structured Notes. The Fund invests in index-linked structured notes whose principal and/or interest depend on the performance of an underlying index. The structured notes are leveraged, which increases the volatility of each note's market value relative to the change in the underlying index. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying financial statements. The Fund records a realized gain or loss when a structured note is sold or matures. As of June 30, 2003, the market value of these securities comprised 5.9% of the Fund's net assets, and resulted in unrealized gains in the current period of $175,753. - -------------------------------------------------------------------------------- Securities Purchased on a When-Issued Basis. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis can take place a month or more after the trade date. Normally the settlement date occurs within six months after the trade date; however, the Fund may, from time to time, purchase securities whose settlement date extends six months or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains segregated assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued (or forward commitment) 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. As of June 30, 2003, the Fund had entered into when-issued purchase commitments of $1,200,000. Additionally, the Fund had when-issued sale commitments of $408,000. - -------------------------------------------------------------------------------- Security Credit Risk. The Fund invests in high-yield securities, which may be subject to a greater degree of credit risk, market fluctuations and loss of income and principal, and may be more sensitive to economic conditions than lower-yielding, higher-rated fixed-income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of June 30, 2003, securities with an aggregate market value of $8,969,935, representing 2.03% of the Fund's net assets, were in default. 22 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- Foreign Currency Translation. The Fund's accounting records are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. Secured by U.S. government securities, these balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. As of June 30, 2003, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of $105,108,977. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 30, 2003, the Fund did not use carryforward to offset capital gains realized. During the year ended December 31, 2002, the Fund did not use carryforward to offset capital gains realized. As of December 31, 2002, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: Expiring ------------------------- 2006 $ 3,401,577 2007 4,933,260 2008 11,572,833 2009 22,696,701 2010 56,061,391 ----------- Total $98,665,762 =========== - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually. - -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily due to paydown gains and losses and the recognition of certain foreign currency gains (losses) as ordinary income (loss) for 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 23 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued 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 tax character of distributions paid during the six months ended June 30, 2003 and the year ended December 31, 2002 was as follows: Six Months Ended Year Ended June 30, 2003 December 31, 2002 --------------------------------------------------------------------- Distributions paid from: Ordinary income $28,491,832 $35,408,709 - -------------------------------------------------------------------------------- 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, which includes accretion of discount and amortization of premium, is accrued as earned. - -------------------------------------------------------------------------------- Expense Offset Arrangement. The reduction of custodian fees represents earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with 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 income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Six Months Ended June 30, 2003 Year Ended December 31, 2002 Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------- Non-Service shares Sold 11,694,830 $ 89,595,374 22,935,486 $ 176,263,288 Dividends and/or distributions reinvested 3,719,808 26,819,814 4,568,826 35,408,403 Redeemed (11,208,620) (85,791,466) (21,816,082) (167,099,609) ------------------------------------------------------------------ Net increase 4,206,018 $ 30,623,722 5,688,230 $ 44,572,082 ================================================================== - ------------------------------------------------------------------------------------------------------------------- Service shares Sold 4,273,184 $ 32,526,360 2,741,181 $ 20,012,961 Dividends and/or distributions reinvested 232,224 1,672,018 39 306 Redeemed (1,627,163) (12,606,221) (378,418) (2,694,580) ------------------------------------------------------------------ Net increase 2,878,245 $ 21,592,157 2,362,802 $ 17,318,687 ==================================================================
- -------------------------------------------------------------------------------- 3. 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 June 30, 2003, were $142,830,423 and $89,056,309, respectively. 24 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- 4. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee at an annual rate of 0.75% of the first $200 million of average annual net assets, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million, 0.60% on the next $200 million and 0.50% of average annual net assets over $1 billion. - -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a $22.50 per account fee. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Fund is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees up to an annual rate of 0.35% of average net assets of the Fund. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan for Service shares to pay OppenheimerFunds Distributor, Inc., the Distributor, for distribution-related services for the Fund's Service shares. Under the Plan, payments are made quarterly at an annual rate of up to 0.25% of the average annual net assets of the Service shares of the Fund. For the six months ended June 30, 2003, expense under the Service Plan totaled $34,621. - -------------------------------------------------------------------------------- 5. Foreign Currency Contracts A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign transaction. Contracts closed or settled with the same broker are recorded as net realized gain or loss. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of June 30, 2003, the Fund had no outstanding foreign currency contracts. - -------------------------------------------------------------------------------- 6. Futures Contracts A futures contract is a commitment to buy or sell a specific amount of a commodity or financial instrument at a negotiated price on a stipulated future date. Futures contracts are traded on a commodity exchange. The Fund may buy and sell futures contracts that relate to broadly based securities indices "financial futures" or debt securities "interest rate futures" in order to gain exposure to or protection from changes in market value of stock and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts. The Fund generally sells futures contracts as a hedge against increases in interest rates and decreases in market value of portfolio securities. The Fund may also purchase futures contracts to gain exposure to market changes as it may be more efficient or cost effective than actually buying fixed income securities. 25 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Futures Contracts Continued Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or has expired. Cash held by the broker to cover initial margin requirements on open futures contracts is noted in the Statement of Assets and Liabilities. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. The Statement of Assets and Liabilities reflects a receivable and/or payable for the daily mark to market for variation margin. Realized gains and losses are reported in the Statement of Operations as closing and expiration of futures contracts. The net change in unrealized appreciation and depreciation is reported on the Statement of Operations. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. As of June 30, 2003, the Fund had outstanding futures contracts as follows:
Expiration Number of Valuation as of Unrealized Contract Description Dates Contracts June 30, 2003 Appreciation - -------------------------------------------------------------------------------------------------------------- Contracts to Purchase U.S. Treasury Nts., 5 yr. 9/19/03 6 $690,750 $391 U.S. Treasury Nts., 10 yr. 9/19/03 1 117,438 23 ---- $414 ====
- -------------------------------------------------------------------------------- 7. Illiquid or Restricted Securities As of June 30, 2003, investments in securities included issues that are illiquid or restricted. Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of June 30, 2003 was $32,394,772, which represents 7.33% of the Fund's net assets, of which zero is considered restricted. Information concerning restricted securities is as follows:
Acquisition Valuation as of Unrealized Security Dates Cost June 30, 2003 Depreciation - -------------------------------------------------------------------------------------------------------------- Stocks and/or Warrants Geotek Communications, Inc. 4/6/00 $ -- $-- $ -- Real Time Data Co. Wts., Exp. 5/31/04 6/30/99 1,214 -- 1,214
26 OPPENHEIMER HIGH INCOME FUND/VA - -------------------------------------------------------------------------------- 8. Borrowing and Lending Arrangements The Fund entered into an "interfund borrowing and lending arrangement" with other funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The arrangement was initiated pursuant to exemptive relief granted by the Securities and Exchange Commission to allow these affiliated funds to lend money to, and borrow money from, each other, in an attempt to reduce borrowing costs below those of bank loan facilities. Under the arrangement the Fund may lend money to other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate set by the Fund's Board of Trustees, based upon a recommendation by the Manager. The Fund's borrowings, if any, are subject to asset coverage requirements under the Investment Company Act and the provisions of the SEC order and other applicable regulations. If the Fund borrows money, there is a risk that the loan could be called on one day's notice, in which case the Fund might have to borrow from a bank at higher rates if a loan were not available from another Oppenheimer fund. If the Fund lends money to another fund, it will be subject to the risk that the other fund might not repay the loan in a timely manner, or at all. The Fund had no interfund borrowings or loans outstanding during the six months ended or at June 30, 2003. - -------------------------------------------------------------------------------- Portfolio Proxy Voting Policies and Procedures The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new 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 first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. 27 OPPENHEIMER HIGH INCOME FUND/VA ITEM 2. CODE OF ETHICS - NOT REQUIRED ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED ITEM 5. RESERVED ITEM 6. RESERVED ITEM 7. NOT APPLICABLE ITEM 8. RESERVED ITEM 9. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of June 30, 2003, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.302CERT 3 ex99_302cert-640.txt EX99_302CERT-640 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: -------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer High Income Fund/VA; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) 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) 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 5. The registrant's other certifying officers 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 controls 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 controls. Date: 08/14/03 /s/John V. Murphy ----------------- John V. Murphy Chief 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 High Income Fund/VA; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) 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) 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 5. The registrant's other certifying officers 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 controls 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 controls. Date: 08/14/03 /s/Brian W. Wixted ------------------ Brian W. Wixted Chief Financial Officer EX-99.906CERT 4 ex99_906cert-640.txt EX99_906CERT-640 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 2003 John V. Murphy, Chief Executive Officer, and Brian W. Wixted Chief -------------- --------------- Financial Officer of Oppenheimer High Income Fund/VA (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended June 30, 2003 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Chief Executive Officer Chief Financial Officer Oppenheimer High Income Fund/VA Oppenheimer High Income Fund/VA /s/John V. Murphy /s/Brian W. Wixted - ----------------- ------------------ John V. Murphy Brian W. Wixted Date: 08/14/03 Date: 08/14/03 -----END PRIVACY-ENHANCED MESSAGE-----