-----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, IpeA0eyL/5haCDY5gzdpl9inYSXsMhWy9U6M71FCEklLu2jLOYVRAhn9TZLBEHV6 lqDwCFpQxUPoDi0D5RSwQA== 0000935069-05-000320.txt : 20050225 0000935069-05-000320.hdr.sgml : 20050225 20050225154215 ACCESSION NUMBER: 0000935069-05-000320 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050225 DATE AS OF CHANGE: 20050225 EFFECTIVENESS DATE: 20050225 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: 05641258 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 ra650_12032ncsr.txt RA650_12032NCSR.TXT 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 Main Street 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. Two World Financial Center, New York, New York 10281-1008 (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 Date of fiscal year end: December 31 Date of reporting period: January 1, 2004 - December 31, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. Although the Fund produced slightly lower returns than its benchmark, the S&P 500 Index, during 2004, we nonetheless are satisfied with the Fund's performance. In our view, 2004 represented a year of transition in which investor sentiment gradually began to migrate from a focus on smaller stocks to larger ones. This shift comes in the wake of approximately six years in which small-caps produced consistently higher returns than larger ones. However, the transition in market leadership from small-cap to large-cap stocks has not been a particularly smooth or consistent one over the course of the past 12-month period. Our statistical models first began to detect a change in January and February of 2004, signaling to us that the degree of outperformance among small-cap stocks was moderating. In response, we adopted a more neutral investment posture with regard to the Fund's weighted average market capitalization compared to that of its benchmark. In March, our models began to suggest that large-cap stocks were poised to overtake their smaller counterparts from a performance standpoint, and we began to increase the Fund's weighted average market capitalization toward a range that was larger than the benchmark's. This positioning contributed positively to the Fund's relative performance during the late spring and summer, when larger stocks indeed provided higher returns than smaller stocks. Results at the time were especially strong among the largest companies in the S&P 500 Index, the "mega-cap" category of companies with market capitalizations greater than $46.3 billion. However, small-cap stocks regained market leadership in the fall, interrupting the market's transition. For the year as a whole, in fact, all capitalization ranges except the mega-cap category produced higher returns than broad measures of the stock market overall, with the mid-cap and small-cap categories posting higher returns than the micro-cap, large-cap and mega-cap categories. As a result, the Fund's focus on mega-cap stocks detracted from its relative performance late in the year, causing its returns to modestly lag that of its benchmark for 2004. In this changing market environment, the Fund achieved particularly strong results from its investments in the energy and materials sectors, where our stock selection strategies contributed positively to performance. Both sectors appeared to benefit from rising demand for commodities as global economic growth intensified and formerly third-world countries modernized their industrial infrastructures. On the other hand, the Fund's holdings in the information technology, health care and utilities sectors detracted from its overall returns. In the information technology area, smaller, more speculative stocks fared better than the larger companies on which the Fund focused. The health care area suffered from lagging performance among large pharmaceutical stocks, which were hurt by a major product recall and an apparent dearth of new products to replace those on which patents are expiring. Although utilities stocks generally fared well, the Fund's relatively light exposure to the group limited its participation in that sector's gains. As is to be expected during a time of market transition, the Fund's composition changed significantly over the course of the year. Most notably, we reduced the Fund's emphasis on consumer discretionary stocks from an emphasized position to a more neutral stance. Conversely, we increased the Fund's information technology holdings, ending the year with an emphasized position. As the Fund's weighted average market capitalization rose, so did the overall quality of its holdings. In fact, in 2004 the Fund reached its highest quality levels, as determined by its holdings' S&P quality ratings, since we began tracking this factor in 1999. More recently, we began preparing the Fund for seasonal influences that typically affect market performance at the start of a new year. Known as "the January effect," investors historically have tended to favor smaller stocks in the weeks after a new year begins. We modestly reduced the Fund's weighted average market capitalization in December to position it for a potential recurrence of the January effect in 2005. Over the longer term, we remain confident that the multi-year cycle of small-cap outperformance is nearing an end, and that mega-cap stocks are poised to assume the mantle of market leadership for the next phase of the cycle. As always, we remain committed to staying fully invested in a broadly diversified portfolio of stocks as determined by our quantitative investment discipline. 4 | OPPENHEIMER MAIN STREET FUND/VA COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2004. In the case of Non-Service shares, performance is measured from inception of the class on July 5, 1995. In the case of Service shares, performance is measured from inception of the class on July 13, 2000. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graph assumes that all dividends and capital gains distributions were reinvested in additional shares. The Fund's performance is compared to the performance of the S&P 500 Index, a broad-based index of equity securities widely regarded as a general measurement of the performance of the U.S. equity securities market. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs, and none of the data in the graphs shows the effect of taxes. The Fund's performance reflects the effects of the Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the index. 5 | OPPENHEIMER MAIN STREET FUND/VA FUND PERFORMANCE DISCUSSION - -------------------------------------------------------------------------------- NON-SERVICE SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Main Street Fund(R)/VA (Non-Service) S&P 500(R) Index [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Main Street Fund(R)/VA S & P 500(R) (Non-Service) Index 07/05/1995 10,000 10,000 09/30/1995 10,850 10,794 12/31/1995 12,525 11,443 03/31/1996 13,383 12,058 06/30/1996 14,881 12,598 09/30/1996 15,506 12,988 12/31/1996 16,598 14,069 03/31/1997 16,756 14,447 06/30/1997 18,900 16,967 09/30/1997 21,410 18,238 12/31/1997 21,988 18,761 03/31/1998 24,742 21,376 06/30/1998 24,865 22,086 09/30/1998 19,301 19,894 12/31/1998 23,022 24,127 03/31/1999 23,913 25,328 06/30/1999 26,393 27,110 09/30/1999 25,073 25,422 12/31/1999 28,020 29,202 03/31/2000 28,879 29,870 06/30/2000 28,073 29,077 09/30/2000 28,362 28,795 12/31/2000 25,561 26,544 03/31/2001 23,012 23,399 06/30/2001 24,040 24,767 09/30/2001 21,295 21,133 12/31/2001 22,964 23,391 03/31/2002 23,394 23,456 06/30/2002 21,350 20,315 09/30/2002 17,856 16,808 12/31/2002 18,647 18,224 03/31/2003 18,030 17,650 06/30/2003 20,577 20,365 09/30/2003 21,168 20,904 12/31/2003 23,630 23,448 03/31/2004 24,102 23,845 06/30/2004 24,239 24,255 09/30/2004 23,767 23,801 12/31/2004 25,865 25,998 AVERAGE ANNUAL TOTAL RETURNS OF NON-SERVICE SHARES OF THE FUND AT 12/31/04 1-Year 9.46% 5-Year -1.59% Since Inception (7/5/95) 10.53% SERVICE SHARES COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Main Street Fund(R)/VA (Service) S&P 500(R) Index [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.] Oppenheimer Main Street Fund(R)/VA S & P 500(R) (Service) Index 07/13/2000 10,000 10,000 09/30/2000 9,813 9,903 12/31/2000 8,839 9,129 03/31/2001 7,952 8,047 06/30/2001 8,308 8,518 09/30/2001 7,353 7,268 12/31/2001 7,931 8,045 03/31/2002 8,075 8,067 06/30/2002 7,364 6,987 09/30/2002 6,151 5,780 12/31/2002 6,425 6,267 03/31/2003 6,197 6,070 06/30/2003 7,077 7,004 09/30/2003 7,277 7,189 12/31/2003 8,123 8,064 03/31/2004 8,280 8,201 06/30/2004 8,322 8,342 09/30/2004 8,155 8,186 12/31/2004 8,866 8,941 AVERAGE ANNUAL TOTAL RETURNS OF SERVICE SHARES OF THE FUND AT 12/31/04 1-Year 9.15% 5-Year NA Since Inception (7/13/00) -2.66% THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, CALL US AT 1.800.981.2871. THE FUND'S TOTAL RETURNS SHOULD NOT BE EXPECTED TO BE THE SAME AS THE RETURNS OF OTHER FUNDS, WHETHER OR NOT BOTH FUNDS HAVE THE SAME PORTFOLIO MANAGERS AND/OR SIMILAR NAMES. THE FUND'S TOTAL RETURNS DO NOT INCLUDE THE CHARGES ASSOCIATED WITH THE SEPARATE ACCOUNT PRODUCTS THAT OFFER THIS FUND. SUCH PERFORMANCE WOULD HAVE BEEN LOWER IF SUCH CHARGES WERE TAKEN INTO ACCOUNT 6 | OPPENHEIMER MAIN STREET FUND/VA FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees, if any; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2004. ACTUAL EXPENSES. The "actual" lines of the table provide information about actual account values and actual expenses. You may use the information on this line for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the "actual" line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any charges associated with the separate accounts that offer this Fund. Therefore, the "hypothetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges were included, your costs would have been higher. BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (7/1/04) (12/31/04) DECEMBER 31, 2004 - ------------------------------------------------------------------------------ Non-Service shares Actual $ 1,000.00 $ 1,067.10 $ 3.49 - ------------------------------------------------------------------------------ Non-Service shares Hypothetical 1,000.00 1,021.77 3.41 - ------------------------------------------------------------------------------ Service shares Actual 1,000.00 1,065.40 4.79 - ------------------------------------------------------------------------------ Service shares Hypothetical 1,000.00 1,020.51 4.68 Hypothetical assumes 5% annual return before expenses. Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Those annualized expense ratios based on the 6-month period ended December 31, 2004 are as follows: CLASS EXPENSE RATIOS - ----------------------------------- Non-Service shares 0.67% - ----------------------------------- Service shares 0.92 7 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS December 31, 2004 - --------------------------------------------------------------------------------
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- COMMON STOCKS--98.8% - -------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--12.4% - -------------------------------------------------------------------------------------- AUTO COMPONENTS--0.2% Aftermarket Technology Corp. 1 252 $ 4,057 - -------------------------------------------------------------------------------------- ArvinMeritor, Inc. 9,900 221,463 - -------------------------------------------------------------------------------------- Autoliv, Inc. 27,400 1,323,420 - -------------------------------------------------------------------------------------- Dana Corp. 65,200 1,129,916 - -------------------------------------------------------------------------------------- Delphi Corp. 16,100 145,222 - -------------------------------------------------------------------------------------- Goodyear Tire & Rubber Co. 1 53,600 785,776 - -------------------------------------------------------------------------------------- Lear Corp. 1,800 109,818 - -------------------------------------------------------------------------------------- Visteon Corp. 26,800 261,836 ---------------- 3,981,508 - -------------------------------------------------------------------------------------- AUTOMOBILES--0.5% Ford Motor Co. 254,415 3,724,636 - -------------------------------------------------------------------------------------- General Motors Corp. 42,900 1,718,574 - -------------------------------------------------------------------------------------- Harley-Davidson, Inc. 42,800 2,600,100 - -------------------------------------------------------------------------------------- Thor Industries, Inc. 3,400 125,970 - -------------------------------------------------------------------------------------- Winnebago Industries, Inc. 9,700 378,882 ---------------- 8,548,162 - -------------------------------------------------------------------------------------- DISTRIBUTORS--0.0% Genuine Parts Co. 7,700 339,262 - -------------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--1.3% Applebee's International, Inc. 12,100 320,045 - -------------------------------------------------------------------------------------- Aztar Corp. 1 2,900 101,268 - -------------------------------------------------------------------------------------- Caesars Entertainment, Inc. 1 45,900 924,426 - -------------------------------------------------------------------------------------- CBRL Group, Inc. 19,900 832,815 - -------------------------------------------------------------------------------------- CEC Entertainment, Inc. 1 24,300 971,271 - -------------------------------------------------------------------------------------- Choice Hotels International, Inc. 3,300 191,400 - -------------------------------------------------------------------------------------- Darden Restaurants, Inc. 7,700 213,598 - -------------------------------------------------------------------------------------- International Game Technology 74,900 2,575,062 - -------------------------------------------------------------------------------------- Isle of Capri Casinos, Inc. 1 1,500 38,475 - -------------------------------------------------------------------------------------- Jack in the Box, Inc. 1 5,400 199,098 - -------------------------------------------------------------------------------------- Mandalay Resort Group 19,600 1,380,428 - -------------------------------------------------------------------------------------- Marriott International, Inc., Cl. A 48,300 3,041,934 - -------------------------------------------------------------------------------------- McDonald's Corp. 159,350 5,108,761 - -------------------------------------------------------------------------------------- MGM Mirage, Inc. 1 7,700 560,098 - -------------------------------------------------------------------------------------- P.F. Chang's China Bistro, Inc. 1 2,700 152,145 - -------------------------------------------------------------------------------------- Rare Hospitality International, Inc. 1 7,000 223,020 - -------------------------------------------------------------------------------------- Sonic Corp. 1 2,800 85,400 - -------------------------------------------------------------------------------------- Starbucks Corp. 1 26,300 1,640,068 - -------------------------------------------------------------------------------------- Yum! Brands, Inc. 37,700 1,778,686 ---------------- 20,337,998 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- HOUSEHOLD DURABLES--0.8% American Greetings Corp., Cl. A 21,700 $ 550,095 - -------------------------------------------------------------------------------------- Beazer Homes USA, Inc. 2,100 307,041 - -------------------------------------------------------------------------------------- Black & Decker Corp. 14,700 1,298,451 - -------------------------------------------------------------------------------------- Cavco Industries, Inc. 1 815 36,634 - -------------------------------------------------------------------------------------- Ethan Allen Interiors, Inc. 10,100 404,202 - -------------------------------------------------------------------------------------- Furniture Brands International, Inc. 6,700 167,835 - -------------------------------------------------------------------------------------- Harman International Industries, Inc. 5,200 660,400 - -------------------------------------------------------------------------------------- Hovnanian Enterprises, Inc., Cl. A 1 1,700 84,184 - -------------------------------------------------------------------------------------- KB Home 11,800 1,231,920 - -------------------------------------------------------------------------------------- Leggett & Platt, Inc. 23,400 665,262 - -------------------------------------------------------------------------------------- Lennar Corp., Cl. B 9,160 478,244 - -------------------------------------------------------------------------------------- M.D.C. Holdings, Inc. 13,133 1,135,217 - -------------------------------------------------------------------------------------- Meritage Homes Corp. 1 8,200 924,140 - -------------------------------------------------------------------------------------- Newell Rubbermaid, Inc. 70,000 1,693,300 - -------------------------------------------------------------------------------------- NVR, Inc. 1 800 615,520 - -------------------------------------------------------------------------------------- Ryland Group, Inc. (The) 13,600 782,544 - -------------------------------------------------------------------------------------- Stanley Works (The) 11,800 578,082 - -------------------------------------------------------------------------------------- Whirlpool Corp. 8,800 609,048 ---------------- 12,222,119 - -------------------------------------------------------------------------------------- INTERNET & CATALOG RETAIL--0.7% Amazon.com, Inc. 1 24,400 1,080,676 - -------------------------------------------------------------------------------------- eBay, Inc. 1 71,000 8,255,880 - -------------------------------------------------------------------------------------- IAC/InterActiveCorp 1 94,400 2,607,328 ---------------- 11,943,884 - -------------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.2% Action Performance Cos., Inc. 31,100 341,789 - -------------------------------------------------------------------------------------- Eastman Kodak Co. 17,500 564,375 - -------------------------------------------------------------------------------------- Hasbro, Inc. 33,800 655,044 - -------------------------------------------------------------------------------------- Leapfrog Enterprises, Inc. 1 3,000 40,800 - -------------------------------------------------------------------------------------- Marvel Enterprises, Inc. 1 18,200 372,736 - -------------------------------------------------------------------------------------- Nautilus Group, Inc. (The) 7,400 178,858 - -------------------------------------------------------------------------------------- Polaris Industries, Inc. 5,600 380,912 - -------------------------------------------------------------------------------------- SCP Pool Corp. 5,600 178,640 ---------------- 2,713,154 - -------------------------------------------------------------------------------------- MEDIA--3.7% Charter Communications, Inc., Cl. A 1 169,900 380,576 - -------------------------------------------------------------------------------------- Clear Channel Communications, Inc. 76,700 2,568,683 - -------------------------------------------------------------------------------------- Comcast Corp., Cl. A 1 388,115 12,916,467 - -------------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A 40,100 1,332,924 - -------------------------------------------------------------------------------------- Fox Entertainment Group, Inc., A Shares 1 2,800 87,528 - -------------------------------------------------------------------------------------- Gannett Co., Inc. 7,300 596,410 - -------------------------------------------------------------------------------------- Getty Images, Inc. 1 8,000 550,800
8 | OPPENHEIMER MAIN STREET FUND/VA
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- MEDIA Continued Knight-Ridder, Inc. 9,700 $ 649,318 - -------------------------------------------------------------------------------------- Martha Stewart Living Omnimedia, Inc., Cl. A 1 15,300 444,006 - -------------------------------------------------------------------------------------- McGraw-Hill Cos., Inc. (The) 39,000 3,570,060 - -------------------------------------------------------------------------------------- NTL, Inc. 1 4,000 291,840 - -------------------------------------------------------------------------------------- Pixar, Inc. 1 1,600 136,976 - -------------------------------------------------------------------------------------- Time Warner, Inc. 1 794,900 15,452,856 - -------------------------------------------------------------------------------------- Viacom, Inc., Cl. B 249,046 9,062,784 - -------------------------------------------------------------------------------------- Walt Disney Co. (The) 409,700 11,389,660 - -------------------------------------------------------------------------------------- Westwood One, Inc. 1 18,400 495,512 ---------------- 59,926,400 - -------------------------------------------------------------------------------------- MULTILINE RETAIL--0.9% Dillard's, Inc., Cl. A 23,600 634,132 - -------------------------------------------------------------------------------------- Federated Department Stores, Inc. 43,800 2,531,202 - -------------------------------------------------------------------------------------- J.C. Penney Co., Inc. (Holding Co.) 79,900 3,307,860 - -------------------------------------------------------------------------------------- Kmart Holding Corp. 1 9,900 979,605 - -------------------------------------------------------------------------------------- Kohl's Corp. 1 3,500 172,095 - -------------------------------------------------------------------------------------- Neiman Marcus Group, Inc. (The), Cl. A 1,500 107,310 - -------------------------------------------------------------------------------------- Nordstrom, Inc. 26,800 1,252,364 - -------------------------------------------------------------------------------------- Sears Roebuck & Co. 33,000 1,683,990 - -------------------------------------------------------------------------------------- Target Corp. 69,300 3,598,749 ---------------- 14,267,307 - -------------------------------------------------------------------------------------- SPECIALTY RETAIL--3.7% Abercrombie & Fitch Co., Cl. A 33,700 1,582,215 - -------------------------------------------------------------------------------------- Aeropostale, Inc. 1 23,000 676,890 - -------------------------------------------------------------------------------------- American Eagle Outfitters, Inc. 29,300 1,380,030 - -------------------------------------------------------------------------------------- AnnTaylor Stores Corp. 1 21,600 465,048 - -------------------------------------------------------------------------------------- AutoNation, Inc. 1 16,200 311,202 - -------------------------------------------------------------------------------------- Barnes & Noble, Inc. 1 15,700 506,639 - -------------------------------------------------------------------------------------- bebe stores, inc. 4,650 125,457 - -------------------------------------------------------------------------------------- Bed Bath & Beyond, Inc. 1 36,700 1,461,761 - -------------------------------------------------------------------------------------- Best Buy Co., Inc. 41,700 2,477,814 - -------------------------------------------------------------------------------------- Blockbuster, Inc., Cl. B 56,956 501,782 - -------------------------------------------------------------------------------------- Borders Group, Inc. 45,100 1,145,540 - -------------------------------------------------------------------------------------- Children's Place Retail Stores, Inc. 1 6,000 222,180 - -------------------------------------------------------------------------------------- Christopher & Banks Corp. 3,400 62,730 - -------------------------------------------------------------------------------------- Circuit City Stores, Inc./ Circuit City Group 93,500 1,462,340 - -------------------------------------------------------------------------------------- Claire's Stores, Inc. 42,400 901,000 - -------------------------------------------------------------------------------------- Electronics Boutique Holdings Corp. 1 5,500 236,170 - -------------------------------------------------------------------------------------- Finish Line, Inc. (The), Cl. A 7,600 139,080 - -------------------------------------------------------------------------------------- Gap, Inc. (The) 142,300 3,005,376 - -------------------------------------------------------------------------------------- Hollywood Entertainment Corp. 1 11,200 146,608 - -------------------------------------------------------------------------------------- Home Depot, Inc. 442,100 18,895,354 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- SPECIALTY RETAIL Continued Hot Topic, Inc. 1 13,100 $ 225,189 - -------------------------------------------------------------------------------------- Limited Brands, Inc. 107,400 2,472,348 - -------------------------------------------------------------------------------------- Lowe's Cos., Inc. 65,600 3,777,904 - -------------------------------------------------------------------------------------- Men's Wearhouse, Inc. (The) 1 5,300 169,388 - -------------------------------------------------------------------------------------- Michaels Stores, Inc. 35,000 1,048,950 - -------------------------------------------------------------------------------------- Office Depot, Inc. 1 77,900 1,352,344 - -------------------------------------------------------------------------------------- Pacific Sunwear of California, Inc. 1 43,775 974,432 - -------------------------------------------------------------------------------------- Petco Animal Supplies, Inc. 1 3,500 138,180 - -------------------------------------------------------------------------------------- PETsMART, Inc. 9,500 337,535 - -------------------------------------------------------------------------------------- Pier 1 Imports, Inc. 1,400 27,580 - -------------------------------------------------------------------------------------- Rent-A-Center, Inc. 1 4,200 111,300 - -------------------------------------------------------------------------------------- Sherwin-Williams Co. 25,000 1,115,750 - -------------------------------------------------------------------------------------- Staples, Inc. 126,500 4,264,315 - -------------------------------------------------------------------------------------- Talbots, Inc. (The) 20,100 547,323 - -------------------------------------------------------------------------------------- Tiffany & Co. 19,200 613,824 - -------------------------------------------------------------------------------------- TJX Cos., Inc. (The) 129,500 3,254,335 - -------------------------------------------------------------------------------------- Too, Inc. 1 12,800 313,088 - -------------------------------------------------------------------------------------- Toys R Us, Inc. 1 69,100 1,414,477 - -------------------------------------------------------------------------------------- Urban Outfitters, Inc. 1 7,800 346,320 - -------------------------------------------------------------------------------------- Zale Corp. 1 23,500 701,945 ---------------- 58,911,743 - -------------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--0.4% Coach, Inc. 1 19,000 1,071,600 - -------------------------------------------------------------------------------------- Deckers Outdoor Corp. 1 2,000 93,980 - -------------------------------------------------------------------------------------- Jones Apparel Group, Inc. 29,000 1,060,530 - -------------------------------------------------------------------------------------- Nike, Inc., Cl. B 19,000 1,723,110 - -------------------------------------------------------------------------------------- Timberland Co., Cl. A 1 19,400 1,215,798 - -------------------------------------------------------------------------------------- VF Corp. 15,500 858,390 ---------------- 6,023,408 - -------------------------------------------------------------------------------------- CONSUMER STAPLES--8.7% - -------------------------------------------------------------------------------------- BEVERAGES--2.3% Anheuser-Busch Cos., Inc. 49,600 2,516,208 - -------------------------------------------------------------------------------------- Brown-Forman Corp., Cl. B 2,200 107,096 - -------------------------------------------------------------------------------------- Coca-Cola Co. (The) 360,800 15,020,104 - -------------------------------------------------------------------------------------- Pepsi Bottling Group, Inc. (The) 43,100 1,165,424 - -------------------------------------------------------------------------------------- PepsiAmericas, Inc. 3,500 74,340 - -------------------------------------------------------------------------------------- PepsiCo, Inc. 352,150 18,382,230 ---------------- 37,265,402 - -------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--2.3% BJ's Wholesale Club, Inc. 1 20,500 597,165 - -------------------------------------------------------------------------------------- Costco Wholesale Corp. 47,000 2,275,270 - -------------------------------------------------------------------------------------- Kroger Co. (The) 1 41,700 731,418 - -------------------------------------------------------------------------------------- Rite Aid Corp. 1 76,700 280,722
9 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- FOOD & STAPLES RETAILING Continued Safeway, Inc. 1 33,400 $ 659,316 - -------------------------------------------------------------------------------------- SUPERVALU, Inc. 30,800 1,063,216 - -------------------------------------------------------------------------------------- Sysco Corp. 106,500 4,065,105 - -------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 435,000 22,976,700 - -------------------------------------------------------------------------------------- Walgreen Co. 91,300 3,503,181 - -------------------------------------------------------------------------------------- Whole Foods Market, Inc. 4,000 381,400 ---------------- 36,533,493 - -------------------------------------------------------------------------------------- FOOD PRODUCTS--0.6% Archer-Daniels-Midland Co. 40,300 899,093 - -------------------------------------------------------------------------------------- ConAgra Foods, Inc. 11,400 335,730 - -------------------------------------------------------------------------------------- Corn Products International, Inc. 6,800 364,208 - -------------------------------------------------------------------------------------- Heinz (H.J.) Co. 81,000 3,158,190 - -------------------------------------------------------------------------------------- Kellogg Co. 2,400 107,184 - -------------------------------------------------------------------------------------- Kraft Foods, Inc., Cl. A 1 41,500 1,477,815 - -------------------------------------------------------------------------------------- Pilgrim's Pride Corp., Cl. B 3,300 101,244 - -------------------------------------------------------------------------------------- Sara Lee Corp. 105,000 2,534,700 - -------------------------------------------------------------------------------------- Smithfield Foods, Inc. 1 1,400 41,426 - -------------------------------------------------------------------------------------- Tyson Foods, Inc., Cl. A 56,300 1,035,920 - -------------------------------------------------------------------------------------- Wm. Wrigley Jr. Co. 5,200 359,788 ---------------- 10,415,298 - -------------------------------------------------------------------------------------- HOUSEHOLD PRODUCTS--1.8% Clorox Co. (The) 7,000 412,510 - -------------------------------------------------------------------------------------- Energizer Holdings, Inc. 1 10,800 536,652 - -------------------------------------------------------------------------------------- Kimberly-Clark Corp. 55,000 3,619,550 - -------------------------------------------------------------------------------------- Nu Skin Asia Pacific, Inc., Cl. A 12,900 327,402 - -------------------------------------------------------------------------------------- Procter & Gamble Co. (The) 419,700 23,117,076 - -------------------------------------------------------------------------------------- Rayovac Corp. 1 7,200 220,032 ---------------- 28,233,222 - -------------------------------------------------------------------------------------- PERSONAL PRODUCTS--0.4% Avon Products, Inc. 31,600 1,222,920 - -------------------------------------------------------------------------------------- Estee Lauder Cos., Inc. (The), Cl. A 51,300 2,348,001 - -------------------------------------------------------------------------------------- Gillette Co. 80,400 3,600,312 - -------------------------------------------------------------------------------------- NBTY, Inc. 1 2,200 52,822 ---------------- 7,224,055 - -------------------------------------------------------------------------------------- TOBACCO--1.3% Altria Group, Inc. 327,500 20,010,250 - -------------------------------------------------------------------------------------- Reynolds American, Inc. 7,800 613,080 - -------------------------------------------------------------------------------------- UST, Inc. 10,900 524,399 ---------------- 21,147,729 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- ENERGY--7.7% - -------------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--0.5% Atwood Oceanics, Inc. 1 3,000 $ 156,300 - -------------------------------------------------------------------------------------- BJ Services Co. 17,200 800,488 - -------------------------------------------------------------------------------------- Cal Dive International, Inc. 1 14,200 578,650 - -------------------------------------------------------------------------------------- Diamond Offshore Drilling, Inc. 35,700 1,429,785 - -------------------------------------------------------------------------------------- Grant Prideco, Inc. 1 28,300 567,415 - -------------------------------------------------------------------------------------- Halliburton Co. 33,700 1,322,388 - -------------------------------------------------------------------------------------- Hydril Co. 1 1,800 81,918 - -------------------------------------------------------------------------------------- Lone Star Technologies, Inc. 1 7,600 254,296 - -------------------------------------------------------------------------------------- Oil States International, Inc. 1 28,700 553,623 - -------------------------------------------------------------------------------------- Precision Drilling Corp. 1 6,300 397,092 - -------------------------------------------------------------------------------------- Pride International, Inc. 1 11,700 240,318 - -------------------------------------------------------------------------------------- Smith International, Inc. 1 6,900 375,429 - -------------------------------------------------------------------------------------- Universal Compression Holdings, Inc. 1 13,600 474,776 ---------------- 7,232,478 - -------------------------------------------------------------------------------------- OIL & GAS--7.2% Amerada Hess Corp. 20,500 1,688,790 - -------------------------------------------------------------------------------------- Apache Corp. 43,500 2,199,795 - -------------------------------------------------------------------------------------- Ashland, Inc. 9,900 577,962 - -------------------------------------------------------------------------------------- Cabot Oil & Gas Corp., Cl. A 1,900 84,075 - -------------------------------------------------------------------------------------- Canadian Natural Resources Ltd. 60,700 2,596,399 - -------------------------------------------------------------------------------------- Chesapeake Energy Corp. 47,500 783,750 - -------------------------------------------------------------------------------------- ChevronTexaco Corp. 304,000 15,963,040 - -------------------------------------------------------------------------------------- Cimarex Energy Co. 1 10,439 395,638 - -------------------------------------------------------------------------------------- ConocoPhillips 88,021 7,642,863 - -------------------------------------------------------------------------------------- Devon Energy Corp. 48,300 1,879,836 - -------------------------------------------------------------------------------------- El Paso Corp. 17,500 182,000 - -------------------------------------------------------------------------------------- EOG Resources, Inc. 19,300 1,377,248 - -------------------------------------------------------------------------------------- Exxon Mobil Corp. 1,106,516 56,720,010 - -------------------------------------------------------------------------------------- Forest Oil Corp. 1 8,000 253,760 - -------------------------------------------------------------------------------------- Frontier Oil Corp. 115,900 3,089,894 - -------------------------------------------------------------------------------------- General Maritime Corp. 1 12,600 503,370 - -------------------------------------------------------------------------------------- Houston Exploration Co. 1 12,500 703,875 - -------------------------------------------------------------------------------------- Kerr-McGee Corp. 12,300 710,817 - -------------------------------------------------------------------------------------- Murphy Oil Corp. 5,400 434,430 - -------------------------------------------------------------------------------------- Newfield Exploration Co. 1 14,500 856,225 - -------------------------------------------------------------------------------------- Noble Energy, Inc. 13,900 857,074 - -------------------------------------------------------------------------------------- Occidental Petroleum Corp. 31,900 1,861,684 - -------------------------------------------------------------------------------------- OMI Corp. 28,700 483,595 - -------------------------------------------------------------------------------------- Paramount Resources Ltd. 1 155,200 3,484,439 - -------------------------------------------------------------------------------------- Patina Oil & Gas Corp. 6,900 258,750 - -------------------------------------------------------------------------------------- Petroleum Development Corp. 1 4,600 177,422 - -------------------------------------------------------------------------------------- Pioneer Natural Resources Co. 8,600 301,860 - -------------------------------------------------------------------------------------- Plains Exploration & Production Co. 1 9,200 239,200
10 | OPPENHEIMER MAIN STREET FUND/VA
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- OIL & GAS Continued Premcor, Inc. 5,400 $ 227,718 - -------------------------------------------------------------------------------------- Southwestern Energy Co. 1 4,000 202,760 - -------------------------------------------------------------------------------------- Sunoco, Inc. 20,800 1,699,568 - -------------------------------------------------------------------------------------- Talisman Energy, Inc. 91,000 2,456,996 - -------------------------------------------------------------------------------------- Teekay Shipping Corp. 14,100 593,751 - -------------------------------------------------------------------------------------- Tesoro Corp. 1 34,100 1,086,426 - -------------------------------------------------------------------------------------- Unocal Corp. 43,400 1,876,616 - -------------------------------------------------------------------------------------- Valero Energy Corp. 27,200 1,234,880 - -------------------------------------------------------------------------------------- Vintage Petroleum, Inc. 7,400 167,906 - -------------------------------------------------------------------------------------- Williams Cos., Inc. (The) 34,800 566,892 ---------------- 116,421,314 - -------------------------------------------------------------------------------------- FINANCIALS--21.7% - -------------------------------------------------------------------------------------- CAPITAL MARKETS--0.4% Bank of New York Co., Inc. (The) 101,400 3,388,788 - -------------------------------------------------------------------------------------- Mellon Financial Corp. 29,800 927,078 - -------------------------------------------------------------------------------------- Northern Trust Corp. 27,700 1,345,666 ---------------- 5,661,532 - -------------------------------------------------------------------------------------- COMMERCIAL BANKS--6.9% Associated Banc-Corp. 3,400 112,914 - -------------------------------------------------------------------------------------- Astoria Financial Corp. 15,600 623,532 - -------------------------------------------------------------------------------------- Bank of America Corp. 800,402 37,610,890 - -------------------------------------------------------------------------------------- Banknorth Group, Inc. 34,400 1,259,040 - -------------------------------------------------------------------------------------- BB&T Corp. 36,300 1,526,415 - -------------------------------------------------------------------------------------- Comerica, Inc. 44,900 2,739,798 - -------------------------------------------------------------------------------------- Compass Bancshares, Inc. 8,900 433,163 - -------------------------------------------------------------------------------------- Fifth Third Bancorp 39,200 1,853,376 - -------------------------------------------------------------------------------------- First Horizon National Corp. 4,900 211,239 - -------------------------------------------------------------------------------------- Golden West Financial Corp. 15,500 952,010 - -------------------------------------------------------------------------------------- Hibernia Corp., Cl. A 26,200 773,162 - -------------------------------------------------------------------------------------- Huntington Bancshares, Inc. 16,500 408,870 - -------------------------------------------------------------------------------------- Independence Community Bank Corp. 12,900 549,282 - -------------------------------------------------------------------------------------- Indymac Mortgage Holdings, Inc. 10,900 375,505 - -------------------------------------------------------------------------------------- KeyCorp 66,300 2,247,570 - -------------------------------------------------------------------------------------- M&T Bank Corp. 13,600 1,466,624 - -------------------------------------------------------------------------------------- National City Corp. 52,900 1,986,395 - -------------------------------------------------------------------------------------- North Fork Bancorporation, Inc. 33,256 959,436 - -------------------------------------------------------------------------------------- PNC Financial Services Group, Inc. 39,000 2,240,160 - -------------------------------------------------------------------------------------- R&G Financial Corp., Cl. B 2,500 97,200 - -------------------------------------------------------------------------------------- Regions Financial Corp. 21,605 768,922 - -------------------------------------------------------------------------------------- Silicon Valley Bancshares 1 5,200 233,064 - -------------------------------------------------------------------------------------- Sterling Financial Corp. (Western US) 1,100 43,186 - -------------------------------------------------------------------------------------- SunTrust Banks, Inc. 42,300 3,125,124 - -------------------------------------------------------------------------------------- U.S. Bancorp 464,270 14,540,936 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- COMMERCIAL BANKS Continued UnionBanCal Corp. 39,800 $ 2,566,304 - -------------------------------------------------------------------------------------- Wachovia Corp. 245,200 12,897,520 - -------------------------------------------------------------------------------------- Washington Mutual, Inc. 41,100 1,737,708 - -------------------------------------------------------------------------------------- Webster Financial Corp. 6,700 339,288 - -------------------------------------------------------------------------------------- Wells Fargo & Co. 263,600 16,382,740 - -------------------------------------------------------------------------------------- Zions Bancorp 10,500 714,315 ---------------- 111,775,688 - -------------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--8.5% Affiliated Managers Group, Inc. 1 11,850 802,719 - -------------------------------------------------------------------------------------- American Capital Strategies Ltd. 15,100 503,585 - -------------------------------------------------------------------------------------- American Express Co. 132,100 7,446,477 - -------------------------------------------------------------------------------------- Bear Stearns Cos., Inc. (The) 34,900 3,570,619 - -------------------------------------------------------------------------------------- Capital One Financial Corp. 27,200 2,290,512 - -------------------------------------------------------------------------------------- Chicago Mercantile Exchange (The) 400 91,480 - -------------------------------------------------------------------------------------- CIT Group, Inc. 34,000 1,557,880 - -------------------------------------------------------------------------------------- Citigroup, Inc. 967,088 46,594,300 - -------------------------------------------------------------------------------------- E*TRADE Financial Corp. 1 72,500 1,083,875 - -------------------------------------------------------------------------------------- Federated Investors, Inc., Cl. B 5,500 167,200 - -------------------------------------------------------------------------------------- Franklin Resources, Inc. 7,900 550,235 - -------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 20,400 2,122,416 - -------------------------------------------------------------------------------------- JPMorgan Chase & Co. 811,644 31,662,232 - -------------------------------------------------------------------------------------- Knight Trading Group, Inc. 1 2,500 27,375 - -------------------------------------------------------------------------------------- Legg Mason, Inc. 4,150 304,029 - -------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc. 26,400 2,309,472 - -------------------------------------------------------------------------------------- MBNA Corp. 168,100 4,738,739 - -------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. 150,200 8,977,454 - -------------------------------------------------------------------------------------- Moody's Corp. 5,900 512,415 - -------------------------------------------------------------------------------------- Morgan Stanley 236,100 13,108,272 - -------------------------------------------------------------------------------------- Principal Financial Group, Inc. (The) 68,500 2,804,390 - -------------------------------------------------------------------------------------- Schwab (Charles) Corp. 219,400 2,624,024 - -------------------------------------------------------------------------------------- SEI Investments Co. 7,800 327,054 - -------------------------------------------------------------------------------------- SLM Corp. 16,700 891,613 - -------------------------------------------------------------------------------------- State Street Corp. 20,800 1,021,696 - -------------------------------------------------------------------------------------- T. Rowe Price Group, Inc. 13,000 808,600 - -------------------------------------------------------------------------------------- WFS Financial, Inc. 400 20,312 ---------------- 136,918,975 - -------------------------------------------------------------------------------------- INSURANCE--4.0% ACE Ltd. 28,000 1,197,000 - -------------------------------------------------------------------------------------- AFLAC, Inc. 87,200 3,474,048 - -------------------------------------------------------------------------------------- Allmerica Financial Corp. 1 9,700 318,451 - -------------------------------------------------------------------------------------- Allstate Corp. 106,600 5,513,352 - -------------------------------------------------------------------------------------- AMBAC Financial Group, Inc. 3,400 279,242 - -------------------------------------------------------------------------------------- American Financial Group, Inc. 11,800 369,458 - -------------------------------------------------------------------------------------- American International Group, Inc. 451,540 29,652,632
11 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- INSURANCE Continued AmerUs Group Co. 3,700 $ 167,610 - -------------------------------------------------------------------------------------- Aon Corp. 61,600 1,469,776 - -------------------------------------------------------------------------------------- Chubb Corp. 12,400 953,560 - -------------------------------------------------------------------------------------- Cincinnati Financial Corp. 17,070 755,518 - -------------------------------------------------------------------------------------- Fidelity National Financial, Inc. 39,659 1,811,227 - -------------------------------------------------------------------------------------- First American Corp. (The) 10,000 351,400 - -------------------------------------------------------------------------------------- Hartford Financial Services Group, Inc. (The) 48,600 3,368,466 - -------------------------------------------------------------------------------------- Jefferson-Pilot Corp. 8,000 415,680 - -------------------------------------------------------------------------------------- LandAmerica Financial Group, Inc. 7,900 426,047 - -------------------------------------------------------------------------------------- Lincoln National Corp. 29,600 1,381,728 - -------------------------------------------------------------------------------------- Loews Corp. 24,300 1,708,290 - -------------------------------------------------------------------------------------- Marsh & McLennan Cos., Inc. 31,100 1,023,190 - -------------------------------------------------------------------------------------- MBIA, Inc. 15,700 993,496 - -------------------------------------------------------------------------------------- MetLife, Inc. 33,600 1,361,136 - -------------------------------------------------------------------------------------- Nationwide Financial Services, Inc., Cl. A 17,400 665,202 - -------------------------------------------------------------------------------------- Old Republic International Corp. 10,400 263,120 - -------------------------------------------------------------------------------------- Progressive Corp. 7,300 619,332 - -------------------------------------------------------------------------------------- Reinsurance Group of America, Inc. 22,000 1,065,900 - -------------------------------------------------------------------------------------- RenaissanceRe Holdings Ltd. 6,500 338,520 - -------------------------------------------------------------------------------------- Safeco Corp. 21,300 1,112,712 - -------------------------------------------------------------------------------------- St. Paul Travelers Cos., Inc. (The) 17,400 645,018 - -------------------------------------------------------------------------------------- StanCorp Financial Group, Inc. 4,900 404,250 - -------------------------------------------------------------------------------------- Torchmark Corp. 12,000 685,680 - -------------------------------------------------------------------------------------- UICI 2,600 88,140 - -------------------------------------------------------------------------------------- Universal American Financial Corp. 1 1,000 15,470 - -------------------------------------------------------------------------------------- UnumProvident Corp. 64,600 1,158,924 ---------------- 64,053,575 - -------------------------------------------------------------------------------------- REAL ESTATE--0.0% St. Joe Co. (The) 3,600 231,120 - -------------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--1.9% Countrywide Financial Corp. 77,498 2,868,201 - -------------------------------------------------------------------------------------- Fannie Mae 195,000 13,885,950 - -------------------------------------------------------------------------------------- Freddie Mac 148,000 10,907,600 - -------------------------------------------------------------------------------------- Fremont General Corp. 33,200 835,976 - -------------------------------------------------------------------------------------- MGIC Investment Corp. 25,200 1,736,532 - -------------------------------------------------------------------------------------- Radian Group, Inc. 22,700 1,208,548 ---------------- 31,442,807 - -------------------------------------------------------------------------------------- HEALTH CARE--12.4% - -------------------------------------------------------------------------------------- BIOTECHNOLOGY--1.1% Amgen, Inc. 1 145,500 9,333,825 - -------------------------------------------------------------------------------------- Applera Corp./Applied Biosystems Group 45,800 957,678 - -------------------------------------------------------------------------------------- Gen-Probe, Inc. 1 11,400 515,394 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- BIOTECHNOLOGY Continued Millennium Pharmaceuticals, Inc. 1 43,800 $ 530,856 - -------------------------------------------------------------------------------------- Onyx Pharmaceuticals, Inc. 1 2,600 84,214 - -------------------------------------------------------------------------------------- United Therapeutics Corp. 1 8,000 361,200 - -------------------------------------------------------------------------------------- Wyeth 148,800 6,337,392 ---------------- 18,120,559 - -------------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--1.4% Bausch & Lomb, Inc. 8,700 560,802 - -------------------------------------------------------------------------------------- Baxter International, Inc. 19,000 656,260 - -------------------------------------------------------------------------------------- Becton, Dickinson & Co. 44,900 2,550,320 - -------------------------------------------------------------------------------------- Biomet, Inc. 4,700 203,933 - -------------------------------------------------------------------------------------- Boston Scientific Corp. 1 32,500 1,155,375 - -------------------------------------------------------------------------------------- Dade Behring Holdings, Inc. 1 2,000 112,000 - -------------------------------------------------------------------------------------- Hospira, Inc. 1 35,380 1,185,230 - -------------------------------------------------------------------------------------- Idexx Laboratories, Inc. 1 1,200 65,508 - -------------------------------------------------------------------------------------- Inamed Corp. 1 1,700 107,525 - -------------------------------------------------------------------------------------- Medtronic, Inc. 194,100 9,640,947 - -------------------------------------------------------------------------------------- PerkinElmer, Inc. 50,600 1,137,994 - -------------------------------------------------------------------------------------- Respironics, Inc. 1 1,800 97,848 - -------------------------------------------------------------------------------------- Stryker Corp. 65,900 3,179,675 - -------------------------------------------------------------------------------------- Thermo Electron Corp. 1 44,300 1,337,417 - -------------------------------------------------------------------------------------- Varian Medical Systems, Inc. 1 12,900 557,796 - -------------------------------------------------------------------------------------- VISX, Inc. 1 9,800 253,526 - -------------------------------------------------------------------------------------- Wright Medical Group, Inc. 1 5,200 148,200 ---------------- 22,950,356 - -------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES--2.4% Advisory Board Co. (The) 1 2,900 106,952 - -------------------------------------------------------------------------------------- Aetna, Inc. 26,700 3,330,825 - -------------------------------------------------------------------------------------- Amedisys, Inc. 1 2,800 90,692 - -------------------------------------------------------------------------------------- AmerisourceBergen Corp. 20,200 1,185,336 - -------------------------------------------------------------------------------------- Andrx Corp. 1 15,900 347,097 - -------------------------------------------------------------------------------------- Caremark Rx, Inc. 1 29,300 1,155,299 - -------------------------------------------------------------------------------------- Cerner Corp. 1 3,300 175,461 - -------------------------------------------------------------------------------------- CIGNA Corp. 37,600 3,067,032 - -------------------------------------------------------------------------------------- Covance, Inc. 1 16,700 647,125 - -------------------------------------------------------------------------------------- Coventry Health Care, Inc. 1 19,950 1,058,946 - -------------------------------------------------------------------------------------- DaVita, Inc. 1 1,700 67,201 - -------------------------------------------------------------------------------------- eResearch Technology, Inc. 1 4,900 77,665 - -------------------------------------------------------------------------------------- Express Scripts, Inc. 1 2,200 168,168 - -------------------------------------------------------------------------------------- Gentiva Health Services, Inc. 1 1,000 16,720 - -------------------------------------------------------------------------------------- HCA, Inc. 8,200 327,672 - -------------------------------------------------------------------------------------- Humana, Inc. 1 36,200 1,074,778 - -------------------------------------------------------------------------------------- IMS Health, Inc. 10,800 250,668 - -------------------------------------------------------------------------------------- Laboratory Corp. of America Holdings 1 14,700 732,354
12 | OPPENHEIMER MAIN STREET FUND/VA
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- HEALTH CARE PROVIDERS & SERVICES Continued LCA-Vision, Inc. 14,400 $ 336,816 - -------------------------------------------------------------------------------------- McKesson Corp. 19,200 604,032 - -------------------------------------------------------------------------------------- Medco Health Solutions, Inc. 1 51,281 2,133,290 - -------------------------------------------------------------------------------------- PacifiCare Health Systems, Inc. 1 28,000 1,582,560 - -------------------------------------------------------------------------------------- Pediatrix Medical Group, Inc. 1 12,300 787,815 - -------------------------------------------------------------------------------------- Quest Diagnostics, Inc. 18,900 1,805,895 - -------------------------------------------------------------------------------------- Select Medical Corp. 8,200 144,320 - -------------------------------------------------------------------------------------- Sierra Health Services, Inc. 1 8,600 473,946 - -------------------------------------------------------------------------------------- Sunrise Senior Living, Inc. 1 4,900 227,164 - -------------------------------------------------------------------------------------- UnitedHealth Group, Inc. 120,624 10,618,531 - -------------------------------------------------------------------------------------- WellChoice, Inc. 1 11,000 587,400 - -------------------------------------------------------------------------------------- WellPoint, Inc. 1 43,900 5,048,500 ---------------- 38,230,260 - -------------------------------------------------------------------------------------- PHARMACEUTICALS--7.5% Abbott Laboratories 191,500 8,933,475 - -------------------------------------------------------------------------------------- Allergan, Inc. 17,400 1,410,618 - -------------------------------------------------------------------------------------- Barr Pharmaceuticals, Inc. 1 13,200 601,128 - -------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 389,100 9,968,742 - -------------------------------------------------------------------------------------- Eli Lilly & Co. 161,700 9,176,475 - -------------------------------------------------------------------------------------- Endo Pharmaceuticals Holdings, Inc. 1 40,400 849,208 - -------------------------------------------------------------------------------------- Eon Labs, Inc. 1 15,700 423,900 - -------------------------------------------------------------------------------------- Forest Laboratories, Inc. 1 68,100 3,054,966 - -------------------------------------------------------------------------------------- Johnson & Johnson 497,506 31,551,831 - -------------------------------------------------------------------------------------- Merck & Co., Inc. 483,600 15,542,904 - -------------------------------------------------------------------------------------- Pfizer, Inc. 1,406,800 37,828,852 - -------------------------------------------------------------------------------------- Schering-Plough Corp. 49,500 1,033,560 ---------------- 120,375,659 - -------------------------------------------------------------------------------------- INDUSTRIALS--10.2% - -------------------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.7% Boeing Co. 70,500 3,649,785 - -------------------------------------------------------------------------------------- General Dynamics Corp. 16,600 1,736,360 - -------------------------------------------------------------------------------------- Goodrich Corp. 7,800 254,592 - -------------------------------------------------------------------------------------- Honeywell International, Inc. 62,500 2,213,125 - -------------------------------------------------------------------------------------- Lockheed Martin Corp. 25,500 1,416,525 - -------------------------------------------------------------------------------------- Northrop Grumman Corp. 59,100 3,212,676 - -------------------------------------------------------------------------------------- Precision Castparts Corp. 1,000 65,680 - -------------------------------------------------------------------------------------- Raytheon Co. 34,600 1,343,518 - -------------------------------------------------------------------------------------- Rockwell Collins, Inc. 2,200 86,768 - -------------------------------------------------------------------------------------- United Defense Industries, Inc. 1 10,800 510,300 - -------------------------------------------------------------------------------------- United Technologies Corp. 130,800 13,518,180 ---------------- 28,007,509 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- AIR FREIGHT & LOGISTICS--0.5% EGL, Inc. 1 19,500 $ 582,855 - -------------------------------------------------------------------------------------- Expeditors International of Washington, Inc. 6,900 385,572 - -------------------------------------------------------------------------------------- FedEx Corp. 22,600 2,225,874 - -------------------------------------------------------------------------------------- United Parcel Service, Inc., Cl. B 56,100 4,794,306 ---------------- 7,988,607 - -------------------------------------------------------------------------------------- AIRLINES--0.2% Alaska Air Group, Inc. 1 11,000 368,390 - -------------------------------------------------------------------------------------- AMR Corp. 1 71,700 785,115 - -------------------------------------------------------------------------------------- Continental Airlines, Inc., Cl. B 1 35,800 484,732 - -------------------------------------------------------------------------------------- Delta Air Lines, Inc. 1 80,200 599,896 - -------------------------------------------------------------------------------------- Northwest Airlines Corp., Cl. A 1 21,500 234,995 ---------------- 2,473,128 - -------------------------------------------------------------------------------------- BUILDING PRODUCTS--0.2% American Standard Cos., Inc. 1 15,600 644,592 - -------------------------------------------------------------------------------------- Masco Corp. 32,300 1,179,919 - -------------------------------------------------------------------------------------- USG Corp. 1 16,500 664,455 ---------------- 2,488,966 - -------------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--0.6% Brink's Co. (The) 4,100 162,032 - -------------------------------------------------------------------------------------- Cendant Corp. 168,200 3,932,516 - -------------------------------------------------------------------------------------- Cintas Corp. 15,200 666,672 - -------------------------------------------------------------------------------------- Copart, Inc. 1 16,200 426,384 - -------------------------------------------------------------------------------------- Corporate Executive Board Co. 4,200 281,148 - -------------------------------------------------------------------------------------- Dun & Bradstreet Corp. 1 6,900 411,585 - -------------------------------------------------------------------------------------- Equifax, Inc. 17,200 483,320 - -------------------------------------------------------------------------------------- Gevity HR, Inc. 2,500 51,400 - -------------------------------------------------------------------------------------- ITT Educational Services, Inc. 1 7,400 351,870 - -------------------------------------------------------------------------------------- Miller (Herman), Inc. 4,900 135,387 - -------------------------------------------------------------------------------------- Pitney Bowes, Inc. 8,500 393,380 - -------------------------------------------------------------------------------------- Republic Services, Inc. 15,800 529,932 - -------------------------------------------------------------------------------------- Resources Connection, Inc. 1 2,400 130,344 - -------------------------------------------------------------------------------------- Robert Half International, Inc. 39,100 1,150,713 - -------------------------------------------------------------------------------------- Sotheby's Holdings, Inc., Cl. A 1 8,000 145,280 - -------------------------------------------------------------------------------------- Waste Management, Inc. 39,700 1,188,618 ---------------- 10,440,581 - -------------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING--0.0% Shaw Group, Inc. (The) 1 13,200 235,620 - -------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--0.4% American Power Conversion Corp. 24,900 532,860 - -------------------------------------------------------------------------------------- Cooper Industries Ltd., Cl. A 9,400 638,166 - -------------------------------------------------------------------------------------- Emerson Electric Co. 44,800 3,140,480 - -------------------------------------------------------------------------------------- Hubbell, Inc., Cl. B 1,500 78,450
13 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT Continued Molex, Inc., Cl. A 20,750 $ 552,988 - -------------------------------------------------------------------------------------- Rockwell Automation, Inc. 19,100 946,405 ---------------- 5,889,349 - -------------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--5.1% 3M Co. 150,800 12,376,156 - -------------------------------------------------------------------------------------- General Electric Co. 1,855,200 67,714,800 - -------------------------------------------------------------------------------------- Textron, Inc. 9,900 730,620 - -------------------------------------------------------------------------------------- Tyco International Ltd. 23,000 822,020 ---------------- 81,643,596 - -------------------------------------------------------------------------------------- MACHINERY--1.2% Briggs & Stratton Corp. 1,600 66,528 - -------------------------------------------------------------------------------------- Caterpillar, Inc. 33,100 3,227,581 - -------------------------------------------------------------------------------------- Cummins, Inc. 12,500 1,047,375 - -------------------------------------------------------------------------------------- Danaher Corp. 14,100 809,481 - -------------------------------------------------------------------------------------- Deere & Co. 36,000 2,678,400 - -------------------------------------------------------------------------------------- Dover Corp. 13,400 561,996 - -------------------------------------------------------------------------------------- Illinois Tool Works, Inc. 35,400 3,280,872 - -------------------------------------------------------------------------------------- Ingersoll-Rand Co., Cl. A 25,800 2,071,740 - -------------------------------------------------------------------------------------- Mueller Industries, Inc. 6,000 193,200 - -------------------------------------------------------------------------------------- Navistar International Corp. 1 18,200 800,436 - -------------------------------------------------------------------------------------- Paccar, Inc. 23,050 1,855,064 - -------------------------------------------------------------------------------------- Pall Corp. 16,900 489,255 - -------------------------------------------------------------------------------------- Parker-Hannifin Corp. 10,300 780,122 - -------------------------------------------------------------------------------------- SPX Corp. 33,500 1,342,010 - -------------------------------------------------------------------------------------- Terex Corp. 1 3,000 142,950 - -------------------------------------------------------------------------------------- Toro Co. (The) 5,600 455,560 - -------------------------------------------------------------------------------------- Wabash National Corp. 1 9,100 245,063 ---------------- 20,047,633 - -------------------------------------------------------------------------------------- ROAD & RAIL--0.2% Burlington Northern Santa Fe Corp. 8,800 416,328 - -------------------------------------------------------------------------------------- CNF Transportation, Inc. 18,000 901,800 - -------------------------------------------------------------------------------------- CSX Corp. 5,900 236,472 - -------------------------------------------------------------------------------------- Genesee & Wyoming, Inc., Cl. A 1 1,100 30,943 - -------------------------------------------------------------------------------------- Hunt (J.B.) Transport Services, Inc. 19,600 879,060 - -------------------------------------------------------------------------------------- Norfolk Southern Corp. 8,300 300,377 - -------------------------------------------------------------------------------------- Ryder Systems, Inc. 17,000 812,090 - -------------------------------------------------------------------------------------- Swift Transportation Co., Inc. 1 23,400 502,632 ---------------- 4,079,702 - -------------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--0.1% W.W. Grainger, Inc. 13,000 866,060 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--18.9% - -------------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--3.4% ADTRAN, Inc. 24,000 $ 459,360 - -------------------------------------------------------------------------------------- Avaya, Inc. 1 98,300 1,690,760 - -------------------------------------------------------------------------------------- Brocade Communications Systems, Inc. 1 70,700 540,148 - -------------------------------------------------------------------------------------- Ciena Corp. 1 147,100 491,314 - -------------------------------------------------------------------------------------- Cisco Systems, Inc. 1 1,260,300 24,323,790 - -------------------------------------------------------------------------------------- CommScope, Inc. 1 5,000 94,500 - -------------------------------------------------------------------------------------- Comverse Technology, Inc. 1 60,000 1,467,000 - -------------------------------------------------------------------------------------- Ditech Communications Corp. 1 3,300 49,335 - -------------------------------------------------------------------------------------- Extreme Networks, Inc. 1 26,900 176,195 - -------------------------------------------------------------------------------------- Harris Corp. 6,100 376,919 - -------------------------------------------------------------------------------------- Juniper Networks, Inc. 1 144,300 3,923,517 - -------------------------------------------------------------------------------------- Lucent Technologies, Inc. 1 649,300 2,441,368 - -------------------------------------------------------------------------------------- Motorola, Inc. 258,700 4,449,640 - -------------------------------------------------------------------------------------- Polycom, Inc. 1 12,200 284,504 - -------------------------------------------------------------------------------------- QUALCOMM, Inc. 292,600 12,406,240 - -------------------------------------------------------------------------------------- Scientific-Atlanta, Inc. 38,000 1,254,380 - -------------------------------------------------------------------------------------- Sonus Networks, Inc. 1 20,100 115,173 - -------------------------------------------------------------------------------------- Tellabs, Inc. 1 32,400 278,316 ---------------- 54,822,459 - -------------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--4.8% Apple Computer, Inc. 1 27,400 1,764,560 - -------------------------------------------------------------------------------------- Avid Technology, Inc. 1 3,500 216,125 - -------------------------------------------------------------------------------------- Dell, Inc. 1 523,200 22,047,648 - -------------------------------------------------------------------------------------- Electronics for Imaging, Inc. 1 6,300 109,683 - -------------------------------------------------------------------------------------- Hewlett-Packard Co. 741,000 15,538,770 - -------------------------------------------------------------------------------------- International Business Machines Corp. 295,500 29,130,390 - -------------------------------------------------------------------------------------- Lexmark International, Inc., Cl. A 1 32,600 2,771,000 - -------------------------------------------------------------------------------------- Maxtor Corp. 1 71,600 379,480 - -------------------------------------------------------------------------------------- NCR Corp. 1 17,800 1,232,294 - -------------------------------------------------------------------------------------- Storage Technology Corp. 1 30,600 967,266 - -------------------------------------------------------------------------------------- Sun Microsystems, Inc. 1 656,900 3,534,122 - -------------------------------------------------------------------------------------- Western Digital Corp. 1 33,500 363,140 ---------------- 78,054,478 - -------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--0.6% Agilent Technologies, Inc. 1 100,000 2,410,000 - -------------------------------------------------------------------------------------- Amphenol Corp., Cl. A 1 31,500 1,157,310 - -------------------------------------------------------------------------------------- Arrow Electronics, Inc. 1 1,600 38,880 - -------------------------------------------------------------------------------------- CDW Corp. 9,200 610,420 - -------------------------------------------------------------------------------------- Cognex Corp. 5,400 150,660 - -------------------------------------------------------------------------------------- Diebold, Inc. 900 50,157 - -------------------------------------------------------------------------------------- Dionex Corp. 1 1,100 62,337
14 | OPPENHEIMER MAIN STREET FUND/VA
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS Continued Electro Scientific Industries, Inc. 1 800 $ 15,808 - -------------------------------------------------------------------------------------- Ingram Micro, Inc., Cl. A 1 37,600 782,080 - -------------------------------------------------------------------------------------- Jabil Circuit, Inc. 1 39,500 1,010,410 - -------------------------------------------------------------------------------------- Littlefuse, Inc. 1 3,000 102,480 - -------------------------------------------------------------------------------------- Molex, Inc. 23,600 708,000 - -------------------------------------------------------------------------------------- MTS Systems Corp. 1,100 37,191 - -------------------------------------------------------------------------------------- Sanmina-SCI Corp. 1 104,700 886,809 - -------------------------------------------------------------------------------------- Symbol Technologies, Inc. 5,500 95,150 - -------------------------------------------------------------------------------------- Tech Data Corp. 1 19,700 894,380 - -------------------------------------------------------------------------------------- Trimble Navigation Ltd. 1 6,800 224,672 - -------------------------------------------------------------------------------------- UNOVA, Inc. 1 3,400 85,986 ---------------- 9,322,730 - -------------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--0.6% DoubleClick, Inc. 1 25,200 196,056 - --------------------------------------------------------------------------------------' EarthLink, Inc. 1 50,500 581,760 - -------------------------------------------------------------------------------------- InfoSpace, Inc. 1 13,600 646,680 - -------------------------------------------------------------------------------------- Internet Security Systems, Inc. 1 22,000 511,500 - -------------------------------------------------------------------------------------- MicroStrategy, Inc., Cl. A 1 4,500 271,125 - -------------------------------------------------------------------------------------- Openwave Systems, Inc. 1 10,700 165,422 - -------------------------------------------------------------------------------------- United Online, Inc. 1 40,100 462,353 - -------------------------------------------------------------------------------------- ValueClick, Inc. 1 21,400 285,262 - -------------------------------------------------------------------------------------- VeriSign, Inc. 1 16,300 546,376 - -------------------------------------------------------------------------------------- WebEx Communications, Inc. 1 3,700 87,986 - -------------------------------------------------------------------------------------- Websense, Inc. 1 11,300 573,136 - -------------------------------------------------------------------------------------- Yahoo!, Inc. 1 141,800 5,343,024 ---------------- 9,670,680 - -------------------------------------------------------------------------------------- IT SERVICES--0.9% Acxiom Corp. 24,600 646,980 - -------------------------------------------------------------------------------------- Affiliated Computer Services, Inc., Cl. A 1 30,600 1,841,814 - -------------------------------------------------------------------------------------- Automatic Data Processing, Inc. 88,300 3,916,105 - -------------------------------------------------------------------------------------- BISYS Group, Inc. (The) 1 1,500 24,675 - -------------------------------------------------------------------------------------- CheckFree Corp. 1 34,200 1,302,336 - -------------------------------------------------------------------------------------- Computer Sciences Corp. 1 40,500 2,282,985 - -------------------------------------------------------------------------------------- Convergys Corp. 1 26,700 400,233 - -------------------------------------------------------------------------------------- CSG Systems International, Inc. 1 1,300 24,310 - -------------------------------------------------------------------------------------- Electronic Data Systems Corp. 79,000 1,824,900 - -------------------------------------------------------------------------------------- First Data Corp. 50,200 2,135,508 - -------------------------------------------------------------------------------------- Sabre Holdings Corp. 41,200 912,992 ---------------- 15,312,838 - -------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3.8% Advanced Micro Devices, Inc. 1 82,900 1,825,458 - -------------------------------------------------------------------------------------- Agere Systems, Inc., Cl. A 1 160,300 219,611 - -------------------------------------------------------------------------------------- Altera Corp. 1 62,200 1,287,540 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued Analog Devices, Inc. 88,800 $ 3,278,496 - -------------------------------------------------------------------------------------- Applied Materials, Inc. 1 255,100 4,362,210 - -------------------------------------------------------------------------------------- Applied Micro Circuits Corp. 1 80,800 340,168 - -------------------------------------------------------------------------------------- Atmel Corp. 1 286,900 1,124,648 - -------------------------------------------------------------------------------------- Broadcom Corp., Cl. A 1 7,500 242,100 - -------------------------------------------------------------------------------------- Cabot Microelectronics Corp. 1 13,700 548,685 - -------------------------------------------------------------------------------------- Cree, Inc. 1 35,300 1,414,824 - -------------------------------------------------------------------------------------- Cymer, Inc. 1 4,900 144,746 - -------------------------------------------------------------------------------------- Freescale Semiconductor, Inc., Cl. A 1 35,800 637,956 - -------------------------------------------------------------------------------------- Freescale Semiconductor, Inc., Cl. B 1 28,343 520,377 - -------------------------------------------------------------------------------------- Integrated Circuit Systems, Inc. 1 1,100 23,012 - -------------------------------------------------------------------------------------- Integrated Device Technology, Inc. 1 25,600 295,936 - -------------------------------------------------------------------------------------- Intel Corp. 1,132,100 26,479,819 - -------------------------------------------------------------------------------------- International Rectifier Corp. 1 500 22,285 - -------------------------------------------------------------------------------------- Intersil Corp., Cl. A 54,700 915,678 - -------------------------------------------------------------------------------------- KLA-Tencor Corp. 1 19,800 922,284 - -------------------------------------------------------------------------------------- Lam Research Corp. 1 34,700 1,003,177 - -------------------------------------------------------------------------------------- Linear Technology Corp. 83,800 3,248,088 - -------------------------------------------------------------------------------------- LSI Logic Corp. 1 83,400 457,032 - -------------------------------------------------------------------------------------- Maxim Integrated Products, Inc. 37,100 1,572,669 - -------------------------------------------------------------------------------------- Micrel, Inc. 1 15,100 166,402 - -------------------------------------------------------------------------------------- Microchip Technology, Inc. 34,100 909,106 - -------------------------------------------------------------------------------------- Micron Technology, Inc. 1 150,700 1,861,145 - -------------------------------------------------------------------------------------- National Semiconductor Corp. 1 95,600 1,716,020 - -------------------------------------------------------------------------------------- PMC-Sierra, Inc. 1 3,200 36,000 - -------------------------------------------------------------------------------------- Rambus, Inc. 1 19,100 439,300 - -------------------------------------------------------------------------------------- Semtech Corp. 1 18,600 406,782 - -------------------------------------------------------------------------------------- Silicon Image, Inc. 1 15,100 248,546 - -------------------------------------------------------------------------------------- Teradyne, Inc. 1 12,800 218,496 - -------------------------------------------------------------------------------------- Texas Instruments, Inc. 165,900 4,084,458 - -------------------------------------------------------------------------------------- Xilinx, Inc. 15,400 456,610 ---------------- 61,429,664 - -------------------------------------------------------------------------------------- SOFTWARE--4.8% Activision, Inc. 1 29,000 585,220 - -------------------------------------------------------------------------------------- Adobe Systems, Inc. 19,800 1,242,252 - -------------------------------------------------------------------------------------- Amdocs Ltd. 1 22,200 582,750 - -------------------------------------------------------------------------------------- Autodesk, Inc. 40,400 1,533,180 - -------------------------------------------------------------------------------------- BEA Systems, Inc. 1 51,500 456,290 - -------------------------------------------------------------------------------------- BMC Software, Inc. 1 48,200 896,520 - -------------------------------------------------------------------------------------- Computer Associates International, Inc. 38,900 1,208,234 - -------------------------------------------------------------------------------------- Compuware Corp. 1 6,500 42,055 - -------------------------------------------------------------------------------------- Electronic Arts, Inc. 1 32,600 2,010,768 - -------------------------------------------------------------------------------------- FactSet Research Systems, Inc. 4,300 251,292 - -------------------------------------------------------------------------------------- Fair Isaac Corp. 12,900 473,172
15 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF INVESTMENTS Continued - --------------------------------------------------------------------------------
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- SOFTWARE Continued FileNet Corp. 1 8,700 $ 224,112 - -------------------------------------------------------------------------------------- Macrovision Corp. 1 7,600 195,472 - -------------------------------------------------------------------------------------- McAfee, Inc. 1 39,300 1,136,949 - -------------------------------------------------------------------------------------- MICROS Systems, Inc. 1 1,300 101,478 - -------------------------------------------------------------------------------------- Microsoft Corp. 1,803,700 48,176,827 - -------------------------------------------------------------------------------------- Oracle Corp. 1 858,100 11,773,132 - -------------------------------------------------------------------------------------- Quest Software, Inc. 1 2,400 38,280 - -------------------------------------------------------------------------------------- RSA Security, Inc. 1 27,000 541,620 - -------------------------------------------------------------------------------------- Siebel Systems, Inc. 1 61,700 647,850 - -------------------------------------------------------------------------------------- Sybase, Inc. 1 57,600 1,149,120 - -------------------------------------------------------------------------------------- Synopsys, Inc. 1 30,900 606,258 - -------------------------------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 14,700 511,413 - -------------------------------------------------------------------------------------- THQ, Inc. 1 22,500 516,150 - -------------------------------------------------------------------------------------- TIBCO Software, Inc. 1 75,800 1,011,172 - -------------------------------------------------------------------------------------- Veritas Software Corp. 1 36,800 1,050,640 ---------------- 76,962,206 - -------------------------------------------------------------------------------------- MATERIALS--2.6% - -------------------------------------------------------------------------------------- CHEMICALS--1.1% Cabot Corp. 5,400 208,872 - -------------------------------------------------------------------------------------- Dow Chemical Co. 38,200 1,891,282 - -------------------------------------------------------------------------------------- E.I. DuPont de Nemours & Co. 107,300 5,263,065 - -------------------------------------------------------------------------------------- Eastman Chemical Co. 14,500 837,085 - -------------------------------------------------------------------------------------- Engelhard Corp. 13,400 410,978 - -------------------------------------------------------------------------------------- FMC Corp. 1 7,300 352,590 - -------------------------------------------------------------------------------------- Georgia Gulf Corp. 17,600 876,480 - -------------------------------------------------------------------------------------- Lyondell Chemical Co. 30,300 876,276 - -------------------------------------------------------------------------------------- Monsanto Co. 77,500 4,305,125 - -------------------------------------------------------------------------------------- OM Group, Inc. 1 12,700 411,734 - -------------------------------------------------------------------------------------- PPG Industries, Inc. 12,000 817,920 - -------------------------------------------------------------------------------------- Praxair, Inc. 9,100 401,765 - -------------------------------------------------------------------------------------- Rohm & Haas Co. 18,300 809,409 - -------------------------------------------------------------------------------------- Scotts Co. (The), Cl. A 1 3,800 279,376 - -------------------------------------------------------------------------------------- W.R. Grace & Co. 1 25,000 340,250 ---------------- 18,082,207 - -------------------------------------------------------------------------------------- CONSTRUCTION MATERIALS--0.1% Eagle Materials, Inc., Cl. B 7,543 635,875 - -------------------------------------------------------------------------------------- Florida Rock Industries, Inc. 1,900 113,107 - -------------------------------------------------------------------------------------- Texas Industries, Inc. 3,400 212,092 - -------------------------------------------------------------------------------------- Vulcan Materials Co. 8,000 436,880 ---------------- 1,397,954 - -------------------------------------------------------------------------------------- CONTAINERS & PACKAGING--0.1% Ball Corp. 3,800 167,124 - -------------------------------------------------------------------------------------- Bemis Co., Inc. 2,300 66,907 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- CONTAINERS & PACKAGING Continued Crown Holdings, Inc. 1 25,100 $ 344,874 - -------------------------------------------------------------------------------------- Owens-Illinois, Inc. 1 37,000 838,050 - -------------------------------------------------------------------------------------- Smurfit-Stone Container Corp. 14,300 267,124 ---------------- 1,684,079 - -------------------------------------------------------------------------------------- METALS & MINING--0.8% AK Steel Holding Corp. 1 31,300 452,911 - -------------------------------------------------------------------------------------- Alcoa, Inc. 140,800 4,423,936 - -------------------------------------------------------------------------------------- Carpenter Technology Corp. 3,900 227,994 - -------------------------------------------------------------------------------------- Cleveland-Cliffs, Inc. 5,500 571,230 - -------------------------------------------------------------------------------------- Inco Ltd. 1 5,600 205,968 - -------------------------------------------------------------------------------------- Massey Energy Co. 24,800 866,760 - -------------------------------------------------------------------------------------- Nucor Corp. 17,600 921,184 - -------------------------------------------------------------------------------------- Phelps Dodge Corp. 26,400 2,611,488 - -------------------------------------------------------------------------------------- Schnitzer Steel Industries, Inc. 4,700 159,471 - -------------------------------------------------------------------------------------- Southern Peru Copper Corp. 5,800 273,818 - -------------------------------------------------------------------------------------- Steel Dynamics, Inc. 6,600 250,008 - -------------------------------------------------------------------------------------- United States Steel Corp. 33,000 1,691,250 - -------------------------------------------------------------------------------------- Worthington Industries, Inc. 14,800 289,784 ---------------- 12,945,802 - -------------------------------------------------------------------------------------- PAPER & FOREST PRODUCTS--0.5% Georgia-Pacific Corp. 76,600 2,870,968 - -------------------------------------------------------------------------------------- International Paper Co. 13,900 583,800 - -------------------------------------------------------------------------------------- Louisiana-Pacific Corp. 52,500 1,403,850 - -------------------------------------------------------------------------------------- MeadWestvaco Corp. 53,100 1,799,559 - -------------------------------------------------------------------------------------- Neenah Paper, Inc. 1 2,036 66,374 - -------------------------------------------------------------------------------------- Potlatch Corp. 10,500 531,090 - -------------------------------------------------------------------------------------- Weyerhaeuser Co. 1,400 94,108 ---------------- 7,349,749 - -------------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--3.8% - -------------------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES--3.4% Alltel Corp. 20,100 1,181,076 - ------------------------------------------------------------------------------------- BellSouth Corp. 326,400 9,070,656 - ------------------------------------------------------------------------------------- CenturyTel, Inc. 31,000 1,099,570 - ------------------------------------------------------------------------------------- Citizens Communications Co. 115,400 1,591,366 - ------------------------------------------------------------------------------------- Qwest Communications International, Inc. 1 25,200 111,888 - ------------------------------------------------------------------------------------- SBC Communications, Inc. 775,500 19,984,635 - ------------------------------------------------------------------------------------- Sprint Corp. 44,700 1,110,795 - ------------------------------------------------------------------------------------- Verizon Communications, Inc. 500,456 20,273,473 --------------- 54,423,459 - ------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--0.4% Alamosa Holdings, Inc. 1 23,700 295,539 - ------------------------------------------------------------------------------------- AT&T Corp. 46,400 884,384
16 | OPPENHEIMER MAIN STREET FUND/VA
VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES Continued Nextel Communications, Inc., Cl. A 1 185,700 $ 5,571,000 - -------------------------------------------------------------------------------------- Telephone & Data Systems, Inc. 3,500 269,325 ---------------- 7,020,248 - -------------------------------------------------------------------------------------- UTILITIES--0.4% - -------------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.4% American Electric Power Co., Inc. 59,300 2,036,362 - -------------------------------------------------------------------------------------- Calpine Corp. 1 69,033 271,990 - -------------------------------------------------------------------------------------- CMS Energy Corp. 1 29,900 312,455 - -------------------------------------------------------------------------------------- Constellation Energy Group, Inc. 200 8,742 - -------------------------------------------------------------------------------------- Edison International, Inc. 27,000 864,810 - -------------------------------------------------------------------------------------- Exelon Corp. 18,448 813,003 - -------------------------------------------------------------------------------------- FPL Group, Inc. 10,500 784,875 - -------------------------------------------------------------------------------------- PG&E Corp. 1 23,500 782,080 - -------------------------------------------------------------------------------------- Progress Energy, Inc. 1,2 32,000 4,320 - -------------------------------------------------------------------------------------- Wisconsin Energy Corp. 3,800 128,098 ---------------- 6,006,735 - -------------------------------------------------------------------------------------- GAS UTILITIES--0.0% ONEOK, Inc. 6,500 184,728 ---------------- Total Common Stocks (Cost $1,371,019,607) 1,592,279,234 - -------------------------------------------------------------------------------------- PREFERRED STOCKS--0.0% - -------------------------------------------------------------------------------------- Wachovia Corp., Dividend Equalization Preferred Shares 1,2 (Cost $0) 6,000 6 UNITS - -------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - -------------------------------------------------------------------------------------- Dime Bancorp, Inc. Wts., Exp. 1/2/10 1 31,900 6,061 - -------------------------------------------------------------------------------------- Lucent Technologies, Inc. Wts., Exp. 12/10/07 1 4,837 7,642 ---------------- Total Rights, Warrants and Certificates (Cost $0) 13,703 PRINCIPAL AMOUNT - -------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--1.1% - -------------------------------------------------------------------------------------- Undivided interest of 1.24% in joint repurchase agreement (Principal Amount/ Value $1,443,703,000, with a maturity value of $1,443,962,867) with UBS Warburg LLC, 2.16%, dated 12/31/04, to be repurchased at $17,894,220 on 1/3/05, collateralized by Federal National Mortgage Assn., 5%--6%, 4/1/34--10/1/34, with a value of $1,474,609,071 (Cost $17,891,000) $ 17,891,000 17,891,000 PRINCIPAL VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS Continued - -------------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $1,388,910,607) $ 1,610,183,943 - -------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--5.2% - -------------------------------------------------------------------------------------- ASSET-BACKED FLOATING SECURITY--0.1% Money Market Trust, Series A-2, 2.478% Nts., 1/18/05 3 1,000,000 1,000,000 - -------------------------------------------------------------------------------------- FUNDING AGREEMENT/GIC--0.1% Allstate Life Insurance Co., 2.47%, 1/3/05 3 1,000,000 1,000,000 - -------------------------------------------------------------------------------------- MASTER FLOATING NOTES--0.2% Bear Stearns, 2.493%, 1/3/05 3 3,500,000 3,500,000 - -------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--4.7% Undivided interest of 2.75% in joint repurchase agreement (Principal Amount/Value $2,800,000,000, with a maturity value of $2,800,550,669) with Nomura Securities, 2.36%, dated 12/31/04, to be repurchased at $76,906,710 on 1/3/05, collateralized by U.S. Government Mortgage Agencies, 2.58%-7.50%, 1/15/08-10/15/44, with a value of $2,908,566,289 3 76,891,588 76,891,588 - -------------------------------------------------------------------------------------- YANKEE FLOATING CERTIFICATE OF DEPOSIT--0.1% Natexis Banque, NY, 2.193% Deposit Nts., 1/3/05 3 1,999,200 1,999,200 ---------------- Total Investments Purchased with Cash Collateral from Securities Loaned (Cost $84,390,788) 84,390,788 - -------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $1,473,301,395) 105.1% 1,694,574,731 - -------------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (5.1) (82,781,880) ------------------------------- NET ASSETS 100.0% $ 1,611,792,851 ===============================
FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Non-income producing security. 2. Illiquid security. The aggregate value of illiquid securities as of December 31, 2004 was $4,326, which represents less than 0.05% of the Fund's net assets. See Note 6 of Notes to Financial Statements. 3. The security has been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 7 of Notes to Financial Statements. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 17 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF ASSETS AND LIABILITIES December 31, 2004 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------------------------- Investments, at value (including securities loaned of $82,656,230) (cost $1,473,301,395)--see accompanying statement of investments $ 1,694,574,731 - -------------------------------------------------------------------------------------------------- Cash 277,531 - -------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 20,004,857 Interest and dividends 2,057,773 Shares of beneficial interest sold 1,273,039 Other 14,112 ---------------- Total assets 1,718,202,043 - -------------------------------------------------------------------------------------------------- LIABILITIES - -------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 84,390,788 - -------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 20,683,436 Shares of beneficial interest redeemed 985,903 Distribution and service plan fees 236,965 Shareholder communications 45,245 Trustees' compensation 21,290 Transfer and shareholder servicing agent fees 1,748 Other 43,817 ---------------- Total liabilities 106,409,192 - -------------------------------------------------------------------------------------------------- NET ASSETS $ 1,611,792,851 ================ - -------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - -------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 77,460 - -------------------------------------------------------------------------------------------------- Additional paid-in capital 1,596,214,582 - -------------------------------------------------------------------------------------------------- Accumulated net investment income 20,719,203 - -------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (226,491,822) - -------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 221,273,428 ---------------- NET ASSETS $ 1,611,792,851 ================ - -------------------------------------------------------------------------------------------------- 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 $1,238,947,749 and 59,452,782 shares of beneficial interest outstanding) $ 20.84 - -------------------------------------------------------------------------------------------------- Service Shares: Net asset value, redemption price per share and offering price per share (based on net assets of $372,845,102 and 18,007,790 shares of beneficial interest outstanding) $ 20.70
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 18 | OPPENHEIMER MAIN STREET FUND/VA STATEMENT OF OPERATIONS For the Year Ended December 31, 2004 - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------- INVESTMENT INCOME - ---------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $14,482) $ 30,469,815 - ---------------------------------------------------------------------------------------- Interest 345,218 - ---------------------------------------------------------------------------------------- Portfolio lending fees 146,383 -------------- Total investment income 30,961,416 - ---------------------------------------------------------------------------------------- EXPENSES - ---------------------------------------------------------------------------------------- Management fees 9,708,725 - ---------------------------------------------------------------------------------------- Distribution and service plan fees--Service shares 655,239 - ---------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Non-Service shares 10,185 Service shares 10,053 - ---------------------------------------------------------------------------------------- Shareholder communications: Non-Service shares 61,504 Service shares 13,518 - ---------------------------------------------------------------------------------------- Trustees' compensation 29,093 - ---------------------------------------------------------------------------------------- Custodian fees and expenses 25,878 - ---------------------------------------------------------------------------------------- Other 96,421 -------------- Total expenses 10,610,616 Less reduction to custodian expenses (6,829) -------------- Net expenses 10,603,787 - ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME 20,357,629 - ---------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ---------------------------------------------------------------------------------------- Net realized gain on: Investments 110,334,595 Foreign currency transactions 448,102 Net increase from payment by affiliate 416,623 -------------- Net realized gain 111,199,320 - ----------------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments 4,876,244 Translation of assets and liabilities denominated in foreign currencies (258,242) -------------- Net change in unrealized appreciation 4,618,002 - ---------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 136,174,951 ==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 19 | OPPENHEIMER MAIN STREET FUND/VA STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2004 2003 - -------------------------------------------------------------------------------------------------------------- OPERATIONS - -------------------------------------------------------------------------------------------------------------- Net investment income $ 20,357,629 $ 11,837,805 - -------------------------------------------------------------------------------------------------------------- Net realized gain (loss) 111,199,320 (28,749,982) - -------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 4,618,002 288,279,862 ---------------------------------- Net increase in net assets resulting from operations 136,174,951 271,367,685 - -------------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - -------------------------------------------------------------------------------------------------------------- Dividends from net investment income: Non-Service shares (10,373,133) (9,176,729) Service shares (1,403,577) (594,874) - -------------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares (73,484,963) 88,259,594 Service shares 179,202,879 89,152,120 - -------------------------------------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------------------------------------- Total increase 230,116,157 439,007,796 - -------------------------------------------------------------------------------------------------------------- Beginning of period 1,381,676,694 942,668,898 ---------------------------------- End of period (including accumulated net investment income of $20,719,203 and $11,726,476, respectively) $ 1,611,792,851 $ 1,381,676,694 ==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 20 | OPPENHEIMER MAIN STREET FUND/VA FINIANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
NON-SERVICE SHARES YEAR ENDED DECEMBER 31, 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 19.20 $ 15.32 $ 18.99 $ 21.26 $ 24.63 - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .27 1 .18 .16 .13 .10 Net realized and unrealized gain (loss) 1.53 3.86 (3.70) (2.29) (2.14) ---------------------------------------------------------------------------- Total from investment operations 1.80 4.04 (3.54) (2.16) (2.04) - ------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.16) (.16) (.13) (.11) (.09) Distributions from net realized gain -- -- -- -- (1.24) ---------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.16) (.16) (.13) (.11) (1.33) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 20.84 $ 19.20 $ 15.32 $ 18.99 $ 21.26 ============================================================================ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 9.46% 26.72% (18.80)% (10.16)% (8.78)% - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 1,238,948 $ 1,214,960 $ 890,740 $ 1,074,945 $ 1,009,823 - ------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 1,216,081 $ 1,003,396 $ 999,275 $ 1,028,913 $ 809,662 - ------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 1.39% 1.10% 0.94% 0.73% 0.69% Total expenses 0.67% 4 0.70% 4 0.69% 4 0.73% 4 0.73% - ------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 82% 85% 98% 69% 63%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. 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. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 21 | OPPENHEIMER MAIN STREET FUND/VA FINIANCIAL HIGHLIGHTS continued - --------------------------------------------------------------------------------
SERVICE SHARES YEAR ENDED DECEMBER 31, 2004 2003 2002 2001 2001 1 - ------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 19.10 $ 15.26 $ 18.95 $ 21.24 $ 24.04 - ------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .25 2 .14 .13 .14 .02 Net realized and unrealized gain (loss) 1.49 3.85 (3.70) (2.32) (2.82) ---------------------------------------------------------------- Total investment operations 1.74 3.99 (3.57) (2.18) (2.80) - ------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.14) (.15) (.12) (.11) -- Distributions from net realized gain -- -- -- -- -- ---------------------------------------------------------------- Total dividends and/or distributions to shareholders (.14) (.15) (.12) (.11) -- - ------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 20.70 $ 19.10 $ 15.26 $ 18.95 $ 21.24 ================================================================ - ------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 9.15% 26.44% (18.99)% (10.27)% (11.61)% - ------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 372,845 $ 166,717 $ 51,929 $ 21,545 $ 1,698 - ------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 262,660 $ 98,210 $ 34,604 $ 10,306 $ 543 - ------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income 1.30% 0.83% 0.87% 0.66% 0.50% Total expenses 0.92% 5 0.96% 5 0.84% 5 0.88% 5 0.88% - ------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 82% 85% 98% 69% 63%
1. For the period from July 13, 2000 (inception of offering) to December 31, 2000. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. 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. 4. Annualized for periods of less than one full year. 5. Reduction to custodian expenses less than 0.01%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 22 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer Main Street 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 objective is to seek high total return (which includes growth in the value of its shares as well as current income) from equity and debt 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. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. 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. Corporate, government and municipal debt instruments having a remaining maturity in excess of 60 days and all mortgage-backed securities will be valued at the mean between the "bid" and "asked" prices. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign and domestic securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective exchanges will be fair valued. 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). - -------------------------------------------------------------------------------- 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 as of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. 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. Foreign exchange rates may be valued primarily using dealer supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. 23 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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. 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. The tax components of capital shown in the table below represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes. NET UNREALIZED APPRECIATION BASED ON COST OF SECURITIES AND UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES -------------------------------------------------------------------------- $ 20,674,279 $ -- $ 210,806,406 $ 205,708,485 1. As of December 31, 2004, the Fund had $208,785,635 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of December 31, 2004, details of the capital loss carryforwards were as follows: EXPIRING ------------------------ 2009 $ 55,468,376 2010 126,747,906 2011 26,569,353 ------------- Total $ 208,785,635 ============= 2. As of December 31, 2004, the Fund had $2,020,771 of post-October losses available to offset future realized capital gains, if any. Such losses, if unutilized, will expire in 2013. 3. During the fiscal year ended December 31, 2004, the Fund utilized $114,232,007 of capital loss carryforward to offset capital gains realized in that fiscal year. 4. During the fiscal year ended December 31, 2003, the Fund did not utilize any capital loss carryforward. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. Accordingly, the following amounts have been reclassified for December 31, 2004. Net assets of the Fund were unaffected by the reclassifications. INCREASE TO INCREASE TO ACCUMULATED ACCUMULATED NET NET INVESTMENT REALIZED LOSS INCOME ON INVESTMENTS -------------------------------- $ 411,808 $ 411,808 24 | OPPENHEIMER MAIN STREET FUND/VA The tax character of distributions paid during the years ended December 31, 2004 and December 31, 2003 was as follows: YEAR ENDED YEAR ENDED DECEMBER 31, 2004 DECEMBER 31, 2003 ---------------------------------------------------------------- Distributions paid from: Ordinary income $ 11,776,710 $ 9,771,603 The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of December 31, 2004 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss. Federal tax cost of securities $ 1,488,866,338 ================ Gross unrealized appreciation $ 229,577,710 Gross unrealized depreciation (23,869,225) ---------------- Net unrealized appreciation $ 205,708,485 ================ - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the Plan. - -------------------------------------------------------------------------------- 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 and capital gain distributions, if any, are declared and paid annually. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts at a rate equal to the Federal Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. 25 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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:
YEAR ENDED DECEMBER 31, 2004 YEAR ENDED DECEMBER 31, 2003 SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------- NON-SERVICE SHARES Sold 11,955,294 $ 233,322,256 19,380,163 $ 327,567,787 Dividends and/or distributions reinvested 536,356 10,373,133 639,048 9,176,729 Redeemed (16,312,427) (317,180,352) (14,871,791) (248,484,922) ------------------------------------------------------------ Net increase (decrease) (3,820,777) $ (73,484,963) 5,147,420 $ 88,259,594 ============================================================ - --------------------------------------------------------------------------------------------------------- SERVICE SHARES Sold 10,163,617 $ 196,313,963 5,793,833 $ 97,063,016 Dividends and/or distributions reinvested 72,875 1,403,577 41,628 594,874 Redeemed (955,303) (18,514,661) (511,472) (8,505,770) ------------------------------------------------------------ Net increase 9,281,189 $ 179,202,879 5,323,989 $ 89,152,120 ============================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended December 31, 2004, were $1,305,020,608 and $1,185,897,130, respectively. - -------------------------------------------------------------------------------- 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 and 0.60% of average annual net assets over $800 million. - -------------------------------------------------------------------------------- ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- 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 per account fee. For the year ended December 31, 2004, the Fund paid $20,156 to OFS for services to the Fund. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $10,000 per class for class level assets of $10 million or more. Each class is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. - -------------------------------------------------------------------------------- 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 and personal service and account maintenance 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 Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. The impact of the service plan is to increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. 26 | OPPENHEIMER MAIN STREET FUND/VA - -------------------------------------------------------------------------------- PAYMENTS AND WAIVERS OF EXPENSES. Following a review of its use of brokerage commissions for sales that is permitted under its investment advisory agreement, the Fund's Manager terminated that practice in July 2003. Subsequently, the Manager paid the Fund $416,623, an amount equivalent to certain of such commissions incurred in prior years. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- 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 gains or losses. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of December 31, 2004, the Fund had no outstanding foreign currency contracts. - -------------------------------------------------------------------------------- 6. ILLIQUID SECURITIES As of December 31, 2004, investments in securities included issues that are illiquid. A security may 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 will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. - -------------------------------------------------------------------------------- 7. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income. In return, the Fund receives collateral in the form of US Treasury obligations or cash, against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the funds and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The Fund retains a portion of the interest earned from the collateral. The Fund also continues to receive interest or dividends paid on the securities loaned. As of December 31, 2004, the Fund had on loan securities valued at $82,656,230. Cash of $84,390,788 was received as collateral for the loans, all of which was invested in approved instruments. 27 | OPPENHEIMER MAIN STREET FUND/VA NOTES TO FINANCIAL STATEMENTS Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 8. LITIGATION A consolidated amended complaint has been filed as putative derivative and class actions against the Manager, OFS and the Distributor (collectively, the "Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal Defendants") excluding the Fund, 31 present and former Directors or Trustees and 9 present and former officers of the funds. This complaint, filed in the U.S. District Court for the Southern District of New York on January 10, 2005, consolidates into a single action and amends six individual previously-filed putative derivative and class action complaints. Like those prior complaints, the complaint alleges that the Manager charged excessive fees for distribution and other costs, improperly used assets of the funds in the form of directed brokerage commissions and 12b-1 fees to pay brokers to promote sales of the funds, and failed to properly disclose the use of assets of the funds to make those payments in violation of the Investment Company Act of 1940 and the Investment Advisers Act of 1940. Also, like those prior complaints, the complaint further alleges that by permitting and/or participating in those actions, the Directors/Trustees and the Officers breached their fiduciary duties to shareholders of the funds under the Investment Company Act of 1940 and at common law. The complaint seeks unspecified compensatory and punitive damages, rescission of the funds' investment advisory agreements, an accounting of all fees paid, and an award of attorneys' fees and litigation expenses. The Oppenheimer defendants believe that the allegations contained in the Complaints are without merit and that they, the funds named as Nominal Defendants, and the Directors/Trustees of those funds have meritorious defenses against the claims asserted. The Oppenheimer defendants intend to defend these lawsuits vigorously and to contest any claimed liability, and they have retained legal counsel to defend such suits. The Oppenheimer defendants believe that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them and that no estimate can yet be made with any degree of certainty as to the amount or range of any potential loss. 28 | OPPENHEIMER MAIN STREET FUND/VA REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER MAIN STREET FUND/VA: We have audited the accompanying statement of assets and liabilities of Oppenheimer Main Street Fund/VA, a series of Oppenheimer Variable Account Funds, including the statement of investments, as of December 31, 2004, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. Additionally, an audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Main Street Fund/VA as of December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Denver, Colorado February 11, 2005 29 | OPPENHEIMER MAIN STREET FUND/VA FEDERAL INCOME TAX INFORMATION Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- In early 2005, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2004. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. Dividends of $0.1634 and $0.1365 per share were paid to Non-Service and Service shareholders, respectively, on March 15, 2004, all of which was designated as ordinary income for federal income tax purposes. Dividends, if any, paid by the Fund during the fiscal year ended December 31, 2004 which are not designated as capital gain distributions should be multiplied by 100% to arrive at the amount eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. - -------------------------------------------------------------------------------- PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (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 is 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 Fund's Form N-PX filing is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 30 | OPPENHEIMER MAIN STREET FUND/VA TRUSTEES AND OFFICERS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE; FUND, LENGTH OF SERVICE, AGE NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE INDEPENDENT TRUSTEES THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL. WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Creek Mortgage Company Chairman of the Board (since 1991), Centennial State Mortgage Company (since 1994), The El Paso Mortgage Company (since of Trustees (since 2003) 1993), Transland Financial Services, Inc. (since 1997); Chairman of the following private and Trustee (since 1999) companies: Great Frontier Insurance (insurance agency) (since 1995), Ambassador Media Age: 67 Corporation and Broadway Ventures (since 1984); a director of the following public companies: Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992) and UNUMProvident (insurance company) (since 1991). Mr. Armstrong is also a Director/Trustee of Campus Crusade for Christ and the Bradley Foundation. Formerly a director of the following: Storage Technology Corporation (a publicly-held computer equipment company) (1991-February 2003), and International Family Entertainment (television channel) (1992-1997), Frontier Real Estate, Inc. (residential real estate brokerage) (1994-1999), and Frontier Title (title insurance agency) (1995-June 1999); a U.S. Senator (January 1979-January 1991). Oversees 38 portfolios in the OppenheimerFunds complex. ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner of private equity Trustee (since 1993) funds) (until February 2001); Chairman, President and Chief Executive Officer of A.G. Edwards Age: 73 Capital, Inc. (until March 2000); Vice Chairman and Director of A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards & Sons, Inc. (its brokerage company subsidiary) (until March 1999); Chairman of A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor) (until March 1999); and a Director (until March 2000) of A.G. Edwards & Sons and A.G. Edwards Trust Company. Oversees 38 portfolios in the OppenheimerFunds complex. GEORGE C. BOWEN, Formerly Assistant Secretary and a director (December 1991-April 1999) of Centennial Asset Trustee (since 1999) Management Corporation; President, Treasurer and a director (June 1989-April 1999) of Centennial Age: 68 Capital Corporation; Chief Executive Officer and a director of MultiSource Services, Inc. (March 1996-April 1999). Until April 1999 Mr. Bowen held several positions in subsidiary or affiliated companies of the Manager. Oversees 38 portfolios in the OppenheimerFunds complex. EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon, George Washington's home (since June 2000). Formerly Trustee (since 1999) Director (March 2001-May 2002) of Genetic ID, Inc. and its subsidiaries (a privately held biotech Age: 66 company); a partner (July 1974-June 1999) with PricewaterhouseCoopers LLP (an accounting firm); and Chairman (July 1994-June 1998) of Price Waterhouse LLP Global Investment Management Industry Services Group. Oversees 38 portfolios in the OppenheimerFunds complex. JON S. FOSSEL, Director (since February 1998) of Rocky Mountain Elk Foundation (a not-for-profit foundation); a Trustee (since 1990) director (since 1997) of Putnam Lovell Finance (finance company); a director (since June 2002) of Age: 63 UNUMProvident (an insurance company). Formerly a director (October 1999-October 2003) of P.R. Pharmaceuticals (a privately held company); Chairman and a director (until October 1996) and President and Chief Executive Officer (until October 1995) of the Manager; President, Chief Executive Officer and a director (until October 1995) of Oppenheimer Acquisition Corp., Shareholders Services Inc. and Shareholder Financial Services, Inc. Oversees 38 portfolios in the OppenheimerFunds complex. SAM FREEDMAN, Director of Colorado Uplift (a non-profit charity) (since September 1984). Formerly (until Trustee (since 1996) October 1994) Mr. Freedman held several positions in subsidiary or affiliated companies of the Age: 64 Manager. Oversees 38 portfolios in the OppenheimerFunds complex.
31 | OPPENHEIMER MAIN STREET FUND/VA TRUSTEES AND OFFICERS Unaudited / Continued - -------------------------------------------------------------------------------- BEVERLY L. HAMILTON, Trustee of Monterey International Studies (an educational organization) (since February 2000); a Trustee (since 2002) director of The California Endowment (a philanthropic organization) (since April 2002) and of Age: 58 Community Hospital of Monterey Peninsula (educational organization) (since February 2002); a director of America Funds Emerging Markets Growth Fund (since October 1991) (an investment company); an advisor to Credit Suisse First Boston's Sprout venture capital unit. Mrs. Hamilton also is a member of the investment committees of the Rockefeller Foundation and of the University of Michigan. Formerly, Trustee of MassMutual Institutional Funds (open-end investment company) (1996-May 2004); a director of MML Series Investment Fund (April 1989-May 2004) and MML Services (April 1987-May 2004) (investment companies); member of the investment committee (2000-2003) of Hartford Hospital; an advisor (2000-2003) to Unilever (Holland)'s pension fund; and President (February 1991-April 2000) of ARCO Investment Management Company. Oversees 37 portfolios in the OppenheimerFunds complex. ROBERT J. MALONE, Chairman, Chief Executive Officer and Director of Steele Street State Bank (a commercial banking Trustee (since 2002) entity) (since August 2003); director of Colorado UpLIFT (a non-profit organization) (since Age: 60 1986); trustee (since 2000) of the Gallagher Family Foundation (non-profit organization). Formerly, Chairman of U.S. Bank-Colorado (a subsidiary of U.S. Bancorp and formerly Colorado National Bank,) (July 1996-April 1, 1999), a director of: Commercial Assets, Inc. (a REIT) (1993-2000), Jones Knowledge, Inc. (a privately held company) (2001-July 2004) and U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004). Oversees 37 portfolios in the OppenheimerFunds complex. F. WILLIAM MARSHALL, JR., Trustee of MassMutual Institutional Funds (since 1996) and MML Series Investment Fund (since Trustee (since 2000) 1987) (both open-end investment companies) and the Springfield Library and Museum Association Age: 62 (since 1995) (museums) and the Community Music School of Springfield (music school) (since 1996); Trustee (since 1987), Chairman of the Board (since 2003) and Chairman of the investment committee (since 1994) for the Worcester Polytech Institute (private university); and President and Treasurer (since January 1999) of the SIS Fund (a private not for profit charitable fund). Formerly, member of the investment committee of the Community Foundation of Western Massachusetts (1998 - 2003); Chairman (January 1999-July 1999) of SIS & Family Bank, F.S.B. (formerly SIS Bank) (commercial bank); and Executive Vice President (January 1999-July 1999) of Peoples Heritage Financial Group, Inc. (commercial bank). Oversees 38 portfolios in the OppenheimerFunds complex. - -------------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, AND OFFICER 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR REMOVAL. JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President (since September President and Trustee 2000) of the Manager; President and a director or trustee of other Oppenheimer funds; President (since 2001) and a director (since July 2001) of Oppenheimer Acquisition Corp. (the Manager's parent holding Age: 55 company) and of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager); President and a director (since July 2001) of OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a director of the following investment advisory subsidiaries of the Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management Corporation, Trinity Investment Management Corporation and Tremont Capital Management, Inc. (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc.; Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company (the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a holding company that owns the shares of Babson Capital Management LLC); a member of the Investment Company Institute's Board of Governors (elected to serve from October 3, 2003 through September 30, 2006). Formerly, Chief Operating Officer (September 2000- June 2001) of the Manager; President and trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 62 portfolios as Trustee/Director and 21 additional portfolios as Officer in the OppenheimerFunds complex.
32 | OPPENHEIMER MAIN STREET FUND/VA - -------------------------------------------------------------------------------------------------------------------------------- OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MESSRS. MONOYIOS, REINGANUM, AND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008, FOR MESSRS. VANDEHEY AND WIXTED 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL TERM OR UNTIL HIS OR HER EARLIER RESIGNATION, DEATH OR REMOVAL. NIKOLAOS D. MONOYIOS, Senior Vice President of the Manager since October 2003; a Certified Financial Analyst. Formerly Vice President and Vice President of the Manager (April 1998-September 2003). An officer of 6 portfolios in the Portfolio Manager OppenheimerFunds complex. (since 1999) Age: 55 DR. MARC REINGANUM, Vice President of the Manager since September 2002; a Director of Quantitative Research and Vice President and Portfolio Strategist for Equities; an officer of 3 portfolios in the OppenheimerFunds complex. Portfolio Manager Formerly the Mary Jo Vaughn Rauscher Chair in Financial Investments at Southern Methodist (since 2003) University since 1995. At Southern Methodist University he also served as the Director of the Age: 51 Finance Institute, Chairman of the Finance Department, President of the Faculty at the Cox School of Business and member of the Board of Trustee Investment Committee. BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer of HarbourView Treasurer (since 1999) Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Age: 45 Oppenheimer Real Asset Management Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999), of OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), of OFI Institutional Asset Management, Inc. (since November 2000), and of OppenheimerFunds Legacy Program (a Colorado non-profit corporation) (since June 2003); Treasurer and Chief Financial Officer (since May 2000) of OFI Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp. Formerly Assistant Treasurer of Centennial Asset Management Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer (March 1995-March 1999) at Bankers Trust Company-Mutual Fund Services Division. An officer of 83 portfolios in the OppenheimerFunds complex. ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since February 2002) of the Vice President and Manager; General Counsel and a director (since November 2001) of the Distributor; General Counsel Secretary (since 2001) (since November 2001) of Centennial Asset Management Corporation; Senior Vice President and Age: 56 General Counsel (since November 2001) of HarbourView Asset Management Corporation; Secretary and General Counsel (since November 2001) of Oppenheimer Acquisition Corp.; Assistant Secretary and a director (since October 1997) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and a director (since November 2001) of Oppenheimer Partnership Holdings, Inc.; a director (since November 2001) of Oppenheimer Real Asset Management, Inc.; Senior Vice President, General Counsel and a director (since November 2001) of Shareholder Financial Services, Inc., Shareholder Services, Inc., OFI Private Investments, Inc. and OFI Trust Company; Vice President (since November 2001) of OppenheimerFunds Legacy Program; Senior Vice President and General Counsel (since November 2001) of OFI Institutional Asset Management, Inc.; a director (since June 2003) of OppenheimerFunds (Asia) Limited. Formerly Senior Vice President (May 1985-December 2003), Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001); and OppenheimerFunds International Ltd. (October 1997-November 2001). An officer of 83 portfolios in the OppenheimerFunds complex. MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of the Manager; Vice Vice President and President (since June 1983) of OppenheimerFunds Distributor, Inc., Centennial Asset Management Chief Compliance Officer Corporation and Shareholder Services, Inc. Formerly (until February 2004) Vice President and (since 2004) Director of Internal Audit of OppenheimerFunds, Inc. An officer of 83 portfolios in the Age: 54 OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE, UPON REQUEST, BY CALLING 1.800.981.2871. 33 | OPPENHEIMER MAIN STREET FUND/VA ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the registrant has determined that Edward L. Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a member of the Board's Audit Committee, possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Messrs. Cameron and Bowen as the Audit Committee's financial experts. Messrs. Cameron and Bowen are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES (a) Audit Fees The principal accountant for the audit of the registrant's annual financial statements billed $17,000 in fiscal 2004 and $15,500 in fiscal 2003. (b) Audit-Related Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees to the registrant during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed no such fees in fiscal 2004 and $35,859 in fiscal 2003 to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such fees include: internal control reviews. (c) Tax Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees to the registrant during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed no such fees in fiscal 2004 and $5,548 in fiscal 2003 to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. Such fees include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities. (d) All Other Fees The principal accountant for the audit of the registrant's annual financial statements billed no such fees to the registrant during the last two fiscal years. The principal accountant for the audit of the registrant's annual financial statements billed no such fees during the last two fiscal years to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. (e) (1) During its regularly scheduled periodic meetings, the registrant's audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant. The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting. Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit. (2) 100% (f) Not applicable as less than 50%. (g) The principal accountant for the audit of the registrant's annual financial statements billed no such fees in fiscal 2004 and $41,407 in fiscal 2003 to the registrant and the registrant's investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934. (h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal account's independence. No such services were rendered. ITEM 5. NOT APPLICABLE ITEM 6. SCHEDULE OF INVESTMENTS Not applicable ITEM 7. NOT APPLICABLE ITEM 8. NOT APPLICABLE ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The registrant's Board of Trustees has established a Governance Committee, one function of which is to create and oversee the process by which shareholders can submit nominees for positions on the Board. The Governance Committee has not yet adopted a charter, but anticipates that it will do so by the end of this calendar year. The Committee has temporarily adopted the process previously adopted by the Audit Committee regarding shareholder submission of nominees for board positions. Shareholders may submit names of individuals, accompanied by complete and properly supported resumes, for the Governance Committee's consideration by mailing such information to the Committee in care of the Fund. The Committee may consider such persons at such time as it meets to consider possible nominees. The Committee, however, reserves solo discretion to determine the candidates for trustees and independent trustees to recommend to the Board and/or shareholders and may identify candidates other than those submitted by Shareholders. The Committee may, but need not, consider the advice and recommendation of the Manager and its affiliates in selecting nominees. The full Board elects new trustees except for those instances when a shareholder vote is required. Shareholders who desire to communicate with the Board should address correspondence to the Board of Trustees of the registrant, or to an individual Trustee c/o the Secretary of the Fund at 6803 South Tucson Way, Centennial, Colorado 80112 and may submit their correspondence electronically at WWW.OPPENHEIMERFUNDS.COM under the caption "contact us." If your correspondence is intended for a particular Trustee, please indicate the name of the Trustee for whom it is intended. The sender should indicate in the address whether it is intended for the entire board, the Independent Trustees as group, or to an individual Trustee. The Governance Committee will consider if a different process should be recommended to the Board. ITEM 10. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of December 31, 2004, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to provide reasonable assurances 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 changes in registrant's internal controls over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT APPLICABLE TO SEMIANNUAL REPORTS) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.CODE ETH 2 ra650_12032ex99codeeth.txt RA650_12032EX99CODEETH.TXT EX-99.CODE ETH CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE OPPENHEIMER FUNDS AND OF OPPENHEIMERFUNDS, INC. This Code of Ethics for Principal Executive and Senior Financial Officers (referred to in this document as the "Code") has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as "OFI") acts as investment adviser (individually, a "Fund" and collectively, the "Funds"), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406. This Code applies to each Fund's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Covered Officers"). A listing of positions currently within the ambit of Covered Officers is attached as EXHIBIT A. 1 1. PURPOSE OF THE CODE This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; o compliance with applicable governmental laws, rules and regulations; o the prompt internal reporting of violations of this Code to the Code Administrator identified below; and o accountability for adherence to this Code. In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Fund's financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds' business and affairs in an honest and ethical manner. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. - ---------- 1 The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by the Oppenheimer Funds dated May 15, 2002, under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI's fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds. 2. PROHIBITIONS The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders. No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders. No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations. No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund: (i) employ any device, scheme or artifice to defraud a Fund or its shareholders; (ii) intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; (iv) engage in any manipulative practice with respect to any Fund; (v) use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; (vi) intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; (vii) intentionally mislead or omit to provide material information to the Fund's independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; (viii) fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; (ix) retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or (x) fails to acknowledge or certify compliance with this Code if requested to do so. 3. REPORTS OF CONFLICTS OF INTERESTS If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer's reasonable belief, the appearance of one, he or she must immediately report the matter to the Code's Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI's Chief Executive Officer. Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund's Board of Trustees/Directors. 4. WAIVERS Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund. In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver: : (i) is prohibited by this Code; (ii) is consistent with honest and ethical conduct; and (iii) will result in a conflict of interest between the Covered Officer's personal and professional obligations to a Fund. In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund's Board of Trustees/Directors. 5. REPORTING REQUIREMENTS (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code. (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto. (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser. (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments. (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code. (f) Any changes to or waivers of this Code, including "implicit" waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules. 2 6. ANNUAL RENEWAL At least annually, the Board of Trustees/Directors of each Fund shall review the Code and determine whether any amendments (including any amendments that may be recommended by OFI or the Fund's legal counsel) are necessary or desirable, and shall consider whether to renew and/or amend the Code. 7. SANCTIONS Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI. 8. ADMINISTRATION AND CONSTRUCTION (a) The administration of this Code of Ethics shall be the responsibility of OFI's General Counsel or his designee as the "Code Administrator" of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. (b) The duties of such Code Administrator will include: (i) Continuous maintenance of a current list of the names of all Covered Officers; (ii) Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; (iii) Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; (iv) Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; (v) Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the affected Fund(s) or any committee appointed by them to deal with such information; and (vi) Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator - ---------- 2 An "implicit waiver" is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, an executive officer of the Fund or OFI. shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. 9. REQUIRED RECORDS The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred): (a) A copy of any Code which has been in effect during the period; (b) A record of any violation of any such Code and of any action taken as a result of such violation, during the period; (c) A copy of each annual report pursuant to the Code made by a Covered Officer during the period; (d) A copy of each report made by the Code Administrator pursuant to this Code during the period; (e) A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; (f) A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and (g) A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. 10. AMENDMENTS AND MODIFICATIONS This Code may not be amended or modified except by an amendment in writing which is approved or ratified by OFI and by a majority vote of the Independent Trustees/Directors of each of the applicable Funds. 11. CONFIDENTIALITY. This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process. Dated as of: June 25, 2003 Adopted by Board I of the Oppenheimer Funds June 13, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by Board IV of the Oppenheimer Funds May 21, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Secretary Adopted by the Boards of Directors of OppenheimerFunds, Inc. and its subsidiaries and affiliates that act as investment adviser to the Oppenheimer or Centennial funds June 1, 2003 /S/ ROBERT G. ZACK - ------------------ Robert G. Zack, Senior Vice President and General Counsel EXHIBIT A POSITIONS COVERED BY THIS CODE OF ETHICS FOR SENIOR OFFICERS EACH OPPENHEIMER OR CENTENNIAL FUND Principal Executive Officer Principal Financial Officer Treasurer Assistant Treasurer PERSONNEL OF OFI WHO BY VIRTUE OF THEIR JOBS PERFORM CRITICAL FINANCIAL AND ACCOUNTING FUNCTIONS FOR OFI ON BEHALF OF A FUND, INCLUDING: Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting EX-99.CERT 3 ra650_12032ex99cert.txt RA650_12032EX99CERT.TXT 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 Main Street 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying 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 control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 2/8/05 /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 Main Street 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying 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 control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 2/8/05 /s/ Brian W. Wixted ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 4 ra650_12032ex906cert.txt RA650_12032EX906CERT.TXT EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 JOHN V. MURPHY, Chief Executive Officer, and BRIAN W. WIXTED, Chief Financial Officer, of Oppenheimer Main Street 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 December 31, 2004 (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 Main Street Fund/VA Oppenheimer Main Street Fund/VA /s/ John V. Murphy /s/ Brian W. Wixted - ---------------------------- ---------------------------- John V. Murphy Brian W. Wixted Date: 2/8/05 Date: 2/8/05 -----END PRIVACY-ENHANCED MESSAGE-----